Clean & Dry App: Business Idea Development and Plan

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Innovation and entrepreneurship

Contents
INTRODUCTION...........................................................................................................................2
TASK 1- BUSINESS IDEA DEVELOPMENT..............................................................................3
TASK 2- BUSINESS PLAN...........................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Innovation and great idea is the key of the success. Startup of a business organization requires an
effective idea and business plan to achieve the business objectives. The business plan should be
made in that way it clarifies all the relevant aspects and procedure to start a business unit. The
business idea comes up with the innovation capability and then developing this idea into a
business plan requires many steps (Burns, 2016).
In this report the discussion will be done on business idea development through analyzing all the
beneficial aspects of the business idea and an efficient business plan for that idea will be
discussed briefly in that report.
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TASK 1- BUSINESS IDEA DEVELOPMENT
Business idea development is the process of generating an idea with great innovation to form a
business. Here the business idea is the development of ‘clean & dry’ app which will help in
providing dry cleaning, laundry and alteration services to the customers. This app will facilitate
the customer to use all these services at a low price and good quality which would help in
achieving competitive advantages in the market. Regular home pick-up and delivery services
will be provided to the customer by using this app. First 50 customers will be provided free
laundry services and the regular customer will receive 10% off on each service availed by them.
This app will be formed using the fast and accurate software which will ensure the fast running
of the app and referral amount will be provided to the customers if they refer this app to their
friends or relatives.
The company will use delivery vans and customer trained drivers to provide the best delivery
services to the customers. Using this app the customer can choose different payment options like
weekly, monthly or daily. The payment statement will be sent to the customers using the online
medium in that the services fees and other charges will be included (Voola et al., 2012).
This app is going to provide door to door laundry and other services to the customers at a very
reasonable price and that will surely attract the customers to purchase the services especially the
working class people because they do not get sufficient time and this app will enable them to use
all these services at their home. If the customers are satisfied with the services then they will
make repeat purchases. As the company is providing a referral amount offer this will promote the
app and will create its brand image that will result in more and more use of this app (Liedholm
and Mead, 2013).
Mission
This app will provide laundry, dry cleaning and alteration services to the customers with low
price and various offers. The high-quality services at a lower price will attract all income level
groups to obtain these services. The company wants to deliver quality services to a large number
of people.
Key to success
 The effective market strategy will be applied to promote the app among the customers
like the discount offers, referral offers.
 High-quality services to the target customers at a very lower price in comparison with
other laundry service provider.
 Service completion will be done on a timely basis so that the customer can feel satisfied.
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Objectives
By providing laundry, dry cleaning and other services the following objectives are to be
achieved.
 A gain of 40% market share at the end of the first year
 Estimated total sales in the first year £424,000
 Expected net profit will be £85,000 in the first year.
TASK 2- BUSINESS PLAN
The business plan will include a detailed analysis of the market condition as well as it will check
out the effectiveness of the business idea whether it will help in to generate profit or not. The
development of the business plan will include the following steps (Habtay, 2012).
1. Market analysis
 There many reasons for selecting this app to use laundry and other services.
 The customers want to get high-quality services at the lower price
 Customers can easily make payment for services through check, cash or credit/debit
cards.
 This app will provide quick and faster mode to get home delivery of the services
 The working class customers do not get time so the laundry services at the home will be
convenient for them.
 No or fewer alternatives are available in the market so the app easy to use and reliable to
obtain dry cleaning and other services (Ward, 2016)
Market segmentation
Market segmentation divides a market into different groups to identify the target market. The
market segmentation can be done through on the basis of the size, geographic location, value and
other demographic factors (Wedel and Kamakura, 2012).
Target market
The target market will include those people who are the potential customers of the business and
the development of the laundry service app will target a specific audience to sell the products. As
the income level of the people of the UK is increasing very fast and there is a number of male
and female employees are working who do not get time to do the laundry of their clothes. So the
clean and dry app will provide its services to the professional and working class people of the
UK.
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Characteristics of the target market
Size
This will include the size of the total market customers. The clean and dry app will target 70%
market of London.
Value
The value of the customers will be considered according to their income level, occupation and
profession. For example working class people
Geographic location
The app will be launched in the UK and will cover 70% area of the London and 60% area of
northern England and after its successful launch the market expansion will be done
Other demographic characteristics
Clean and dry app services will target the low or high-income level as well as the working class
of the people. The age group will be between 18 to 50 year and it will target both male and
female.
The company wants to grow its market share by expanding its business in all over the UK and
wants to get a higher customer base through the launching of the clean and dry app.
2. Industry analysis
The clean & dry app will belong to Dry cleaning and other cleaning services industry of the UK.
The laundry sector of the Uk is having a worth of approx. £1 billion in a year and it is
accountable for the employment of 31,700 people in 3700 laundry businesses. This industry is
consisting of many small businesses. The demand for the laundry services correlates with the
income because a small change in the income level of the people will change the demand for the
services. Today the laundry industry of the UK has been changed as the income level of the
people increased and they are not getting time to do wash or laundry their clothes. There are a
number of small business operators available who are providing laundry and other services in the
UK and they are serving a large group of commercial and industrial clients (Hewings, 2017).
Industry products
 Dry cleaning
 Laundry
 Self-service laundry machines and alteration of the cloths services
Industry activities
 Offering dry cleaning and laundry services
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 Coin operated laundry machines
 Offering home textile cleaning
The main competitors of the clean and dry app will be Laundry heap and solo laundry & linen
services Ltd because they are the topmost ranked laundry service provider of the UK and gaining
a large market share through their offerings. The clean and dry app is using suitable market
strategy to achieve the win over its competitors.
3. Operations detail
This will include all the details regarding the area of operations and it is described as follows
Location of premises
Clean and dry is an online app which can be downloaded easily in a smartphone. The users of
this app can easily access the data from the app and can order the services they want to get. This
app will take a few seconds to make an order from home to receive laundry and other services.
This app is reliable enough and will save time from going to a laundry centre.
Transport links
The services will be distributed by using the online medium. The customers can avail the
services just by clicking on the app and can choose the services. The internet connection and
smartphone will be sufficient to quickly get the laundry services at the home. This app will not
take any extra charges. The customer will require paying only charges of their services.
Customers need to download this app from the Google play store after that he needs to install it.
The customer can access all the services by registering himself as a customer and then he can
take advantages of fast and reliable laundry services at a low price. This app is useful for those
people who do not get time to go out and wants to get done laundry at the home so this app will
facilitate them to order the laundry services from the app with easy payment facility.
Hence, the operation scale of this business will be online platform using the digital technology
which is considered as the fast, quick and accurate model of the communication and facilitates to
obtain all kind of services within few minutes (Burns and Dewhurst, 2016).
4. SWOT analysis
The SWOT analysis will include the internal and external analysis of the market to launch a
clean and dry app among the public. This analysis will help in finding out the strong and weak
point of the business plan (Helms et al., 2010). Identification of the strength, weakness, threats
and opportunities exist with the development of clean and dry app can be done through
conducting a SWOT analysis which is described as follows:
strength weakness opportunities threats
This app will attract Starting its business Launching of 'clean There are a number of
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potential customers
with its low pricing
strategy
with no market share and dry' app can cover
a large market share
through a digital
platform
competitors exist in
the UK who are
providing laundry
services
Launching of this app
will save time and
money of the
customers as they will
not require to go to
any local store
Not experienced in
the new market
People spend their
time fun and leisure
activities rather than
doing housing work
Sales of the service
can fall down in the
first year
Laundry, dry cleaning
and other services are
available with high
quality and low price
Strong competition
from well-established
laundry service
providers
Sales can be increased
by low price strategy
(Blackburn et al.,
2013)
Not acceptance of the
customers may
become a threat to the
business
Free home delivery
and pick up and
effective marketing or
promotional strategy
Lack of availability of
the physical store
Income level of the
people is increasing
they purchase
expensive cloth and
spend money on their
washing
Customers are loyal
towards other laundry
service provider
5. Financial requirements
When a business is started or formed it requires a huge amount of finance to obtain useful
resources like furniture cost, equipment cost, and human resource cost, premises cost and
opening stock. 'clean & dry' app would require less cost as it has no building or any other
premise and it is only providing online facility to obtain certain services. the cost of the sales can
be estimated through analyzing the figures and facts and that would also help in determining the
selling price per unit of the products (Baños et al., 2016).
Human resource requirement
description No of people Salary per hour Working hours
owner Full time 1 15(£) 45
Laundry expert Full time 4 8(£) 45
Other workers Part-time 5 6(£) 45
Other resources requirement cost
Resources requirement Estimated cost for the year (£)
Opening stock 20000
Technical cost 800
Software development cost 900
Delivery van and other costs 1000
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maintenance 50
miscellaneous 300
Advertisement cost 150
Technical expert 200
Other promotional costs 150
The estimated cost of sales
Cost of sales
Beginning inventory 30000£
+ purchases 15000£
- Ending inventory 10000£
Cost of sales 35000£
Expected selling price
services Number of services Expected selling price Expected revenue
Laundry services 10 cloths 50£ 500£
Dry cleaning 10 cloths 40£ 400£
Alteration services 10 cloths 20£ 200£
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CONCLUSION
It can be said that an effective business plan can be developed by analyzing the internal and
external condition of the business. a well-developed business plan can be made through the
efficient business idea. The proper and effective procedure must be followed for developing an
effective business plan which will ensure its success in the market. The forecasting of sales
through estimated figures will help in analyzing the future sales of the business services.
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REFERENCES
Baños-Caballero, S., García-Teruel, P.J. and Martínez-Solano, P., 2016. Financing of working
capital requirement, financial flexibility and SME performance. Journal of Business Economics
and Management, 17(6), pp.1189-1204.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Habtay, S.R., 2012. A firm‐level analysis on the relative difference between technology‐driven
and market‐driven disruptive business model innovations. Creativity and Innovation
Management, 21(3), pp.290-303.
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.
Hewings, G.J., 2017. Regional industrial analysis and development. Routledge.
Liedholm, C.E. and Mead, D.C., 2013. Small enterprises and economic development: the
dynamics of micro and small enterprises. Routledge.
Voola, R., Casimir, G., Carlson, J. and Agnihotri, M.A., 2012. The effects of market orientation,
technological opportunism, and e-business adoption on performance: A moderated mediation
analysis. Australasian Marketing Journal (AMJ), 20(2), pp.136-146.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological
foundations (Vol. 8). Springer Science & Business Media.
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