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Executive Summary

    • Carpet Chem Corporation (CCC) formulates, manufactures, and re-labels special high quality carpet and upholstery cleaning solutions for use by its network of franchises and customers nation-wide. We sell these products to these franchises, and provide them with specific support services, including marketing and technical support. Our products are developed, packaged, and sold out of our headquarters located in Salt Lake City, Utah.

  • Objectives

    • ·         To give CCC the market presence needed to support marketing and sales goals.

      ·         To continue to provide quality products and support to our franchises.

      ·         To develop consistent quality standards for our products and provide a guarantee to all those purchasing our products.

      ·         To continue research and development efforts to produce the best products on the market.


      ·         To grow sales to $25,000 monthly by the end of 1996, and $100,000 monthly by the end of 2000.

  • Mission

    • Carpet Chem Corporation is a support company dedicated to developing and selling the highest quality, and most productive, carpet solutions at competitive prices. We combined this with the best method of cleaning carpets known as The Carpet Chem Advanced Drycleaning System. We intend to make enough profit to generate a fair return for our investors, and to finance continued growth and development in a quality product. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, hard work, and unity.

  • Keys to Success

    • The keys to success in this business are:

      ·         Marketing: by dealing with channel problems and barriers to entry, or solving problems with major advertising and promoting budgets.

      ·         Product quality.


      ·         Management: products delivered on time, costs controlled, marketing budgets managed. There is a temptation to fixate to growth, at the expense of profits.

The Company

  • Company Information

    • Carpet Chem supports franchises, hospitals, hotels, schools, carpet cleaning companies and janitorial cleaning companies with proven methods of carpet cleaning and upholstery cleaning designed to help them provide quality service to their customers and facilities. Its customers are intelligent business people who want a practical and high quality method of cleaning carpets to accomplish their needs and/or their customer’s needs, with as little expenditure of time and money as possible. The company was incorporated in Utah in 1993, after twenty-two years of previous operation under different names.

  • Company Ownership

    • Carpet Chem Corporation is a privately held Utah corporation. Samantha Berns is the majority owner. Dave and Alex Berns are the other owners.

  • Company History

    • Carpet Chem Corporation (CCC) was incorporated on December 16, 1993 by Samantha, Dave, and Alex Berns. The corporation was formed by liquidating the assets of Builders Basics Cleaning (BBC), a predecessor of CCC. BBC operated two franchise programs, Carpet Chem Cleaning Corp. and Builders Basics Commercial Cleaning. Both franchise programs started between 1990 and 1992. Previous to this, Samantha and Dave had ownership in nine other commercial cleaning companies. Samantha and Dave started their own janitorial company in 1972 because they identified a needfor a quality cleaning company in a building where Dave was employed. After they started their business, they found that there was money to be made in the commercial cleaning industry. From 1972 until 1990, they operated commercial cleaning companies in several states with great success. During this time, one of the services that they offered was carpet cleaning. Many methods were tried, but none of them satisfied the owners or the customers. Finally, after much research, development, and trial and error, Alex Berns, their son, developed a carpet cleaning system that effectively satisfied their high standards for quality. This system cleans the entire fiber of the carpet without getting any moisture below the primary backing, dries quickly, and leaves no residue. This system was so incredible that they decided to franchise it nationwide. Today, this system is known as the Carpet Chem Total DryCleaning System.

      CCC provides high-quality solutions, equipment, and supplies, along with a complete support program for its franchisees. In July of 1995, Samantha and Dave recognized the success of the Carpet Chem System, as they reviewed the increasing list of satisfied customers. They introduced a new idea that will open up the Carpet Chem System to everyone, releasing it from franchise restrictions. Now, hospitals, hotels, schools, carpet cleaning companies, janitorial cleaning companies, and entrepreneurs can enjoy the benefits of a franchise without paying for one.

      The new program was researched using a survey during the beginning of September 1995. Recently, it has been marketed locally, and in the surrounding states of Utah, with great interest and success.

      Currently, there are 21 Carpet Chem franchises in 16 different states. As of November 1st, one hotel and one school district in Salt Lake City are using the new program, and many more clients have expressed interest in the program.


      The following table illustrates past performance over the last three years, including sales, gross margin, net revenue, and cash flow. The plan also includes financial statements for the last three years.

  • Products

    • The Carpet Chem products go through a series of testing and development to insure quality and to make sure they are safe for stain-resistant carpets. CCC performs tests similar to those used by Smithson flooring systems.

  • Company Locations and Facilities

    • Headquarters are located in office space of approximately 900 square feet and warehouse space of approximately 1200 square feet at 5 85 Linberg, Salt Lake City, Utah 84116.


      We have first rights of refusal for both office and warehouse space of equal size on each side of our current location for easy expansion. We already have all of the furniture and shelving needed to expand to twice our current size.

The Target Market

  • Market Analysis

    • We have researched the national market and found the following results:

      ·         96.4% of people would like to have their carpets dry within less than 1 hour of cleaning.

      ·         98.2% of people want a cleaning solution that removes stains during cleaning, eliminating prespraying.

      ·         94.5% of people want a toll-free number to answer technical questions about cleaning and spotting.

      ·         3.6% of people nationwide are currently acquainted with Carpet Chem.

      ·         58.2% of people want to see a free demonstration of Carpet Chem.

      ·         85.5% of people spend $0 - $500 on carpet cleaning in a month.

      ·         14.5% of people spend $500 - $1000 in a month,

      ·         0% spend over $1000 in a month.

      ·         78.2% of people currently use a wet carpet cleaning system.

      ·         9.1% of people currently use a dry carpet cleaning system.

      ·         10.9% of people currently use both wet and dry types of carpet cleaning systems.

      ·         52.7% of people would pay $ 100-$ 150 to learn how to be fully trained and certified on how to use Carpet Chem System.

      ·         3.6% of people would pay $ 150-$200 to become educated about the Carpet Chem System.


      According to our market research, conducted in 5 different areas of the United States with 25 different companies, there is a need for our services and products.

The Competition

  • Main Competitors

    • Our main competitors are other supply houses that are specific to the carpet cleaning industry.

  • Market Analysis

    • The chart below compares the percentage of each of our target markets. We are currently targeting carpet cleaning companies and janitorial cleaning companies because they have the most experience with cleaning carpets. We have had little success with hospitals, hotels, or schools.


      Analysis of Potential Market

      Potential Customers


      Growth rate

      Carpet Cleaning Companies



      Janitorial Cleaning Companies



      New Business Owners-Service Industry

















Marketing Outline & Sales Strategy

  • Marketing Strategy

    • We will attend trade shows and send advertisements to cleaning companies, offering them the same supplies, support, and solutions that we provide to our franchises.

  • Pricing Strategy

    • We have decided to offer prices a bit lower than the average to acquire new customers.

Management & Organization

  • Management Summary

    • Alex Jenkins, President of CCC, has several years of experience in management. His objective is to provide a comfortable work environment.

  • Organizational Structure

    • Dave and Samantha Berns consult with Alex on many decisions. Alex then organizes them, delegates them, and carries on the day-to-day operations.

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