Porta Potty Business

Part
01
of three
Part
01

Portable Toilets

Key takeaways

  • The portable toilet rental business is expected to pick up as the effects of the coronavirus pandemic wear off.
  • An initial capital investment of approximately $160,000 is sufficient to start a portable toilet business in the United States.
  • From Satellite Industries' business plan, an ROI of 14% is achievable with proper management and effective planning.

Introduction

A business plan is a template around which any organization tailors its success. It helps in managing, running, and growing the business more efficiently.
A great business plan defines the objectives and goals of the company and outlines how to achieve them. At the very least, it explains who the company is, what it will do and how.

Overview

Depending on the nature of business a company wants to operate, a good business plan will typically cover the following segments:
• An overview of the company
• An identified problem(s) and potential solutions, meaning the company's products and services.
• A description of the target market (the ideal consumers: the problem the company intends to solve and the area).
• Execution plan (sales plan, marketing, operations).
• Financial plan

Examples of portable toilet business plans in the U.S.

(a) Satellite Industries Portable Toilet Business Plan

Overview of the company

Satellite Industries is a portable toilet manufacturer that "actively leads the industry by innovating and educating consumers on how to better market and sell portable toilet services." In addition, it offers guidelines on day-to-day operations and provides clients with practical tools for effectively managing their business.
For over 60 years, the Minneapolis-based company has been re-engineering their portable restrooms, restroom trucks and trailers, and deodorizers to last longer, be stronger, and user-friendly.
It offers a choice of two business plans: a 150 unit operation with a single truck driver plan and a 600 unit operation with 4 trucks/drivers. The two plans are based on a full start-up company and consider any expenses, including buildings, real estate, and all operational costs.

Business Plan: 150-unit operation

Basic figures

The number of weeks per year the cabins rented out = 41.6 (i.e., 52 weeks * 80%)
Number of days per week the cabins are rented out = 5
Number of cabins rented out per week = 150
Number of cabins serviced weekly = 30

A. Cabin calculation

Buying price per cabin = $771.75
Years for cabins to be written off = 8
Depreciation per cabin per year =$96.47
Interest rate from bank/leasing company per year = 5.00% $38.59
Maintenance and replacement costs per year 0.75% $5.79
Basic costs per cabin per year = $140.85
Total costs for all cabins per week = $507.84
Total costs per cabin per week = $3.38

B. Service Truck Calculations

Initial investment module = $13,179.73 MAL 450 with HP
Years before write-off = 8 years
Residual value = $1,317.90
Depreciation module per year =1,482.64
Initial investment truck = $32,057.10 (Mercedes Sprinter)
Years before write-off = 6
Residual value = $3,205.70
Depreciation per truck per year = $4,808.57
Interest costs truck + service module = $1,583.26 (3.50%)
Insurance costs truck + service = $2,612.06
Taxes truck + service module = $712.38
Maintenance costs truck service = $6,785.42
1 set of tires per year = $854.86
General costs per year = $12,547.39
Fuel price per liter = $1.60
Fuel consumption = 15
Annual kilometers = 50,000
Fuel costs per year = $12,021.41
Annual costs per service truck = $30,860.30
Number of trucks operating = 1
Total annual truck costs = $30,860.30
Number of working weeks per year = 52
Total vehicle costs per week = $593.47

C. Labor and Salaries

Number of drivers =1
Annual driver salary = $22,796.16
Payroll tax (35%) = $7,978.66
Annual employer’s insurance = 1,187.30
Annual wage costs driver = $31,962.12
Number of working weeks per year = 52
Total labor costs per week = $614.65
Number of office workers 0.5 (part-time)
Annual salary = $24,220.92 ($2,018*12)
Payroll tax (35%) = $8,477.32
Annual employer’s insurance = $593.65
Annual wage costs office = $16,645.95
Number of working weeks = 52
Total annual labor costs per office staff per week = $320.12

D. Consumables

Safe-T-Fresh liquid costs per liter = $14.25 (STF 6000 23L)
Used quality Safe-T-Fresh per cabin (ml) = 20
Total Safe-T-Fresh liquid costs per cabin = $0.28
Cabins serviced per day = 30
Total Safe-T-Fresh liquid costs per day = $8.55
Number of working days per week = 5
Total liquid costs per week (all cabins) = $42.74
Toilet paper costs per day = $0.13
Cabins serviced per day = 30
Working days per week = 5
Total toilet paper costs per week = $19.59
Cabana Spray per cabin, per week = $0.11 (10-15 sprays = 15ml)
Sanitizer dispenser + refill per cabin, per week = $0.036 (1600 uses/1L foam)
Waste water dumping costs = $36.52 per 1000L/1m³
Waste collected per unit per week = 80L
Waste water treatment costs per cabin, per week = $2.85
Fresh water costs = $5.94 per 1000L/1m³
Freshwater per unit per week = 50L $0.30 Including 19L charge and cleaning
Other costs per cabin per week = $0.00
Number of cabins serviced per week = 150
Total miscellaneous costs per cabin per week = $3.29
Total miscellaneous costs per week = $494.09

E. Office & Property Costs

Price of land (500 m²) ($1.1900/m²) per month = $593.65
Unheated warehouse (100m²) ($5.94/m²) per month = $593.65
Office space (50m²) ($8.31/m²) per month = $415.56
Utilities (electricity, heating, water, wastewater) per month = $237.46
Number of working weeks per year = 52
Total office & property costs per week = $434.69

F. Other Overheads

Tax, VAT, legal costs, insurance per year = $2374.60
Phones, stamps, fax per year = $2374.60
Marketing (decals, yellow pages, brochures) per year = $2374.60
Office supplies, equipment, IT per year = $1187.30
Number of working weeks per year = 52
Total overheads costs per week = $159.83

G. TOTAL

Turnover
Your rental price per cabin, per week = $29.68
Number of cabins rented out per week = 150
Total turnover per week = $4452.38
Total turnover per year = $185,218.80

Costs # of weeks per week per year

Total costs per cabin 52 $507.84 = $26407.93
Total vehicle costs 52 $593.47 = $30860.30
Total labor costs per operator / driver 52 $614.65 = $31962.12
Total labor costs per staff office 52 $320.12 = $16645.95
Total Safe-T-Fresh liquid costs 41.6 $42.74 = $1778.58
Total toilet paper costs per week 41.6 $19.59 = $814.49
Total miscellaneous costs 41.6 $494.09 = $20554.54
Total office & property costs 52 $424.69 = $22083.78
Total overheads costs 52 $159.83 = $8311.10
Total costs $3177.04 = $159418.77

H. NET PROFIT PER YEAR

= $25800.03
Return on Investment (ROI) = 14%

(b) Royal Flush Porta Potty

Business Plan

  • Royal Flush Porta Potty's business plan is anchored on its rental and service rates. These are as follows:

Construction sites

  • Porta Potty charges between $130 and $180 per month depending on the distance from its yard. This excludes a $50 delivery fee.

Special events

  • The company charges $180 for a single unit. It also offers discounted rates of $150 per unit if clients take more than two units for at least three days. The service fee includes delivery, chemicals, interior lighting, scent spray, two rolls of 2-ply toilet paper, clean-up service, and pick up.
  • For an additional $100, the company throws in a hand wash sink. Otherwise, the hand wash sink goes for $200 per month. This charge includes paper towels and a soap dispenser. Extra service calls are billed at $200.

Industry overview

  • There are over 3,500 portable toilet rental businesses in the United States employing some 10,500 people. This industry "generates an average of a billion dollars annually" and grew at a CAGR of 3.1 percent from 2012 to 2017.
  • The revenue is expected to continue on its upward trajectory as the housing market expands, thanks to a stabilizing economy. Further, as the country recovers from the debilitating effects of the COVID-19 pandemic, the demand for portable toilets is anticipated to rise commensurately as events proliferate.

Research strategy

One of the research requirements was to present a business plan for a portable toilet company operating in Las Vegas. However, this objective was not achievable despite the research team's spirited efforts because no such plan is publicly available. To make up for this gap, the research team provided a summary overview of the portable toilet rental industry in the United States to give the client a perspective of this niche segment.

Part
02
of three
Part
02

Portable Toilets Business Analysis

Key Takeaways

Introduction

This brief provides information on the largest companies in the portable toilets (porta-potty) industry that have operations in Nevada. For three of the largest companies identified, we have provided an overview of the company's portable toilet offerings. Some large companies in this industry have operations in all the US states.

Top Portable Toilet Firms, Las Vegas

ASAP Site Services

Zters

Las Vegas Toilet Rentals

Research Strategy

To identify the largest companies in the portable toilet industry that are headquartered or have a presence in Las Vegas, Nevada, your research team studied the information provided by companies that rank portable toilet companies in Las Vegas, including Yelp and the Real Yellow Pages. We picked three among the top-ranked companies and searched their websites, LinkedIn pages, and Facebook accounts to get information on their portable toilet services and used this information to prepare this brief.
Part
03
of three
Part
03

Portable Toilets Business Analysis (2)

Key Takeaways

  • Founded in 2009, Zters is a family-owned waste management business headquartered in Houston, Texas offering temporary rental services and commercial waste services. Temporary rental services include dumpster rentals, fencing, portable offices, portable toilets and storage containers.
  • Founded in 1987, ASAP Site Services is a full-service waste management company that provides commercial dumpsters for restaurants and retail locations, as well as roll-off construction dumpster rentals and portable sanitation rentals.
  • Las Vegas Toilet Rentals is a family-owned business founded in 1967 that provides toilet rentals for construction/home renovations, special events parties and trailer units.

Introduction

  • A competitive analysis for ASAP Site Services, Zters and Las Vegas Toilet Rentals have been provided in this research. Information provided include the companies products and services, clients, market positioning and competitive advantage.

ASAP Site Services

  • ASAP Site Services, a privately held company based in Columbia, Maryland, was founded in 1987 and is a full-service waste management company that provides commercial dumpsters for restaurants and retail locations, as well as roll-off construction dumpster rentals and portable sanitation rentals.

Products and Services

Portable Toilet Rentals

  • ASAP Site Services offers porta potty rentals and accessories like hand washing stations, hand sanitizers, and shower stations. Customers can place their orders online or over the phone.
  • The portable toilet features single-unit portable toilets, restroom trailers and shower trailers.
  • Prices for portal toilet ranges from $157.97-$177.97 for Standard Portable Toilet, $207.97-$227.97 for portable sink, $299.97 for ADA handicap toilet, $299.97 for portable toilet with sink and $299.97 for High Rise Portable Toilet.

Roll-Off Dumpster Rentals

Commercial Front Load Dumpster Rentals

  • ASAP Site Services offers commercial dumpster rentals and trash collection services throughout the United States. The commercial dumpsters are available in a range of sizes and require a one-year contract, billed at the listed price in 28-day periods.
  • 2-Yard Front Load Dumpster price ranges from $124.00-$249.00, $199.00-$324.00 for 4-Yard Front Load Dumpster, $274.00-$399.00 for 6-Yard Front Load Dumpster, $349.00-$474.00 for 8-Yard Front Load Dumpster, $349.00-$474.00 for 8-Yard Recycling Front Load Dumpster.

Bulk Hand Sanitizer

  • ASAP Site Services have FDA-compliant hand sanitizer products available for order.
  • The price ranges from $6,940 for 80% Ethanol 1,800 8oz Bottles, $3,276 for 80% Ethanol 72 1 Gallon Jugs, $7,980 for 80% Ethanol 180 1 Gallon Jugs, $12,960 for Isopropyl Based 1,440 16 fl oz Bottles, $1,999 for 80% Ethanol 55 gallon drum and $7,500 for 80% Ethanol 250 Gallon Tote.

Junk Removal Services

  • ASAP Site Services offers Large Item Removal, Standard Junk Removal, Vehicle Removal, Hot Tub Removal services.
    • ASAP Services junk removal services include standard junk and heavy materials which include trash, boxes, cardboard, yard trimmings, wood, and other general items not mentioned in other categories, while heavy/dense materials are substances like metal, tile, gravel, cement, brick, and sod. Standard junk and heavy material services price ranges from $630 for full truck, $544 for 3/4 truck, $454 for 1/2 truck and $362 for 1/4 truck.
    • Large items include furniture, mattresses, TVs, exercise equipment, and household appliances like washers and refrigerators. The company charges $50 for each item, along with a $150 pickup fee per visit.
    • Vehicle removal services price ranges from $220 for car, truck, semi or heavy equipment; $531-$1,480 for RV or trailer; $671-$1,480 for a boat.
    • Hot tub removal services cost $531.

Tent, Table and Chair Rentals

  • ASAP Site Services offers rental services for tent rentals for small to large events. For event tents, pricing is for a one-day rental while for construction or seasonal tent pricing is per 28 days.
  • Depending on the dimensions, tent rental prices range from $650-$6,400 for construction tents and $300-$2,400 for special events.
  • Table and chair rental services prices range from $45 per table for a 4-foot folding table, $60 per table for a 6-foot folding table, and $15 per chair for folding chairs.

Clients

Positioning

  • The use of cutting edge technologies in the industry it operates in has helped ASAP Services to efficiently and affordably bridge the gap between customers and the services they need.
  • The company prides itself in delivering a great customer experience.

Competitive Advantage

  • "ASAP Site Services has a commitment to quality that sets us apart, matched with today's best technologies for happy customers all around."
  • ASAP Site Services has decades of experience in providing and brokering services for construction projects, weddings, and other special events, as well as demolition and renovation projects.
  • The company claims to understand clients' needs and will connect them with the highest-quality products and services available in their area.
  • To enable providers to focus on providing the best services, ASAP handles all order processing and communications.

Zters

  • Founded in 2009, Zters is a family-owned waste management business headquartered in Houston, Texas. The company provides onsite solutions with top-rated dumpsters, toilets, temporary fencing, storage containers and portable offices for customers in the U.S.A.
  • The company has about 51-200 employees and annual revenue of $30 million.

Products and Services

  • Zters offers temporary rental services and commercial waste services.
  • Temporary rental services include dumpster rentals, fencing, portable offices, portable toilets and storage containers.
  • Pricing for Zters services varies depending on factors like state, size, local landfill fees, gas prices, and other factors. For example, dumpster rental service in Houston, Texas price ranges from $423 to $655 while it costs between $420 for a 10-yard dumpster and $701 for a 40-yard dumpster in Atlanta, Georgia.

Clients

  • Wayfair is one of Zters' clients.
  • The company clients include construction companies, project managers and event producers. It provides portable toilets for diverse functions including sporting events, weddings, concerts, festivals, construction projects, and outdoor parties.
  • Industries Zters serves are Commercial property management, multi-family, restaurants, distribution/warehouse, industrial, retail, media and building supply.

Positioning

  • Zters uses cutting-edge technology to find the best rentals at the best prices and does not require annual contracts.
  • Zters collects data using Compology camera technology to more precisely rightsize customers' waste service. By catching most contaminants before the container is serviced, the technology helps customers save up to 30% on costs and containment fees.
  • Contelligent Waste Technology is used by Zters to monitor fullness and alert them when a haul is required.

Competitive Advantage

  • Zters provides a personalized experience to customers by assigning an account manager to each of its customers to highlight the cost of service and provide all support required by the customer.
  • Provides clients with transparent pricing to protect them from hidden costs.
  • Provides specialized teams to assist clients with invoice management, as well as an online account management system that gives customers more control over their rentals.
  • Zters use of Contelligent Waste Technology helps companies track recycling volume and sustainability efforts, resulting in more efficient service schedules.

Las Vegas Toilet Rentals

  • Las Vegas Toilet Rentals is a family-owned business founded in 1967. The company serves the Las Vegas Valley and surrounding areas and is committed to providing high-quality products, exceptional service and reasonable prices.

Products and Services

Clients

Positioning

  • The company uses geo-tagged deliveries, GPS mapping, and monitoring technologies to ensure that customers receive timely and consistent service.

Competitive Advantage

  • Las Vegas Toilet Rentals cleans its rented toilets twice a week, and the company claims to have low prices with no extra fees for pick-up or delivery.
  • Customers' needs and satisfaction are said to be a top priority for the company. They are extremely responsive to customer needs and will quickly resolve any issues that arise.

Research Strategy

Information regarding major clients of the companies is not readily available in the public domain. Although the information on clients of the companies is available through a review of their customer reviews and success stories, these review do not include mention of any company as a client. After combing through their websites, press releases, mention on media sites, customer reviews on platforms like TrustPilot, Yelp; we could not provide information on the names of companies or organizations that are clients of the companies instead we have provided information on industries and type of customers the companies serve.
Sources
Sources

From Part 03