EcoFriend Cleaning Solutions Business Plan

Cleaning Solutions代写 Nineteen years into the 21st century, environmentally friendly goods and services are becoming more and more important every day.

 

1.0 Business Plan Pitch

1.1 Written pitch

Nineteen years into the 21st century, environmentally friendly goods and services are becoming more and more important every day. While many homes and businesses are on the lookout for new methods of cleaning sustainability, little attention is given to the innovations on how to reduce cleaning chemicals in the homes and businesses. Unfortunate to the environment, many homes and businesses have continued to use chemicals and equipment for cleaning that are harmful to the environment. The users of these biohazards are unaware of other eco-friendly methods they can use to accomplish their cleaning jobs.

The green cleaning market in Sydney is large and untapped.  Cleaning Solutions代写

According to a report by IBISWorld (2019), commercial cleaning services industry has been performing well in the last ten years. The report project the industry to grow to a revenue of over $9 billion in 2019 and upto 2.6 percent growth by 2020. Also, the report forecasted an annualized growth of 3.0 percent through 2019-20 to a total of $12.8 billion. The demand for cleaning services has been steady over years and is largely driven by outsourcing trends of the services and increase in the number of businesses in cities.

Cleaning Solutions代写
Cleaning Solutions代写

(Source: https://www.franchisedirect.com/information/cleaning-franchise-industry-report-2019)

Therefore, EcoFriend Cleaning Solutions aim to fill the void by offering variety of goods and services that conserve the environment. The company will use aggressive strategy as well as efficient market plan so as to build a broadly recognized brand by reaching out to as many market segment as possible. In so doing, the company will offer residential cleaning, commercial cleaning, and cleaning supplies and equipment.

1.2 Visual pitch 

Cleaning Solutions代写
Cleaning Solutions代写
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1.3 Backer rewards  Cleaning Solutions代写

EcoFriend Cleaning Solution is a social company that target to solve environmental problem of degradation. As such, the company seek its initial capital from interested parties dedicated in creating sustainable environment conservation innovations. The company will use Kickstater to help launch the business and consolidate initial capital of $104,450. The company has four tier system to identify backers with tier 1 being the top most. Tier 1 to tier four contributions include $10,000, $30,000, $50,000, and $70,000 respectively.

The rewards for each tier is based on the value of contribution to the project. Tier 4 backers get one-time free green cleaning in the area of business or resident. Tier 2 backers get 20 percent discounted three times green cleaning services. Tier 3 backers get 1-time free green cleaning and 2-times 20 discounted green cleaning services. The leading tier 1 backers get 5-times free green cleaning plus cleaning supplies and equipment.

2.0 Business Opportunity  Cleaning Solutions代写

2.1 Customer need and target market

Within the healthcare settings, cleaning plays a critical role in infection control. Globally, the World Federal of Building Services Contractors, the international body representing the contract cleaning industry, is currently engaging in a world study entitled “Cleaning for Health.” Outside healthcare, is the focus on green cleaning that cares for the health of buildings and the environment in the bid to reduce chemical, increase innovative cleaning machineries and techniques, and use of microfiber. Beside healthy cleaning, consumers are looking for methods that substantially reduce repair and replacement cost that comes with conventional cleaning materials like toxic chemicals.

EcoFriend Cleaning Solutions targets residential cleaning, commercial cleaning, cleaning supplies and community workshops in Sydney. The cleaning services targets the upper end of the house cleaning market. Clients will range from individuals, independent companies to franchise services. The company will target the wealthy divided into two populations namely the wealthy one-income households and affluent two-income households. The target market needs professional, reliable, trustworthy cleaning services and are willing to pay premium prices.

A research by Mintel Consulting revealed that 17 percent of urban Australians prefer to buy eco-friendly products and willing to pay premium prices (Mintel Consulting, 2018). More than 12 percent buy eco-friendly products to contribute in environmental conservation like using fewer plastics bags. Generally, most urban Australians feel that a successful brand should be environmentally sustainable.

2.2 Social impact  Cleaning Solutions代写

Australia is a fortunate region to benefit from a natural resource endowment. It is the role of everyone to keep it safe and sustainable. EcoFriend Cleaning Solution recognize this as an opportunity to make profits and contribute to the society as well. In so doing, the company is committed to achieving healthier homes. Cleaning supplies used will be safe and no longer will there be chemicals absorbed into the skin or breathed in by the cleaner.

It is good news to families because they will no longer breath cleaners of harmful effects during and after cleaning. The company seek to establish a purer environment by reducing harmful chemicals released to the environment. The innovation will lower contamination of waterways and airs as well as minimizing their impact to ozone layer. The general impact is contributing to the reduction of global climate change.

Additionally, EcoFriend Cleaning Solution aim to offer safer products to the market.  Cleaning Solutions代写

It is known that conventional and non-green products pose risks like burn or irritations to the users. The products are less expensive and more economical. The trade-off between the green products’ value, benefits to the environment and cost makes them preferable over traditional and non-green ones.

Moreover, the company will participate in community workshops to instruct public on the best practices that are more environmentally friendly when cleaning their homes and workplaces. The workshops are not only necessary but also critical in promoting public awareness in environmental protection and our brand awareness that create more market for company products.

2.3 Relevant megatrends  Cleaning Solutions代写

The most critical megatrends for the Eco-friendly cleaning services is global climate changes which has led to environmental awareness. Generational changes have also contributed to people wanting to contribute by using eco-friendly products. Generation Z and millennials are more likely to use environmentally friendly products compared to baby boomers and generation X. Global climate changes have necessitated the use the need to use green cleaning products which EcoFriend Cleaning Solutions are offering.

The growth in urban and commercial centers has increased the demand for cleaning services in Sydney. More and more businesses are appreciating the cleaning services as an essential part of business. Business owners know that not only does a clean, well-organized and hygienically-safe working environment create a good first impression on customers and partners, but also helps increase workers productivity and motivation to work. Also, outsourcing have started gaining popularity in Sydney as business owners understand the benefits it brings to their workplace. The services are customized according to the owner preferences.

Cleaning Solutions代写
Cleaning Solutions代写

(Population growth trend in Sydney. Source: http://www.atlasofurbanexpansion.org/cities/view/Sydney)

On the hand, the demand for cleaning services increase with levels of income and number of affluent urban dwellers. 

In 2014, the population of Sydney was 4,114,435. At that time, it was predicted to grow at an average of 1.5 percent since 2000 (Atlas of Urban Expansion, n.d). Similarly, the Urban extent of Sydney in 2014 was 162,527 hectares and forecasted to increase at an average 1.5 percent since 2000. According to Hing (2018) reporting for The Daily Telegram, Australians are spending more than $4 billion on cleaning services every season. He saw cleaning industry as booming business. According to him, baby boomers are leading in sourcing for cleaning services followed by Millennials and younger generation. Wealthy people are more likely to ask for cleaning services and willing to pay premium fees.

Cleaning Solutions代写
Cleaning Solutions代写

(Urban composition of Sydney. Source: http://www.atlasofurbanexpansion.org/cities/view/Sydney)

2.4 Similar Successful Campaign  

EcoFriend Cleaning Solution is the first community-oriented cleaning company in Sydney. Other smalls companies have used crown sourcing and were successful like La Mano Coffee Bar. The coffee shop raised $21,500 out of required $21,148 (Indiegogo, 2019). The success of La Mano Coffee Bar was vest on its ability to have clear outline of its operations and description of management team. The company was able to package itself a quality brand that is of value to the community. The strategy used by La Mano Coffee Bar is a lesson to EcoFriend Cleaning Solution.

2.5 Opportunity Testing Plan  Cleaning Solutions代写

Opportunity testing is a critical part of EcoFriend to ascertain whether the business idea is viable or not. In so doing, the company will carry out a random survey in Sydney. The survey will include questionnaires and semi-structured interview to seek prospective customers and hence get community opinion regarding green cleaning. The participants will be selected randomly in the city of Sydney. Participation will be voluntary but those who participate will be awarded with free cleaning products. The results of the research will be compiled and analyzed to assess the likely market response towards green cleaning services. Also, the findings are essential to strategy formulation.

3.0 Sales and Marketing Strategy  Cleaning Solutions代写

3.1 Fundamentals

The 4Ps of marketing are applicable to the EcoFriend Cleaning Solution.

Product: EcoFriend focu on offering all cleaning services to both commercial and residentials, waste disposal, dusting, carpet and hard surface floor cleaning, blinding and upholster cleaning, toilet cleaning and stocking, cleaning supplies and equipment as well as roof and interior cleaning services.

The company will offer these services in both data and night to increase customer convenience.  Cleaning Solutions代写

Extra cleaning services will be offered as and when necessary. EcoFriend appreciate the need to have quality services to clients. The management and employees are dedicated to upholding care of clients’ assets and privacy. The company prospective customers will feel confident to choose EcoFriend as the cleaning provider of choice.

 

Price: EcoFriend see its convenient to charge rates to businesses and residentials depending on their square footage instead of fixed fee which is affected by varying sizes. The charging structure will make our services affordable to all and will be used to distinguish cleaning time needed for each job. EcoFriend propose $0.08 per sq. foot per job. Therefore, a business occupying 2000 sq. ft. will pay $0.08*2000 = $160 on weekly basis. Any additional cleaning needs, the charges will remain the same.

Place: EcoFriend Cleaning Solutions is based and intend to operate in Sydney.  Cleaning Solutions代写

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Cleaning Solutions代写
Cleaning Solutions代写

he city is growing and has high growth potential as more and more residentials and businesses are being established. The central catchment area is central business district of the city due to its proximity areas of interests. Company representatives will be moving around the city and suburbs to reach out to the prospective customers.

Promotion: EcoFriend intend to use media to run advertisements and promotions. The company will use radios, televisions, newspapers, pamphlets and magazines to run promotions. Posters bill boards bearing company name and services offered will be placed in strategic locations around the city to create more awareness. The company will also use community workshops as platform to educate prospective customers on the importance of green cleaning. Through workshops, the company will seek acceptance and market for its services.

3.2 Social Media and Free Publicity  Cleaning Solutions代写

The company will harness the power of social media platforms like Instagram and Facebook to connect to its prospective customers. Social platforms have become powerful tools in marketing and communication. Social media pages and groups will be created bearing the name and profile of the company. Through these platforms, the company will create awareness of its services and offers. Also, consumers can use the platforms to make enquiries or request cleaning services. The use of social media create convenience in customer service and communications.

3.3 Measurement and Information  Cleaning Solutions代写

The key performance indicators of the company services will be the revenues made, referrals from previous customers, returning customers and customers feedback. A relative increase in revenues will signal the quality of services offered. Referrals and returning customers are indication that customers were satisfied with the company services. The feedback system is critical to gather customer opinion on areas to make improvements.

Besides, the company can measure its success by the growth in its assets relative to current and long-term liabilities. High value of assets at the end of accounting period is an indication of better performance and efficiency in management. Also important is workers motivation and satisfaction which his determined by an effective management and good performance management.

4.0 Operational Strategy  Cleaning Solutions代写

4.1 Operational Structure 

Cleaning Solutions代写
Cleaning Solutions代写

4.2 Outsourcing

EcoFriend appreciate the need to outsource services that are not part of the main operations. The company will not outsource any of its essential services like cleaning, sales and marketing and recruitment and selection. Some of the services that the company look forward to outsource because they do not fall under its main stream operations include accounting and auditing, printing services, among other services the need will arise. When the company outsource some services, it can concentrate on creating efficiency on core business.

4.3 Operational Risks  Cleaning Solutions代写

EcoFriend anticipate some operational risks like any other functional business. The company has to be prepared for these risks for business to run optimally. Risks range from damage of client assets to worker injuries in the line of duty. When these risks occur, it will be a liability to the company, therefore, they must be mitigated at all costs.

The company is likely to face damages of customer property. For instance, employee may use wrong cleaning solutions on expensive hardwood floors. The company may get sued for the cost of replacing the property. Employees are exposed to occupational injuries which the company is liable to cover through medical insurance. Beside employee injuries, third-party injuries are also possible at the time of cleaning. For instance, a client’s employee may slip and fall on the just-mopped floor. The company will be accountable for the employee’s medical expenses.

Therefore, these and other risks are possible if no adequate care or training is undertaken. The company will also have appropriate measure in place like sign boards for warning of work in progress to avert liabilities. Employees need to be motivated to provide best performance and hence reduce chances of negligence.

5.0 Financial Plans  Cleaning Solutions代写

5.1 P&L and Balance Sheet

Projected Profit and Loss

The company make loss in the first year of operations due to high operating costs and expenses. In the subsequent years will be profitable. The main source of revenues is cleaning services and sale of cleaning supplies and equipment.

Cleaning Solutions代写
Cleaning Solutions代写

Projected Balance Sheet

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5.2 Capital Requirements and Funding Plan  Cleaning Solutions代写

The company’s start-up cost amount to $104,450. The company plan to raise $13,700 from the owner and $90,750 from crown sourcing.

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5.3 Valuation and Justification  Cleaning Solutions代写

The company will be valued using asset valuation method. Of all the valuation approaches, asset valuation is the most concrete. The valuation begins by physical assets like machinery, office equipment, inventories and others. Also factored in is the intellectual property such as trademarks and patents. Goodwill is ignored in asset valuation method and instead use total assets less total liabilities.

EcoFriend Cleaning Solution value at the end of 3rd year will be:

Total Assets – Total Liabilities = Net Worth

172,725 – 4,300 = 168,425

$168,425 is the EcoFriend Cleaning Solution at year 3.

References

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