Magic Clean: A Business Plan for Cleaning Services in Australia

This business plan discusses Magic Clean, a cleaning service business in Australia. It includes market analysis, industry analysis, competition, target market, marketing mix, operations, and financial plan. The business offers unique cleaning services that are different from traditional cleaning services in the market.

Running Head: Entrepreneurship
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Project Report: Entrepreneurship

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Executive summary
It is a business plan which states about a cleaning business “Magic clean”. The
business offers the house cleaning, corporate cleaning, construction cleaning and restaurant
cleaning services in the Australia market. It is an upgraded version of traditional cleaning
businesses. In this business plan, market analysis and financial analysis of the business has
been done along with the marketing mix evaluation.
On the basis of the business plan and the evaluation report, it has been found that the
performance of the business would be quite better in the market. Great response from the
market would be enjoyed by the business and the service of the business is a good option for
the potential customers of the company. However, the evaluation explains that there are few
issues which could be faced by the company in the market. So, it is recommended to the
owner to implement the plan in better manner.

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Contents
Business overview............................................................................................................4
Mission of the business.....................................................................................................4
Product offering................................................................................................................5
Market analysis.................................................................................................................6
Industry analysis...........................................................................................................6
Competition..................................................................................................................7
Primary target market.......................................................................................................7
Marketing..........................................................................................................................7
Product..........................................................................................................................8
Price..............................................................................................................................8
Distribution...................................................................................................................8
Promotion.....................................................................................................................8
Financial plan....................................................................................................................9
Critical risk.....................................................................................................................14
References.......................................................................................................................15

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Business overview:
The business plan explains about a business which is planned. The main focus of the
business plan is on the cleaning services. The name of the business is “magic clean” which
offers the cleaning services in the Australian market. this business plays a mediating role
among the cleaning people and the people who are looking for the cleaning people.
This business makes it easy for the client of the company to search a cleaning people
who can clean the entire house, office, restaurant etc. This business would make it bit easier
for the household and the housing department of an organization to maintain the cleaning in
the business. The main important element of this business is its less time consumption as the
professionals from the “Magic Clean” would clean the place in no time as well as the cost of
the services would also be lesser. The business would help the corporate and the houses to get
rid from the invisible bacteria as the company is focusing on the modern products to clean the
surface (Koller, Goedhart and Wessels, 2010).
The main aim of the business is to offer great services to the individuals have less
time to spend on family unit tasks than they used to. The individual and the cleaning person
just has to register their names in the company with their terms and the mobile numbers and
the company would assign the right cleaning person to the right household. The company just
not only focuses on the cleaning, it also considers the bacteria and germs. Company is usinf
the steam to clean the house. Steam is staggeringly hot and a ton of the models of steam mops
have evaluated on site would really slaughter 99.99% of microscopic organisms that can
cause an assortment of sicknesses.
This sort of cleaning is additionally eco-accommodating, more secure and practical.
This is on account of most models needn't bother with cleanser included. General family unit
cleansers can contain fixings that a few of us respond to. This cleaning from the professionals
is not harmful as they make sure that the home has been clean in the best way.
Mission of the business:
The main mission of this business is to change the traditional trend of mopping and
launch the new cleaning services in the market which would not only change the trend as well
as offer various services to the customers of the company in cheaper prices. Few of the main
reasons due to which the business is planned are as follows:

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 Traditional cleaning does not kill the bacteria properly and so the new cleaning
services will help to dispose of imperceptible microbes that conventional wiping can't
with the help of the steam process of cleaning of the company.
 Time consumption of traditional cleaning is higher however the new services of the
company would reduce the cleaning time with steam cleaning as it is far snappier in
light of the fact that there is less water deserted.
 User doesn’t require possibly unsafe (and costly) cleansers with steam cleaning.
 User just needs to register in the company and pay for the services (Madhura, 2011).
 The “Magic clean” business plan would reduce the timing of cleaning of normal
people as it would directly concentrate on the professional cleaning people and the
products for the cleaning would also be effective and less time consuming.
 Difficult to expel stains, or ground in earth can be evacuated without the need to
"clean".
 It's eco-accommodating and more secure for pets and little youngsters.
Product offering:
The main service of the business plan is “Magic cleaning services”. “Magic cleaning
services” includes the cleaning services which would be offered to the clients of the company
on a call. The main factors of this service is its less time consumption as the service would be
provided by the experience cleaners who will complete the task in lesser time. The services of
the company would help the corporate and the houses to get rid from the dust, invisible
bacteria etc. In addition, the business would also offer customer supports services and the
maintenance services of the mop.
Market analysis:
Market analysis of business “Magic clean” explains that the services of the business
would be enough attractive and will have special dynamics in the market to attract the
customers towards it. Market position of the business plan would be quite attractive as well as
competitive in the market. The market analysis process of the company explains that the
services of the business are quite different in the nature and the characteristics of the services
are also different (Higgins, 2012). No comapny is offering the same and such competitive
services in the market and thus the market position of the service would be better.

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Industry analysis:
The industry analysis of cleaning services of the company explains that various
companies are operating their business in the cleaning industry. However, they are offering
the traditional techniques and products to the customers in which the time consumption is
higher as well as the cleaning is also not done properly. The industry analysis explains that
the “magic clean” services are quite different in the industry as it offers the different and
unique characteristics. These services are not provided by other companies in the industry.
The different element of the serive is its compatible services. And main element of the
services are the professional cleaning people of the company which are trained enough to
manage the services of the company in the market.
It's eco-accommodating and more secure for pets and little youngsters as well as the
bacteria are also finished by the magic clean services. The study explains that the industry
would adopt the services of the business surely and quickly as it would help the households to
get rid of various problems. The evaluation on the industry explains that it is not of the fastest
growing industry and the turnover of the new “magic clean” would be higher in the market.
Competition:
The competition level of the service has been evaluated and it has been measured that
the “magic clean” is unique in its characteristics. Thus there is no direct competition in the
market. However, it has been recognized that various companies are also operating in the
same industry and offering the substitute services in the market. The substitute products of
the company are offering the cleaning services and the traditional mops and the other
cleaning agents which are used by the households to clean the surface and the floor of the
house (Kaplan and Atkinson, 2015).
On the basis of evaluation of the substitute services and the competition of the market,
it has been found that the competition level is huge in the market but the new and competitive
services and the product would be able to manage the place in the market due to its different
characteristics and the attractive feature. The competition analysis of the services and the
product explains that the performance of the business is quite better and thus the market
performance of the company is good.
Primary target market:

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The potential target market of the business has been evaluated further it has been
recognized that who are the main target customers of the company and how the business
would target the customers. On the basis of service evaluation and market evaluation, it has
been recognized that the target customers of the company are the people who are looking for
the professional services to clean their home, corporate, restaurants and the officers (Gibson,
2011). This service of the business has been specially designed for the people who wants
bacteria free home in lesser time.
Thus, the potential target market of the business is youth, corporate, hotels and the
households, the services must be sold to those people through positioning about the time
factors and the steam factors of the product. The process explains that the potential target
customers of the company are the people who are looking for the change and better
improvements in the traditional services of the business. These people are youth and the
households.
Marketing:
Marketing mix of the service has been evaluated further to identify that whether the
product would be successful in the market or not. The process explains that what are the
strategies and policies that must be adopted by the business to enhance the performance in the
market. The market mix analysis of the product and services are as follows:
Product:
services of the business plan is “magic clean”. These are the services which is used by
the professionals of the company to clean the surface and the floor through steam. It could be
used by the business for the management of the marketplace. The services of the company are
dusting the surface and the floor. The services would make it quite easier for the housing
department of the officer and the households to maintain the cleaning at home and office.
Price:
Price of the “magic clean” services would be lower than the other companies in the
market. However, the company has planned the low cost leadership pricing strategies in the
market. This process helps the company to set goodwill in the market about the service and
set a price in which the leadership role could be played by the company (Finch, 2016).
Distribution:

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The company would deliver the cleaning services to the customers of the company.
The company has planned the to open a online app through which the people could apply for
the cleaning services. The distribution strategies of the company have been prepared after
evaluating the entire market.
Promotion:
Lastly, the promotion market mix of the “magic clean has been studied to measure the
performance of the company. On the basis of the study, it has been recognized that the
service would be promoted by the company through advertising and the TV media (Brooks,
2015). In this, the characteristics of the service would be focused so that the people get to
know about the special characteristics of the product and thus the image could be set of the
product in the customer’s mind.
The marketing mix evaluation study explains that the services should be promoted
and placed in the right customers mind in such a manner that the customer tries to use the
services of the company once. The market analysis process of the company explains that the
service is different in the nature and the characteristics. No company is offering the same
service level in the market and thus the market position of the plan would be better.
Operations:
The operational requirement of the Magic Mop has been studied further to measure
the business requirement of the company and the legal perspective of the business. The name
of the business is magic mop and it is partnership business. The main partners of the
company are:
Clark Jones
Freya John
Smith Molloy
All the partners of the business are holding the same shares of the company and the
sharing in the profit and loss are also equal. The address of the business would be:
25, St James,
Sydney, 2000 NSW
Australia.

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The company would make the organizational structure in such a way that no
complexity could ever rise. The consulting process, training to the staff, servicing of the
board of directors, public enquiries, marketing factors, administration of the business,
bookkeeping and accounting process.
The company would hire a consultancy people, customer support people and an IT
people to manage the administration services and the online portal of the business. The
company would offer a good salary amount to each of the employees on the basis of their
experiences and the qualification of the employees (Gibson, 2011).
The business would need to take some professional advises from the consultants about
the legal process and the implementation of the business plan so that the performance of the
business could be maintained in a proper way.
The company has decided to keep 10% of cleaning revenue as commission and rest
amount would be given to the cleaning guys who are working on the behalf of the company.
Further, the premises, rules and regulations etc have been set by the business on the basis of
the market structure, industry scope and the Australian corporation rules (Brooks, 2015).
The operational requirement of the company further explains that the company is
required to hire an answering machine, filing cabinet, mobile phone, telephone line, laptops,
tables, cabinet etc in the office of the business which would help the business to connect with
the clients of the company and the cleaning guy. The information and communication process
of the company explains about a better position of the business as the entire business would
be based on a portal through which the clients could contact with the business and ask for the
cleaning guys. And the cleaning guys would have to register their names, number, address etc
in the business so in case of demand, company could directly contact to them and play a
mediating role.
Further, the professional and the consultant have briefed about the business that it is
among the best choices of the company and which offers the best services
Financial plan:
Financial plan of the product has also been prepared to measure the performance of
the new business plan of the company. Following is the financial plan:

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The financial assumptions of the business are that the company would be able to make
the profit from the first month of the business. The monthly net profit graph explains about
better increment in the financial position of the company as well as the gross profit and the
net profit of the company also explains about better position and the performance of the
company.
Profit & Loss
Statement
Month Jul-18 Aug-18 Sep-18
(amount in '000)
Income
Total Expenses 38 82 80
Monthly Net Profit /
(Loss)
23 9 22
Total Year to Date Net Profit /
(Loss)
23 9 22
Profit and Loss Ratios
Gross Margin 0.671413 0.658926 0.671377
(Gross Profit / Net Income)
Net Margin 0.256298 0.066763 0.144266
(Net Profit / Net Income)
Mark Up 2.043333 1.931915 2.043
((Net Income Less Cost of Goods
Sold) / (Cost of Goods Sold)) x 100
Break Even 56.44812 123.8379 119.456
( Expenses/((1-(Cost of Goods Sold/
Net Income))

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(brown, 2012)
Further, the budgeted balance sheet of the business explains about the various changes
in the business. It explains that the long term liabilities and the total assets of the company
would be almost similar but the shareholder’s equity would face various fluctuations in the
business.
Balance Sheet
Month Apr-18 Apr-19 Apr-20
(amount in '000)
Assets
Current Assets
Total Prepaid
expenses
$
10.50
$
10.50
$
10.50
Other current assets $
-
$
50.00
$
70.00
Total Current Assets $
190.50
$
230.50
$
338.00
Total Fixed Assets $
19.00
$
19.00
$
19.00
Total Assets $
209.50
$
249.50
$
357.00
Total Current Liabilities $
115.00
$
51.50
$
42.20
Total Liabilities $
137.00
$
71.50
$
63.20
Net Assets $
72.50
$
178.00
$
293.80
Total Shareholders Funds $ $ $

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(Equity) 72.50 178.00 293.80
(Hogarth and Makridakis, 2011)
In addition, the cash flow statement of the business explains that the cash position of
the company would be improved and it explains about the better position of the company. It
further explains that the performance of the company would be improved in terms of finance.
Cash Flow Statement (amount in ‘000)
Cashflows from Operations
Cash receipts from customers
(enter positive amounts) Cash Sales $
210
$
215
Cash collected from customers
(debtors)
$
300
$
350
Funding from Creditors
Stock purchased, not yet paid $
150
$
80
Cash paid for $
100
$
200
(enter negative amounts) Total Expenses $
-
$
-
Inventory (stock)purchases $
-
$
-
Funding to Debtors
Sales made not yet collected $
-
$
-
Net Cash Flow from $ $

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Operations 760 845
Investing Activities
Cash receipts from
(enter positive amounts) Sale of property and equipment $
-
$
-
Matured Investments $
50
$
50
Cash paid for
(enter negative amounts) Purchase of property and
equipment
$
-
$
-
Purchase of investments $
100
$
250
Net Cash Flow from Investing
Activities
-$
50
-$
200
Financing Activities
Cash receipts from
(enter positive amounts) Increase in short term debt $
50
$
50
Increase in long term debt $
-
$
-
Increase in equity (proceeds
from owners)
$
50
$
50
Cash paid for
(enter negative amounts) Repayment of loans $
50
$
50
Dividends $
150
$
150
Net Cash Flow from Financing
Activities
-$
100
-$
100
Net Increase in Cash $
610
$
545
Cash at End of Year $
610
$
1,155
Critical risk:
Further, the critical risk of the project has been studied and it has been found that the
critical risk of the project is adoption of the product. The case explains that the product is
quite unique in nature but the adoption of the product depends on the customers of the
company.
Implementation:
In addition, the implementation plan of the business has been prepared. It explains
that the company has started the planning of the business from Jan 2018 and it would

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implement the business in the month of July, 2018. Further the employees would be
employed by the company in June and the equipment s would be purchased the equipments in
May, 2018. This implementation plan would not impact much pressure on the partners of the
business and it would enhance the incredibility of the business.

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References:
Brooks, R., 2015. Financial management: core concepts. Pearson.
Brown, R., 2012. Analysis of investments & management of portfolios. Pearson Higher Ed.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Gibson, C.H., 2011. Financial reporting and analysis. South-Western Cengage Learning.
Higgins, R.C., 2012. Analysis for financial management. McGraw-Hill/Irwin.
Hogarth, R.M. and Makridakis, S., 2011. Forecasting and planning: An
evaluation. Management science, 27(2), pp.115-138.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Koller, T., Goedhart, M. and Wessels, D., 2010. Valuation: measuring and managing the
value of companies (Vol. 499). john Wiley and sons.
Madura, J., 2011. International financial management. Cengage Learning.