[Monti Cleaning]
Business Plan
Business Plan template 1
Business Plan Summary 3
The Business 3
The Market 3
The Future 4
The Finances 4
The Business 5
Business details 5
Registration details 5
Business premises 5
Organisation chart 5
Management & ownership 6
Key personnel 6
Products/services 7
Unique Selling point.7
Anticipated demand8
Risk management 8
Operations 8
The Market 9
Market research 9
Market targets 9
Environmental/industry analysis 10
S.W.O.T. analysis 11
Advertising & sales 12
The Future 13
Vision statement 13
Mission statement 13
Goals/objectives 13
Action plan 14
The Finances 14
Key objectives & financial review 14
Start-up costs for [YEAR] 15
Balance sheet forecast 16
Profit and loss forecast 17
Expected cash flow 17
Break-even analysis 18
Supporting documentation 19
Business Plan Summary
The business of Residential cleaning service is selected because of its demand in Jeddah and other parts of the Kingdom of Saudi Arabia. The business of residential cleaning services is very successful in this region because people have the resources to avail such facilities. In addition to it,tThe demand of these services are so high that the service providers choose their own customers and serve according to their choice. The business does not require a huge start-up capital and can also be started from home or garage. The business plan discussed below is in an office to make it look more professional. The investment is less and the profit margin is high. There is a chance of expanding the business easily within five years in other states and the company can also start providing other services.
The Business
Business name: Monti Cleaning Services.
Business structure: Sole Trader.
ABN: 123 2324 2562
Business location: Alkomra, 60 St, Jeddah, Saudi Arabia
Business owner(s):
Relevant owner experience: Worked in cleaning services for six months.
Products/services: House cleaning services.
The Market
Target market:
Monti Cleaning Service focuses on two social-economic groups of the upper class. In the first group, one spouse works and the other does remaining at home does not prefer cleaning. The families that fall under this category with an annual income of $90,000 is the target market. The second target audience is the two income family with an annual income of over $70,000. Both the segments of the target market will prefer our services because they can afford our services and are in need of such services.
Marketing strategy:
The company will market its products mostly through Television advertisements. After running the advertisements the company will enter the market by a grand opening of the office which will help the customers realize that the business has commenced. The company intends to attract the customers by giving a message of cleaning and relaxing, where the customers relax and get the cleaning done at affordable prices. It will work because little marketing is sufficient in this business to attract customers.
The Future
Vision statement:
The vision of Monti Cleaning Services is to become leading cleaning service providers in Saudi Arabia. We promise to work hard to build lifelong relationships with our respected customers. Our strategy is dedication and providing satisfaction to the customers through our work and make continuous improvements.
Goals/objectives:
Monti Cleaning Service has three main goals for the coming three years.
Increase in the number of employees by 20% every year.
Develop a sustainable service business.
The Finances
[The company intends to make around $80,000 in three years. The Start-up cost required for this business is $15,000. The owner will provide the capital for the business and there will be no borrowing from outside sources.
The Business
Business details
Products/services: Residential Cleaning Services
Registration details
Business name: Monti Cleaning Service
Trading name(s): Monti Cleaning Service
Business structure: Sole Trader
ABN: 123 2324 2562
ACN: ---
GST: ---
Domain names: ---
Licences & permits: ---
Business premises
Business location: The business will be located at Alkomra, 60 St., Jeddah, Saudi Arabia. The size of the area is 800 square feet.
Buy/lease: The property will be rented at $8400 annually.
Organisation chart
The owner of the business will supervise the work of the management. The management will supervise the work of the staff under them and report all the activities to the owner of the business.
Figure 1: Organisation Chart.
Management & ownership
Details of management & ownership: As the owner will be running the business and will hire all the staff. The plan of working and the services provided to the customers will be decided by the owner of the business. The owner will also supervise the work of the Marketing Manager and the Operations Manager.
Experience: The owner have worked as an operations manager at a cleaning service company that provided services to the offices.
Key personnel
Current staff
Recruitment options
Recruitment of the staff has been done based upon their experience and qualifications. The jobs were posted at the local newspaper to find the best candidates for the job.
Training Programs
Training of Inspection officers will be done according to the standards of the company to ensure good quality of work.
Skill Retention Strategies
The certificate of standard cleaning inspection in Saudi Arabia, of the inspection officer will be sufficient proof to ensure the skills of the staff. The responsibilities are documented by the owner and the upper management and communicated to the staff verbally as well as through emails. Continuous research and development will help the company to maintain their standards and skills of the staff up-to-date.
Products/services
Market position: The services of the company is for a high-end market. There are a few competitors of the company in the market but none exclusively focuses on mouse cleaning.
Unique selling position
The only unique selling point for the company is its inspection services. The inspection services assure quality which gives the company an edge over the competitors.
Anticipated demand: The anticipated demand for the services are 5 customers in the first month and 30 customers (at least 15 loyal customers) before the end of the first year.
Pricing strategy:
The pricing strategy of the company differs depending upon the number of rooms that are to be cleaned.
$180 (1-6 rooms)
$200 (7-8 rooms)
$250 (8-12 rooms)
Value to customer: The customers views the services of the company as both necessity and luxury because the work is a necessity and as only upper class can afford it therefore, it is also luxury.
Growth potential: It is assumed that the business of the company will grow at an average rate of 10% every year.
Innovation
Research & development (R&D))/ innovation activities
R&D activities to adopt the innovative technology in the business will be implemented. The company will invest 15% of the net profit every year in these activities.
Intellectual property strategy
All the innovative plans will be protected through patents. Currently, the company has no patents and confidentiality agreement.
Insurance
Workers Compensation
According to the rules of the government, the employer will contribute 2% of the employee’s salary in the worker compensation fund.
Public Liability Insurance
The company does not have any public liability of insurance.
Professional Indemnity
The company have no professional indemnity insurance but plans for it after one year.
Product liability
The company have no product liability insurance.
Business assets
As there is no law for compulsory insurance of vehicles therefore, there is no business asset insurance.
Business Revenue
There are no business revenue insurance facilities available in the company.
Risk management
Legal considerations
The legal considerations that can have an impact on the business are minimum wage, age of the workers, license for labour and cleaning equipment. The company also focuses on business and labour laws.
Operations
Production process
The process of cleaning the entire house is the only service the company currently provides. Other operations are dealt by the office staff and management that includes dealing with customers and marketing the services.
Suppliers
The cleaning supplies are purchased from local stores.
Plant & equipment
Inventory
Technology (Software): The Company requires a mobile application so that the customers can avail the services easily through their smart phone. An accounting software is also required to make entries of the services given and the salaries of the staff.
Trading hours: Saturday to Thursday. 10am to 8pm. He expected peak trading hour of the business are 11am to 3pm especially on Saturday to Monday.
Communication channels: The communication channel used between the company and the customers include telephone (mobile), email, and social media.
Payment types accepted: The payment is accepted through cash and credit cards only.
Credit policy: According to the policy of the company there is no credit facility for customers.
Warranties & refunds: No warranties and claims can be made because of the nature of the business.
Quality control: The work done by the cleaning staff (labour) is inspected by the inspection officer of the company. The inspection officer will ensure that the quality of the work in maintained throughout.
Memberships & affiliations: The business is not a member of any particular industry nor does it has any affiliations with other organizations.
Sustainability plan
Environmental/resource impacts
The nature of the business does not have a negative impact on the environment. The company has a policy to dispose the dirt properly after cleaning. The practices of the company also forbids its labour from wasting water.
Community impact & engagement
The community will not be affected because there is no environmental impact of such businesses
Risks/constraints
No environmental impact
Strategies
There is no impact therefore, no strategies. Still the company plans to reduce the consumption of water while providing the services.
Action plan
The Market
Market research
The market research conducted before the commencement of the business was carried out by identifying the number of people with high income. The information related to the average income in Jeddah was extracted through websites like PayScale and Arab news . In addition to it, the owner of the business has a relevant experience in the fields and is aware of some the customer that will purchase the services of the company .
Market targets
Monti Cleaning Service focuses on two social-economic groups of the upper class. In the first group, one spouse works and the other does remaining at home does not prefer cleaning. The families that fall under this category with an annual income of $90,000 is the target market. The second target audience is the two income family with an annual income of over $70,000. Both the segments of the target market will prefer our services because they can afford our services and are in need of such services.
Monti Cleaning Service plans to target this market because such people appreciate such services and are willing to pay if the service provided immaculate. Bu professionalism, reliability, and trustworthiness these customers become loyal and therefore, the company is able to make life long customers .
Environmental/industry analysis
The services of residential cleaning caters a niche market and is a subset of a cleaning services. The market research identifies that the company can have many customers because the there are few services providers as compared to the demand of such services. Generally, it is noticed that the service providers have the option to choose the customers and has long customer waiting list. There are no seasonal variations which allows the business to be profitable throughout. In addition to it, the growth in the customers is also observed because of a comparatively stable economy of the company .
Customer demographics
Both the segments of the target market are not defined through their gender. Anyone who has the ability to afford the services can avail this opportunity. The expected age of the target market is above 35 but younger customers can also avail the services. The target audience of the company has an elite social status and belongs to the upper class of the society.
Key customers
The key customers will be the business tycoons and owners of other small businesses. These people are the main focus of the company because in case of an economic recession, these customers will still have the purchasing power and will avail the services provided by the company. The working class is also the target but there is a threat that they might not avail the services in economic recession.
Customer management
The customer management is the key to success for the business. It is necessary for the company to maintain good relations with the customers and for that purpose the work done by the cleaning staff will be inspected by an employee of the company. It will high quality of services that is sufficient to make customers loyal to the services. Good quality and timely services are the only techniques that will be used by the company to make sure that the customers’ comeback to them .
S.W.O.T. analysis
As it is a new business therefore, the company is below all of its competitors. All the competitors are stable and have a reputable place in the market. The company can provide high quality services to gain a market share.
Competitor details
Advertising & sales
Advertising & promotional strategy
Sales & marketing objectives
The entire sales and marketing team is dependent on two persons who will manage the entire marketing and sales strategies of the company. As it is a small business therefore, limited employees are sufficient for the marketing. After one year, the marketing staff will be increased.
Unique selling position
The only unique selling point for the company is its inspection services. The inspection services assure quality which gives the company an edge over the competitors.
Sales & distribution channels
The Future
Vision statement
The vision of Monti Cleaning Services is to become leading cleaning service providers in Saudi Arabia. We promise to work hard to build lifelong relationships with our respected customers. Our strategy is dedication and providing satisfaction to the customers through our work and make continuous improvements.
Mission statement
The mission of Monti Cleaning Services is to provide residential cleaning services in a professional and trustworthy manner. Focusing on attracting and maintaining customers by providing services that exceeds their expectation.
Goals/objectives
Monti Cleaning Service has three main goals for the coming three years.
Increase in the number of employees by 20% every year.
Develop a sustainable service business.
Some of the long term goals of the company includes
Other Cleaning services like Office cleaning, garden cleaning, etc.
Expanding the business in other cities of the country.
Action plan
The Finances
Key objectives & financial review
Financial objectives
The main financial objective of the firm is to earn a minimum profit of $25,000 in the first years.
Finance required
The start-up capital required is around $15,000 and it will be invested by the owner of the company. No outside source will be to generate funds.
Start-up costs for 2017
Balance sheet forecast
Profit and loss forecast
Expected cash flow
Break-even analysis
Supporting documentation
List of References
Haddad, M., 2013. Saudi annual income one of the highest in region. [Online] Available at: <http://www.arabnews.com/news/448197> [Accessed April 2016].
Lamb, C., Hair, J. & McDaniel, C., 2011. Essentials of Marketing. Mason: Cengage Learning.
Malshe, A. & Agarwal, M. K., 2015. From Finance to Marketing: The Impact of Financial Leverage on Customer Satisfaction. Journal of Marketing, 79(5), pp. 21-38.
Mercer, D., 1998. Marketing Strategy: The Challenge of the External Environment. Thousand Oaks: SAGE Publications.
PayScale, 2016. Jeddah City Salary, Average Salary. [Online] Available at: <http://www.payscale.com/research/SA/Location=Jeddah/Salary>[Accessed April 2016].
Peter, J. P. & Donnelly, J. H., 2013. Marketing Management: Knowledge and skills. New York: McGraw-Hill.
Reynolds, P. & Lancaste, G., 2013. Marketing. London: Routledge.
Wiid, J. & Diggines, C., 2010. Marketing Research. Claremont: Juta and Company Ltd.
Wirtz, J., 2012. Essentials of Services Marketing. Upper Saddle River: FT Press.
