it is a group project and for this week my part is (Accounting and Finance) and here is what should the Accounting and Finance have
1 Purpose of Financial Documents
- Demonstration to possible investors
- Provide a measure to actual results
- Risk evaluation
- 2 Types of Financial Documents
- Personal Financial Statement
- Sources and Uses of Funds
- Proforma Cash Flow Statement
- Income Statement
- Balance Sheet
- Common Size Financial Statement
- Three-year Income Projection
- Break-Even Analysis
- Financial Statement Analysis• Liquidity Analysis
• Profitability Analysis
• Debt Measures
• Investment Measures (ROA and ROI)
here’s our project
Current Products/ Service problem to solve: Jan-Pro Cleaning and Disinfecting provides service to facilities using advanced technologies.
- Problem Characteristics: With the continued COVID-19 pandemic, Jan-Pro Cleaning and Disinfecting provides business owners of all kinds of cleaning service and safety measures to help maintain a safe environment for tenants, employees and customers.
- Problem effects on stakeholders: The stakeholders and franchise owners are earning about 55% lower than the national average.
- Why is it important: It is an affordable product to provide services but little to no benefits in being a stakeholder.
- Uniqueness: During this unprecedented time, Jan-Pro Cleaning and Disinfecting offers service to go beyond regular janitorial cleaning for business according to the protocols by the CDC. The people who provide the cleaning services are owner-operators, which means they deal with everything for the client.
- Niche: They have up to date cleaning products and technologies, with strict cleaning standards.
- High/Low Cost: Jan-Pro also has a patent on their disinfectant, as well as a satisfaction guarantee, which clients find appealing.
- Distribution Channel of product/service: They have a wide range of distribution channels, such as auto dealerships, business offices, daycare centers/preschools, banks, warehouses, medical facilities, restaurants, and universities. The rate of service depends upon a few factors but typically ranges from 0.05 to 0.15 cents a square foot. In a more accurate sense, a smaller office is about $600 a month while a larger office ranges from $3000 to $5000 a month depending on the services required.
- Industry History
- Jan-pro Company operates in a commercial cleaning industry that is a financial contributor to many if the right process is taken into consideration.
- The cleaning industry works well in overpopulated areas.
- Being close to the vital market proximity ensures that every company within that business enjoys the opportunities that deal with commercial cleaning.
Jan-Pro Cleaning and Disinfecting major competitors
Allied Facility Care
- The company is well known in Fort Worth and Dallas, where it is known for providing commercial cleaning services to the community for over twenty-five years.
- Its mission is to offer the best services to its customers and requires them to pay significant attention to what has made the company successful but not just their facility needs.
- Allied Facility Care strength is the experienced services in commercial office cleaning, janitorial cleaning services, commercial cleaning services, restraint cleaning, floor cleaning, all of which is done traditionally.
- The major weakness of the company is the lack of diversification. The company only concentrates on traditional cleaning methods, and its primary market is only in two areas.
Strategies and niche
- The company is well equipped with a variety of specialists. This becomes one of the most acceptable company choices for commercial, janitorial, and green cleaning clients.
- In addition to those in need of office assistance cleaning and in-depth floor cleaning, the recommended specialists help the floor look new and turn around the office appearance.
- Jani-King International Company is among the best commercial cleaning companies in the world. The company has over one hundred and twenty support offices that are located in ten countries.
- Throughout the international network of at least 7500 franchisees, the company offers an excellent commercial cleaning program to different types of clients who range from manufacturing facilities, restaurants, universities, sporting venues, hotels, hospitals and buildings.
- The strengths of the company are the primary service experienced which they have practiced for decades.
- In addition to the decades, they understand what their franchise wants and try to provide them.
- Furthermore, the company paid significant attention to training, support, and opportunities, which acted as a significant factor in its success.
- The major weakness that exists is the communication gap between the company and the client.
- Since there are over 7500 franchisees, it becomes complicated to communicate with the organization since it is difficult to know which will respond.
Strategies and niche
- The strategies that the company is using is franchising.
- It has managed to franchise its services to over seven thousand units meaning that its brand is well known in more than ten countries.
- Since it wants to maintain its reputable brand, it offers training, support, and opportunities to the franchisee to meet the customers’ demand.
Pro-Clean Janitorial Services
- Pro clean janitorial company is one of the leading facilities that provides facility maintenance and commercial cleaning services.
- The organization is known for its premier expertise for all janitorial, commercial offices and buildings, infrastructures, property maintenance and restaurants cleaning.
- Premier expertise for all janitorial, commercial offices and buildings, infrastructures, property maintenance and restaurants clean.
- The major weakness is that the company has not taken diversification of clientele. Its only focus is on Toronto and its environs.
Strategies and Niche
- Utilization of skills helps in maximizing its reputable brand and get recognized by clients all over Toronto.
B. Product History
- The company uses a different kind of products to exercise its cleaning services. One of the primary products is the colour code.
- The company has adapted the product since it was processed in the 1990s by the British Institute of Cleaning (BICSc). The aim of choosing this kind of product is because it has various environmental and health benefits that work well for the cleaning companies.
- The products have different colours, and they are used to clean various places which need soft scrubbing.
What Problem Does Product Solve
- The product helps contain the germs transfer from the surface that has been cleaned and from room to room. Since the products come in different types, each type of colour coded is used in a different place that can be contaminated.
Product Category Sales
- The items within the listed items in the inventory are colour coded depending on the stock’s existing level. The colour-coded products give the consumer a visual indication to identify when the stock is plentiful or at the same time low.
- Also, they help in the purchasing catalogue since they are often designed to give the users the potential to apply the said colour-coded products in different categories.
Market Share Trend
- Jan-pro is one of the best-known organizations in the world in the field of cleaning and disinfection. Since it does not operate in a monopoly market, it faces stiff competition from its competitors.
- In terms of market share globally, the company’s demand exceeds $160 billion annually, and it is expected to increase to $175billion in the next three years.
- Since the year 2012, the company has managed to grow its market share by 31.6% globally compared to its competitors, whose market share has increased by 24% on average.
C. Company History
- Jacques Lapointe established the Jan-pro company in the year 1991 in Providence, Rhode Island.
- The company started franchising in 1992, where it offered both single-unit and master unit franchises.
- Since then, the company has grown tremendously to at least ten thousand units in the United States of America and Canada. When the company was starting.
- One of the significant changes that the company has adopted is the protection of the customer’s personal information.
Mission and Vision Statement
- The company’s mission statement is “to help people realize their dreams of business ownership through service industry franchising”.
- The vision statement is “to continually innovate a reliable, best in class mentoring and support framework to help our franchisees and associates grow and prosper; and, to maintain a professional environment of integrity, trust and mutual respect that nurtures strong, lasting and mutual relationships within our network of owners and associates”.
D. Organizational plan
E. Leadership Styles
The organization uses transformational leadership skills to manage at least 10000 units. The leadership styles encourage, inspire, and motivate the franchisee to continue offering services to their clients and maintain the organization brand name.
F. Hiring Practices
- The company takes into considerations the resourcing strategy within human resource management to hire employees.
- The employee is hired based on their qualification at the right time and using the right process.
- Once hired, they undergo training to equip them with the necessary skills required to work in different sectors.
- Jan-Pro Cleaning & Disinfecting requires franchise owners to obtain extensive certification on brand standards, the latest technologies, branded programs, and the latest cleaning techniques.
- Equipment that are used are HEPA-rated vacuums, high-performance cloths and mops, and eco-friendly cleaning solutions.
- Jan-Pro Cleaning & Disinfecting enviroshield system is a system similar to the same system used to disinfect hospital operating rooms.
- Electrostatic sprayer and electric charge are tools to help disinfect surfaces and its finalize with a surface treatment that prevents bacteria and viruses from living on the surface.
- Extensive inspection checklists are used to measure its work, no spot, nook, or cranny is overlooked.
Primary Research Collection
- “A clean workplace is the right of each and every worker, and brands like Jan-Pro Cleaning & Disinfecting are proud to protect businesses of all kinds with our industry leading cleaning and disinfecting services.” – Gary Bauer, President of Jan Pro System International.
- “Now more than ever before it is paramount that business owners have a cleaning and disinfecting plan in place to keep their employees and customers safe from COVID-19, the common cold, and the fue.” -Gary Bauer, President of Jan Pro System International
- The commercial cleaning brand culture is built on trust, reliability and excellence in cleaning.
- Jan-Pro provides recommendations for business owners and employees tips to follow.
- Jan-Pro provides services to many facilities like healthcare, school, auto dealerships, banks & financial institutions, business offices, daycare centers & preschools, Fitness centers.
Survey data collection and analysis
- Due to Covid-19 pandemic, businesses of all institutions have reached out to Jan-Pro Cleaning & Disinfecting to provide services to keep employees, customers and tenants safe.
- The pandemic has given Jan-Pro opportunities to expand into new communities including Tallahassee, FL,; Valdosta, GA; Dothan, AL; Knoxville TN; Mobile, AL; Salem, OR; and Dove, DE.
Customer purchase data
- Database analysis enables a company to personalize their marketing campaign. Jan-Pro collects personal information about the following sources:
- Contact information Jan-Pro receives from the site, such as name, address, phone number and email address.
- Information that is submitted to jan-Pro including inquiries and questions.
- Information about transactions and experiences with Jan-Pro when responding to surveys or feedback.
- Information as part of the franchise application process, including financial information, employment and educational background, and demographic information.
- All franchise owners can manage online, along with user friendly websites for clients.
- They carry up to date equipment as well as patented cleaner for their machinery.
- Largest commercial cleaning franchise brand in the country.
- Help business owners of all kinds by providing cleaning safety measures to help create a safe environment for tenants, employees, and customers.
- Technology available to disinfect businesses and facilities of all kinds.
- Cleaning companies are in high demand with the reopening of establishments and Jan-Pro Cleaning does not have many locations.
- The pandemic demands extra supplies and measures for the safety for employees, this will increase the cost in supplies.
- The pandemic has caused a demand in cleaning companies, increasing competition.
- The global contract cleaning service market is expected to grow at a compound annual growth rate of 6.1% from 2020 to 2027.
- Cost of supplies increase
- Shortage of supplies due to demand of cleaning supplies
- Regulation of increase in pay for employees, hazardous pay.
Total Market Size: According to Yahoo Finance (2021), the Jan-Pro Cleaning and Disinfecting can be considered the largest commercial cleaning franchise. It boasts of at least 8000 small business owners that serve approximately 35000 customers.
Target Market Trends
The revenue for professional cleaning services is projected to grow by at least 6% between 2021 and 2026 (Business Wire, 2021). One of the main factors that facilitate such huge growth is the introduction of green cleaning technology. Jan-Pro is one of the companies that use various sustainable washing agents. The washing agents contain natural solutions and cleaners with harmless organic ingredients. The green products have natural and plant-based components that promote the demand for eco-friendly services. Also, with the Covid-19 pandemic, Jan-Pro began to experience a high demand of its Covid-19 solutions in 2020.
Market Potentials and Future Forecast
Jan-Pro is among the top cleaning franchises with significant potentials. Firstly, the customers are shifting to green cleaning services (Business Wire, 2021). Therefore, there is an increase in demand of the services that is likely to extend into the future. Another potential involves the use of robotic and other forms of automated cleaners. With such cleaners, the efficiency of work increases, thereby expanding various channels for growth. Also, the outbreak of Covid-19 pandemic is more of an opportunity to this firm. The country gave guidelines regarding a need for higher hygiene standards in various social and working environments. The standards means that the company is likely to get more customers to offer cleaning services. Again, floor care, window care, and restroom cleaning services heavily depend on the use of conventional equipment and chemicals; therefore, the market is expanding the market for these services. The green technology puts Jan-Pro and other providers of professional cleaning services in the best positions to generate a growing revenue of at least $4 billion (Business Wire).
Demographic Market Segments
Age and History
Since its establishment in 1991, Jan-Pro has served various employees of different ages and gender. According to Yahoo Finance (2021), the president OF Jan-Pro International said that all the employees and customers are interested in knowing how their leaders and local businesses are trying to ensure their safety during the pandemic. Therefore, the company targets all ages and genders equally.
The company does not put much emphasis on the marital status of the customers. It focuses on ensuring that the surrounding of the customers is as clean and safe as it should be. For families, it provides carpet cleaning services. The services are charged equally across all families without any special considerations.
Jan-Pro have few cases where it charges higher for its services. Depending on the income, the company works to ensure that the low income earners are favored by their statuses. It has region-specific charges for various services.
According to Report Linker (2020), North-East U.S. prefer flexible workspaces and sustainable IT infrastructure. The leading areas with lucrative markets are Boston, Massachusetts, and New Hampshire. Therefore, geographically, any firm offering professional cleaning services may consider the following key areas: North-East U.S., Mid-West U.S., West U.S., and South U.S.
Segmentation by Type
The professional cleaning services can have the following segments to reach a wider market:
·Shop floor cleaning
·Public areas cleaning
Segmentation by Application
Jan-Pro may segment its market in terms of the services and the scale of services as follows:
Psychographic Consumer Behavior
- Personal Activities – The low cost of being a local franchise owner of commercial cleaning equipment.
- Time Spent – As a consumer, they want to spend as little time as possible managing the service. Instead of being an hourly employee, one is contracted to clean a wide scope of businesses.
- As a consumer, they want to look for the type of service, how it is going to be provided, what kind of worker will be providing the service, and what is unique about the Jan-Pro cleaning service.
Media and Communication Used
- They use traditional use such as having an online website, online advertisements, and sponsorships.
- Jan-Pro also uses social media pages to sponsor their franchise ownership.
Local, state, national or international laws or policies that will impact organizational operations including any:
Environmental regulatory issues:
- Environmental services like janitorial, cleaning workers do not need special precautions beyond regular protection against regular hazards they encounter during routine job tasks.
- Various combinations of engineering and administrative controls, safe work practices, and PPE may be appropriate for environmental services workers, depending on employers’ hazard and risk assessments.
- Ensure that areas being cleaned have proper ventilation, including by increasing air changes per hour and air circulation before and during cleaning tasks, and especially if workers need to access contaminated areas during the 24 hours the CDC and OSHA recommend waiting between time of contamination and when cleaning activities take place.
- Licenses and permits include federal tax ID number, business license, fide code permit, hazardous materials disclosure permit, state EPA identification number, and state registration form for employers.
- California Property Service Workers Protection Act enacted in 2016 has a number of rules aimed at protecting janitorial employees.
Community Engagement Plan
- The top competitors of Jan-Pro Cleaning are Cleaning Authority, Gershman Enterprises Inc, The Maids, MaidPro, Molly Maid and Maid Brigade.
Issues of Ethics or Corporate Social Responsibility that could impact organizational operations
Impact on product
Currently, for a business to survive economically, being ethical and socially responsible is part of the process. Companies should take into consideration social issues so as to build a brand that the consumers can respect. Jan-Pro companies can employ several ways in making sure that they meet a good branding.
Jan-Pro company deals with cleaning and disinfecting products and services. They can make it part of their duty to use eco-friendly cleaning solutions. As much as they are adopting some of the technologies they should make sure that they embrace zero pollution to the environment. The company can make arrangements in which they recycle all their packages that they use in the products. Jan-Pro companies can make it a duty for them to collect the wastes and take them back to the manufacturing industry for reuse. This approach will have made the company be part of the community which is a good marketing approach to the company and hence their services will be demanded the most by customers.
Diversity Management Plan
Jan-Pro is known to be the largest company that provides cleaning services. On top of this, the company applies the latest technology in the way they deliver their services. Since they have the application of technology, they can collaborate with other big companies in helping other communities in third world countries through technology. The cleaning services can be at subsidized prices or even free depending on the situation. This aspect will help the company gain more success in developing continued innovation. In this manner, the company will be making progress in having other operational offices in other countries. At the moment it does not have many locations and using the technological approach, they can end up having several locations all over.
Social Equity issues
Jan-Pro is a well-established company serving the community for 25 years with a good network. As well, it has its own human resources where they manage the employees. The best thing that the company does to be relevant socially is to make sure that while employing, they consider any race or gender. More emphasis should even be placed on encouraging women and people with disabilities to apply for positions. In this manner, the company will have good terms with the communities and in turn make a great success with the goal of the company.
Jan-Pro cleaning & Disinfecting stresses the Importance of Keeping Businesses Safe This Fall and Winter Virus Season ( 2020, October 6). Retrieved March 6, 2021.
Jan-Pro Cleaning & Disinfecting sees Record Year in Revenue as a Demand for Commercial Cleaning Services Rapidly Increases. (2021, February 15). Yahoo! Money. Retrieved March 7, 2021.https://money.yahoo.com/jan-pro-cleaning-disinfect…
Jan-Pro Cleaning & Disinfecting. Retrieved March 7, 2021. https://jan-pro.com/policy/
Part 4 Reference
Contract Cleaning Service Market Size, Shares & Trends Analysis Report By Service Type. (2020, September). Retrieved March 21,2021. https://www.grandviewresearch.com/industry-analysi….
Adroit, A. (2021). “Global Industrial Cleaning Services Market 2025: Coverall, Jani-King, Jan-Pro, OCS, The Cleaning Services Group, JPM Cleaning, Vanguard Cleaning Systems, ServiceMaster Clean, Anago Cleaning Systems.” NeighborWebSJ. https://neighborwebsj.com/coronavirus/4963927/glob…
Anonymous (2021). “Jan-Pro Cleaning & Disinfecting Sees Record Year in Revenue as Demand for Commercial Cleaning Services Rapidly Increases.” Yahoo Finance. https://finance.yahoo.com/news/jan-pro-cleaning-di…
Anonymous (2021). “Unites States Professional Cleaning Services Market (2021 to 2026) – Industry Outlook and Forecast – ResearchAndMarkets.com.” https://www.businesswire.com/news/home/20210104005…
Report Linker (2020). “The U.S. professional cleaning services market by revenue is expected to grow at a CAGR of over 6% during the period 2021–2026.” https://www.globenewswire.com/news-release/2020/12…
Reference Part 5
Environmental Services Workers and Employers (n.d) United Stated Department of Labor . Retrieved April 11, 2021, from https://www.osha.gov/coronavirus/control-preventio…
Steingold, D.M. (n.d). NOLO. Retrieved April, 11, 2021, from https://www.nolo.com/legal-encyclopedia/starting-c…
I have uploaded an example for what you are going to do