Analytical Report on Eco Cleaning Business
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This analytical report provides an overview of Eco Cleaning business, including its business summary, core product or service, current and future business aims, expansion plan, management structure, professional team skills, roles and responsibilities, target market, competitive advantage, market research, competitor analysis, marketing strategy, operations and logistics, costs and pricing strategy, and cash flow forecasts.
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Table of Contents
Section One.............................................................................................................................................................3
Section Two.............................................................................................................................................................4
Section Three...........................................................................................................................................................6
Section Four............................................................................................................................................................7
Section Five...........................................................................................................................................................10
Section Six.............................................................................................................................................................12
Section Seven........................................................................................................................................................13
References/Bibliography.......................................................................................................................................16
Section One.............................................................................................................................................................3
Section Two.............................................................................................................................................................4
Section Three...........................................................................................................................................................6
Section Four............................................................................................................................................................7
Section Five...........................................................................................................................................................10
Section Six.............................................................................................................................................................12
Section Seven........................................................................................................................................................13
References/Bibliography.......................................................................................................................................16
Section One
Business Overview
1.1 Business summary: Please write business outline. (who, what, where and how)
The business is started by a group of three people in the form of partnership business. The business of
partnership is a form of business operated by two or more people who share profits and management. It means
that all the partners they share profit and loss in equal proportion. The name of three partners who have started
the business are GS, LA and AA. LA is the general manager, GS is the sales and marketing officer and AA is
the accounts officer. The name of the business set up by three partners is known as Eco Cleaning. The business
offers the services of chemical free cleaning to domestic and commercial customers. The business offers high
quality cleaning service. The business is based in Tottenham and partners would like to expand the business at
other locations. The unique selling point of the business is that the partnership business is mobile and flexible
because it remains open 24 hours.
1.2 Describe your core product or service:
Eco Cleaning business offers a wide range of services such as chemical free cleaning to target segment of
clients in London. All the three partners provides chemical free cleaning in schools, nurseries, individual homes
and end of tenancy agreements. Chemical free cleaning helps to ensure that no one will have respiratory
problems, occasional headache and no person will be seriously injured. Eco friendly products used by partners
for providing chemical free cleaning helps to keep students and other people safe and healthy.
1.3 Your current and future business aims:
The present aim of the business is to provide eco friendly cleaning services to target segment of customers that
helps to satisfy the need and demands of the customers by providing high quality cleaning services. The
partners are providing the services from one year and the whole idea of the project is to reflect that, business
has potential of growth. Currently, there are 10 employees and all are working on zero hour contracts. All three
partners have one van and all three persons have own cars.
The future aim of the business is to expand the business in London rich areas like Westminster, Chelsea etc.
They will require £80,000 for expanding the business and also want to invest funds in advertising and
purchasing new equipments.
1.4 Your expansion plan:
Eco cleaning wants to expand its cleaning business at other locations as well. The expansion plan of the
Business Overview
1.1 Business summary: Please write business outline. (who, what, where and how)
The business is started by a group of three people in the form of partnership business. The business of
partnership is a form of business operated by two or more people who share profits and management. It means
that all the partners they share profit and loss in equal proportion. The name of three partners who have started
the business are GS, LA and AA. LA is the general manager, GS is the sales and marketing officer and AA is
the accounts officer. The name of the business set up by three partners is known as Eco Cleaning. The business
offers the services of chemical free cleaning to domestic and commercial customers. The business offers high
quality cleaning service. The business is based in Tottenham and partners would like to expand the business at
other locations. The unique selling point of the business is that the partnership business is mobile and flexible
because it remains open 24 hours.
1.2 Describe your core product or service:
Eco Cleaning business offers a wide range of services such as chemical free cleaning to target segment of
clients in London. All the three partners provides chemical free cleaning in schools, nurseries, individual homes
and end of tenancy agreements. Chemical free cleaning helps to ensure that no one will have respiratory
problems, occasional headache and no person will be seriously injured. Eco friendly products used by partners
for providing chemical free cleaning helps to keep students and other people safe and healthy.
1.3 Your current and future business aims:
The present aim of the business is to provide eco friendly cleaning services to target segment of customers that
helps to satisfy the need and demands of the customers by providing high quality cleaning services. The
partners are providing the services from one year and the whole idea of the project is to reflect that, business
has potential of growth. Currently, there are 10 employees and all are working on zero hour contracts. All three
partners have one van and all three persons have own cars.
The future aim of the business is to expand the business in London rich areas like Westminster, Chelsea etc.
They will require £80,000 for expanding the business and also want to invest funds in advertising and
purchasing new equipments.
1.4 Your expansion plan:
Eco cleaning wants to expand its cleaning business at other locations as well. The expansion plan of the
business is to offer cleaning facilities in London rich areas such as Westminster, Chelsea etc. Further, the
business wants to expand its portfolio by raising £80,000 funds for the purpose of marketing and advertising the
cleaning services and also for purchasing new equipments. So that, business can provide better quality cleaning
services (Carter, 2017).
Section Two
Management structure.
2.1 Professional team skills: (Outline individual team members transferable and professional skills).
Transferable skills – One of the major skill possess by all the partners working in partnership business is
communication skills. It helps them communicate effectively with different stakeholders like customers,
government, suppliers etc. Further, they also possess team working skills. All the partners work in collaboration
with each other. Further, all the partners possess analytical skills that helps them to solve complex problems.
Moreover, they are having ability to use new equipments that are made with high technology.
Professional skills -
Professional skills possess by partners is skill of leadership. The leader helps to lead all the employees that are
working in the business.
All the employees are honest and does not take anything that does not belong to them. Further, they also
possess the skill of consistency that means, they are consistent in performing their work. This helps to improve
reputation of the business. All the team members are having ability to work as an individual as well as in team,
2.2 Each team member’s roles and responsibilities:
Each and every employee has specific role and responsibilities. All the employees are required to report the
details of cleaning activities to all three partners. Employee plays an important role in maintaining a high level
of customer care. They are responsible for performing the activities like dusting and cleaning at various places
such as nursing, schools, colleges etc. They also play a major role in cleaning all furnishings, shelves, floors
and seating. Each and every employee is responsible for a particular work. So that, all the employee’s can focus
on specific tasks. They are responsible for cleaning all the assigned areas.
Moreover, partners are responsible to look at the work of employee’s to ensure that they are performing their
duties in right way.
business wants to expand its portfolio by raising £80,000 funds for the purpose of marketing and advertising the
cleaning services and also for purchasing new equipments. So that, business can provide better quality cleaning
services (Carter, 2017).
Section Two
Management structure.
2.1 Professional team skills: (Outline individual team members transferable and professional skills).
Transferable skills – One of the major skill possess by all the partners working in partnership business is
communication skills. It helps them communicate effectively with different stakeholders like customers,
government, suppliers etc. Further, they also possess team working skills. All the partners work in collaboration
with each other. Further, all the partners possess analytical skills that helps them to solve complex problems.
Moreover, they are having ability to use new equipments that are made with high technology.
Professional skills -
Professional skills possess by partners is skill of leadership. The leader helps to lead all the employees that are
working in the business.
All the employees are honest and does not take anything that does not belong to them. Further, they also
possess the skill of consistency that means, they are consistent in performing their work. This helps to improve
reputation of the business. All the team members are having ability to work as an individual as well as in team,
2.2 Each team member’s roles and responsibilities:
Each and every employee has specific role and responsibilities. All the employees are required to report the
details of cleaning activities to all three partners. Employee plays an important role in maintaining a high level
of customer care. They are responsible for performing the activities like dusting and cleaning at various places
such as nursing, schools, colleges etc. They also play a major role in cleaning all furnishings, shelves, floors
and seating. Each and every employee is responsible for a particular work. So that, all the employee’s can focus
on specific tasks. They are responsible for cleaning all the assigned areas.
Moreover, partners are responsible to look at the work of employee’s to ensure that they are performing their
duties in right way.
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Section Three
The market
3.1 Describe your target market and where they are based:
Company focuses on making efforts to reach to the target market. The target market helps to achieve aim and
objectives of the company. Eco cleaning targets the market of Kensington, Surrey, Chelsea etc. for providing
cleaning services to the clients. All the partners focuses on providing cleaning services at different locations.
The target segment involves individual homes in which people live, end tenancy agreements, it also provides
cleaning facilities to schools and colleges that helps to maintain cleanliness and safety for all the students. It
also targets nurseries etc. By offering services to target market, company will be able to gain competitive
advantage over other competitors. Target market will help partners to improve their business and profitability.
Moreover, targeting a specific segment will help partners to improve brand identity among clients.
3.2 Describe your perceived competitive advantage/USP:
There are different ways in which Eco Cleaning business is gaining competitive advantage over other
companies. One of the major unique selling proposition of the business is the affordable price at which
company provides cleaning services to target segment of buyers. Partner provides cleaning services at very
affordable price to schools, nurseries, homes etc. Further, they offer high quality of cleaning services with the
help of new equipments. It helps to attract large number of clients towards the business. The nature of customer
services offered by them is very excellent. Further, all the employee’s makes efforts to resolve various queries
of the customers in respect of cleaning services. One of the major thing that helps to gain competitive
advantage is that employee’s of the business are very skilled and talented. Partners conduct training
programmes for all the employee’s once a week. The USP of the business is that, the business is mobile and
flexible as per the need of clients and it remains open for 24 hours.
The market
3.1 Describe your target market and where they are based:
Company focuses on making efforts to reach to the target market. The target market helps to achieve aim and
objectives of the company. Eco cleaning targets the market of Kensington, Surrey, Chelsea etc. for providing
cleaning services to the clients. All the partners focuses on providing cleaning services at different locations.
The target segment involves individual homes in which people live, end tenancy agreements, it also provides
cleaning facilities to schools and colleges that helps to maintain cleanliness and safety for all the students. It
also targets nurseries etc. By offering services to target market, company will be able to gain competitive
advantage over other competitors. Target market will help partners to improve their business and profitability.
Moreover, targeting a specific segment will help partners to improve brand identity among clients.
3.2 Describe your perceived competitive advantage/USP:
There are different ways in which Eco Cleaning business is gaining competitive advantage over other
companies. One of the major unique selling proposition of the business is the affordable price at which
company provides cleaning services to target segment of buyers. Partner provides cleaning services at very
affordable price to schools, nurseries, homes etc. Further, they offer high quality of cleaning services with the
help of new equipments. It helps to attract large number of clients towards the business. The nature of customer
services offered by them is very excellent. Further, all the employee’s makes efforts to resolve various queries
of the customers in respect of cleaning services. One of the major thing that helps to gain competitive
advantage is that employee’s of the business are very skilled and talented. Partners conduct training
programmes for all the employee’s once a week. The USP of the business is that, the business is mobile and
flexible as per the need of clients and it remains open for 24 hours.
Section Four
Marketing
4.1 Explain your market research with references, Using Market research questions (straw poll)
Conducting the research of target market will help partners of the business to understand the quality of services
that are required by customers. It will also help to understand the factors that are affecting the behaviour of
people such as cultural, social factors etc. To conduct market research, firstly partners decide the purpose, then
they have outlook of the industry, collect additional information, analyse the findings etc. Market research
questions -
How likely you will recommend our services to your friend ?
How well our services meet out your needs ?
What problem does solve for you ?
4.2 Competitor analysis
(Based on your market research, analyse TWO competitors and explain how your business will compete
with them)
With the help of market research as well as survey, it will provide such business enterprises in
determining all the norms as well as standards which has been adopted and followed by the profit making
companies in the market place. The name of two competitors are as follows:
1. Cleaners Tottenham.
SWOT analysis -
Strength-
It offers wide range of services like regular domestic cleaning, deep cleaning, sofa cleaning etc.
Weakness-
Lack of skilled workforce.
Opportunities-
Opportunity to employ skilled employee's that helps to improve services.
Threats -
Threat of level of competition in cleaning business.
2. Quality cleaning London.
SWOT analysis -
Strength-
Marketing
4.1 Explain your market research with references, Using Market research questions (straw poll)
Conducting the research of target market will help partners of the business to understand the quality of services
that are required by customers. It will also help to understand the factors that are affecting the behaviour of
people such as cultural, social factors etc. To conduct market research, firstly partners decide the purpose, then
they have outlook of the industry, collect additional information, analyse the findings etc. Market research
questions -
How likely you will recommend our services to your friend ?
How well our services meet out your needs ?
What problem does solve for you ?
4.2 Competitor analysis
(Based on your market research, analyse TWO competitors and explain how your business will compete
with them)
With the help of market research as well as survey, it will provide such business enterprises in
determining all the norms as well as standards which has been adopted and followed by the profit making
companies in the market place. The name of two competitors are as follows:
1. Cleaners Tottenham.
SWOT analysis -
Strength-
It offers wide range of services like regular domestic cleaning, deep cleaning, sofa cleaning etc.
Weakness-
Lack of skilled workforce.
Opportunities-
Opportunity to employ skilled employee's that helps to improve services.
Threats -
Threat of level of competition in cleaning business.
2. Quality cleaning London.
SWOT analysis -
Strength-
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It offers services at cheaper rate.
Weakness-
It does not have adequate resources.
Opportunities-
Opportunity to target new market segment.
Threats -
Threats from those companies that are using efficient equipments of cleaning.
For competing with such companies, it is required on the part of the management of the company to
formulate sound business plans as well as strategies to capture current market opportunities and converting it
into profits. Also, by understanding weaknesses and threats and making preventive measures along with its
successful implementation can help Eco cleaning in improving its business performance as well as efficiency
level.
Weakness-
It does not have adequate resources.
Opportunities-
Opportunity to target new market segment.
Threats -
Threats from those companies that are using efficient equipments of cleaning.
For competing with such companies, it is required on the part of the management of the company to
formulate sound business plans as well as strategies to capture current market opportunities and converting it
into profits. Also, by understanding weaknesses and threats and making preventive measures along with its
successful implementation can help Eco cleaning in improving its business performance as well as efficiency
level.
4.3 Marketing strategy
(Describe your marketing and branding strategy, with reference to researched materials. Identify the
most appropriate strategies, and why) Pay attention to your entry strategy.
With the help of most effective branding as well as marketing strategy, every business organization can
capture large market share along with increased customer base across the globe. By developing a strong as well
as sound long term plan, it will help Eco cleaning business in achieving high growth and development in the
near future. As the company is aiming at expanding of its own business operations in rich areas of London such
as Chelsea, Westminister etc. for making large profits. Following strategies can be used for gaining competitive
advantages:
1. Brand extension - It occurs in case when one of flagship brands get ventured into the new market area
for making more profit.
2. Private labels – By making own brand label, it helps in competing in the tough competitive market place
in much better as well as cost effective manner.
3. Crowdsourcing - Such brands are outsourced to public or customers with the aim of creating brand. It
allows and gives customers chance to get involved in naming process which effectively drives personal
interest in such product.
Most appropriate strategy for such company will be crowdsourcing as it will come up with less cost
expenses which will not reduce profit margin.
(Describe your marketing and branding strategy, with reference to researched materials. Identify the
most appropriate strategies, and why) Pay attention to your entry strategy.
With the help of most effective branding as well as marketing strategy, every business organization can
capture large market share along with increased customer base across the globe. By developing a strong as well
as sound long term plan, it will help Eco cleaning business in achieving high growth and development in the
near future. As the company is aiming at expanding of its own business operations in rich areas of London such
as Chelsea, Westminister etc. for making large profits. Following strategies can be used for gaining competitive
advantages:
1. Brand extension - It occurs in case when one of flagship brands get ventured into the new market area
for making more profit.
2. Private labels – By making own brand label, it helps in competing in the tough competitive market place
in much better as well as cost effective manner.
3. Crowdsourcing - Such brands are outsourced to public or customers with the aim of creating brand. It
allows and gives customers chance to get involved in naming process which effectively drives personal
interest in such product.
Most appropriate strategy for such company will be crowdsourcing as it will come up with less cost
expenses which will not reduce profit margin.
Section Five
Operations and logistics
5.1 Premises:
The business as set up by three partners with the name Eco Cleaning will be having its business premises in the
Tottenham. The main aim of this business is to offers chemical free cleaning services in nurseries, schools,
individual homes, end of tenancy agreements with high quality to its customers.
5.2 Equipment & Set up Costs:
Product Amount Cost.
Trash bags 100 £1 each
Garbage can liners 50 £12 each
Spray bottles 30 £30 each
Buckets 40 £50 each
Mops 20 £18 each
Feather duster 25 £80 each
Toilet brushes 15 £120 each
Paper towels 150 £9 each
Rags 45 £170 each
Squeegees 35 £200 each
Promotional expenses £120
Total £22080
s
5.3 Transport:
For rendering cleaning services to different customers across London and its nearby areas, there is a
need of van. By acquiring an additional van, many customers can get satisfied with its quality services at one
point of time. Eco cleaning is already having one van and is willing to buy two more van for the purpose of
travelling of the employees.
5.4 Legal requirements:
Eco cleaning should enter into Partnership Agreement for conducting business in lawful and legal
manner. In such agreement, profit – loss, sharing of liability will be defined already and will be fixed by all the
Operations and logistics
5.1 Premises:
The business as set up by three partners with the name Eco Cleaning will be having its business premises in the
Tottenham. The main aim of this business is to offers chemical free cleaning services in nurseries, schools,
individual homes, end of tenancy agreements with high quality to its customers.
5.2 Equipment & Set up Costs:
Product Amount Cost.
Trash bags 100 £1 each
Garbage can liners 50 £12 each
Spray bottles 30 £30 each
Buckets 40 £50 each
Mops 20 £18 each
Feather duster 25 £80 each
Toilet brushes 15 £120 each
Paper towels 150 £9 each
Rags 45 £170 each
Squeegees 35 £200 each
Promotional expenses £120
Total £22080
s
5.3 Transport:
For rendering cleaning services to different customers across London and its nearby areas, there is a
need of van. By acquiring an additional van, many customers can get satisfied with its quality services at one
point of time. Eco cleaning is already having one van and is willing to buy two more van for the purpose of
travelling of the employees.
5.4 Legal requirements:
Eco cleaning should enter into Partnership Agreement for conducting business in lawful and legal
manner. In such agreement, profit – loss, sharing of liability will be defined already and will be fixed by all the
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partners mutually. Capital will be brought in up by all the partners as well.
5.5 Insurance requirements:
For mitigating the risk of loss, theft, fire or any other damages, it is better for every business
organisation to have a proper Business Insurance of its business operations in which it is dealing.
5.6 Other required Certifications:
Apply for a vendor's license from local county administration office or city hall so as start cleaning
business in that state or country.
5.7 Additional Staffing Costs:
5 additional staff employed on zero hours contracts and will be paid £10 per hour.
5.8 Fixed monthly Costs:
Items Costs
10 employees salary £18000
Van fuel expenses £2000
Maintenance cost of cleaning equipments £200
Rent of office premises £5000
Electricity charges £270
Interest on Loan taken £225
Phone charges 500
Total £26195
5.5 Insurance requirements:
For mitigating the risk of loss, theft, fire or any other damages, it is better for every business
organisation to have a proper Business Insurance of its business operations in which it is dealing.
5.6 Other required Certifications:
Apply for a vendor's license from local county administration office or city hall so as start cleaning
business in that state or country.
5.7 Additional Staffing Costs:
5 additional staff employed on zero hours contracts and will be paid £10 per hour.
5.8 Fixed monthly Costs:
Items Costs
10 employees salary £18000
Van fuel expenses £2000
Maintenance cost of cleaning equipments £200
Rent of office premises £5000
Electricity charges £270
Interest on Loan taken £225
Phone charges 500
Total £26195
Section Six
Costs and pricing strategy
Product/service name Eco Cleaning – chemical free cleaning services
Cost per unit £70 per hour
Price per unit £80 per hour
Profit margin (£) £10 per hour
Profit margin (%)
(Profit / Price x 100 = Profit margin)
10%
Mark up (%)
(Profit / Cost x 100 = Mark Up) 14%
6.2 Pricing strategy used :
Eco cleaning business has using penetration pricing strategy to gain large market share by offering their
services at price less than prices charged by its competitors. It helps in making customer aware about such new
products and services in the market place.
Costs and pricing strategy
Product/service name Eco Cleaning – chemical free cleaning services
Cost per unit £70 per hour
Price per unit £80 per hour
Profit margin (£) £10 per hour
Profit margin (%)
(Profit / Price x 100 = Profit margin)
10%
Mark up (%)
(Profit / Cost x 100 = Mark Up) 14%
6.2 Pricing strategy used :
Eco cleaning business has using penetration pricing strategy to gain large market share by offering their
services at price less than prices charged by its competitors. It helps in making customer aware about such new
products and services in the market place.
Section Seven
Cash Flow forecasts
7.1 Sales and costs forecast including next 3 years’ projections, assuming you’ve received the funds from your pitch.
Table 112-month projection
Januar
y
Februar
y March April May June July
Augus
t
Septembe
r
Octobe
r
Novembe
r
Decembe
r
Sales units 330 332 332 332 332 332 332 332 332 332 332 332
Sales 26400 26532 26532 26532
2653
2
2653
2
2653
2 26532 26532 26532 26532 26532
Expenses
HR 18000 18000 18000 18000
1800
0
1800
0
1800
0 18000 18000 18000 18000 18000
Van fuel 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Maintenance 200 200 200 200 200 200 200 200 200 200 200 200
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Electricity 270 270 270 270 270 270 270 270 270 270 270 270
interest 225 225 225 225 225 225 225 225 225 225 225 225
Phone 500 500 500 500 500 500 500 500 500 500 500 500
Total expenses 26195 26195 26195 26195
2619
5
2619
5
2619
5 26195 26195 26195 26195 26195
Profit 205 337 337 337 337 337 337 337 337 337 337 337
7.1: Three year projections
Cash Flow forecasts
7.1 Sales and costs forecast including next 3 years’ projections, assuming you’ve received the funds from your pitch.
Table 112-month projection
Januar
y
Februar
y March April May June July
Augus
t
Septembe
r
Octobe
r
Novembe
r
Decembe
r
Sales units 330 332 332 332 332 332 332 332 332 332 332 332
Sales 26400 26532 26532 26532
2653
2
2653
2
2653
2 26532 26532 26532 26532 26532
Expenses
HR 18000 18000 18000 18000
1800
0
1800
0
1800
0 18000 18000 18000 18000 18000
Van fuel 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Maintenance 200 200 200 200 200 200 200 200 200 200 200 200
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
Electricity 270 270 270 270 270 270 270 270 270 270 270 270
interest 225 225 225 225 225 225 225 225 225 225 225 225
Phone 500 500 500 500 500 500 500 500 500 500 500 500
Total expenses 26195 26195 26195 26195
2619
5
2619
5
2619
5 26195 26195 26195 26195 26195
Profit 205 337 337 337 337 337 337 337 337 337 337 337
7.1: Three year projections
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Table 2Income statement
2019 2020 2021
Sales 318252 477378 716067
Expenses
HR 216000 324000 486000
Van fuel 24000 36000 54000
Maintenance 2400 3600 5400
Rent 60000 90000 135000
Electricity 3240 4860 7290
interest 2700 4050 6075
Phone 6000 9000 13500
Total expenses 314340 471510 707265
Profit 3912 5868 8802
2019 2020 2021
Sales 318252 477378 716067
Expenses
HR 216000 324000 486000
Van fuel 24000 36000 54000
Maintenance 2400 3600 5400
Rent 60000 90000 135000
Electricity 3240 4860 7290
interest 2700 4050 6075
Phone 6000 9000 13500
Total expenses 314340 471510 707265
Profit 3912 5868 8802
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International Journal of Hospitality Management. 48. pp.135-142.
Andersen, J., 2018. Transferable Skills. In Research Management: Europe and Beyond (pp. 319-332). Elsevier.
Canelas, D.A., Hill, J.L. and Novicki, A., 2017. Cooperative learning in organic chemistry increases student
assessment of learning gains in key transferable skills. Chemistry Education Research and Practice, 18(3),
pp.441-456.
Carter, A.S., Tri-State Environmental LLC, 2017. Method and apparatus for cleaning an oil and gas well riser
assembly with multiple tools simultaneously. U.S. Patent 9,844,803.
Dolnicar, S. and Leisch, F., 2017. Using segment level stability to select target segments in data-driven market
segmentation studies. Marketing Letters. 28(3). pp.423-436.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Step 8: Selecting the Target Segment (s). In Market Segmentation
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