Entrepreneurial Opportunity - Assignment Solution
Added on 2020-12-18
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Entrepreneurial Opportunity
Table of ContentsINTRODUCTION...........................................................................................................................12. Entrepreneurial themes............................................................................................................33. Business idea development ....................................................................................................4Conclusion.......................................................................................................................................7
INTRODUCTIONOur business idea is to clean whether we are doing housecleaning, janitorial work, orproviding any cleaning service, we clean like we are cleaning our own house or office. For everyfunction our business create systems like; laundry, cleaning, customer services, customercomplaints, management and accounting. Our aim is to build strong relationship with our clients,as the quality of our cleaning is important. Recently our company has launched a new product for cleaning hotels, homes etc. toclean windows, floors, carpets etc. The new product is Backpack Vacuums. Backpack Vacuumsare lightweight and are designed with an emphasis on ergonomics. Its wand and hosecharacteristic help to reduce stress on user's wrist. Backpack Vacuums can weight less than 10pounds, and it reduces the time and efforts needed to vacuum. Following are the reasons to useBackpack Vacuums: in an hour we can clean almost 2875 sqft of floor, they are more efficientwhile cleaning, they reduce cost, they have more health benefits. Over the years these vacuumshave improved a lot, including battery power, HEPA filtration technologies and overall usercomfort by reducing its size and weight. Backpack Vacuums are gaining popularity because ofthe flexibility and maneuverability. It cleans carpets, stairwells, air ducts, walls, under furnitureor behind book selves. Our uniqueness is that we focus on customer's health, its 10 quart super HEPA convertsthe vacuum into on air blower which allows user's to clean their house in less time. Its 7 piecesidewinder tool kit cleans under furniture or corners. The ergonomic side-to-side sweepingaction and various tools with storage improves operator productivity. It is great for use inschools, hotels, gyms, buildings, hospitals and also traffic areas. Its practical design and itcompact size by which it can be converted into a canister vacuum by fitting a kit of 4 pivotingwheels which suck up dust and dirt, usually from floors, and from other surfaces such asupholstery and draperies (Brunette, 2017)..Our company is targeting two primary target market groups: one is consumer and other iscommercial. Consumer group consist of residential services, with carpets cleaners, windowcleaning, and other cleaning services. The commercial arena includes janitorial services, withcleaning companies, such as carpets and window cleaning that target businesses rather thanindividual consumers. Our company provide wide range of services to a very limited clients. Our1
company have refined our customer base to a group so that we can serve them better which allowus to maintain those customers permanently (Vellas, 2016). To give a strong value proposition to or product we follow a pricing structure consideringthese factors:- Labour and material: for value of our product we need to estimate the costs of labour andmaterials. Labour cost includes wages and benefits we pay to our employees. It is usuallyexplicit in an hourly basis. Overhead :overhead cost includes all the indirect expenses and non labour expenses foroperating business (Derudder and Witlox, 2016). . It is calculated on the basis ofpercentage f our labour and materials. Total expenses for a year excluding labour andmaterials. Profit : it is the difference between total cost of services we provided and what we actualcharge to the customers. It is estimated by applying a percentage of profit factor whichcombines cost of labour, material and overhead. Our business conducted market analysis which includes our costs to serve that market. A denselypopulated market allows us to serve a greater number of customers. Our company build a verysuccessful cleaning business on referrals. Our customers live in a dual income household withcombined earnings. (Mwesiumo, Halpern and Buvik, 2017). These families have enough incomefor spending for services. The second segment is targeted is two income family. Over years, thenumber of two income households have increased and their annual income is $125'000. Thesefamilies don't have the time to clean, can afford a cleaning service and choose to hire a servicebecause they don't waste time cleaning their house as their opportunity costs are too high. Theirage is 32 to 35 and live in $250'000 valued houses. It is this section that has potential formother's. According to our research 80% of dual income households use an outside cleaningservice for cleaning their houses. Our customers seek consistency in delivery from our company. Our team is alwaysconsistent with the release of company information and it helps to gain customer interest in ourproduct and services (Wang, Weaver and Kwek, 2016).. Our company release information on atimely basis. We make our customer's services and products unique. These factors help to better2
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