The potential market for Cofield Cleaning Service is 210 households in the hometown area based on her research. The average target customer is 35 to 65 years of age and earns $45,000 or more annually. There are three competitors serving the area. Cofield’s competitive advantage is that it can attract customers with a more personalized, professional cleaning that is “Satisfaction Guaranteed. ” Organization Plan This business is a sole proprietorship with no employees. The owner will manage the finances and perform the work.
Nature of the Business Cofield Cleaning Service is an insured, residential cleaning service.
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It offers cleaning service tailored to its customers’ needs. Most customers will likely request weekly cleaning. There is also a need to offer in-depth cleaning on an as-needed basis.
- History of the Business
- None - this is a start-up business.
- Legal Structure of the Business
- Sole proprietorship, Sally Sparkle, proprietor.
- Past Work Experience
- The owner has five years of experience as an employee for Merry Maids, Inc.
- Reasons the Business Will Succeed
- The belief that the business will succeed is based on the proprietor’s
- Knowledge, experience, and determination to succeed.
Marketing Plan Services
Services provided include cleaning of floors, windows, cabinets, dishes, laundry, and furniture, and watering of houseplants. This service will save the customer time and energy of doing the work. The customer has the benefit of enjoying a clean and attractive home. The customer also has extra leisure time for entertaining guests, enjoying hobbies, or any other activities. Start-up money will be used for a vacuum cleaner, cleaning supplies, hand-held vacuum, buckets, rags and other miscellaneous supplies. See attached list and bids for equipment. Cofield’s Cleaning Service will provide cleaning supplies used.
Ten homes cleaned weekly per month will cost approximately $80 per month (total) for cleaning supplies, which will be purchased from mass merchandisers such as Wal-Mart in Hometown. Driving to and from these homes will cost approximately $30 per month. Cleaning ten homes will take approximately 40 hours per week with an average cleaning time of four hours. In the next two years, Cofield Cleaning Service will expand its services to commercial customers and will hire employees to meet the new demand. Distribution Services will be directly supplied to the end-users in their homes.
There are many new, larger homes being built in the area. According to the city’s building permits issued each year:
- 18 homes of over 3000 square feet were built one year ago.
- 21 homes of over 3000 square feet were built two years ago.
- According to “Domestic Details” in Income Opportunities magazine, March 2011, more women were hiring cleaning services to ease the strain of their hectic lifestyles - over 20% of households surveyed had hired a cleaning service, an increase of 5% from the previous year.
Customers Cofield targeted customer profile includes working families. The ages range from 35 to 65 years.
The average annual income is $45,000 or more. According to census information (see attached), from the population of 5,000 households, 21% of the households earned $45,000 or more. This means there are 1,050 customers who fit Cofield’s targeted profile. If 20% of these households use a cleaning service that means 210 households could be potential customers. Brilliant’s goal is to secure ten customers. It already has three potential customers - see attached letters of intent. An average customer would use Brilliant Cleaning Service once a week for an average cleaning time of four hours.
Cofield Cleaning Service’s main competitors are franchised cleaning services: Molly Maids, Holland Road, Suffolk, VA. Strengths include name recognition and size. It has 20 employees and the largest number of customers. It is insured and the employees are bonded. Weakness is lack of consistency. A customer could have one employee clean their home one week, and have a different employee another week. It charges $60 for a half-day of cleaning. Position in the Marketplace Cofield’s position in the marketplace is mid-base residential. Cofields strengths include personal and professional service.
Although the franchisers have strong advertising techniques, a sole proprietor has the advantage of offering more personalized service. This service gives Cofield a competitive advantage because most customers prefer the same cleaning person for each cleaning. Cofield’s competitive advantage over Molly Maids is its professionalism. Brilliant is insured and the owner and employees will wear uniforms for a professional image. Because of the owner’s vast knowledge of houseplants, Cofield’s will offer to take care of houseplants as an additional service no one else offers.
Image/Packaging See attached bids for all promotional costs. The business name is Cofields Cleaning Service. The slogan is: Professional Service By People Who Aim to Please! The business will be operated out of the owner’s home. Business cards and flyers will cost approximately $200. Magnetic car signs will cost approximately $160. Printed bid forms and invoices will cost $40. Uniforms include black pants and Pink shirt with business name. Uniforms will be provided by U. S. Linen Services for $40 per month, which includes the cleaning of the uniform.
Pricing Cofield will charge $45 for a half-day of cleaning. All prices will be quoted per job: by the size, time, and effort involved in cleaning the residence, not by an hourly rate. Brilliant’s fees reflect a fair market rate, and are comparable to fees charged by competitors.
The sole proprietor will continue to consult monthly with a business consultant to set up record keeping systems and receive help with monitoring the business. The sole proprietor will use the services of Liberty Accounting Services for income tax preparation. Record Keeping, Inventory and Finances The sole proprietor will use a manual record keeping system that is a combined cash receipts and cash disbursements journal. The sole proprietor will use ledger sheets to track inventory supplies. The sole proprietor will open a business checking account at BB&T Bank, located in Franklin, VA. Licenses, Permits and Other Regulations.
No licenses or permits are required to operate this business. Cofield’s is not required to get a hazardous waste permit. See attached letter from the State. Sales Tax Cofield will have to collect 6. 5% state sales tax from customers (to be paid to the state) on all services. Cofield does not have to collect a city sales tax. Insurance Cofield Cleaning Service will get the following types of insurance from All-Types of Insurance, located in Hometown, USA - see attached bids: Liberty MutualAuto Insurance: $600 annual premium or $200 down and monthly payments of $35 General Liability: $300 annual premium
Worker’s Compensation on owner: $350 annual premium Payment Terms Customer payments will be accepted by cash or check, which are collected at the end of each job. Payment terms will be explained to potential customers before accepting each job. If a customer does not pay at the end of a job, future work will not be done until payment is received. After six months of being in business, Cofield will start accepting credit cards. Hours Open Cofield Cleaning Service will operate Monday through Saturday, from 9:00 a. m. to 6:00 p. m.
There will be one day set aside biweekly-weekly for a make-up day in case of owner illness or emergency. If the owner gets sick, she will reschedule the appointment. If the job cannot wait, the owner will clean those despite illness or will get her sister to fill in on the job. If the owner gets injured on the job, Worker’s Compensation will be available. If the owner is injured, her sister will fill in until the owner can get back to work. If the owner’s car breaks down, she can borrow her mother’s car or take a taxi. If sales are not as anticipated and loan payments cannot be made, owner will get part-time job in the evening.
The owner will also look at increasing promotional efforts and reducing expenses, such as uniforms.
- See two-year, monthly Cash-Flow Projections with List of Assumptions.
- There are no Business Financial Statements since this is a start-up business.
- See Personal Financial Statement.
- See Personal Income and Expense worksheet.
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