Tru-Shine Cleaning Services: A Detailed Business Plan Analysis

This business plan outlines the strategy for Tru-Shine, a cleaning service company offering both domestic and commercial cleaning. The plan begins with an executive summary and a detailed business description, highlighting the growing demand for cleaning services, especially in the context of current market conditions. It includes a thorough industry analysis using Porter's Five Forces model to assess the competitive landscape, covering threats of new entrants, buyer power, supplier power, and the threat of substitutes. The operational plan details the company's vision, mission, and technical solutions, emphasizing the use of technology to provide no-human-touch services. A marketing plan outlines advertising and social media strategies, and a financial projection provides startup costs, revenue forecasts, and break-even analysis. The plan also includes an organizational structure and an overall schedule for implementing the business strategy, supported by references to relevant academic sources. This plan is designed to provide a clear roadmap for launching and operating a successful cleaning business.

Cleaning company starting new
business domestic and
commercial cleaning
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Table of Contents
Executive summary..........................................................................................................................3
Business description ........................................................................................................................3
Industry analysis..............................................................................................................................3
Operational plan...............................................................................................................................5
Management team and Company structure......................................................................................6
Marketing plan.................................................................................................................................6
Financial project...............................................................................................................................7
Overall schedule...............................................................................................................................8
REFERENCES..............................................................................................................................10
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Executive summary
In today's world, there is intense competition in surroundings and this makes the living
even more difficult. In order to make through this competition and make survival easy, most easy
option available is to enter into business world (Biech, 2019). After analysis of current market
situations, it has been analysed that there is huge demand for cleaning and hygienic services in
the market. There is pandemic time going on in the market and it gives rise to demand of
cleaning services. Keeping this pattern in mind, there is a business proposal of starting a new
business that will deal in domestic and commercial cleaning services. This report will
concentrate on discussing various necessary dimensions those are required to be taken in
consideration before starting up a business. These all considerations together make up the the
business plan. This report will also concentrate on getting all resources organized. This company
is proposed to be set up in domestic market of United Kingdoms with name “Tru-Shine”.
Business description
In present time of pandemic, there is huge demand for cleanliness, even governmental
authorities are also promoting this idea. People, nowadays, are becoming more and more
conscious about hygienic factor in their lives. In commercial places, there is huge practice of
keeping things organized and also clean. As it is a public place, therefore, chances of infection or
transmission of disease is also common. Therefore, proposed business idea is very suitable for
needs and also will prove to be beneficial for both society and businessman. The USP of this
business idea is that it provides deep cleaning and also prevent human touch. Every little work is
done through machineries and robots. This technique ensures that there is no proximity of
humans while taking on the process.
Industry analysis
Porter's five forces model on Domestic and Commercial cleaning industry
Porter's five forces model is the model to identify what are the sources of competition in
an industry or market. Porter's five forces model focuses on five key elements which are threat of
new entry, power of buyer, power of suppliers and last threat of substitute products (Galai, Hillel
and Wiener, 2016). Let discuss about these areas or element:
The threat of new entry: New entrances if any company brings innovation, new ideas of
doings things and that put pressure on Tru-shine company by providing lower cost, and value
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propositions to the customers. Tru-shine has a pressure and needs to manage all these challenges
to build barriers to earn competitive advantage in the market. There are various ways to tackle
this situation:
 By innovating new products or services. This attracts new customers and existing
customers both (Hairstans and Smith, 2018).
 By spending money on research and development team. To search for the preferences of
the customer' needs and wants. By this their standard increase regularly and this creates
barriers to enter the new entrances in the market.
 By maintaining economics of scale so that company can lower the fixed cost per unit.
Bargaining power of buyers: Buyers are very most important element in every
company. They want to buy that think which gives them best quality with minimum number of
amount paying. This creates pressure on Tru-shine lmt. There are many ways to tackle all the
power of buyers which are:
 By continuous innovation of new product and services. Customer identifies offers and
discount on new products, so when company introduces new products then it can limit
the bargaining power of buyers.
 By building large customer base. As it reduce poor of buyers and also provide
opportunity to the company to increase its sales and profit.
 Introduction of new products can also reduce the defection of old customers of Tru-shine
lmt. To its competitors.
Bargaining power of suppliers: Almost all the companies in cleaning industry buy their
products from any suppliers. Powerful suppliers sometimes charge huge prices of their products
from companies of cleaning industry. This impacts the Tru-shine on their profitability and sales.
Some ways to tackle the situation:
 Experiments with product designs so if prices of one products goes higher then company
could shift to another product.
 By identifying trusted suppliers to which company can depends on them.
 By building contacts with multiple suppliers so that company cannot depend on only one
supplier (Hopp and Greene, 2018).
Threat of substitute products: When a new products meets customer needs in different
way. This suffers on companies profitability. If the company produces high quality of product
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and services to the customers. Then this creates threat of substitute product. Ways to tackle this
type of situation:
 Company should move to service oriented process rather than product oriented process so
that can satisfy customer needs.
 By understanding customer preferences and there need of buying rather than what they
are buying.
 Switching cost could be increased for the customers (Johnson and Garvin, 2017).
Operational plan
Operational plan is a clear cut statement which is outlining every little detail about how a
team, section and organisation will move forward with the business idea. This operational plan is
formulated with the primary motive of achieving desired goals and objectives. Furthermore, this
plan will design small steps that are required to be taken to make daily operations much
smoother. This will be helpful in making operations much efficient and effective.
Vision: The main aim of this company is to provide cleaning services to domestic and
commercial places. The main motive of the company is that people should identify company's
name at first, when they wants to avail cleaning services.
Mission: The mission statement of company includes various things which are described below:
 Serve to each and every customer equally
 Work for promoting honesty and justice every time.
 Respect dignity of each and every clients.
 Most important is to have good communication skills.
Technical solution: In today's time, it is important that every company is taking latest
technologies in use so that operations are very smooth and also cost efficient. In this context, it
can be said that Tru-shine should also adopt latest technology in its operations so that they can
provide low cost operations and also can fulfil USP of the company (Katz, 2018). In above
business description, it is stated that unique selling proposition of the company is that company
attempts to provide no human touch services. To ensure completion of this facility, it is
important that management of the company is adopting latest technology.
Human resource plan
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In this business plan, the company has planned to employ 10 workers in first quarter of the year,
out of which, 3 are in management role. Next quarter will have 15 employees and in next
quarters 20 employees will be recruited.
Management team and Company structure
To take on a business process, it is important that management is adopting a suitable
organisational structure to perform activities and tasks (Kraus and et.al., 2018). The main motive
of this structure is to achieve desired goals and objectives. Organisational structure refers to a
hierarchical channel or chart that is followed by employees of the company to perform
actions or communicate. There are various organisational structures, such as, hierarchical
organisational structure, functional organisational structure, flat organisational structure,
divisional organisational structure, matrix based structure, team based organisational structure,
network organisational structure. Choice of structure is based different factors like, size of
operations of the company, communication intensity, type of employees, style of management,
etc.
According to the scale of operations of present business idea, which is small size, the
most suitable form of organisational structure is hierarchical structure. As it is learnt from
business idea analysis, it is a firm which will recruit some unskilled workers, therefore, it is
important to give them direct orders to them so that performance can be improved.
Marketing plan
Marketing plan refers to designing the process of communicating marketing message to
targeted customers. The proposed idea will have advertising as most used method of marketing.
Advertising is a means of communication with the users of a product or service. Advertisements
are messages paid for by those who send them and are intended to inform or influence people
who receive them, as defined by the Advertising Association of the UK. In today's time,
advertising is present everywhere and it also leave a long lasting impact on lives of targeted
market. This advertising is done through television, print (newspapers, magazines, journals etc),
radio, press, internet, direct selling, hoardings, mailers, contests, sponsorships, posters, clothes,
events, colours, sounds, visuals and even people (endorsements) (Martin and et.al., 2016).
Another method that is adopted by the company to market their services is social media
marketing. In this channel, marketing message is conveyed through digital platform. This is a
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very useful tool of advertising as today's population is widely connected to social media sites and
in addition to this, social media marketing also have a wider approach. It covers a large area and
hence, it is useful for mass marketing. Social media advertising is also useful for as it is cost
efficient and is easy method to develop a two way marketing communication. Receiving
feedbacks and reverts through this channel is very easy.
Financial project
Tru- shine is trading in domestic and commercial cleaning services and its statement of financial
requirements has been described below:
Start up cost of business- it is basically that cost which involves the initial fuel for starting up a
business and its operations (Simón-Moya and Revuelto-Taboada, 2016). In the given business,
starting cost is broken up in following segments:
 Equipments = £ 2000.
 Furniture = £ 1500.
 Premises (will be acquired on rent) =
 Security deposit = £ 100.
 Advance rent for 1 month = £ 100.
 Estimated cost of sales = £10 per service.
 Selling price per service = £50.
 Fixed cost = £ 1500.
 Variable cost = £3 per service.
On the basis of analysis of market trends and other factors that may impact the sales. It is
forecasted that company will be able to generate a sales equivalent to 200 units in a month. On
the basis of this forecasting following is a cost statement:
Particulars Calculation Amount
Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000
Net profit £5900
From the above table, following is profitability and break even analysis,
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Break even analysis- It is basically that volume of sales, at which the company has no profit and
no loss. It is a neutral situation. To earn profits, company has to surpass this point of sales. In
given case, breakeven point is:
Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= From the above calculation, it can be stated that, company is earning
profit on 168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
Overall schedule
Overall schedule refers to the process of stating every little step that will be taken by the
company to execute the business plan. In other words, it can be explained as the process of
organised activities that will be taken in order to execute and implement the business plan. These
activities are defined as follows along with their stipulated time of completion:
 Planning: This step includes the preliminary activities, that includes taking on the
preparation of activities to execute the plan.
 Analysis : this phase includes analysing the business idea, which means entrepreneur tries
to finds out the feasibility of conceived business idea.
 Design: this will involve organising every little resource or material needed for the
application and execution of business plan (Tukker and Tischner, 2017).
 Implementation: after organising resources, next step is to implement the plan and
making execution forward.
 Completion: this step will include making the process complete and performing
evaluation and monitor performance.
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Conclusion
In the above report, it can be observed that starting a new business is not easy in today's
world and owing to pandemic, it is all the more difficult. It can therefore be concluded that
market analysis is necessary to conduct beforehand to ensure feasibility of business idea. In the
report above, a business proposal for starting a new business that will deal in domestic and
commercial cleaning services is explored. A business plan has been provided to clearly outline
the proposed business. Porter's five forces framework is observed to identify the threats posed by
different stakeholders like competitors, customers, etc. and their possible impact over the
proposed business.
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REFERENCES
Books and Journals
Biech, E., 2019. The New Business of Consulting: The Basics and Beyond. John Wiley & Sons.
Galai, D., Hillel, L. and Wiener, D., 2016. How to create a successful business plan: for
entrepreneurs, scientists, managers and students. World Scientific.
Hairstans, R. and Smith, R.E., 2018. Offsite HUB (Scotland): establishing a collaborative
regional framework for knowledge exchange in the UK. Architectural Engineering and
Design Management. 14(1-2). pp.60-77.
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies.
55(2). pp.320-351.
Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics. 35(3). p.126
Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. In Annals
of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing.
Kraus, S and et.al., 2018. Digital entrepreneurship: a research agenda on new business models
for the twenty-first century. International Journal of Entrepreneurial Behavior &
Research.
Martin, R and et.al., 2016. Spatially rebalancing the UK economy: towards a new policy model?.
Regional Studies. 50(2) . pp.342-357.
Simón-Moya, V. and Revuelto-Taboada, L., 2016. Revising the predictive capability of business
plan quality for new firm survival using qualitative comparative analysis. Journal of
Business Research. 69(4). pp.1351-1356.
Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
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