OzHouse Cleaning Service 1
OzHouse Cleaning Service 1
OzHouse Cleaning Service 1
I. Executive Summary
The Ozhouse Clean’s projected growth rate is very high each year with
respectable profit margins as a percentage of sales. The Ozhouse Clean will be a
home-based business. By the end of year one, Ozhouse Clean will have six
additional employees. This house cleaning business plan will help the owner
navigate the startup, and subsequent management of the business.
I.1 Objectives
Provide our customers with a professional and friendly service.
To increase the number of clients by 20% in the first year of introducing
commercial cleaning services and 10% thereafter.
Meet or exceed the expectations of customers.
Implement best practice in cleaning operations, including environmentally
sustainable practices
I.2 Vision-Mission
Mission:
To provide the highest quality residential and commercial cleaning services
available by exceeding the expectations of our clients.
To protect the safety and health of all our people
Vision:
1
2|Page
Values:
Respect: taking time to understand and value each person and respecting
their choices.
Responsibility: acting with integrity towards our staff, our customers, the
community and the environment.
Caring: a duty of care for our staff, customers and the environment.
Excellence: to always look to provide the best quality experience with
regards to our cleaning and our customer service. Integrity: to act with
honesty, openness and do what we say we will do.
Innovation: to be industry leaders
2
3|Page
3
4|Page
line, fax machine, pager, and cellular phone. A few pieces of furniture will also be
needed.
The company employs 15 cleaners, all of whom are part - time contract staff
working between 10 – 15 hours a week. The company currently has
approximately 70 regular clients, based around Melbourne 's inner city. These
clients require regular home cleaning, either weekly or fortnightly for hours
ranging from 3 – 6 hours. A standard hourly rate of $40 per hour is charged. Staff
receive an hourly rate of $25 per hour with the cost of the products provided to
staff for cleaning, including equipment and ongoing supplies, works out to be
approximately $2 per hour on top. The company is also considering whether it
may be wiser to move to employing a number of full - time, permanent cleaning
staff. This is partly because there is a high turnover of casual staff and little loyalty
to the company. Staff costs for employing full - time cleaners are $55,000 per
cleaner per year including all superannuation payments. All cleaning supplies are
currently purchased from Total Cleaning Supplies in Melbourne. However, as this
company does not currently offer environmentally friendly products, a different
supplier needs to be identified. It is estimated that purchase of these products
will be an additional $10,000 per month. The products cost double the amount of
the non - environmentally friendly products. Sales revenue for the company in
the last financial year was $360,000 with a gross profit margin of $40,000. Labour
costs are a significant part of the business representing 70% of total costs.
Average debtor days are currently 40 days.
III. Products
The marketplace for janitorial products and services is changing, both in nature
and scope. The consumer is becoming more conscious of the environmental
impact of cleaners as the market expands.
4
5|Page
Services
The Ozhouse Clean Service will provide a residential house cleaning service
for the upper end of the market. We will have two target customers:
1. The affluent who has a spouse who does not work, but is not inclined to do
housework. To many a maid/house cleaner is a symbol of wealth, and this
idea symbolizes this group of customers.
2. The two-income households whose opportunity costs are too great to
spend time cleaning the house.
5
6|Page
something, we have specific guidelines for the employee to follow to resolve the
conflict).
We finally train our employees to know what the expectations of our clients
are. We will provide them the tools needed to exceed these expectations.
This extensive training, both up front, as well as continuously (called our
continuous learning system) builds a trust relationship between our company and
the client. It is the bond of trust that will not only earn Ozhouse Clean the loyalty
of that customer but also the referral of several more of their friends. Satisfied
customers like to tell their friends about service providers that they are happy
with, people like to "spread the wealth" with their friends.
Lastly we will emphasize our use of environmentally sound chemicals. Other
companies also use environmentally sound chemicals so this is not a huge
differentiation, but it is something that we are proud of, and will be mentioned.
We will also be creating the appearance of professionalism through the use of
uniforms and large magnetic sign affixed to the side of the vehicles we use.
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.
6
7|Page
III.4 Sourcing
a. Getting of clients
It is always a problem all businesses face when starting a from the scratch. In
order to get client, you have to build a good reputation so that people will
patronize you.
b. Looking for employees – Employing people is a difficult task because you have
to employ people that will do the work well, so that your clients will not go
complain.
c. Handling and managing of the business
It is not an easy task because you have to provide your service in ways that it will
suit your clients and at the same time managing and minimize your expenses so
that you will save money.
7
8|Page
8
9|Page
for a public interest organization, play tennis and golf, or just spend time how
he/she chooses to. They have no desire to clean the house. To them that is not
enjoyable and they have the money to pay someone to do that kind of work. This
market has annual incomes over $200,000 and live in expensive houses. While
Melbourne only has 650 families that fall into this category, this group reliably
uses cleaning services.
Our second segment of the market that we are targeting is the two income family.
Over the last couple of decades, the number of two-income households have
increased, to a point where in parts of the country they exceed one income
families. Our target customer is two income families whose combined annual
income is over $125,000. These families don't really have the time to clean, can
afford a cleaning service, and choose to hire a service because the opportunity
costs are too high to waste time cleaning their house. These households are
typically age 32-55 and live in houses valued over $250,000. Melbourne has
approximately 10,000 families that fall into this demographic. It is this segment
which has tremendous potential for us. Nearly 80% of dual income households
use an outside cleaning service for some of their house cleaning according to the
Australia Department of Commerce.
The affluent desire quality and are willing to pay a premium for a service that that
they can trust 100%, that extrudes professionalism, and basically allows them to
9
10 | P a g e
forget that they have to deal with whatever it takes to get a clean house. We do
all of this in a seamless, customer centric manner.
We will market our company through a two-pronged approach. One prong is the
distribution of a color brochure detailing our services. The distribution of this
document will be targeted to hit our chosen segment. This will be done by setting
up strategic relationships with organizations or clubs whose members fits our
targeted customer profile. Examples of this would be higher-end athletic clubs,
country clubs, wine connoisseur clubs, etc. We will gain access to these clubs
membership through deals where the club owners will receive our services for
themselves to test the quality so they then feel comfortable with helping us by
being a "cheerleader" for our service.
The second prong of our approach will be through word of mouth referrals. We
will offer an economic incentive (such as a free visit) to our customers if they
bring in new business for us. We believe this will be effective because the
financial incentive will motivate their behavior, and people naturally like to share
good things with their friends.
IV. 3 Market Needs
We are quite aware that there are several top notch cleaning services companies
that are in full operation in Melbourne and environs and we know that there are
competition in the cleaning industry hence we are able to carefully craft – out the
benefits that our esteem customers stands to gain when the hire our services. We
are certain that all those who patronize our services are going to get value for
their money.
These are the benefits that a client stands to gain when they hire our cleaning
services:
Quality cleaning services delivery
Timely cleaning services delivery
Competitive prices and discounts based on loyalty and referrals
Flexibility of service delivery to fit into the schedule of our customers
Professionalism of the highest order from our staff members (cleaners,
supervisors and management)
10
11 | P a g e
The cleaning service market has been benefiting from rising demand as people
have busier lives and less time to clean and tend to domestic chores. The industry
caters to a wide range of customers with various demands such as laundry
service, oven cleaning and a host of specialized cleaning solutions. Successful
market players tailor their services to meet the specific demands of private and
corporate clients. Cleaning needs may be suited to services on a daily, seasonal or
occasional basis.
Within both the consumer and commercial cleaning market segments, service
providers seek to secure long-term cleaning contracts and strong long-term
relationships with their customers.
11
12 | P a g e
12
13 | P a g e
interacts with the client, to the way they clean, to the way they act when they
break that priceless vase (which in the inevitable case that we do break
something, we have specific guidelines for the employee to follow to resolve the
conflict).
We finally train our employees to know what the expectations of our clients
are. We will offer them the tools needed to exceed these expectations.
This extensive training, both up front, as well as continuously (called our
continuous learning system) builds a trust relationship between our company and
the client. It is the bond of trust that will not only earn Ozhouse Clean the loyalty
of that customer but also the referral of several more of their friends. Satisfied
customers like to tell their friends about service providers that they are happy
with, people like to "spread the wealth" with their friends.
Lastly we will emphasize our use of environmentally sound chemicals. Other
companies also use environmentally sound chemicals so this is not a huge
differentiation, but it is something that we are proud of, and will be mentioned.
We will also be creating the appearance of professionalism through the use of
uniforms and large magnetic sign affixed to the side of the vehicles we use.
13
14 | P a g e
For those clients whom we are only able to speak with over the phone, we will
initially quote them a price. Because they are less price sensitive then the general
population, we will then detail why our service is priced a bit higher than most.
Ozhouse Clean will explain all of the different training systems and methodologies
that each employee goes through, and what expectations are reasonable for the
customer to form about our superior service. This conversation will leave the
prospective customer the impression that Ozhouse Clean is indeed different from
the run of the mill residential cleaning services and that the price differential is
justified.
Lastly, we will be qualifying the leads by explaining up front that our service is
more expensive. This is not a fact that we are trying to hide. We are setting up an
expectation for the customer that they can indeed expect more with our service.
This "angle" is based on the assumption that many people are not thrilled with
their current cleaning service. Sure they clean adequately, but there is not a trust
bond formed as if you had the same house cleaner for 20 years who helped raise
your children. This is how we will differentiate ourselves and ultimately win over
new customers.
14
15 | P a g e
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 will be bringing into the equation. As an
entrepreneur who has had her fair share of successes and failures in the last
decade, the owner 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.
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.
15
16 | P a g e
Opportunities
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, Ozhouse Clean is in charge of advocating eco-friendly business
practices makes it quite a necessity for businesses around the Melbourne to
16
17 | P a g e
V. 4 Marketing Programs
The marketing strategy adopted by Ozhouse Clean 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.
17
18 | P a g e
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 Ozhouse Clean.
Our goal is to grow Ozhouse Clean to become the leading corporate cleaning
services company in the whole of Melbourne which is why we have mapped out
strategies that will help us take advantage of the available market.
Ozhouse Clean is set to make use of the following marketing and sales strategies
to attract clients;
V. 5 Positioning Statement
Ozhouse Cleab begins with a rigorous training program for new employees. At the
outset, employees with be trained on how to clean. Granted everyone has some
idea on how to clean, but they will be shown a methodical way producing a
cleaner home more efficiently. Ozhouse’s will then be training employees to work
18
19 | P a g e
effectively on teams. While there are some households that prefer individual
cleaners instead of a team, Ozhouse's generally works in teams as they are more
efficient. Working efficiently on a team takes training, and through this team
training, Ozhouse Clean is able to make significant gains in efficiency.
The next topic of training involves professionalism. Employees are given the tools
necessary to impress the most affluent clients. Professionalism is a skill that is
used throughout the service call, from the way the employee greets and interacts
with the client, to the way they clean, to the way they act when they break that
priceless vase (which in the inevitable case that something is broken, Ozhouse
Clean has specific guidelines for the employee to follow to resolve the conflict).
Ozhouse Clean will train the employees to know what the expectations of the
clients are. They will be provided the tools needed to exceed these expectations.
This extensive training, both up front, as well as continuously (called the
continuous learning system) builds a trust relationship between the company and
the client. It is the bond of trust that will not only earn Ozhouse Clean the loyalty
of that customer but also the referral of several more of their friends.
Lastly, Ozhouse Clean will emphasize the use of environmentally sound chemicals.
Other companies also use environmentally sound chemicals so this is not a huge
differentiation, but it is something that Ozhouse Clean is proud of, and will be
mentioned.
Ozhouse Clean will also be creating the appearance of professionalism through
the use of uniforms and large magnetic sign affixed to the side of the vehicles
used.
19
20 | P a g e
information about our service, while we will be able to give them an estimate
over the phone, we would prefer to be able to get into their home and speak with
them. On one hand we would be able to offer them a more accurate estimate.
More importantly however, it provides us an opportunity to impress them with
our company. We feel confident that since we are dealing with the affluent, who
for many services are less price sensitive, are more likely to be impressed with our
professionalism, "feel" an immediate trust bond forming, and sign up for the
service.
For those clients whom we are only able to speak with over the phone, we will
initially quote them a price. Because they are less price sensitive then the general
population, we will then detail why our service is priced a bit higher than most.
Mother's House Cleaning Service will explain all of the different training systems
and methodologies that each employee goes through, and what expectations are
reasonable for the customer to form about our superior service. This conversation
will leave the prospective customer the impression that MHCS is indeed different
from the run of the mill residential cleaning services and that the price differential
is justified.
Lastly, we will be qualifying the leads by explaining up front that our service is
more expensive. This is not a fact that we are trying to hide. We are setting up an
expectation for the customer that they can indeed expect more with our service.
This "angle" is based on the assumption that many people are not thrilled with
their current cleaning service. Sure they clean adequately, but there is not a trust
bond formed as if you had the same house cleaner for 20 years who helped raise
your children. This is how we will differentiate ourselves and ultimately win over
new customers.
Celan will retain the services of a search engine marketing firm to set up and
optimize its Google Adwords account.
Search engine optimization will be based on the initial design of the website to
make it search-engine friendly, and on building links over time from other related
websites to increase its Google ranking. Content will also be added to the
website, including informative articles about carpet cleaning, written by the
company founders and other experts, in order to increase the website's standing
on the Internet as a resource for information on residential cleaning.
21
22 | P a g e
VII. CONCLUSION
The company has established products and services in established distribution
channels. Funding is needed to support the marketing programs as previously
outlined for the company to drive sales to projected levels.
There are a number of positive factors relating to the company's position that are
not reflected in the analysis in the marketing section. The most important in this
regard is the company's attractiveness to other companies as an outlet for access.
The marketing analysis is based upon what is currently in-house. As the company
and its founder of OzHouse Clean Service attracts significant opportunities on a
22
23 | P a g e
23