Business Plan Report: ABC Cleaning Service - Entrepreneurship

This report presents an individual business plan for ABC Cleaning Service, a company specializing in post-party home cleaning. The plan includes an executive summary, business overview with product/service descriptions, vision, mission, and objectives. It details the company's innovation, lea...Read More

Individual Business Plan

Table of Contents
1. EXECUTIVE SUMMARY.........................................................................................................3
2. BUSINESS OVERVIEW............................................................................................................3
Product or service description.....................................................................................................3
Vision, mission and objectives....................................................................................................4
Innovation and leadership............................................................................................................4
Operational capabilities and team members................................................................................4
3. MARKETING STRATEGY OR PLAN.....................................................................................4
SWOT analysis............................................................................................................................4
PESTLE analysis.........................................................................................................................5
Competitive analysis....................................................................................................................6
Marketing mix.............................................................................................................................7
4. FINANCIAL ANALYSIS AND PROJECTIONS......................................................................8

1. EXECUTIVE SUMMARY
The present business plan is based on ABC cleaning service organization which business
entity is planning to initiate. From secondary data assessment, it has been identified that trends
in relation to the domestic cleaning services are increased with the very high pace. It is estimated
that worth of cleaning market would be £2.86 billion which is higher and gives positive indicator
for growth. It can be summarized that now requirements among the people in relation to cleaning
service provider increased significantly (The domestic cleaning market in the UK: An overview,
2017). Thus, by taking into account the growth of industry and demand of individual’s
entrepreneur has taken decision in relation to offering cleaning services after parties. From
financial projection, it has been identified that business entity will earn high and positive returns
every year through such business.
2. BUSINESS OVERVIEW
Product or service description
In the recent times, there is a high level of trend toward to do parties in the house. Now,
life style or pattern of individual is changed to the significant level as compared to the prior
times. Moreover, now people prefer to do party with their friends and family members to
celebrate every occasion whether it is birthday or others. Hence, after having parties people
require personnel who clean the house in an appropriate manner. By considering such trend
entrepreneur is planning to offer cleaning services to the individuals who organize party at their
home (Toffolutti and et.al., 2017). Hence, to offer high quality and effectual cleaning services to
the customer’s entrepreneur will invest and use high tech equipments.
By using effectual technological equipments business entity would become able to
deliver better services to the customers. Such business plan is highly viable because now there is
a trend towards working women. Thus, individuals do not have enough time to keep their home
neat and clean after party (Harris and Hongdiyanto, 2016). Besides this, there is a high level of
demand for personnel who are able to offer quality cleaning service in the higher income group
people. Hence, by keeping in mind the overall trend it can be said that business plan or idea in
relation to offering cleaning services to the individuals are highly viable.

Vision, mission and objectives
Vision: To become a leading cleaning service company in the small segment is the vision
of firm. Moreover, in the recent times stiff competition takes place in the business environment.
Hence, by offering quality services in an innovative manner business entity of ABC can meet
and exceeds the expectation level of individual customers to a great extent.
Mission: The mission of ABC is to provide customers with the effectual cleaning
services that are trustworthy and professional.
Long term goals and objectives
 To develop a leading service based company which meets and exceeds customer’s
demand as well as expectation.
 To enhance customer base by delivering high quality services and evolving high
satisfaction among them.
Innovation and leadership
In the present plan, uniqueness is that business entity will offer cleaning services to the
people at their home by using high tech equipments. It is one of the main aspects which will
differentiate services offered by ABC from others. Along with this, by using participative style
of leadership business entity will lead or direct the personnel. Such style of leadership will help
business entity in getting unique ideas and suggestions from individuals.
Operational capabilities and team members
Entrepreneur will start business by appointing 6 individuals at initial level. Moreover,
when equipments are used to clean the house or floor then business entity requires less
personnel.
3. MARKETING STRATEGY OR PLAN
SWOT analysis
Strengths:
 Skilled and competent workforce
 Use of better equipments while
Weakness:
 Limited funds
 Lack of online presence

cleaning the house
Opportunities:
 ABC has opportunity to enhance
customer base and maximize
profitability by placing emphasis on
innovative aspects.
Threats:
 Such business needs very less
investment as compared to others.
Thus, business unit is facing major
threat from the competitors or rival
firm.
PESTLE analysis
Political factors:
In UK, tax policies which are introduced by the
government authority are neither too high nor too
lower. With the motive to encourage entrepreneurs
and ensure high economic growth as well as
development moderate taxation policies have been
introduced by the government authority.
Economical factors:
Inflation and deflation are the main two indicators
which in turn help in assessing the position of
economy. Purchasing power of the individuals is
highly dependent on the economic condition that
prevails in the economy. Hence, now economic
condition of UK is good which in turn place
positive impact on the business of ABC.
Social factors:
Income, lifestyle is the main social factors which in
turn closely influences the decision making aspect
of an individual. Hence, in UK, living standard of
people increased significantly (Klungseth and et.al.,
2016). Thus, there is a high level of possibility that
individual will prefer to make use of cleaning
services.
Technological factors:
In the recent times, technological advancements
take place with the very high pace. Thus, by
making use of highly effectual equipments firm
would become able to deliver quality services to
the customers.
Legal factors:
There several laws and legislation introduced by
UK government. Hence, ABB is required to fulfill
all the formalities in line with legal rules and
regulations.
Environmental factors:
Now, every people lay emphasis on the aspect of
environmental sustainability. Thus, for building
distinct image in the mind of society’s people ABB
will place emphasis on making effectual
arrangement for waste material.

Hence, by considering then outcome of micro and macro analysis it can be stated that
business plan in relation to the offering cleaning after any party which is held at house is viable
to a great extent.
Competitive analysis
Basis of differences ABC Molly Maid cleaning
services
Wettons cleaning
services
Innovation Entrepreneur will offer
cleaning services to the
customers at their home
after parties by using
electrical equipments.
Molly Maid only
places emphasis on
appointing skilled
personnel for
delivering cleaning
services to the
customers. It does not
make use of
equipments while
offering services to the
customers.
Employees or
personnel of Wettons
are highly competent.
Hence, use of high
tech equipments are
highly lower in the
case of Wettons.
Price ABC will undertake
penetration pricing
strategy for setting
suitable framework.
Competitive pricing
strategy is followed by
Molly Maid.
Wettons sets pricing
policy by employing
two strategies such as
cost led and
competitive one.
Promotion To furnish information
regarding the innovative
service offering ABC
uses several mediums
such as social media,
television, and
newspaper.
Company has
developed sound
image at the
marketplace so it
places less emphasis
on promotional
aspects.
Such business unit also
places lower focus on
promotional aspects in
comparison to ABC.

Marketing mix
ABC is the service based organization so it includes extended elements of marketing mix.
Thus, by considering such aspect seven P’s are included in the plan which in turn helps in
making efforts in the right direction.
 Product: ABC is a service based organization which offers cleaning services to the
customers at their home after parties by using high-tech equipments.
 Price: In order to attract large number of customer’s business entity will employ
penetration pricing strategy. The main reasons behind the selection of such pricing
strategy are that it makes contribution in the long term growth or success. On the basis of
this aspect, business entity will set lower prices on initial level. Once loyalty has been
built thereafter sole proprietor will charge higher prices and thereby would become able
to generate enough profit margins.
 Place: In the present era, there are several people or customers who do not have faith on
online services. Hence, for delivering services and developing faith among the people
business entity will establish office in East London.
 Promotion: Business entity of ABC will make focus on the adoption of both traditional
and modern means of promotion. Hence, sole trader of cleaning company will place
advertisement on television, newspapers and magazines to provide information to them
regarding offerings (Jiménez-Martín, Mateos and del Pozo, 2016). Besides this, sole
proprietor will also place advertisement on social sites such as Facebook, Twitter etc.
Moreover, now use of social media increased with the very high pace as compared to
before times. Thus, by placing emphasis on promotional aspects business entity can
attract customers and thereby would become abler to entice their decision making
aspects.
 People: In the service sector, decision making aspect of the customers is highly
influenced from the quality of services offered by personnel. Hence, to evolve high
satisfaction among the customers business entity will appoint highly talented and skilled
personnel for the job of cleaning services.
 Process: To facilitates standardization and develop faith among the individuals business
entity will prepare and circulate specific process that individuals need to follow. In this

way, by following specific process and guideline individuals or personnel would become
able to deliver quality services.
 Physical evidence: With the motive to attract large number of customer’s entrepreneur
will lay emphasis on unique interior and exterior aspect.
4. FINANCIAL ANALYSIS AND PROJECTIONS
Financial sources: To start the new venture business entity requires enough fund which
in turn ensures smooth functioning of the business operations and functions. Hence, to fulfill the
monetary needs sole trader can undertake internal and external sources of funding. On the basis
of this aspect, business entity will take loan from Barclays bank amounted to £80000 @ 3%
interest rate. The main reasons behind the selection of such source are that it offers tax benefits
to the business entity. Moreover, interest paid comes under the category of tax deductions which
in turn places positive impact on profit margin. However, on the critical note, it can be said that
interest on bank loan is one of the main factors which in turn imposes fixed burden in front of the
business entity. Besides this, sole trader will also make use of personal saving related to the
amount of £40000. Such source of finance is highly effectual which in turn reduces the fixed
burden in monetary terms to a great extent. However, such source has opportunity cost to the
firm because in this business entity would not become able to earn interest by lending money to
others. Thus, by undertaking both internal and external sources of finance business entity would
become able to make suitable capital structure.
Cash flow projections
Cash flow statement
Pre-Operating
Year Year 1 (￡) Year 2 (￡)
CASH INFLOW
Opening Balance 0 94500 51033.33333
Sales 0 29200 35040
Owner's fund 80000
Bank Loan 40000
Total Cash Inflow 120000 123700 86073.33333
CASH OUTFLOW
Working Capital 20000 0 0
Legal and Registration Charges 4000 0 0
Market Research 1500

Marketing and promotional 2000 2200
Utilities (Electricity & Phone) 0 400 450
Plant and equipment
maintainance 0 1200 1200
Interest on loan 2400 1600
Rent on premises 0 12000 12000
Salary 0 25000 27500
Miscellaneous Expenses 0 2200 2400
Insurance 0 800 800
Loan Repayment 0 26666.7 26666.7
Total Cash Outflow 25500 72666.7 74816.7
Closing Balance 94500 51033.33 11256.67

REFERENCES
Books and Journals
Harris, E. and Hongdiyanto, C., 2016. The Design Of Standard Operating Procedure In Cleaning
Service Residential. Jurnal Kewirausahaan dan Usaha Kecil Menengah. 1(1).
Jiménez-Martín, A., Mateos, A. and del Pozo, J.A.F., 2016. Dominance measuring methods for
the selection of cleaning services in a European underground transportation
company. RAIRO-Operations Research. 50(4-5). pp.809-824.
Klungseth, N. J. and et.al., 2016. Organising in-house cleaning services in public
FM. Facilities. 34(13/14). pp.828-854.
Toffolutti, V. and et.al., 2017. Outsourcing cleaning services increases MRSA incidence:
Evidence from 126 english acute trusts. Social Science & Medicine. 174. pp.64-69.
Online
The domestic cleaning market in the UK: An overview. 2017. Online available through: <
http://www.thefranchisemagazine.net/page/molly-maid-uk-ltd/domestic-cleaning-market-in-
uk-an-overview.php>. [Accessed on 3rd May 2017].