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Table of Contents
Executive Summary ……………………………………………………………………………. 4
Marketing ……………………………………………………………………………………….. 8
Service …………………………………………………………………………... 8
Pricing …………………………………………………………………………... 8
Competition ……………………………………………………………………...9
Threats ………………………………………………………………………….10
Demand …………………………………………………………………………11
Place …………………………………………………………………………….12
Promotion ……………………………………………………………………....14
Cost ……………………………………………………………………………..14
Location ……………………………………………………………………….. 14
Equipment …………………………………………………………………….. 15
Staffing ………………………………………………………………………………… 18
Organizational Structure …………………………………………………………….. 18
Personal Policies ………………………………………………………………………. 19
Compensation …………………………………………………………………………. 19
Evaluation ……………………………………………………………………………... 20
Workers Compensation ………………………………………………………………. 21
Viability …………………………………………………………………………………………31
Recession ………………………………………………………………………..32
Customers ……………………………………………………………………....33
Exceeding Demand ……………………………………………………………..33
Appendix ………………………………………………………………………………………..35
Bibliography …………………………………………………………………………………….37
Bubble Company Inc. will provide window cleaning services for the window cleaning
needs of low rise residential, commercial and retail buildings in the city of Toronto and its
surrounding areas. Our services also include cleaning eaves troughs. We use top quality, bio-
degradable, environmentally friendly cleaning products to clean windows of all sizes and offer
packages and discounts to our loyal and valued customers. Our main objective is to provide a
clean, shiny and sparkling look to your home or office windows and in turn providing the
Marketing
Our company offers services that include interior and exterior window cleaning as well as
skylight and storm window cleaning. Eaves trough cleaning is also a service that we provide for
our customers since it is recommended that homes clean their eaves up to two times per year.
Our price ranges from $60 - $200 from small to large homes and buildings. The prices generally
range with the amount of windows that need to be cleaned. Our peak seasons for business are
early spring to early fall and we offer discounts during the winter in order to sustain our business.
We are a relatively new company that targets residential homes and commercial real estate as
they provide a basis for large service potential. The company serves the Greater Toronto Area
and will service outside areas but will take into effect the costs associated with the extra distance
Financial Highlights
Based on the size of our market and our defined market area, our sales projections for the
first year are $255,800, our total expenses will be $244,520 and a business tax rate of 16.5% all
combing for a total first year net income of $7,935.04. The salary for the majority owner will be
$25,000 plus 90% of net income with each of the minority owners receiving $25,000 and 5%
each of net income. We are seeking an operating line of credit of $10,000 to finance our first year
growth. To meet working capital requirements the owners have invested $30,000 in the venture
through a sensitivity analysis, that for residential customers the smaller the home, as the prices for
our service increase demand for our service also decreases while this is the opposite for larger
homes since many of these residential customers have extra cash to spare and will pay the extra
for the work to be performed at a higher level of quality. Commercial buildings are not as
sensitive to price changes as they need to hire window cleaners and are typically are charged
Operations
The head administration office is located near a major Toronto intersection and has direct
access among each route to all City of Toronto major highways. The office was provided by a
member of the owner’s family at no cost. Storage lockers are located at the bottom floor of the
building and will be used to store equipment and supplies. Depending on the location we need to
service, our location allows us to access Toronto and all its surrounding areas within an
approximate 5- 40 minute time period, considering smooth traffic flow. We will minimize our
current individual equipment and supplies purchases at under $1000. However, we will need to
purchase two Pick Up vehicles at an overall cost of $16,000 combined, paid in instalments of
$2000 per year and depreciating at $1600 per year. These vans will provide transportation for our
employees to and from work sites. Our jobs will vary in size and demand throughout the venture.
Initially we expect our employees to work 40 hours a week in the spring and summer season.
Human Resources
Contracted employees will receive an hourly wage of $10. To boost employee morale
the company will give $50 worth of gifts to supervisors and contract employees quarterly and
provide a company dinner to employees and their families with a budget of $30 per person once a
year. In order to deliver the best service satisfaction to our consumer, Bubble Cleaning Inc sets
basic qualifications to be met by our employees including experience in the window cleaning
industry, a valid drivers licence and a minimal fear of heights. Training will also be given to
water measurement for temperature and amount and ethics on customer service.
Management
The management of Bubble Company Inc. consists of three owners. All partners will be
taking individual hands-on management roles in the company. One is a majority owner and owns
a 90% stake in the company, serves as director and general manager and is responsible for the
accounting and financing of the business. The other two owners own 5% of the business
respectively. They are responsible for the supervision and management of employees, the
marketing and human resources. The majority owner has extensive experience in animal care
while Terry has worked in sales and marketing for 15 years. In addition, our company out sources
our tax accounting needs to H&R Block and reviews legal issues by contacting the City of
Toronto business services centre and researching the Occupational Health and Safety Code and
Supply a Neater, Cleaner and Pleasant Looking Environment for our customers
Vision:
Values:
Our Clients:
Respect the Individual and their Time
Our Employees:
Train in Areas that will enhance their Professionalism and Safety Knowledge
Our Community:
To Give Back to the Open Source Community with Time and Funds
MARKETING PLAN
It is essential for businesses and residents to maintain tidiness and cleanliness in their work
and home environment. For businesses a clean and tidy office attracts customers, upholds high
health standards and in turn helps generate profits. For residents a tidy and clean house allows it’s
inhabitants and guests to relax and also maintains good health standards for family members.
Window cleaning is highly essential for a clean looking atmosphere and is the main service at
Bubble Company Inc. Our services include interior and exterior window cleaning as well as
skylight and storm windows. In order to reduce the customer’s individual time and effort to
purchase equipments and cleaning chemicals, Bubble Company Inc. will clean your windows
quickly, leaving a nice sparkle and at a reasonable price. We offer window cleaning services to
retail, low-rise commercial and residential structures. Bubble Company Inc. also offers eaves
trough cleaning which is equally important for building maintenance and cleanliness as window
cleaning. This service will protect your family, friends, and clients from hazards associated with
unclean eaves and prevent an overflow of dirt and grub in which mosquitoes and birds build their
homes. It is recommended to clean your eaves a minimum of two times per a year.
Pricing
Residential window cleaning costs include: small houses from $60, medium houses from
$100, and large house from $200. For commercial and retail cleaning, customers need to call for
a free quote. The prices will vary in terms of the building size and the number of windows.
However, these services typically range from $60 to $200+. The prices for eaves trough cleaning
External Considerations:
White Shark Ltd. has been in the window cleaning business for about 18 years. They service the
Greater Toronto area and are located in downtown Toronto. The company offers four types of
window cleaning services. The first is the exterior only service which cleans the outside
windows without removing the windows or screens. The second is the 2-sided job which cleans
both sides. The third is the 3-sided job which brush’s screens, remove the storm dirt clean from
both sides and cleans the exterior windows. The fourth service is the 4-sided job which involves
removing the storm dirt clean from both sides of the screen and the window, brushing the screen
and replace the storm. White Shark also offers eaves cleaning, installation of downspout cage ($5
per a cage) and painting both interior and exterior. Customers must call in order to get a free
The company has offered service to residential, commercial and industrial clients since 1997 and
is located in downtown Toronto. They offer building maintenance such as office and floor
cleaning and pressure washing. For their window cleaning division, they offer services such
eaves cleaning, aluminum siding cleaning, and gutter guard installation. In addition, the other
service they offer is décor painting which includes color consultation, general painting and dry
wall installation. Their clients include Tim Horton’s, Volvo, Second Cup and Club Monaco. In
Paneless Perfection
in the Greater Toronto Area. The company places great emphasis on providing high quality
service based on their high quality workmanship. This involves customers inspecting their
workmanship for 48 hours to ensure they meet your approval. If not, they will provide touch up
for free during the 48 hr period. High quality service includes commitment which involves giving
the customer a 10% discount if they have not arrived within the 15 minutes of your appointment
and have not notified the customer in advance. Their clients include the Four Seasons Centre,
Mercedes-Benz Canada, and Toronto Star. Paneless Perfection’s prices for residential window
cleaning range from $149-$189+ for small to large houses. For eaves trough cleaning, Paneless
Perfection offers different cleaning packages ranging in price from $119-$349. They also offer
premium cleaning packages that include hand removal of all debris from eaves troughs and
Threats
Window cleaning and eaves trough cleaning are considered competitive business with price
range from $50 to $200+. In addition, most competitors have years of experience in this industry
before starting their own business. Most provide other maintenance services such as aluminum
side cleaning, office cleaning and post-construction window cleaning. In addition, most
competitors have started their own business for 5+years and have their own loyal customers.
Therefore, for Bubble Company Inc. to be competitive and in the same time provide good quality
service, we set our prices based on competitors’ prices but at a more reasonable level.
Competitors such as Skypole, LUSTRE, and Beaver Integrated Services offer power washing and
window cleaning services combined. This is a threat to Bubble Company Inc. since we do not
offer power washing services and customers in retail and commercial structures would prefer
several services at once at a lower price. The relative young age of our business will make it
years.
Demand
In terms of customer demand, Bubble Company Inc. has considered that demand for window
and eaves trough cleaning is at its peak during the spring and fall seasons. Also, because the
economy is encountering a recession, we predict demand for services will be low and customers’
alternative option will be to buy their own equipment to clean their own windows. In terms of
eaves trough cleaning, customers may stop cleaning it unless it is at a severe stage or they may
clean it once a year in order to save some money. Therefore, we do not want to set the price too
high or too low instead keep the price reasonable in order to reflect the quality of our service and
at an affordable rate. Bubble Company Inc. will offer discounts during the recession and during
the winter and summer seasons in order to attract more potential customers.
Internal Considerations:
Bubble Company Inc. is in the beginning stage of business and spending is therefore limited.
Based on the cost to deliver the service, the price range we set is should maintain a fair profit
during the beginning stage. In terms of the cost for our vehicles, Bubble Inc has decided to
purchase two used vehicles at $8000 each. We will search free local classified websites such as
Kijiji, Craigslist and autoHunter.ca to find the most affordable vehicles that we can use for about
1 to 2 years before deciding to buy a new one. For equipment and cleaners, we will use
biodegradable products and will buy it from Public Supplies Ltd and T&T Industrial Supplies Ltd
which provides janitorial maintenance, First Aid supplies, cleaners, gloves and ladders. Other
hardware stores such as Home Depot and Rona will provide supplies that Bubble Company Inc.
may need. For marketing objectives our target markets are businesses and residential homes and
on our production costs and marketing objectives the price range we set for our services will the
Place
Bubble Company Inc. will only service the Greater Toronto Area and may service other
locations, considering the type of job, the incremental payments and the distance. Issues of travel
time to and from the job, the customer location, the price of gas and traffic are all taken into
consideration. In order to minimize travel time, if we have jobs in Markham, Richmond Hill, and
other places not in the GTA area, we will do those first and will leave well before high traffic
times depending on the job and the driving distance. Otherwise, we will leave around 9 or 10am
when traffic is quite smooth. In terms of organizing employees, the maximum will be three
workers on a job depending on the building size. Each job will have a supervisor and one or two
employees. We only pay our employees per hour from the moment they set up their equipments
and start cleaning till the time they finish cleaning and put away their equipment.
Promotion
Target Markets
For commercial and retail buildings appearance is important in order to attract customers to
come in and eventually purchase products or services. Appearance also affects a customer’s first
maintain a professional image, businesses need someone to clean their windows frequently.
Another target market would be residential customers. Window cleaning is one of the many tasks
that people will do in order to keep their house clean. Homeowners would like to keep their
windows clean especially when inviting guests since you do not want to give guests the
and money to buy equipment and risk their lives climbing up a ladder to clean a window when
they know they can hire a professional to do it safely and quickly. Homeowners are willing to
hire people to do it so they can spend their time and money more efficiently. In addition, eaves
trough cleaning is essential for building maintenance for both businesses and residential
customers. Unclean eaves can affect your health and damage your building cause by overflow of
water. In terms of how it will affect your health, according to the Ontario Ministry of Health and
Long-Term Care, regular eaves cleaning are one of the ways in order to protect you, your family,
Media Used
Bubble Company Inc. will advertise through personal referrals and word of mouth such as
family, friends and the local community. If we are doing a job around in a certain area, we will
ask customers neighbours if they are interested in a free estimate to get their windows or eaves
cleaned or both. Bubble Company Inc. will also hand out flyers around neighbourhoods so
customers can call us when they or someone they know are interested in our service. We will
advertise on the web on Google and on business/classified websites and directories such as
Craigslist and Servpro( $15/mth) . In addition, we will also have online advertising on local
newspapers such as the Toronto Star, Metro, and 24 and in print on Metro and 24.
information about our services including contact information, price range, and areas of operation.
We also have an online estimate calculator so customers will know how much they many need to
spend for windows or eaves trough cleaning or both. In terms of sales promotion, we planning to
do a 10%-20% discount during the low peak seasons or a referral program which our customers
can get discounts for their next cleaning service only if the referral accepts our service. For the
discount.
Costs
During the first 6-12 months, Bubble Company Inc. will spend about $150/month in web
advertising and web design costs. For web advertising on Google and business directory
websites, it will be about $15 to $20/month. For Web advertising and in print on local newspaper
it will be about $20-$30/ month. If growth is still slow after the first 6-12 months we will
continue to spend $150+/month in order to pursue possible future profits and more exposure. In
order to gain profit during the low growth stage, Bubble Company Inc. will have web advertising
on more business directory websites and will continue to look for free local classified websites.
In addition, we may hand out flyers from door to door and go into people’s businesses to ask
OPERATING PLAN
Location
Dufferin and Finch Area. The office is cost free since the premise
cost; the second one may be rented for $60 per month. This office is Bubble Cleanings’
headquarters, from Dufferin and Finch we will be providing services to multiple cities in Ontario
(the specific cities are listed on our website www.b-u-b-b-l-e.com). The large warehouse for the
small business is not available at this formation expansion stage. An additional warehouse
moment and it is not a strong requirement for the venture’s survival. (The manufacturing facility
and any retail space are not available or needed.) The specific advantage is our location. From
our location we can easily access York Region and Toronto, Downtown area as well. We can get
access to highway 407, 400 or even 404 if we are to go further East on Finch. This location is a
strong competitive advantage for our business. When it comes to providing quotes for the jobs
and travelling around the city, our convenient location saves on fuel and time. The office provides
the opportunity for our clients to visit us when they require. Also, the company has a more
professional image.
Equipment
formation and the early expansion stage. This business has a strong advantage over
$47.50 each (12 ft). These extension poles allow us to wash windows that are higher than human
height. We also have extra long extensions for the poles, which are around $300 each and can
reach higher than 35 ft; they pay for themselves very quickly. The high reach technique will
allow us to take on buildings multiple stories high. This high reach advantage will assist in
windows from the ground. Bubble Cleaning does not have to spend money
on benches, ropes to do the job hanging loosely from the top of the
building. It is also not as safe and efficient as doing it from the ground.
Doing it from the ground with an extension pole is 3 times faster. Time is
money! We also save on this specific employee training requirement and accidents are less likely
to occur. The window washers also prefer to perform the job from the ground (some of them are
soap and water removers. Many of them can be found in your own home of your local Wal-Mart
or Home Depot. One pressure washer at $400 is also available to quickly spray the windows with
water. The equipment are chosen based on the ability to provide an efficient, quick and quality
service.
In regards to technological needs, the business does not need EDI or intranet. Our main
technological need comes from the general purpose equipment, communications; telephone,
personal computer, internet connection with access to company’s website and email for document
transfer and online customer communication. (Community stage) We will work with the regions
and communities to set priorities, giving particular attention to advertising within the
communities to assure our company is based on their needs. Our objective is to achieve a
customer satisfaction rating of 4.9 out of 5. Also, we will continue to build positive relationships
Our service procedure starts with a lead. In residential window cleaning, we begin by
choosing a neighbourhood. We select an area in a city (for example: some residential area in
Etobicoke). A sale of service is made by knocking on the door and offering a window cleaning
service. “Window cleaning is happening in the area, we can clean all your windows at a very
good price”. After a client agrees, window cleaning of their house will begin. Once the process is
complete, the client will receive an invoice and the options to pay. After the service completion,
we also provide the client with a business card for future business opportunities and reference.
Afterwards, we proceed with the same process to another house nearby. It saves us time
window cleaning, face-to-face sales contact. Although commercial window cleaning is a much
complicated process, the entrepreneur himself along with the supervisor/sales employees’ visits
plazas, commercial low rise buildings, their property managers. We also visit large retailers, such
different procedures in regards to contracting their services out to other companies. Sometimes
the job can be acquired from the internal source inside the store; a store manager will make a
decision in regards to contracting the job to us. However, many times it is a requirement to
contact the company’s head office to get that contract. Once the sale of the job is accomplished,
the next stage is to complete it. We will determine how to complete the job by estimating the
number of windows, the difficulty of the job (trees) and equipment. We will also determine
whether we need to rent a sky jack (a machine that works as lifting mechanism for our
employees).
We are aiming for full-time hours of operations (work) for our employees, especially
during this spring/summer season. The recent accounting estimate outlines that it is not very
efficient and slightly dangerous for the company to provide our employees with a complete full-
time (40 hrs/wk) work availability. The company does not have an ongoing, 8 hours per day
window cleaning contract for all of the associates. However, our jobs (contracts we will get) vary,
increase in size and will grow with the venture. Employees will benefit with a greater amount of
working hours provided and the flexibility of the part-time employment opportunity.
Our quality management program assures that our company provides the highest quality
window cleaning service on the market. We assure quality service by looking for; sparkling clean
windows, window frames should be cleaned and scrapped if needed, the glass should be rinsed
off with water after the shampooing of the window is complete. Once the customer receives an
invoice, we provide him/her with a small completion of the service questionnaire. The
questionnaire has some pretty basic questions which are extremely beneficial, important for our
business (customer satisfaction). The questions are ranked on the scale out of 5 (5 meaning the
highest) and 1 meaning the lowest (poor quality service). Some specific examples of the
questions are; Did you receive the service you expected? Where the window washers nice, polite
and professional?
Staffing
Bubble Company Inc. will hire two experienced employees as supervisors who will
report directly to the top management. The supervisors will work as a team of two people, each
job will be done by the individual team and each team will work for approximately 5 days a week
and 10 hours a day. Since the start up phase we expect small amounts of customers, for the first 4
months (January-April), our company will only hire 2 employees who will work as supervisors
and starting in May we will hire 2 contract employees to work until November since this is the
Organizational Structure
Stage 1: Owner
Bubble Company Inc. owners will be working as the top management which will
perform all the book keeping, marketing, human resource management and decision
making. The owner will also receive reports from supervisors about the performance of
workers and us the information to provide the employees and the company with
feedback.
Stage 2: Supervisors
Bubble Company Inc. will hire 2 experienced workers in the window cleaning
industry to work as supervisors. They will provide training for new employees, monitor
the work performed by the employees and control the desired quality, report to the top
Stage 3: Employees
with the supervisors and get direct training and feedback from the supervisors throughout
Recruitment
Bubble Company Inc. will post employee recruitment advertisements on reputable well
no referral bonus.
Skills/Attributes Required
In order to deliver the best service satisfaction to our consumer, Bubble Cleaning Inc sets
1. Window cleaning service experience is essential since we want to give the best,
position and we will ask for at least 1 year experience in the industry.
2. Minimal fear of heights is important since window cleaning may require employees to go
up a ladder to clean eaves through and windows or on the upper storey residential or
commercial buildings.
3. A valid driver’s license is imperative since we provide window cleaning services all over
the GTA area and employees must be able get to the site.
Training will also be given to new employees before they start working on site. This training will
1. Measuring the composition of chemical and water used to prevent from damaging the
window.
2. Deciding temperature of water used for cleaning to give the best result.
3. Ethics training to show our professionalism and respect our customer’s privacy.
Compensation
Bubble Company Inc. general manager will receive $40,000 and supervisors will receive
$35,000 of annual income. Additional 5% of profit sharing for each supervisor will be provided
to raise their incentive to maintain updated marketing research and keep output levels as low as
possible. This way they can receive higher profit sharing gains. The contracted employees will
receive an hourly wage of $10. To boost employee morale the company will give $50 worth of
and their families with a budget of $30 per person once a year.
Evaluation
Evaluation of employee job performance will be reported by the supervisors. For further
evaluation, the general manager will ask for feedback through questionnaire from the company’s
customers.
Workers Compensation
contributions to every pay check that will compensate the employee if they are unable to
perform there duties as a result of the injury. Most injuries result in several days off
work. These accidents are usually due to the misuse of a ladder or an error by the
operative. Misuse includes such activities as over-reaching, stepping off the ladder,
working from window sills and ledges with no safeguards, working from sloping roofs,
FINANCIAL PLAN
Accounting system
Bubble Cleaning Inc. does not hire any accountant. As a startup small-business company,
an assumption is made that the accounting process should not be complicated. In addition, Bubble
Cleaning Inc.’s owner is having bachelor degree in accounting and some experience becoming
accountant at a small business company. However, to deal with taxation issue, a tax accountant is
the strongest candidate to be Bubble Cleaning Inc’s tax accountant. The owner of Bubble
Cleaning Inc. does all the bookkeeping and financial statement. In addition, the owner does
internal-control every 3 months to recheck the cash-flow in the company and make sure that the
Before starting the business, a projected cash-flow statement is made to estimate the cash
needs of the business in months to come and a financial statement of Bubble Cleaning Inc.’s
owner is prepared. These preparations are used to build banking relationship before future needs
arise. However, the business record and personal record will be kept separately.
The business uses “QuickBooks” software and the journal is updated on a weekly basis.
The software can be linked with bank-account, so every time there is cash transaction from the
bank account, it can be automatically updated; therefore it makes the cash transaction becomes
easier to be tracked. Further, the company uses accrual method of accounting. Accrual method is
better than cash-basis method due to the nature of our business. There is no requirement for
customers to pay on the same day that the service is finished especially for low-commercial-
building; clients can pay after receiving the invoice. Using cash method of accounting can lead
Sales unit and dollar projection in low season and high season (see appendix)
Sales unit assumption: The business uses 4 employees throughout the year, during mid-
November up to Mid April, it is expected that the sales will be slowing down (30-50% of high
season sales). In addition, using printing and web advertising, the business will maximize the
experience in window cleaning business before, and understand the expectation of sales/year.
Start-up Cost
Capital Item
Janitoral Supplies
(inventory $ 5,000.00 janitorial maintenance, First Aid supplies, cleaners, gloves and ladders
Office renovation $ 5,000.00 changing carpet floor, painting, decoration, office desk, filing cabinet, etc
Pick-up (2) $ 2,000.00 first instalment
Consultant 1 (accountant) $ 1,500.00
Consultant 2 (lawyer) $ 2,000.00
Market research cost $ 1,000.00 printing cost, providing present to correspondent, transportation cost
Business License $ 300.00 incorporate our business
Total $ 16,800.00
Sensitivity Analysis
The data was drawn through a survey of 100 people. The survey included if they own a
small or medium or large house and if they will they use our service given a particular price. Due
to the difficulty in contacting a low-commercial-building manager, we are unable to not make any
70 80 80
75 70 60
S e rie s1
= -2 .8 x
y +2 7 3 .7 1
80 50 40
2
R = 0.9 4 9 6 Lin e a r(S e rie s1 )
20
85 25 0
90 15 -2 0 0 50 1 00 150
95 7
The tables and graphs conclude that small house owners are very sensitive with price change.
($) (rounded) 90
80
75 85 70
y =-1.4857x + 197.57
60
80 80 50
85 70
40
30
90 65 20
10
95 57 0
0 20 40 60 80 100 120
100 50 P ric e
105 40
Medium house owners are pretty sensitive with the price change as well, but the graph shows that
Price
120
($) Demand
100
90 100 y = -0.8048x + 175.01
80
95 97 R2 = 0.9265
demand
100 95 60
105 93 40
110 90 20
115 85 0
0 50 100 150
120 78
price
125 70
Large home owners are insensitive to the price change. From our previous survey; we know that
large home owners are more concerned with the quality of the service than the price.
Income Statement
Balance Sheet
Sources of Financing
Personal Sources
Bubble Cleaning Inc.’s owner makes initial investment of $30,000.00 from his personal
savings.
Commercial Banks
Bubble Company Inc. will borrow $10,000.00 from a commercial bank. All the owners
of Bubble Cleaning Inc. have a good credit history. The loan amount will be under $200,000.00
the “National Bank” and includes a 10 year period with a 5% interest-loan, compounded
annually. Bubble Cleaning Inc. chose National Bank as the lender because the bank offers a
product that is suitable with the company’s needs. The product’s name is “Business Flex Line of
Credit”. The company chose this product because the bank offers flexibility to access the funds
needed, interest is charged only on the portion used, and it is easy to apply for the loans. Annual
fee for business flex line of credit is $180.00. The interest rate for the loan is prime rate + 2% and
the period of the loan is 5 years and can be renewed if company meets the condition for renewal;
ORGANIZATIONAL FORM
Bubble Cleaning Inc. is incorporated because the owner wanted a business that would
have a legal existence independent from its owners and therefore the owners would not be held
personally liable for the debts of the corporation. This way the company would ensure the
advantage of limited liability, which is the major advantage of the corporate form of an
organization. Window cleaning can be a very high risk business considering many accidents can
happen to workers and in turn damage the property of our customers including ladder marks on a
customer’s lawn and accidental scratching of windows and sills. The owners do not want to be
personally responsible for any financial legal consequences as a result of these accidents. The
financial liability is limited to the amount of money the owners invest in the business. Creditors
cannot require the owners to pay for corporate debt with personal assets.
The number of workers employed by the business is five. The company operates under a
span of control in which the majority owner is the General Manager, Director and majority
shareholder. The company has two supervisors who are owners and report to the majority owner.
The two supervisors each act as operational managers and have an employee each working
underneath them. The majority owner serves as both the director and managing officer and
responsible for the marketing and human resources. The owners contact the local government
and research the Occupational Health and Safety Code and the Canada Small Business Service
Centre website to inquire about any laws affecting or that may affect business operations. The
company outsources our tax accounting to a local accounting firm. The name of the firm is H&R
Block.
Since Bubble Cleaning Inc. is considered a small corporation and our financial condition
may be shaky during our early years the bank has made us sign a promissory note that the owner
must assume personal liability of company’s debts. This is done by signing a personal guarantee
LEGAL ISSUES
Collections
Disputes over payments in which the customer refuses to pay can be avoided by ensuring
the customer signs a written agreement before our services our rendered, this way we have
appropriate screening process for individuals who apply. Since our business expands in the
summer and teenagers are out of school it is possible that they will search for a job with us and
lye about there age. Young men by their nature are prone to taking unnecessary risks and we will
Competition
Window cleaning is a competitive business and some cleaners try to undercut one another
in terms of pricing. This can lead to violence and abuse among competitors in the forms of
the Competition Act which include restricting the offering of incentives to customers who have
already had services by another contractor but not offering incentives for existing customers,
refusing to supply a service unless the customer purchases a future service and insisting on being
Tax Issues
The Canada Revenue Agency identifies different corporations for tax purposes. We have
to ensure we understand the certain rates and deductions that will apply to our corporation. The
Canada Revenue Agency publishes a T2 Corporation Income Tax Guide that distinguishes the
rules regarding tax payments for corporations. These include penalties and fines for late
payments, and it states that we have to pay income tax in monthly installments if our total taxes
payable under certain sections is more than $3000. Under Canadian tax Law we are considered
to be a private corporation since we meet the certain criteria including that we reside in Canada
and are not a public corporation or crown corporation. As well, federal corporate tax rates are
decreasing annually in Canada. We should expect to pay 18% starting January 2010, 16.5% in
2011 and 15% in 2012 with a zero corporate surtax. We should also expect to pay two provincial
rates including 5.5% for the federal small business deduction 14% for all other taxable income.
Business Licensing
out both the registered name and the customer’s name in all contracts, invoices, negotiable
instruments and orders involving goods or services issued or made by the customer.
We must ensure our corporations name is not similar to another since business that
suffers damages by reason of the registration of a name that is the same as or deceptively similar
to another business registered name is entitled to recover compensation from the registrant for
Licence Expiration
Personal Information
PIPEDA
We must ensure the protection of our customer’s right to privacy of personal information.
We are only allowed to collect, use or disclose personal information for legitimate business
purposes, we must obtain an individual's consent when collecting information assure the
customers that their information will be protected by specific safeguards including locked
Equipment Requirements
The Occupational Health and Safety act set strict regulations for window cleaning
businesses to ensure safe workplace and work practices. These regulations apply to employers,
including contractors and sub-contractors, who supply window cleaning services, to workers who
cleaning may fall a vertical distance of three metres or more. Workers who engage in window
cleaning shall wear or use personal protective clothing, equipment or devices that protect the
worker from the particular hazard to which the worker may be exposed. Every worker shall be
instructed and trained in the care and use of any protective clothing, equipment or device before
the worker wears or uses it. If a worker who is not working from a ladder is exposed to the
hazard of falling more than three metres, the worker shall use a fall arrest system that is
adequately secured to a fixed support and arranged so that the worker cannot fall freely for a
vertical distance of more than 1.5 meters. Failure to comply with these regulations may result in
Insurance
In our industry, accidents are possible and therefore it is essential that Bubble Inc have
workers have compensation insurance. According to the Government of Ontario, if you employ
workers it is mandatory that businesses like register with the Workplace Safety and Insurance
Board (WSIB). When a worker is injured, he or she must see a doctor and let the doctor know
that the injury is work related. The worker must tell the doctor a detailed incident on how the
injury is work related in order to have a medical report for workers’ compensation benefit. In
addition, the worker must complete a workers’ report of injury/disease form and employer must
complete one too. WSIB will decide the amount of compensation by looking at the worker’s
report of injury, medical report and employer’s report. Bubble Company Inc. employers will pay
Under the WSIB, depending on the injury/ illness, an employee will receive 85% of
his/her wage. They will receive health care costs, transportation costs to a doctor’s office/
therapy session, payment for pain and suffering and costs of living (if severely/ permanently
disabled). Bubble Inc’s employers will pay the worker’s full day of wages for the day he/she is
insurance, so workers will continue to work with us in the long term. Most importantly,
employees are the ones that provide high quality service to our customers therefore they deserve
VIABILITY
Bubble Cleaning Inc. is a new small business venture. After finalizing the
business plan and researching the marketing, operating, human resource, financial and
legal areas, it is concluded that the business will be viable for a long period of time.
There is a market demand for window cleaning for residential homes and low-
commercial buildings. The market research shows that there is lack of supply in Ontario
for window cleaning services; therefore, we are going to supply this service. Bubble
Cleaning Inc. is a small business utilizing a small amount of capital. The owner of
Bubble Cleaning Inc. will receive a considerably high rate of return. In conclusion, it is
believed that the window cleaning service business is a good opportunity business and
CONTINGENCY PLAN
Recession
Bubble Company Inc. may expect a very slow growth for about 1-2 years if public
economic growth decreases or stalls. Once we realize our customers are less willing to pay for
our services, we will lay off 1-2 workers and work less hours. In terms of area of operations, we
will mostly operate in the Greater Toronto Area. Areas outside of the GTA will be scheduled so
that particular area will be serviced in 1-2 days of a particular week or month. This way we can
reduce transportation costs. If our company is short of workers during that particular period, we
qualified workers. Also, it would be easier to work experienced and previous staff because our
supervisors know the worker and how they perform for the company. In order to raise our
awareness during these economic times, we would hand out fliers in residential and commercial
areas. Our company would go into each of the retails and restaurants of that particular area and
would briefly tell them what services we offer as well as giving them our fliers.
Customers
A crisis that Bubble Company Inc. would encounter is when a customer’s cheque
returned as a non-sufficient fund. We will then send Supervisors that had served this
customer to call and inform the customer of the faulty payment. The supervisor must
request cash, a certified cheque or money order. If the customer’s form of payment is a
certified cheque or money order, the supervisor will request it to be sent in the mail or if
we are servicing that area in the near future we will pick it up. Another common crisis
that any service businesses will encounter is complaints from customers. If our company
finishes the job and the customer complains about our work, the supervisor will ask what
the customer wants us to do. If the complaint is reasonable and Bubble Company Inc.
employees have inspected the workmanship, the crew will make additional touch ups at
no additional charge. If the customer only wants to lower the price based on the quality
of the workmanship the supervisor may lower the price. The amount the supervisor will
lower it must be less than the amount the customer would like to be lowered.
Exceeding Demand
available resource to answer it. The simplest way might be rejecting some of the request but by
rejecting the requests means a profit loss or even customer loss for our company. Instead of
rejecting it, Bubble Company Inc. will give discount coupons to customers for their next service
which can be used anytime afterwards. This helps to avoid our customers from going to other
competitors. Bubble Company Inc. chooses job agencies for hiring part time employees because
they can find someone that qualifies for the company’s employment criteria. This is based on
information of potential employees that these job agencies have in their archive which will aid in
a more effective and efficient to look for qualified employees if the situation is dire. Most
importantly, it saves Bubble Company Inc. time and money from training new part-time
employees. As Bubble Company Inc. hires more employees during high seasons, more vehicles
will be needed. The company will rent a vehicle instead of buying another one. This is due to the
fact that the extra vehicle will only be used during high seasons. Therefore, Bubble Company
Inc. will not have to pay the monthly insurance fee, amortization expense and car maintenance
expense when the vehicle is not needed after the high season.
Window cleaning services receive low demand from January to the 1st half of
April and from the 2nd half of November to December and high demand from the 2nd half
Low High
Season Days Season Days
November 15 April 15
December 31 May 31
January 31 June 30
February 28 July 31
March 31 August 31
April 15 September 30
Total 151 October 31
November 15
Total 214
From the total days we obtained numbers of 21.57 weeks for the low season and
30.714 weeks for the high season. With the consideration of holidays we acquired 20
weeks for the low season and 30 weeks for the high season which means Bubble
the low season and 3000 hours of work available (30 weeks * 5 days * 10 hours) during
the high season. Provided in the data below we assume our sales (service sold: service
We then computed the average of sales and concluded 48.33% for the low season
and 81.25% for high season. This means that from our available resource of 1000 hours
We then assume that Bubble Company Inc can acquire orders as seen in the table;
Number Hour
Small House 237 237
Medium House 440 660
Large House 470 940
Commercial
Building 100 600
Total 2437
Number Hour
Small House 43 43
Medium House 60 90
Large House 55 110
Commercial Building 40 240
Total 483
Government of Ontario. “Public Health: West Nile Virus (WNV)” 12 Jun 2006. Ontario
Ministry of Health & Long-Term Care
http://www.health.gov.on.ca/english/public/pub/pubhealth/west_nile/wnv_garden.html
(13 May 2009).