Tuesday, September 15, 2020

Business Plan for Small Business

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Description of Business

Kwick and Clean is a professional service company that cleans windows, polishes floors, and shampoos commercial carpets. Dozens of companies overcharge Metro consumers for poor quality and care-free cleaning. Kwick and Clean is committed to professionalism, quality, and customer satisfaction.

Market Potential

Halifax Metro area has approximately ten thousand commercial buildings that contract their cleaning services. These would include most restaurants and retail stores. On average, businesses spend $7,500 (estimate) per year on cleaning services. Large companies like Superstore, or Staples would spend more than the annual average in one month. Smaller retail stores and professional clinics spend much less than the annual average. A medical center may have a late night cleaner that comes in a few times per week or a hired staff member responsible for general cleaning. The potential market in Metro Halifax is $75,000,000. There is also a lucrative residential market with its own market potential. Thousands of new homes and condos are being built every year. Every new home needs professional cleaning after construction. People generally have their carpets cleaned when moving into or out of a home. On average homes are cleaned professionally every three years. According to the 001 census there were 15,8 single family dwellings in Halifax. If the average is every three years then 51,10 dwellings per year would require cleaning. The average cost to a residential customer is $50 (estimate). The potential for this target market is approximately $1,800,000.

Market Share

The market for commercial cleaning in Metro Halifax is approximately $75,000,000 per year. There are nine-teen companies listed in the yellow pages that do commercial cleaning. If everything is equal I can plan on having gross sales of $,750,000. This is not reasonable. Some of the existing companies are large. They have contracts with giant corporations and carry many staff members. Kwick and Clean will start year one with five employees. Our goal for year one is $00,000 in sales. This is only one quarter of a percent of the potential market. There is lots of room for growth and expansion in this lucrative market.

Target Markets

There are two distinct target markets that Kwick and Clean will focus on. The largest market is commercial buildings. Approximately ten thousand businesses in Halifax require building and office maintenance. The average customer in this market will be 10,000 ft. Many will be located in Plaza's or Malls. The storefront windows of this target market are too high for employees to clean easily. Examples of companies in this market are SportChek, Pets Unlimited, Sobeys, and Canadian Tire. This market can be divided into two outside storefronts versus inside storefronts. Many retailers are located within malls while many others have their own building or plaza space. The cleaning requirements are slightly different for these two groups.

The second market that Kwick and Clean will target is the residential market. Thousands of single family dwellings in Metro Halifax are professionally cleaned every year. This market will consist mainly of boomers that are purchasing or selling homes. Apartments make up a large portion of the single family dwellings. Lease requirements generally hold tenants responsible for having their floors professionally cleaned upon te

Description of Management Team

I will be the first president of Kwick and Clean. For the first few years the management team will be small. My wife will help with the bookkeeping and I will look after our customers. In year two we will hire a marketing manager who will be responsible for negotiating contracts with new clients. The marketing manager's job will primarily be solicitation of large chain stores like Tim Horton's, McDonalds, and Wal-Marts. Contracts with large retail chains will stabilize company sales and allow for successful expansion. In year one I will hire a couple of labourers to help me. We will work together at different job sites. Working directly with my employees should reduce the risk of poor quality of work and also reduce the risk of theft. In year two I will add two more crews. Hopefully in year one I have found a few interested employees that are looking to grow with the company. These first year employees will be prime candidates for crew supervisor. In year three we will add three more crews. With six crews working I will have to tend to more administrative and management activities. In the third year the management team should be two levels; myself at the top as president, six crew supervisors that answer to the president, and one sales manager that answers to the president.

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