Washing Service Business Proposal

Washing Service Business Proposal

Executive Summary of Washing Service Business Plan

The business idea is to open a new washing service business proposal. In the business resources the assets to be purchased include office and computer furniture, washer washing equipment and dust and basic equipment (such as toothbrushes, water tanks) and transportation vehicles. Market will be segmented on small, medium and large offices. Was service business will create their experience from the beginning by building a successful customer base in the office by switching to the customer’s headquarters and then to the customers of the headquarters. While larger customers will not be diverted at the start of their business, they are expected to use “was office” professionals when they get a customer service record, and the success of the transaction is made by working with a smaller product.

Office Washing consists of local companies as well as some national business networks. Services are purchased directly from business owners and buyers, office administrators, and supply specialists for large businesses. Businesses want to communicate with was vendors who do not need to worry about washing, but they will be concerned if they pay a higher price than the market price. In response to the competition, The business wash up industry has been broken up, with no more than 6% of the market. Franchises represent 10% of the market and 90% of local companies. Sales will be managed by the Office Washing Office. Based on the sales, these estimates are reasonable that sold $ 2 million for last year’s washing. Additional services will be sold as an extension for customers who purchase office washing. It is estimated that 50% of customers will buy additional services. In technical feasibility, The initial training by an organization will clear the crew’s head. It will last ten hours of was office training for experienced washing staff. The crew sailors will provide 10-hour training for their new crew members when they enter the business based on Was Office Pros and basic washing skills (depending on the current crew skills). Moreover, it has extensive promotional and sales strategy. In financial feasibility, Was Business service will increase dramatically over the first three years of employment, taking advantage of the opportunity offered by the initial target market by small offices and its success with central and large offices. An increase of about $ 300,000 is expected in sales from the first year to the second year and more than $ 400,000 from the second year to the third year. In human resource feasibility, it has management plan and personnel plan.

  1. Introduction

The business idea is to open a new washing service business proposal. It will named as Luminous Washing service. In this washing business it will be featured to serve washing service to the sold office, apartment, houses, flat, or the flats after a tenant left the room. It will be the concept of providing washing services to the probable all areas of the city, offices of the city etc.

  1. Business Model Canvas of Washing Service Business Proposal

The customer segmentation of the business to the sold office, apartment, houses, flat, or the flats after a tenant left the room.

The value proposition of the washing service to get the most satisfied feedback from all the customer of sold office, apartment, houses, flat, or the flats after a tenant left the room.

The customer relationship will be continuous business relation with the parties of sold office, apartment, houses, flat, or the flats after a tenant left the room because washing service is the regular activities.

In this business or business channel with the sold office, apartment, houses, flat, or the flats after a tenant left the room.

The key activities offered will be based on the monthly premium washing that will be provided with the utmost care of the privacy, security and wealth of the customer. There are some additional services will be sold to the same customers to deepen their relationship with the Was Office staff. Organizational services will be introduced after three years. The service will be environmentally friendly in both the used products and usage methods.

Thus it could be demonstrated as the following:

  • Office washing (like dusting¬† removal, garbage removal, and washing of all dust surfaces, sweeping the dust and mopping of floors, and washing of doors and walls as needed)
  • Floor waxing
  • Furniture washing
  • Carpet washing
  • Floor stripping and sealing
  • Bathroom and kitchen area washing
  • Window washing

The Key Resources of the business will be the legal agreement of the legal agreement with additional investors and financial institutions with two months’ deposits of about $ 2,500 a month and a one-month lease for office upgrades and improvements, including lighting, cabinets, and offices. Computer supplies and supplies for three workstations (two founders and one manager).

The assets to be purchased include office and computer furniture, washer washing equipment and dust and basic equipment (such as toothbrushes, water tanks) and transportation vehicles.

Some major mobile phones can be bought with vendor financing, such as a vending machine and a refill machine. Otherwise, it is very economical, or you have to pay these costs and cash.

The key partners will be the sold office, market, apartment, houses, flat, or the flats after a tenant left the room.

  1. Market Feasibility of Washing Service Business Proposal

3.1. Market Segmentation

Small offices: Small and small businesses, designed to keep small sizes, have a slight mix to serve the market at a reasonable price. As a result, business owners often require employees to was themselves if they save money through this work. An office specialist should show that these companies not only save a lot of money, but if professional washers keep their office, they will enhance the work ethic and appearance of users.

Medium Offices: The group is increasingly accepting the need for hygiene services and is generally interested in price.

Large offices: Team accepts relocations, specialists and interested in working with sellers who can accept specific requests and keep the safety and material information on their office premises.

3.2. Target Market Segment Strategy

Was property specialists will create their experience from the beginning by building a successful customer base in the office by switching to the customer’s headquarters and then to the customers of the headquarters. While larger customers will not be diverted at the start of their business, they are expected to use “was office” professionals when they get a customer service record, and the success of the transaction is made by working with a smaller product. In addition, by working with small business customers, businesses will seek faster speeds because they will not directly compete with the initially washed company and will be able to work to increase its profits through cost-effective and robust payments.

Was office professionals will not work for home service providers. Many companies have this experience in the service and marketing services, including many promotional and washing activities. With the Office Washing Office, this office will increase its ability to directly sell thousands of local businesses.

3.3. Service Business Analysis

Office Washing Office consists of local companies as well as some national business networks. Services are purchased directly from business owners and buyers, office administrators, and supply specialists for large businesses. Businesses want to communicate with was vendors who do not need to worry about washing, but they will be concerned if they pay a higher price than the market price. This business estimates the company’s ability to download monthly washing rates to make the value less variable, but also to deal with specific wassing when it happens. Sanitary agents are searched through yellow pages and commercial translations.

Financial analysts report that the trade wasup industry is resilient to economic recession and economic stability. The trade deficit is about $ 90 billion by 2018, and one of the fastest-growing US industries will rise to $ 180 billion a year by 2020.

3.4. Competition and Buying Patterns

The business washing industry has been broken up, with no more than 6% of the market. Franchises represent 10% of the market and 90% of local companies. Business scale economies are acquired through integrated operating systems, national marketing campaigns, and discounts from suppliers.

Customers are looking for washing services based on a combination of reputation, service fees and service depth. As the larger offices are satisfied with the deeper integration of smaller corporate services, the value of these services is high.

3.5. Sales Forecast

Growth is expected to grow rapidly over the first two years as the office is looking for and selling. Over the next two years, economic growth will slow down as operating continues to grow for more growth. However, the additional target market for the medium and large offices will be available from the third year of operation. Sales will be managed by the Office Washing Office. Based on the sales, these estimates are reasonable that sold $ 2 million for last year’s washing. Additional services will be sold as an extension for customers who purchase office washing. It is estimated that 50% of customers will buy additional services.

This forecast is also supported by the fact that after the first year, average office activity will be driven by the growth rate, with each sales lead to more clearing.

Direct costs include washing crew and washing crew, washing supplies and gasoline or other transit costs for crew and equipment. The Hygiene Manager, a labor inspector who is expected to spend 5% of sales and wages on a crew, is expected to spend 27.5% of sales.

To ensure that profit-sharing sales will not be paid out of the commission, but with profits after decent basic salaries. This will keep the total profits around the industry average of 68%.

Sales Forecast Analysis

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Office Washing (1000 Square Feet) 5,01 8,000 12,000
Window Washing (10 Windows) 807 1,000 1,250
Floor Treatments (100 Square Feet) 991 1,500 2,000
Carpet Washing (100 Square Feet) 1,304 1,000 1,250
Bathroom and Kitchen Washing (By Room) 528 500 600
Total Unit Sales 8,643 12,000 17,100
Unit Prices Year 1 Year 2 Year 3
Office Washing (1000 Square Feet) $100.00 $100.00 $100.00
Window Washing (10 Windows) $90.00 $90.00 $90.00
Floor Treatments (100 Square Feet) $11.00 $11.00 $11.00
Carpet Washing (100 Square Feet) $80.00 $80.00 $80.00
Bathroom and Kitchen Washing (By Room) $30.00 $30.00 $30.00
Sales
Office Washing (1000 Square Feet) $501,396 $800,000 $1,200,000
Window Washing (10 Windows) $72,595 $90,000 $112,500
Floor Treatments (100 Square Feet) $10,899 $16,500 $22,000
Carpet Washing (100 Square Feet) $104,325 $80,000 $100,000
Bathroom and Kitchen Washing (By Room) $15,839 $15,000 $18,000
Total Sales $705,053 $1,001,500 $1,452,500
Direct Unit Costs Year 1 Year 2 Year 3
Office Washing (1000 Square Feet) $35.00 $35.00 $35.00
Window Washing (10 Windows) $36.00 $36.00 $36.00
Floor Treatments (100 Square Feet) $4.40 $4.40 $4.40
Carpet Washing (100 Square Feet) $32.00 $32.00 $32.00
Bathroom and Kitchen Washing (By Room) $12.00 $12.00 $12.00
Direct Cost of Sales
Office Washing (1000 Square Feet) $175,488 $280,000 $420,000
Window Washing (10 Windows) $29,038 $36,000 $45,000
Floor Treatments (100 Square Feet) $4,360 $6,600 $8,800
Carpet Washing (100 Square Feet) $41,730 $32,000 $40,000
Bathroom and Kitchen Washing (By Room) $6,335 $6,000 $7,200
Subtotal Direct Cost of Sales $256,951 $360,600 $521,000

 

  1. Technical Feasibility of Washing Service Business Proposal

4.1. Strategy for developing the market

  • Begin by targeting small offices to get support at the Kansas Washing Office.
  • Take advantage of the reputation and experience of working with small offices to find customers, office and office space in the third year of your business.
  • The rapid expansion of the organization’s infrastructure includes huge equipment support.

4.2. Competitive Edge Strategy

Was Office Specialists will develop competitive advantages based on the use of their skills, ideas and productivity. By rewarding employees’ initiatives and talents to seek the best possible way to be was and moral, it will increase the ability to make was office professionals more attractive. The reputation of the company as a great job will increase the application rate and strength of the new tenants, reducing their incomes and training. Customer satisfaction will raise and spending will fall due to focus on employee use.

The initial training by an organization will clear the crew’s head. It will last ten hours of was office training for experienced washing staff. The crew sailors will provide 10-hour training for their new crew members when they enter the business based on Was Office Pros and basic washing skills (depending on the current crew skills).

Washing information of all customers will be transferred to the detailed job table that will be discussed with the washing head before it gets to the place of work. The crew chief will go through a visit and check the workspace while customers are present to ensure the work sheet is finished and all safety information and access information is understood. Washing is always carried out by crew members and crew members with between 1 and 4 passengers. When the crew experiences your head, washing can change between jobs to manage a large number of jobs over a day.

4.3. Promotional Strategy

  • Local office exhibitions and entrepreneurial trade fairs
  • Blogs, blogs, and micro blogging to create a “was office” expert who is an office leader
  • Study cold and hot water on the phone
  • Business networks to create potential customers
  • A free trial ticket for a new business
  • Search engine marketing
  • Yellow page listing
  • Search engine optimization
  • Local TV commercials

4.4. Sales Strategy

Sales will be managed by co-founder of the business; it expects 10 small businesses will switch from “small contract” to “Was Office Professionals” after learning about their valuable offers. This will be the starting point for business customers.

The sales process will start with a short conversation to review the basics of the service offered and potential customers who are interested in regular washing. A separate meeting will be held at the customer’s office and a monthly washing fee request will be sent. Follow-up with the customer will take place after the first three step washing procedures for additional comments and additional improvements for the washing team.

Before contacting advertisements the organization will seek sales through a free mobile phone network and hot calls. Washing experts expect 8% free calls with 25% and 35% of channels that bring to normal users.

  1. Financial Feasibility of Washing Service Business Proposal

5.1. Start up Business Funding

“Was service” will increase dramatically over the first three years of employment, taking advantage of the opportunity offered by the initial target market by small offices and its success with central and large offices. An increase of about $ 300,000 is expected in sales from the first year to the second year and more than $ 400,000 from the second year to the third year.

Funding for growth will come from a free flow of cash created by business health benefits after reaching an unstable number in the first year.

In the fifth year of business, there will be a good place to defend commercial rights (participants in previous discussions) who are interested in expanding their skills with small businesses. Investors and owners will be able to do this at this stage.

Funding begins with the financing of initial purchases (car, PC, and car wash) and credit card debt.

Beyond debt financing, most of the initial funding will be provided by additional founders of angels and investors. After further investment, the Angel will occupy 49% of the business, Mr. X will own 26% and Mr. Y will receive 25%.

Start-up Funding

Start-up Funding of Washing Service Business Proposal
Start-up Expenses to Fund $33,500
Start-up Assets to Fund $105,000
Total Funding Required $138,500
Assets
Non-cash Assets from Start-up $45,000
Cash Requirements from Start-up $60,000
Additional Cash Raised $0
Cash Balance on Starting Date $60,000
Total Assets $105,000
Liabilities and Capital
Liabilities
Current Borrowing $5,000
Long-term Liabilities $20,000
Accounts Payable (Outstanding Bills) $2,000
Other Current Liabilities (interest-free) $0
Total Liabilities $27,000
Capital
Planned Investment
Reid Werbitt $25,000
Paul Vinci $25,000
Additional Investors $61,500
Additional Investment Requirement $0
Total Planned Investment $111,500
Loss at Start-up (Start-up Expenses) ($33,500)
Total Capital $78,000
Total Capital and Liabilities $105,000
Total Funding $138,500

5.2. Projected Profit and loss

Gross income will remain stable and will increase slightly as high-profit businesses are looking for (medium and large offices) and sellers get discounted rates. The first year will represent a net profit of $ 71,000, which will continue to grow.

Pro Forma Profit and Loss of Washing Service Business Proposal
Year 1 Year 2 Year 3
Sales $705,053 $1,001,500 $1,452,500
Direct Cost of Sales $256,951 $360,600 $521,000
Other Costs of Sales $0 $0 $0
Total Cost of Sales $256,951 $360,600 $521,000
Gross Margin $448,102 $640,900 $931,500
Gross Margin % 63.56% 63.99% 64.13%
Expenses
Payroll $156,000 $180,000 $229,000
Marketing/Promotion $79,000 $90,000 $110,000
Depreciation $18,400 $30,000 $35,000
Rent $30,000 $35,000 $50,000
Utilities $1,800 $2,400 $3,000
Insurance $3,000 $4,000 $5,000
Payroll Taxes $49,095 $63,060 $86,450
Other $6,000 $10,000 $15,000
Total Operating Expenses $343,295 $414,460 $533,450
Profit Before Interest and Taxes $104,807 $226,440 $398,050
EBITDA $123,207 $256,440 $433,050
Interest Expense $2,766 $4,809 $6,159
Taxes Incurred $30,612 $66,489 $117,567
Net Profit $71,429 $155,142 $274,324
Net Profit/Sales 10.13% 15.49% 18.89%

5.3. Projected Cash Flow

Cash flows before the dividend will be positive in the first year. Negative cash flows for 5 months are necessary to prepare for market activity before they have a significant impact on sales. Dividends can be paid to investors for nine months.

Earnings will be collected within 30 days, but on average, 45 days for conservation.

Investments will continue to be made in more washing equipment and trucks so the crew can work. In addition, at the end of the first year, the office will expand further to have additional storage and staff.

Pro Forma Cash Flow of Washing Service Business Proposal
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $0 $0 $0
Cash from Receivables $571,061 $945,162 $1,366,790
Subtotal Cash from Operations $571,061 $945,162 $1,366,790
Additional Cash Received
Sales Tax, VAT, HST/GST Received $56,404 $80,120 $116,200
New Current Borrowing $10,000 $17,000 $17,000
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $20,000 $20,000 $20,000
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $657,465 $1,062,282 $1,519,990
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $156,000 $180,000 $229,000
Bill Payments $405,528 $639,751 $891,342
Subtotal Spent on Operations $561,528 $819,751 $1,120,342
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $56,404 $80,120 $116,200
Principal Repayment of Current Borrowing $7,913 $15,000 $16,000
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $6,000 $8,000 $8,000
Purchase Other Current Assets $2,000 $15,000 $15,000
Purchase Long-term Assets $20,000 $20,000 $40,000
Dividends $20,000 $75,000 $200,000
Subtotal Cash Spent $673,845 $1,032,871 $1,515,542
Net Cash Flow ($16,380) $29,411 $4,448
Cash Balance $43,620 $73,031 $77,479

5.4. Projected Balance Sheet

The net worth of the business will increase dramatically in the first three years of business, as businesses will earn their own income without paying too much. The debt to be borrowed will be funded largely for the purchase of new washing equipments and trucks.

No additional capital is required during the first three years of business and free cash flow from the business will help the business.

Pro Forma Balance Sheet of Washing Service Business Proposal
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $43,620 $73,031 $77,479
Accounts Receivable $133,992 $190,330 $276,041
Other Current Assets $7,000 $22,000 $37,000
Total Current Assets $184,612 $285,361 $390,519
Long-term Assets
Long-term Assets $60,000 $80,000 $120,000
Accumulated Depreciation $18,400 $48,400 $83,400
Total Long-term Assets $41,600 $31,600 $36,600
Total Assets $226,212 $316,961 $427,119
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $55,696 $52,303 $75,138
Current Borrowing $7,087 $9,087 $10,087
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $62,784 $61,391 $85,225
Long-term Liabilities $34,000 $46,000 $58,000
Total Liabilities $96,784 $107,391 $143,225
Paid-in Capital $111,500 $111,500 $111,500
Retained Earnings ($53,500) ($57,071) ($101,930)
Earnings $71,429 $155,142 $274,324
Total Capital $129,429 $209,570 $283,894
Total Liabilities and Capital $226,212 $316,961 $427,119
Net Worth $129,429 $209,570 $283,894

5.6. Business Ratios

This table shows the coefficient for a three-year plan compared to similar service activities. Net services expect to improve the industry’s profits, as shown in this chart, despite the slightest cost of advertising and advertising. Net income will increase slightly compared to the net profit of the business.

Ratio Analysis for Washing Service Business Proposal
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 42.05% 45.03% 0.77%
Percent of Total Assets
Accounts Receivable 59.23% 60.05% 64.63% 14.54%
Other Current Assets 3.09% 6.94% 8.66% 37.68%
Total Current Assets 81.61% 90.03% 91.43% 54.28%
Long-term Assets 18.39% 9.97% 8.57% 45.72%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 27.75% 19.37% 19.95% 28.46%
Long-term Liabilities 15.03% 14.51% 13.58% 71.54%
Total Liabilities 42.78% 33.88% 33.53% 100.00%
Net Worth 57.22% 66.12% 66.47% 0.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 63.56% 63.99% 64.13% 62.79%
Selling, General & Administrative Expenses 53.42% 48.50% 45.24% 17.10%
Advertising Expenses 11.20% 8.99% 7.57% 0.21%
Profit Before Interest and Taxes 14.87% 22.61% 27.40% 5.93%
Main Ratios
Current 2.94 4.65 4.58 1.35
Quick 2.94 4.65 4.58 1.28
Total Debt to Total Assets 42.78% 33.88% 33.53% 100.00%
Pre-tax Return on Net Worth 78.84% 105.75% 138.04% -6101891.37%
Pre-tax Return on Assets 45.11% 69.92% 91.75% 31.52%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 10.13% 15.49% 18.89% n.a
Return on Equity 55.19% 74.03% 96.63% n.a
Activity Ratios
Accounts Receivable Turnover 5.26 5.26 5.26 n.a
Collection Days 43 59 59 n.a
Accounts Payable Turnover 8.25 12.17 12.17 n.a
Payment Days 27 31 25 n.a
Total Asset Turnover 3.12 3.16 3.40 n.a
Debt Ratios
Debt to Net Worth 0.75 0.51 0.50 n.a
Current Liab. to Liab. 0.65 0.57 0.60 n.a
Liquidity Ratios
Net Working Capital $121,829 $223,970 $305,294 n.a
Interest Coverage 37.90 47.09 64.63 n.a
Additional Ratios
Assets to Sales 0.32 0.32 0.29 n.a
Current Debt/Total Assets 28% 19% 20% n.a
Acid Test 0.81 1.55 1.34 n.a
Sales/Net Worth 5.45 4.78 5.12 n.a
Dividend Payout 0.28 0.48 0.73 n.a

Get more: Liquidity Risk Management in Banks

  1. Human Resource Feasibility of Washing Service Business Proposal

6.1. Management Plan

Mr. X and Mr. Y are the original management of the company. Mr. X has 10 years experience as store manager and 10 staff and is responsible for marketing, operations and human resources. He will continue to manage these departments as “experts” from pure service and executive.

Mr. Y will manage sales and become the leading vendor for the first transaction. He has 10 years of experience as a business waser. The company will become a sales manager.

Financial management will be through a part-time accountant during the initial operations of the company.

Washing Service Business Proposal

6.2. Personnel Plan

This business will start with at least two of the most active staff. Founders will receive a fair salary and get compensation through dividends and business growth.

In the first year, the accounting officer will become the chief financial officer. The second year will be a part-time job that will be full time in the third year.

The Operations Assistant will become an important administrative assistant with a focus on service delivery, was up of plans, quality assurance and human resource requirements.

Full-time employees in this schedule include members of a part-time group and their salaries are divided into selling prices. Crew members will be employed for the first time, and additional crews will be leased in the second and third year of the third year. Each of them will have one to four members and can supplement their responsibility to supervise other crew members. Crew members will increase from five at the beginning of the business to averages 11 in the 2nd and 3rd year on average in the third year. All these workers will be employed if they have at least 20 hours of work per week, but their increase will be limited. The business will hire additional staff instead of spending more time.

The washer will receive a basic salary and a quarterly bonus based on the rating of the team administrator and the client. The crew’s management will receive evaluation from management and customers to determine their quarterly bonus.

Once the company has reached a sustainable profit margin, the vendor wants to provide a health plan for its staff, but this is not included in the expected cost of the time.

Personnel Plan
Year 1 Year 2 Year 3
CEO $48,000 $50,000 $52,000
Chief of Sales $48,000 $50,000 $52,000
Accountant/CFO $24,000 $40,000 $80,000
Operations Assistant $36,000 $40,000 $45,000
Total People 13 16 24
Total Payroll $156,000 $180,000 $229,000

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Mongolia, 2014. Business Plan Assignment: Washing Service Business Proposal. [Online] Available at: [Accessed 09 May 2018].

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Written by

Md. Shadequr Rahaman

Email:¬†[email protected]

Washing Service Business Proposal

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