Are you about starting a cleaning business? If YES, here is a complete sample cleaning service business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a cleaning business. We also took it further by analyzing and drafting a sample cleaning service marketing plan template backed up by actionable guerrilla marketing ideas for cleaning businesses.
So let’s proceed to the business planning section. As the business owner of a new cleaning business, you must spend your valuable time and resources in creating a business plan that will give you a head start in the industry and put you ahead of the competition curve from the onset.
A Sample Cleaning Service Business Plan Template
1. Industry Overview
The cleaning industry is almost always moving up the ramp of growth. The expansion of the industry has been specifically rapid in the past several years and experts believe that this exponential increase in the growth is not likely to be stunted anytime soon, at least not in the near future.
As a result, now is a better time than ever for start-up cleaning companies to embark on a journey towards reaching the lands of success in the cleaning industry.
In other words, it is an opportune time for entrepreneurs to start thinking about how they can initiate a highly profitable and successful start-up cleaning company that will cater to the demands of hundreds and thousands of customers in the city and the country.
Our goal is to address the needs of the customers who are looking for top notch cleaning services at reasonable prices for their homes or their workplaces. This need of the customers will be addressed by providing them with the very best cleaning services that will be conducted by highly skilled cleaning professionals working in the united states of America in the state of Illinois.
The characteristics that will set our business apart from the rest will be the top quality of our services, the efficiency of our workers and the first class hospitality treatment that our clients can expect from our professionals every single time.
2. Executive Summary
- Current Situation
We are a start-up cleaning company that was established in the year 2011 in the state of Illinois. The principal owner of our company is Stephanie Ryder who currently serves as the President of the Executive Committee of our company.
Mrs. Ryder has brought several years of experience in the cleaning service industry into our cleaning company, and it is this experience of hers that has helped the company overcome odds during the initial stages of its operations. The key figure in our company who must be mentioned in the same breath as Mrs Ryder is her sister, Clementine Orton.
She contributes greatly to our customer service department, the bookkeeping sector as well as other areas of our business that requires the expertise and experience of someone as knowledgeable, proactive and dynamic as Ms. Orton.
At this current period of our time, the company is looking for some much needed additional equity capital that will be a perfect addition to our own equity investment. Therefore the company is now looking to sign a deal with a bank for funding our inventory and our receivables.
We have assured several clients, both corporate and residential clients, in cities across the state of Illinois, especially in the city of Chicago, to provide a host of different cleaning services in their commercial complexes and residential buildings so that they can live in a clean, safe and secure environment without the fear of having their homes and offices turned into a dirty and inhabitable environment.
Once the financial arrangements for our inventory and receivables funding are finalized by the bank, we hope to resume our cleaning services and expand our services to cities across the state where we are yet to explore and leave a mark on.
- Key Success Factors
When talking about the key success factors, it all comes down to the vision and the goals of our principal owner Stephanie Ryder. It is her energy, exuberance and efficacy to take a start-up company from the realms of oblivion to the echelons of the cleaning service industry that we count on most as the key success factor of our company.
In addition to that, we believe that we have an impressive social network that will allow the business to smoothly float from one client to the other without having redundant periods of unemployment between contracts.
Since the cleaning business is based heavily on service, our priority is to hire the best cleaning staff members available around the country, and therefore our recruitment managers have been well equipped to select the crème of the crop when it comes to assembling a team of money making staff.
We refuse to provide cleaning services that are incomplete and those that fail to meet the expectations of our endeared clients.
This will allow us to give the very best service and cleaning product selection to various clients across the state without being distracted by the very different product and service demands of general market outlets in the cleaning industry. All of this and more will allow your business to draw success towards itself and compete with the very best in the industry for bragging rights and dominant market positions.
- Financial Situation/Needs
A total sum of $300,000 is the minimum that we require to effectively initiate our business and open our doors to our valued clients that who are waiting to subscribe to our top notch services.
The majority portions of the funds we receive will be used to finance and streamline the business operations until we start generating sufficient amounts of revenue and making enough profit to finance our own operations and expand these operations beyond our expectations.
Till then, we must be reliant on external finances whether it be in the form of the funds that we received from the bank or the funds that have been granted to us by the principal owner Stephanie Ryder, the immediate members of the family, her relative, friends, co-workers and previous employers and business partners.
According to our estimations, within the next 2 years (give or take 3 months) the company will have enough clients and will be carrying out the required number of deals to generate healthy revenue and become profitable. Our calculations and research work also tells us that within 4 years of breaking even, the investors in our business will be able to retrieve the entirety of their funds and will be able to cash out with ease.
The founding partners of our company will have the option of purchasing the investment stake or substituting the replacement stake with extra bank funding after the completion of the first 4 years of full-fledged operations provided that the company breaks even and earns considerable profit.
3. Our Mission and Vision Statement
The vision of our company is rather quite simple. We hope to become the first name in the shopping list of homes and offices when they are looking for cleaning services that can lend them a helping hand in creating a beautiful living or working environment.
We will reward our clients for making us their first choice by providing them with cleaning services that are equal, if not better, than the best cleaning service available to them, and one that is certainly most affordable if the client decides to sign a long term contract with us. We do not want to simply become a provider of cleaning services or a supplier of cleaning products.
Rather, we want to be known as a team of cleaning experts who the entire state can rely on to keep their homes and offices sparkling clean and refreshed.
We want to help build a state where people no longer have to compromise with their living and working conditions courtesy of our cleaning services. A cleaner and greener world is certainly our primary objective for starting this start-up business.
Milestones
- Securing verbal commitments from our first batch of commercial clients who are willing to sign a 6 months contract is complete.
- Securing verbal commitments from the batch of commercial clients who are interested to subscribe to our services for a trial period of 1 month is complete.
- Securing verbal commitments from the first batch of commercial clients who are willing to sign up for our services for a shortened term of 3 months is currently underway.
- A warehouse lease for 6 months has been signed.
- First written orders from suppliers for the next 6 months have been received.
- Purchase of vehicles necessary to transport cleaning products and equipments is currently underway.
- Full catalogue of services and products (used for conducting services) has been completed and revised.
- Presentation to potential investors who are looking to add their money in the investment pool is currently underway.
- Presentation to banks who will be interested to finance our operations and inventory is currently underway.
- Employee recruitment for 3 different cleaning teams is now complete.
- Employee training for 3 different cleaning teams is currently underway under the supervision of professional mentors and experts hired temporarily.
- Securing the insurance for the entire cleaning business is now complete.
- Devising the employee policy is currently underway and is being conducted by Stephanie Ryder and Clementine Orton.
4. SWOT Analysis
- Opportunities in the Cleaning Industry
The room for success in the cleaning industry is quite vast. As the number of commercial buildings and residential homes increase, the demand for cleaning services is likely to enhance along with it.
Furthermore, the healthcare industry and organizations in charge of advocating eco-friendly business practices makes it quite a necessity for businesses around the country to improve sanitation and hygiene standards in their workplaces which compels them to seek the services of cleaning companies.
Therefore, this market offers us terrific growth potential, which we are planning to capitalize on with all our expertise and ambition.
This market may not be the largest in the country, but it is certainly one where a newcomer like us will receive abundant opportunities to register progress in leaps and bounds as long as we have the correct business philosophy and are implementing the right business strategies.
- Threats and Risks
As a small cleaning firm that will be taking baby steps towards growth and development for at least the foreseeable future; we do not anticipate any major reactions from our future competitors upon the entry of our business in the industry.
We are expecting that our introduction into the industry will remain a low profile one and is likely to go unnoticed by some of the more major corporations which rule the cleaning service industry. We also do not think that some of the lesser known cleaning service companies that have been in the industry far longer than us will be have any distinct reactions to the initiation of our business.
However, in the case that they formulate plans to drive us further away from competition, we have come up with contingency plans of our own that will help us survive the threat of expulsion from the industry and assist us to overcome the risks that are associated with engaging in fierce competition with the experienced business owners of established commercial sector cleaning companies.
Competitive Strategies
- Key Competitive Capabilities
Most of the start-up cleaning companies have their sights set on the residential sector, mainly because of their lack of confidence and belief to compete with the major players in the commercial sector. This will not be the case with our company.
We will become one of the very few start-up companies in the state of Illinois which will focus all of its finances, resources and marketing strategies in climbing up the ladder in the cleaning industry and rapidly acquiring larger portions of the market share.
We will not have to compete with a big number of start-ups in the commercial sector, therefore our progress or advancement into the big leagues of the industry will not be hindered by too many competitive obstacles or hurdles in the way.
Our major advantage however lies in the incredible amount of expertise and experience that our principal owner Stephanie Ryder will be bringing into the equation.
As an entrepreneur who has had her fair share of successes and failures in the last decade, Stephanie will have a clear understand of the strategies and tactics that are required to get us across the finishing line ahead of others and avoid major disasters that our competitors may push us into.
The fact that we will be assembling a cleaning team of experienced professionals blended enthusiastic and energetic college students will allow us to achieve a working dynamic that will push our efficiency higher than that of other companies.
Basically, our company will form a cleaning staff that will strive to outwork and outsmart employees of other cleaning companies.
In an industry which is heavily reliant on service, the key is to employ workers who are willing to put in the best performance within the shortest period of time available. Our extensive and rigorous training programs will allow our workers to develop themselves, sharpen their skills at all times and stay updated with the latest developments in the world of cleaning products and equipment.
Our training facility for the workers will turn out to be a game changer and a breeding ground for the best workers in the cleaning industry in the country.
- Key Competitive Weakness
Our key competitive weaknesses stem from our lack of experience being a start-up company. We may have the best cleaning staff in the country assembled, but that will not allow us to strike deals with numerous clients at the same time.
Therefore, our availability is something that may compromise our revenue and income generation. We have a limited number of workers who will not be overworked severely according to the company policy.
Therefore, it will not be possible for us to bring in a massive number of clients every month. We hope to tackle this problem by finding ways to maximize our income and profit generation. That will allow us to employee more workers, even individual contractors with a part time schedule, and we can plan on increasing our portfolio of monthly or annual clients.
Since our current business plan (which is based on the current financing and funding that is available to us) only allows us to operate within the boundaries of the state of Illinois, our company will have limited reach unlike the other major corporations in the industry which are willing to provide their services all across the country.
Therefore, we will be missing out on a major chunk of the industry market which is outside the state of Illinois and that will result in a series of missed opportunities that could quite possibly hurt our finances considerably in the long run.
If we are to compete with the major names in the industry, we must generate enough income to expand our business beyond the borders of Illinois and give clients around the country an opportunity to be impressed by our top notch services.
5. MARKET ANALYSIS
- The Overall Market
Before you proceed, it is important to note that this is just an extract of our in-depth marketing plan. Here is the full sample cleaning business marketing plan template.
The overall size of the cleaning industry according to most estimates is somewhere around $750 million in the United States of America.
The state of Illinois is a major location in the industry mainly because of the highly industrialized and commercialized city of Chicago where cleaning services have become a necessity in nearly every neighbourhood that is flocked with commercial complexes and residential buildings.
The analysis of the cleaning industry be easily divided into two categories due to the distinct nature of the two kinds of services that cleaning companies in this industry concentrate on. The first is the commercial cleaning service and the second is the residential cleaning service.
The market analysis for both of them must be done separately because the nature and intensity of the demand in both of them are highly different.
Commercial clients usually demands cleaning companies that can provide them with state of the art janitorial services and garbage removal and disposal services. Residential clients on the other hand look for cleaning companies that can provide comparatively less heavy duty services such as carpet cleaning, upholstery, 6 hour maid services, vacuuming etc.
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Changes in the Cleaning Industry Marketplace
During the time of the depression, the office rent rates went up and that comprised the ability of several corporations and large businesses to afford cleaning services. Since the depression faded way into oblivion, the office rent rates have somewhat become flatter and companies and corporations have regained the need and ability to subscribe to cleaning services.
With that being said, certain cities in the state of Illinois are experiencing a rise in rent of residential spaces. If the rates continue to rise in a similar fashion, then cleaning companies who cater to residential clients will be forced to make their prices more competitive and increase the efficiency of their projects.
This may sound like an intimidating scenario for most start-up cleaning businesses, but our company sees this as an opportunity to adapt, evolve and let the market changes mould our path to success.
One of the major changes that led to a boom in the cleaning industry in the recent years is the development and increased authority of the healthcare industry. Residing and working in unclean and filthy places posed several health hazards to residents and workers around the country.
This forces the home owners and corporate heads to resort to cleaning services, since their personal cleaning professionals unable to meet the standards that were set by the esteemed organizations in the healthcare industry.
As a result, cleaning companies were suddenly exposed to far more contracts than before, and most of the clients preferred to have long term arrangements with the cleaning companies instead of having a one off affair with the cleaning services.
One lesser known factor that influenced the growth of the cleaning industry is the ever increasing demand for aestheticism and visual appeal in homes and offices around the United States of America. People want their homes and offices to look good from both the inside and the outside. As a result, they cannot afford to have dirt and filth lying around in their office or residential space.
This prompted them to seek the professional help of cleaning services. Cleaning companies around the company are making sure that homes and offices retain and maintain the visual appeal with which they were built so that they do not become labelled outdated or unsuitable for future tenants.
Market Segments in the Cleaning Industry
Most cleaning companies do not provide an all encompassing service. The cleaning service itself can be divided into various segments, and the demand for these segmented services in the commercial or residential market is quite different from one another.
Some of the most common segmented services include janitorial services, maid services, window cleaning services, carpet cleaning services, dry cleaning, vacuuming, furniture polishing, washroom cleaning, waste removal and disposal etc.
We understand the diversity in the demand for these services across various platforms. For example, it would be erroneous for us to assume that the market demand for window cleaning in commercial complexes is the same as the market demand for window cleaning in residential homes in the suburbs of Illinois.
6. Our Target Market
One of the more impressive aspects of the cleaning industry is the endless possibilities it provides when it comes to the target market and customers.
Sure, each cleaning company that establishes itself in the cleaning industry has its own niche and therefore its own target market and clients. However, for a start-up company like ours, we had the luxury of choosing from a wide selection of target customers.
In the commercial sector, businesses ranging from small companies to large corporations are all in need of cleaning services of one kind or the other. Schools, colleges, libraries and other variants of educational institutions too require the assistance of cleaning companies to provide a cleaner, safer and health hazard free studying environment for the bright minds of tomorrow.
In the residential sector, there are those living modern day busy urban lives who hardly have time to make their bed and keep their shoes aligned. For them, maid services are perfect to restore some order in their homes and their lives. Then again, there are clients within the residential sector who are looking to provide their newborn children with a cleaner and safer abode.
This is when they call upon the cleaning service companies to help make their homes a better place for their children to live in. As far as our operations are concerned, we are looking to cater to the commercial clients simply because we believe that the post depression era in the United States will turn these clients into profitable prospects and accounts for us.
Since we are equipped with the right size of cleaning staff and the appropriate cleaning equipments, we believe that we can cover massive office spaces as long as the clients appoint us a reasonable deadline. Window cleaning services, janitorial services and waste removal services in collaboration with the city authorities will be the major concentration areas of our business going forward.
With that being said, we will be keeping a watchful eye on the residential sector and always be open to the idea of expanding our business if lucrative opportunities present themselves.
- Customer Buying Decisions
Whether or not a client will express their interest to subscribe to a cleaning service company will depend on two things. The first is the expertise and experience of the cleaning service company which is known to people in the neighbourhood, city or the state.
Secondly, the effectiveness and the efficacy of the marketing and advertising strategies that are created by the cleaning company. There can also be a third factor in the mix, and that is the company’s ability to impress their clients during trial periods of service, if there are any on offer.
Our company, being a start-up cleaning business, will lack the experience and renown that is required to draw in new clients.
However, what we lack in experience, we will make up with the high quality of services during the trial cleaning sessions that we will offer to our clients and also through the dynamism and strong appeal of our outbound and inbound marketing campaigns. We hope to build a brand that can consistently influence the buying decision of the customers in the industry.
7. SALES AND MARKETING STRATEGY
- Marketing Strategy
Socialization will be at the centre of our marketing strategy. We believe that in order for our business to thrive, we must reach out to people and give them genuine reasons to subscribe to our services. Our brand of marketing will be an aggressive and effervescent one, where we will strive to convert every potential prospect into a client within a period of 30 days.
This is the reason why we will be channelling our resources towards inbound marketing, as it allows us to connect with potential clientele and stay in touch with them at all times.
Not only will be having our own website, blog and newsletter programs, but we will also be taking our business to the social media platform, where the goal would be to change people’s general perception towards cleaning service businesses and keep them informed about the advantages and benefits of hiring a cleaning service company, using both a direct and indirect (more subtle) approach.
Advertising Strategy
Our advertising strategy will be no less exuberant than our marketing strategy. We believe that it is all about forming a brand and enticing people to associate themselves with the brand in ways that appeal to them the most. Unlike other cleaning companies, we do not simply want to sell services that people can make use of. Instead, our goal is to sell experiences that people can thoroughly enjoy.
For example, our janitorial service advertisements will be specifically addressing the needs of those business owners who want to provide a wonderful working environment for their employees and thus curb down the number of complaints about their company’s working conditions.
- Sales Tactics
Once a client shows interest in our cleaning service, our sales team will be implementing a number of different tactics to retain the interest of the client and make sure that a contractual agreement is reached.
In order to do this, we will be offering our first time customers with various unknown complimentary services and discounts that will turn out to be a surprise package for them and will thus intensify their desire to contractually obligate us to clean their offices. The idea is to make the clients feel that they are getting more than what they are paying for.
- Publicity
Our approach to generating publicity for our business will be divided into three steps. The first step is to convince trade magazine to publish a feature on our start-up company and the potential of our services to change offices across the neighbourhood.
The second step is to send our representatives to the local radio stations to promote our business and educate listeners on what we have in store for them. The third and final step is to partner up with manufacturers of cleaning products and provide discounts on our services to people who purchase their cleaning products.