As an aspiring entrepreneur who is ready to build a business that will survive the future, then you should build your business along the services industry. One of the businesses that can be categorized under the services industry is the cleaning business.
This type of business can be started by anybody as long as they have eyes for details and cleanliness. If you have experience in this regard, it will be easier for you to start and effectively run a cleaning services business. The truth is that in south africa, you have the chance of making a success out of this business if you have good marketing skills and of course the ability to carry out cleaning jobs.
Before launching any business, you should ensure that you carry out your due diligence as it relates to market research, economic and cost analysis and of course feasibility studies. You will need to make sure that you have the real reasons why you want to be in the line of business you have chosen.
If you get things right before launching your cleaning services company, it will not take you long before you secure enough corporate clients that can give you leverage in the industry. Below is a sample cleaning services business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Cleaning Services Business Plan Template for South Africa
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
1. Industry Overview
The cleaning industry has two primary market groups: consumer and commercial. The consumer arena consists primarily of residential maid services, along with carpet cleaners, window cleaners and a variety of other cleaning services required on a less-frequent basis.
The commercial arena is dominated by janitorial services which typically provides a wider range of services than maid services, along with other cleaning companies such as carpet and window cleaners that target businesses rather than individual consumers.
In South Africa, approximately 90 percent of the cleaning revenue is accounted for by cleaning companies, versus about 10 percent by carpet and upholstery. Smaller companies tend to be restricted to residential cleaning, since large commercial cleaning requires many employees and specialized skills.
The economic depression of the last few years hit the cleaning industry as it hit most South Africa industries, but the health care industry played a large role in managing to keep the cleaning industry profitable. As the number of hospital and medical facilities increased, there was a greater need for cleaning services.
Low vacancy rates in office spaces are important to the continuing success of both the cleaning and carpet cleaning sectors, as they depend on getting most of their business from offices and commercial buildings. When office vacancy rates went up during the recent depression, the business suffered significantly. For residential cleaning, the economy is also important. When incomes are lower, residents will choose to save money by putting off carpet cleaning.
Competition may come to cleaning services from larger catch-all companies who offer cleaning as part of a bundled program of many more services such as parking, snow removal, and pest control. In-house janitorial services operated by buildings and management companies may also serve as competition.
The National Contract Cleaners Association (NCCA) is the regulatory body for cleaning services companies in South Africa, and though it is not mandatory to register with NCCA, it is essential in the tender process. Hence, should you wish to start a Cleaning Services Company with the plans of applying for tenders, it is mandatory that you are registered with the NCCA.
Just like any other business, the demand for cleaning services usually declined during period of recession due to declining household spending on cleaning services and reduced demand from business clients. As the economy grows, and income increases, there will be corresponding increase in the demand for cleaning related services.
In summary, the cleaning services business in South Africa and of course all over the world is still enjoying good patronage particularly if they are well positioned, they know how to conduct their services and if they know how to reach out to their target market.
2. Executive Summary
Soweto Brothers® Cleaning Services, Inc. is a registered commercial cleaning service that is incorporated under the law of South Africa; we are registered under the Companies and Intellectual Property Registration Office (CIPRO), and the Department of Labor.
Our head office will be located in a densely populated business district in the heart of Cape Town, but we have plans to open up offices across Western Cape Province (in cities such as Bellville, Constantia, George, Hopefield, Oudtshoorn, Paarl, Simon’s Town, Stellenbosch, Swellendam and Worcester). We are strategically positioned in between a residential area and a business district and we are set to service the whole province.
Our basic service offering as a cleaning services company will revolve around general house and office cleaning such as swimming pool cleaning and maintenance, parking lot sweeping, drain and gutter cleaning, snowplowing, ventilation duct cleaning, chimney sweep services, window washing, drain, duct and gutter cleaning, parking lot and driveway washing, and other related services.
Although our intention of starting a cleaning business is to offer only the above stated services, but we will not close our doors to additional services as long as it does not affect our core services.
At Soweto Brothers® Cleaning Services, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services which is why we have decided to start our own cleaning services business; we are in the industry to make a positive mark.
We are quite optimistic that our values and service offering will help us drive our house cleaning business to enviable heights and also help us attract the clients that will make the business highly profitable. We will be dedicated to establishing good business relationships with our clients giving them value for their money and reasons for them to hire our services over and over again.
We are in the cleaning industry to favorably compete with other leading brands in the industry both in Cape Town and other parts of South Africa. Our corporate business goal is to be among the top 3 cleaning services companies in South Africa.
As a company, we are willing to go the extra mile to invest in some of the finest professionals we can find and also, we have put process and structures in place that will ensure that we are always at the top of our game when it comes to excellent service delivery. We have been able to secure permits from all relevant departments in Western Cape Province.
Soweto Brothers® Cleaning Services, Inc. is owned and managed by Mark Soweto and his brother Tony Soweto. They both have combined experience that spans over 15 years managing some of the leading cleaning companies in different cities in the South Africa prior to starting Soweto Brothers® Cleaning Services, Inc.
3. Our Products and Services
Soweto Brothers® Cleaning Services, Inc. is a standard cleaning services company that offers a wide range of services that revolves around the cleaning industry. We intend giving our customers every reason to always hire our services which is why we have customized our services.
We are in this line of business to make profits and achieve our corporate goals, and we are going to do all that is permitted by the law in South Africa to achieve them. These are the services we will offer our clients as a cleaning services company;
- General office cleaning
- General house cleaning
- Swimming pool cleaning and maintenance
- Parking lot sweeping and washing
- Ventilation duct cleaning
- Chimney sweep services
- Window washing
- Drain, duct and gutter cleaning
- Other related cleaning services
4. Our Mission and Vision Statement
- Our Vision is to become the number one cleaning company in the whole of Cape Town with active presence all across major cities in Western Cape Province – South Africa.
- Our mission as a cleaning services company is to develop a highly successful, profitable, all round cleaning services business which provides quality services in our city, and to become a standard for an ideal cleaning services company not only in Cape Town but also throughout South Africa.
Our Business Structure
We know that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our cleaning services company on the right business foundation.
As a matter of fact, we are set out to build a corporate cleaning services business that will be a standard for the cleaning services industry in South Africa. We want to build a dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services. The success of our cleaning services business will be anchored on the team and not on any individual.
With the wide range of our service offerings and the plan to open our offices all across South Africa and to sell franchise, we are only expected to employ more than it is required to run a conventional cleaning services business. Soweto Brothers® Cleaning Services, Inc. will employ professionals and skilled people to occupy the following positions;
- Manager (Owner)
- Marketing and Sales Executive
- Client Service Executive
- Cleaners (6)
- Truck Driver
5. Job Roles and Responsibilities
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Regularly hold meetings with key stakeholders to review the effectiveness of the business Policies, Procedures and Processes
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily activities of organization.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Helps to increase clients and growth for the organization
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for handling core services that revolve around general office and house cleaning, swimming pool cleaning, parking lot sweeping, snowplowing, ventilation duct cleaning, chimney sweep services, window washing, drain, duct and gutter cleaning, pool maintenance, parking lot and driveway washing, providing other industrial cleaning services as requested by clients
- Handles any other duty as assigned by the manager
- Responsible for transporting equipment, supplies and workers to project site
- Runs errand for the organization
- Handles any other duty as assigned by the manager
6. SWOT Analysis
Our plan of starting our cleaning services business in Cape Town – Western Cape Province is to test run the business for a period of 6 years to know if we will invest more money, expand the business and then open our business in major cities throughout South Africa.
We know that there are several commercial cleaning companies all over Cape Town and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Soweto Brothers® Cleaning Services, Inc. employed the services of an expert Business Analyst with bias in the cleaning services industry to help us conduct a thorough SWOT analysis. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Soweto Brothers® Cleaning Services, Inc.;
Soweto Brothers® Cleaning Services, Inc. is centrally located in a densely populated residential estate and business district in Cape Town – Western Cape; our location is in fact one of our major strengths.
We are also one of the very few cleaning services companies in the whole of Cape Town that is well equipped to carry out a wide range of services as it relates to commercial cleaning. Another strength that counts for us is the power of our team. We have a team that is considered experts in the cleaning industry, a team of hardworking and dedicated individuals.
Soweto Brothers® Cleaning Services, Inc. is a new business which is owned by two brothers who are starting their first business and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the experienced hands in the cleaning industry in Cape Town.
We are centrally located in one of the busiest business districts in Cape Town – Western Cape and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the cleaning services industry.
The truth is that there are no standard corporate cleaning services within the area where ours is going to be located; the closest company to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront Soweto Brothers® Cleaning Services, Inc. are unfavorable government policies, seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumer spending and of course emergence of new competitors within the same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The cleaning services market is dependent on loads of factors. The fact that it helps to keep our environment clean makes people to patronize the business. As a matter of fact, it is now common and trendy to find corporate cleaning services companies leveraging on ‘Climate Change and Save Energy’ to market their services.
Another common trend in the cleaning services industry is that in the bid to survive global economic meltdown and to ensure steady flow of income to effectively run the business, most corporate cleaning services companies engage in other related services. Some of them even go as far as establishing a pest control services, car wash, snow removal services and a carpet cleaning business because they all fall within same line of business.
8. Our Target Market
Before choosing a location for our cleaning services business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Those who will benefit from our service offerings are offices, households, facility managers, hospitals, hotels, hostels and government facilities et al. They cut across various different sectors of the economy.
Below is a list of the people and organizations that our cleaning services is designed for;
- The government
- Corporate organizations
- Facility managers
- Hotels and Motels
- Residential areas
- Camp grounds
- Retail locations
- Medical facilities (Hospitals)
The cleaning services business is an easy to set up business that does not require formal training to achieve; anybody can set up a cleaning services business if they have the required startup capital and informal training to operate the various washers.
It means that the possibility of cleaning services businesses springing up in the location where ours is located can’t be ruled out. We aware of this, which is why we decided to come up with a business concept that will position us to become the leader in Cape Town – Western Cape.
Our competitive edge is that we are a well – equipped cleaning services business that has loads of complimentary business offerings that can easily assist us in attracting both corporate and individual customers.
We can confidently say that the location of our cleaning services business will count as a positive for us amongst any competitor that might start a cleaning services business or any other related business in same location where ours is located.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Soweto Brothers® Cleaning Services, Inc. is established with the aim of maximizing profits in the cleaning services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Soweto Brothers® Cleaning Services, Inc. will generate income by offering the following services;
- General office cleaning
- General house cleaning
- Swimming pool cleaning & maintenance
- Parking lot sweeping and driveway washing
- Ventilation duct cleaning
- Chimney sweep services
- Window washing
- Drain, duct and gutter cleaning
- Other related cleaning services
10. Sales Forecast
We are well positioned to take on the available market in Cape Town – Western Cape Province and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow our cleaning services business and our clientele base.
We have been able to critically examine the cleaning services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in South Africa.
- First Fiscal Year: R200,000
- Second Fiscal Year: R450,000
- Third Fiscal Year: R750,000
N.B: This projection was done based on what is obtainable in the cleaning industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing strategy adopted by Soweto Brothers® Cleaning Services, Inc. is going to be driven by excellent customers service and quality service delivery. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like cleaning and related services.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Soweto Brothers® Cleaning Services, Inc.
Our goal is to grow Soweto Brothers® Cleaning Services, Inc. to become the leading corporate cleaning services company in the whole of Cape Town – Western Cape Province which is why we have mapped out strategies that will help us take advantage of the available market.
Soweto Brothers® Cleaning Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our cleaning services business by sending introductory letters alongside our brochure to corporate organizations, households and key stake holders in and around Cape Town.
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
- Use friends and family to spread word about our business
- Post information about our cleaning services company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publications about our cleaning services company and the services we offer
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
11. Publicity and Advertising Strategy
Soweto Brothers® Cleaning Services, Inc. is set to create a standard cleaning services company in Cape Town – Western Cape and throughout South Africa, which is why we will go all the way to adopt best practices to promote our business. Good enough there is no hard and fast rule on how to advertise or promote a cleaning services business.
We will ensure that we leverage on all conventional and non – conventional publicity and advertising techniques to promote our cleaning services business. Here are the platforms we intend leveraging on to promote and advertise Soweto Brothers® Cleaning Services, Inc.;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our cleaning services business in relevant magazines, local newspapers, local TV and radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards in strategic locations
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
- Ensure that all our staff members wear our customized clothes, and all our official trucks are customized and well branded.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the cleaning services industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Cape Town – Western Cape Province.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
- Payment Options
The payment policy adopted by Soweto Brothers® Cleaning Services, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of South Africa.
Here are the payment options that Soweto Brothers® Cleaning Services, Inc. will make available to her clients;
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in price would be minimal and can be overlooked. As for the detailed cost analysis for starting a standard cleaning services company; it might differ in other countries due to the value of their money.
We have been able to pull cash that will be enough for us to successfully launch a standard cleaning services company in Cape Town – Western Cape Province. These are the key areas where we will spend our startup capital on;
- The total fee for incorporating the business in South Africa – Name reservation application costs R50 and company registration R125
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – R3,300.
- Marketing promotion expenses for the grand opening of Soweto Brothers® Cleaning Services, Inc. the amount of R3,000 and as well as flyer printing (2,000 flyers at R0.04 per copy) for the total amount of R3,580.
- The cost for hiring business consultant – R2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – R2,400.
- The cost for payment of rent for 12 months at R1.76 per square feet totaling R100,000
- The total cost for office facility remodeling – R20,000
- Other start-up expenses including stationery (R500) and phone and utility deposits (R2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – R60,000
- The cost for Start-up inventory (vacuum cleaner with attachments, white cloth rags, paper towels, toilet brush, toilet bowl cleaner, brooms, dust pan & brush, dry mop, wet mop & bucket, latex gloves, wet floor signs, extension cord, window cleaner, disinfectant cleaner, bathroom cleaner, furniture polish, soft scrub product for sinks, SOS pads, feather duster, high duster, caddy with handle to keep your supplies in, cleaning chemical supplies, detergents and soaps) – R100,000
- The cost for store equipment (cash register, security, ventilation, signage) – R13,750
- The cost of purchase and installation of CCTVs – R5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – R4,000.
- The cost for the purchase of van – R25,000
- The cost of launching a website – R600
- The cost for our opening party – R7,000
- Miscellaneous – R10,000
We would need an estimate of three hundred and fifty thousand Rand (R350,000) to successfully set up our cleaning services company in Cape Town – Western Cape Province South Africa.
Generating Startup Capital for Soweto Brothers® Cleaning Services, Inc.
Soweto Brothers® Cleaning Services, Inc. is a family business that is solely owned and financed by Mark Soweto and his brother Tony Soweto. They do not intend to welcome any external business partners which is why they decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about R100,000 (Personal savings R80,000 and soft loan from family members R20,000) and we are at the final stages of obtaining a loan facility of R150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Soweto Brothers® Cleaning Services, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our cleaning services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Soweto Brothers® Cleaning Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of office and storage facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of cleaning supplies and equipment: In progress
- Purchase of van: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured