Entrepreneurship: Happy Home Room Cleaning Services Business Plan

This business plan outlines the strategy for Happy Home, a room cleaning service targeting the London market. It details the company's aim to assist customers with their cleaning needs, offering services like mopping, dusting, and room organization. The plan includes market research, identifying potential customers and market trends, and analyzing competitors like Domestic cleaning London, Clean easy and Angel Clean limited. It proposes innovative marketing strategies based on the 7 Ps of marketing, including product, price, place, promotion, people, process, and physical evidence. Furthermore, the plan addresses business strategies, financial feasibility, sources of finance, legal regulations, IT utilization, and risk assessment. The company aims to achieve significant market share and sales growth through customer convenience and customized services.

Entrepreneurship Enterprise
and Business Planning

Table of Contents
BUSINESS PLAN FOR THE ROOM CLEANING SERVICES ..................................................1
Aim and objectives of the business ............................................................................................1
Clear description of products and services .................................................................................1
Detailed marketing research and potential growth through identifying the potential customers
and market trends .......................................................................................................................2
Competitor analysis.....................................................................................................................3
Innovative marketing strategies .................................................................................................4
Business strategies for the Happy home room cleaning services ..............................................5
Financial feasibility ....................................................................................................................6
Sources of finance ......................................................................................................................7
Legal rules and regulations.........................................................................................................7
Use of IT to attain the business objectives .................................................................................8
Assessing the potential risk and ways to mitigate the same .......................................................9
Conclusion...................................................................................................................................9

BUSINESS PLAN FOR THE ROOM CLEANING SERVICES
Aim and objectives of the business
Starting new business in the today's scenario is not a simple task rather presence of
immense amount of competition in the business environment is highly required. However, with
an aim to mark an effective presence in the competitive environment, an individual has to come
up with some kind of new and innovative idea. Here, in the present report business plan is
prepared for room cleaning services. The newly start-up business will be named as Happy home.
In this regard, following aim and objectives are prepared for the Happy home room cleaning
services:
The main aim of Happy home is to assist buyers in the task of cleaning their home or flat.
However, on the basis of given aim, the major objectives of enterprise are as follows:
 To raise the market share of company by 15% till the year 2018.
 To enhance the sales of Happy Home by 25% till the year 2019.
 To give the information about the presence of services in market among large number of
buyers.

Clear description of products and services
Headquarter of the newly started business will be situated in the Aldgate, London, United
Kingdom. The company headquarter will be situated in the respective city because it is highly
developed. Furthermore, there are many business opportunities identified with regard to the
stated business. The room cleaning service has the opportunity to attract those buyers who do
not have much time for cleaning their room. In this context, it has been seen that there are many
buyers who cannot afford full-time maid for their home. However, there are some circumstances
exist in which they require room cleaning service assistance from the other individual. The
circumstances could be hosting of big party at home and visiting home after having long holiday
etc. Hence, Happy home will deliver the services to those customers who do not want to make
investment for full-time maid. In addition to this, the business also have the opportunity to carry
out the expansion of its business by making the additions of different new services such as
electric switches repairing and home appliance repairing services etc. With the use of all these
additional services, Happy home will get an opportunity to earn high profits and sales in an
effectual way.
Besides this, the room cleaning services which Happy home will introduce in London
market will possess different features. This service will cover areas such as moping and dusting.
Here, customer can give request for availing the services by filling a simple form on company’s
website. The form will contain the details about the customer’s name, phone number, the room
or area which it wants to clean and address of the buyers etc. This will help in fulfilling the
convenience related needs of buyers which is affected when they have to visit some store in
order to get the professional for cleaning their home. However, the customers will have to give
request for the service one day before the day of cleaning their room or flat.
Furthermore, the customer can make use of services for 24 hours. The charges will be
paid by buyers on the basis of number of rooms cleaned. For example, if Happy home
professional has cleaned two rooms of customers then, the they will pay the prices for the availed
services accordingly. In addition to this, cash on delivery option will also be given to them.
Furthermore, the option of customer review or feedback will also be placed in the company’s
website. This is given with an aim to review the effectiveness of the services which are being
given by company's professionals to their buyers. By using the given application, organisation

can made several types of changes in its existing services. Thus, through this, they can raise its
chance of earning the high profits and sales in an effectual way.
In addition to this, along with room cleaning, the firm will also offers other types of
services too such as organising things, intense floor cleaning etc. Here, the firm's professionals
will not only mop the floor but they also help the buyer in room arrangement as well which has
turned out into huge mess. Moreover, the company will give customised services as per the room
of buyer. For example, an individual has carpet floor which needs to be handled very delicately.
Then, in the given circumstance, firm will offer different kinds of moping and other services as
per the requirement of the type of cleaning demanded. Overall, it can be said that Happy home
will deliver varied types of services to its buyers with an aim to make the home of buyers healthy
and cleaned.
Detailed marketing research and potential growth through identifying the potential customers
and market trends
Potential customers
The target customers of the firm will be all those buyers who do not want to recruit full-
time maid but require room cleaning assistance in certain circumstances. Hence, all the buyers
who reside in the London will consider it as target market for the cited corporation. In addition to
this, the corporate firms which are operating in London will also be considered as the potential
buyers for the corporation. The corporate firms usually have full-time maid but in-case due to
any situation or absence of maid then these organisations can take help from the Happy Home
services.
Market segmentation
Market segmentation is the process of dividing whole market into several sub-segments
(Market segmentation, 2016). Herein, the Happy home room cleaning services will be segmented
by the firm on the basis of demographic segmentation. Here, in this regard the room cleaning
service of the company will be divided on the basis of occupation of buyers. For example, a
buyer who is into service sector and the buyer who does not have any job will be targeted by the
corporation. This means that the corporation will target both household and business buyers.
Positioning tactic
By communicating the benefits which customers will avail by using the services of firm,
Happy home will position the effective image of the company's brand in the mind of its buyers.

Herein, company can communicate about its convenience and available different service options
benefits to its buyers.
Market trends
There is a significant change being seen in the cleaning industry. Earlier, the industry
does provide services to the individual buyers. However, now-a-days, the given industry also
gives assistance to many business buyers also. Furthermore, the cleaning industry worth around
323 million dollar. Furthermore, it is estimated that the respective industry will grow by 9% in
the future. Moreover, the necessary changes in the lifestyle of customers can also be seen as the
significant trend which is related with the given industry. Herein, it is assessed that working long
hour is being regarded as common trend in the today business. Due to this, people have very less
time to take care of their home appropriately. Thus, because of this, different buyers are
demanding the mentioned services.
Competitor analysis
The rooms cleaning service of Happy Home will face intense competition from the
number of competitors who also works in the respective industry. Here, the competitors of the
cited firm will be Domestic cleaning London, Clean easy and Angel Clean limited etc. These all
firms runs their online website with an aim to fulfil the convenience related need of the buyers.
In addition to this, Angel Clean limited offers regular cleaning services to the buyers. This mean
that the respective firm provide cleaning assistance to those buyers who wants it on regular basis.
Here, the firm will not entertain those buyers who does not require room cleaning help on regular
basis. Thus, this can be consider as the major disadvantage of given company. In addition to this,
other two competitors of organization also offer the similar services like Happy Home. But, these
firm does not give room arrangement facility to the buyers which Happy Home will offer. Here,
by taking the respective USP (Unique Selling Preposition) of company cited firm can build up
unique image in the mind of its buyers. Thus, due to this the overall benefits can be achieved by
enterprise in the form of increased profits and sales in an effectual way.
Innovative marketing strategies
`It is very essential for the firm that it should prepare an effective marketing tactic for its
business. This is because, it is by complying with the given type of activity only organisation can
achieve success in the market where it is operating its operation in an effectual way. Here,

marketing strategy for Happy Home room cleaning services is prepared on the basis of 7 P's of
marketing. The detailed explanation about the same is depicted in below: Product: The Happy Home will offer different type of room cleaning services such as
moping, dusting and room organizing. With the help of these given services, organisation
will satisfy needs and demands of its buyers. Thus, due to this the overall benefits will be
gained by corporation in the form of increased profits and sales. Furthermore, it is
through such type of practices only Happy Home will achieve its framed objectives in an
effectual manner. Price: The firm will use the price penetration tactic with an aim to raise the sales of the
services. The price penetration is the type of tactic wherein the firm will charge low
prices from the customers. Thus, from the movement the corporation will start earning
profit at that time, enterprise makes the decision to raise the prices for the products and
services which is offered by it. Here, with the help of given marketing tactic Happy
Home can attract large number of buyers towards the firm. Place: The firm will offer the services to its buyers through its website. This mean of
distribution is chosen with an aim to fulfil the convenience related need of customers in
an effective way. Promotion: For the purpose to give information about the product, both traditional and
modern form of marketing will be used. Here, the ads about the room cleaning services
will be given by firm in the different social networking site such as Facebook and Twitter
etc. With the help of given mean, Happy Home can cover large number of buyers. In
addition to this, firm will also TV advertisement with an aim to give information about
the presence of respective services to those buyers who does not have internet. People: The success of Happy Home totally depends upon the employees who will
deliver the services to the customers. Here, the firm will carry out the recruitment of
highly talented and skilled personnel with the help of its recruitment plan. Process: Furthermore, this includes the service delivery process. Here, at first customer
will fill the form which will be availed by them at the company website. After getting
request from the buyers, Happy home will send its professional to the place of buyer.
Finally, firm will receive the payment after giving the services to the customers.

 Physical evidence: All the professional which delivers the services to the buyers of
company will be consider as physical evidence.
Business strategies for the Happy home room cleaning services
Business strategy is the tactic which firm will use in order to achieve the success in the
market. Here, in order to competitive in the competitive scenario Happy home room cleaning
services will use differentiation type of business strategy. In this regard, the firm will
differentiate its services with that of its buyers. Here, the aforementioned competitor of Happy
home room cleaning services does not have room arrangement services but Happy home will
offer the given service to the buyers. In this context, the organisation will organize the room of
buyer who have spread the many messes. Here, the room arrangement service will include
putting things at appropriate places, changing the bed sheet and putting the trashed things at
appropriate place etc. Here, by given all these type of services organisation can maintain as well
as enhance the satisfaction level of its buyers. Due to this, the firm will earn the benefits in the
form of maintaining the satisfaction level of its buyers in an effectual way. Furthermore, by
using the pricing aspect firm can establish differentiation between it and its competitors services.
Through this way, organisation can achieve its different objectives such as raising the market
share of company by 15% till the year 2018 and enhancing the sales of Happy Home by 25% till
the year 2019.
Financial feasibility
In order to assess the financial feasibility of Happy home, following statements are
prepared. The statement consist of cash flow and income statement. This is a estimated statement
for the new firm.
Particulars 1 year (in £) 2 year (£) 3year ( in £)
Income
Sales 967000 1111000 1277535
Expenditure
Materials 288800 318680 350657
Stock 96600 106360 116885

Gross Profit = Sales –Variable Costs 581600 685960 809993
Salary 240000 265000 290400
Rent and rates 47000 52700 58080
Electricity, gas charges 12000 13200 14520
Telephone expenses 7000 6700 7260
Maintenance charges 140000 165000 181500
Insurance 12000 13200 14520
Stationary 1200 1340 1452
Marketing & promotion 46000 50500 54450
Travelling expenses 23000 25400 29040
Legal registration 37000 39600 43560
Bank expenses 2900 3200 3630
Tax 480 10188 20074.44
Total Expenditure 568580 461128 718486
Net profit/loss 13020 224832 91504
Particular 1 2 3 4
Income
Opening cash 0 31400 27800 24200
Sales 60000 70000 70000 70000
Capital 300000 0 0 0
Total inflow cash 360000 101400 97800 94200
Expenses
Raw materials (V.C) 20000 20000 20000 20000
Stock (V.C) 6000 6000 6000 6000
Total Variable Cots 26000 26000 26000 26000

Employee wages (F.C) 20000 20000 20000 20000
Rent/rates on business
premises(V.C)
4000 4000 4000 4000
Gas, electricity, water (V.C) 1000 1000 1000 1000
Telephone (V.C) 400 400 400 500
Property and equipment
maintenance (V.C)
150000 0 0 0
Insurances (V.C) 12000 0 0 0
Postage and stationery (V.C) 500 100 100 100
Publicity and marketing (V.C) 6000 5000 5000 5000
Travelling and motor expenses
(V.C)
1000 1000 1000 2000
Professional fees (V.C) 4000 4000 4000 3000
Capital expenditure (V.C) 100000 0 0 0
Bank charges (V.C) 2000 0 0 0
Loans/HP payments (V.C) 10000 10000 10000 10000
Total Fixed Costs 310600 45600 45600 45600
Total Expenses 338600 73600 73600 73600
Net cash flow 31400 27800 24200 20600
Sources of finance
There are number of sources assessed which can be used by the manager of Happy home
room cleaning services, with an aim to make the framed idea practically implicable. The detailed
explanation about the different sources which cited firm can use are depicted in below: Taking loan from the bank: It is the first and most effective option for getting the funds
available with the company. The given mean is effective because by using it organisation
meet its demand of huge funds. Here, when starting the new business company will
immense funds. However, in order to raise the fund through the given source company
will have to put something in the form of security with bank. Furthermore, on daily basis

Happy home will have to pay interest to the bank. This will be proved as the cost to the
company.
 Personal saving: It is another form of taking finance. In this context, owner can put its
whole saving into the business. It is an effective mean but with the help of it firm cannot
fulfil its need of huge funds. But, with the help of given approach owner can fulfil it's
some need relating to the funds.
Legal rules and regulations
There are number of legal rules and regulations identified which needs to be followed by
manager of Happy home room cleaning services, when it makes the decisions to start the new
business. The assessed legal regulations are depicted in below: Equality act 2010: The act was passed by government of UK. The given act entail that
firm should not make any kind of discrimination between its employees on the basis of
age, caste and gender (Equality act 2010, 2016). Th given act will be followed by the
manager of Happy home when it is making the recruitment of room cleaning service
professionals. Here, with the help of given act organisation can build up its positive
image in the mind of its buyers. This is because, it has been seen that the image of firm in
the mind of its workers will be impacted in a negative way when its employer perform
some unethical or ineffective operation. Employment act 2002: Another act which will be used by company is related with
employment. In accordance with the given context, organisation will make use of all the
employment provision in its HR policies. For example, providing minimum wages to
buyers, maintaining the safety and security of the employees along with giving an
effective environment of working to the room cleaning professionals etc. Through this
way, firm can enhance the satisfaction level of its buyers. Furthermore, because of it
worker will be able to direct their efforts in terms of delivering its best services to the
enterprise in an effective way.
 Data protection act 1998: It is being regarded as another legislation which is made
applicable for the respective business. This act is applied because firm is carrying out the
online operation. In this regard, the firm will ensure the safety and security of the
information which is being given by the customer of company in the website. Through

this way, trustworthy relationship can be established by Happy home room cleaning
services in an effective way.
Use of IT to attain the business objectives
There are different IT tools and techniques assessed which will assist firm in the task of
accomplishing its business objectives. Here, in the given business Happy home can use IT tools
such as database management system (DBMS). It is the tool which maintains the different data
of the firm. For Happy home room cleaning services, the given technique will be proved as
effective. It is because, by using this organisation can track the record regarding the sales which
it has earned during the year. Hence, through this way firm can assess that whether it is working
in the right direction as per the accomplishment of its objectives or not. For example, if through
DBMS system it is assessed by the firm that it is not working on the right direction then by
taking the significant action with regard to the same organisation can direct its operation towards
the objective.
In addition to this, another IT tool which firm could use is of smartphone. Here, the given
tool can be used by firm as a promotional and service delivery mean. This can be used as the
promotional mean by spreading the message about the presence of such type of services in
market to the respective buyers. Furthermore, the company can also launch the mobile app for its
business. Here, the given app will provide opportunity to the buyers with regard to make the
order for availing the room cleaning services through the mobile phone. Overall, it can be said
that with the help of assessed IT tool such as database management system all three objectives
which is framed by Happy home room cleaning services will be met appropriately.
Assessing the potential risk and ways to mitigate the same
Number of potential risk examined which are associated with the respective business.
The detailed explanation regarding the assessed risks are depicted in below: Damage to the property of customers: The likelihood of occurring the given risk is more
in the respective business. This is because, the given type of services is given by firm at
the home of buyers. Hence, improper handling of customer property will lead to the
damages. The given risk will tend to affect the reputation of the company. But, the given
risk can be mitigate by the Happy home by giving customer good handling related
training to the workers.

 Occupational injury: It is being regarded as another type of risk which is related with the
room cleaning business. In this regard, it has been seen that the employees of firm can get
minute injury because of the work which they perform such as rashes in hand due to
moping and breathing problem due to dusting etc. The given type of risk can be mitigate
if firm will give different type of safety equipments to its employees. The equipments
could be hand gloves and face mask etc.
 Loss of customer confidential information: Here, Happy home room cleaning services
will enter all the confidential information about the buyers in its server. Hence, there is a
more chances that the information which firm has feed in the server may be hacked by
some unethical users. The given thing will cause direct impact upon the reputation of the
company. Hence, this will also hamper the profit of enterprise in a negative manner. But,
by using highly secured software for protecting the information of the customer of the
company, the respective risk can be managed by the enterprise in an effectual way.
Conclusion
From the conducted analysis, it can be depicted that by preparing an effective and
detailed business plan an individual can start the new business. In addition to this, the financial
statement of Happy home depicts that it will start earning profits in the third year of its
establishment. Furthermore, it is also required by the individual that it should frame different
type of objectives with an aim to start the new business. This is because, the given thing will
assist enterprise in the right direction.

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