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S u b m i t t e d t o

S i r K h u r r a m B u k h a r i

E n t r e p r e n e u r s h i p

1 2 / 1 9 / 2 0 1 1

SAJE Cleaning Solutions

SAJE cleaning solutions is a residential house cleaning

service serving upper-class families in Multan.

Through generous human capital investments we will

exceed our customer's expectations. We will be

servicing the wealthy single-income households and

affluent two-income households.

Business Plan

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Name Roll No.

Khawaja M.Jawad BB-08-65

Shariq Hanif BB-08-18

Ahmad Adnan BB-08-38

M.Ehsan Ullah BB-08-04

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Preface:

The following business plan details the key aspects of our entrepreneurial venture. SAJE

cleaning solutions is designed keeping in mind the sole purpose of liberating people from their

hassles of getting their newly constructed house clean and ready for moving in. through

dedicated service and professionalism, we are aiming at developing our market on the sole idea

that our work will speak for itself.

Our business plan includes details about our venture, the market segment we will be targeting,

the marketing tools that we will be using to capture our customers. We have also outlined the

relevant financial data and our pricing strategy with respect to our different packages.

We hope that the core motive of our entrepreneurial venture is attained and we will be able to

help people and make their life easier in whatever way we can.

-The SAJE team

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Dedication

With the name of ALLAH ALMIGHTY, the most gracious and the most beneficent of all ,who

conferred us a lot of blessings although we were not worthy for those.

We dedicate our report to our families who supported us whole heartedly during the preparationof this report and bore patiently as we worked long hours for the completion of this report.

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Acknowledgement

We would like to acknowledge the unprecedented help from our honorable teacher Sir Khurram

Bukhari, who was our guide and mentor, and helped cultivate in us the entrepreneurial spirit.

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Table of Contents

Executive Summary ....................................................................................................................................... 7

Business concept ........................................................................................................................................... 8

Company hierarchy ....................................................................................................................................... 8

Objectives ..................................................................................................................................................... 9

Mission statement ........................................................................................................................................ 9

Business environment ................................................................................................................................... 9

Marketing plan ............................................................................................................................................ 10

Market Segmentation ............................................................................................................................. 10

Promotion Strategy ................................................................................................................................. 11

Competitive Analysis ................................................................................................................................... 12

Sales Strategy .............................................................................................................................................. 13

Start-up Summary ....................................................................................................................................... 14

Financial data .............................................................................................................................................. 15

Start up expenses: ................................................................................................................................... 15

Pro forma Profit & Loss account ................................................................................................................. 16

Pro forma Balance sheet ............................................................................................................................. 17

Pricing: ........................................................................................................................................................ 18

Golden package ....................................................................................................................................... 18

Silver package ......................................................................................................................................... 18

Bronze package ....................................................................................................................................... 18

Conclusion: ................................................................................................................................................. 19

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Executive Summary

The purpose of this report is to give a detailed account of our entrepreneurial new business

plan. The business idea that we proposed was that of a cleaning solutions company named SAJECleaning Services that would provide services to Upper and Upper-middle class people who

have completed construction of their homes. The idea was based on the general observation

that contractors or masons who take responsibility for the task of clearing the post construction

debris do a sloppy job and often do more harm than good. So, as a solution to this problem, we

shall provide our services, which shall be delivered by skilled and trained professionals. The

business will be a partnership comprising of four partners. We have a high projected growth

rate as the business is unique in nature and once the concept gains popularity, we shall have

great competitive advantage over the potential new entrants.

We formulated some short term objectives (3 years) which include exceeding

expectations of our customers, increasing the number of our clients by 20% each year and

generate enough cash flows to sustain the business. After this we presented our mission

statement. The office of our business would be located in Business City, Multan. There is no

formal business that offers the type of services that we shall offer, so there is a great potential

for growth and expansion. Our only competition would be the informal parties which include

contractors and laborers. Our target market includes people who appreciate a professional,

reliable and trustworthy cleaning service and are willing to pay a premium for our services. We

segmented our target market into two main categories: One income households (Annual

turnover of more than Rs. 10 million) and two income households (Salaried people with

individual incomes around Rs. 50000).

Our marketing strategy would be three pronged namely colored brochures and

newspaper ads, word of mouth referrals and cable TV ads. After developing a marketing

strategy, we undertook a competitive analysis. Here we analyzed our business strategy to relate

it to the potential competition and the strengths and weaknesses of our potential competitors.

Then, we explored how to gain a distinct competitive advantage over the competition and

create entry barriers once we are past the initial phases of our business. After establishing the

marketing strategy, we go for the sales strategy. The people will interact with us throughtelephonic contact first and then face to face interaction at the place where services are

required, so that estimation is more accurate. We then proceed to estimating our start up

requirements (legal fees, marketing expenses, equipment, inventory, employee uniforms etc.).

The next phase in our business plan is the presentation of financial data which includes initial

expenses (Office rent and furniture, stationary, visiting cards, stamps, brochures & uniforms),

pro forma profit and loss statement, balance sheet and pricing strategy.

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Business concept

SAJE cleaning solutions is a residential house cleaning service serving upper-class families in

Multan. Through generous human capital investments we will exceed our customer's

expectations. We will be servicing the wealthy single-income households and affluent two-

income households. These targeted families will be willing to pay a premium for our service

because of the high level of professionalism and trustworthiness that we offer, not replicated by

any of our competition.

SAJE Cleaning Service's projected growth rate is very high each year with respectable profit

margins as a percentage of sales. By the end of year one, SAJE will have six additional

employees. This house cleaning business plan will help us navigate the startup, and subsequentmanagement of the business.

Company hierarchy

Director Operations

(Khawaja M. Jawad)

Human ResourceManager

(Ehsan Khan)

Marketing Manager

(Shariq Hanif)

Finance Manager

(Ahmad Adnan)

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Objectives

SAJE Cleaning Service's objectives for the first three years of operation include:

To create a service based company whose #1 goal is exceeding customer's expectations. To increase our number of clients served by 20% per year through superior service. To develop a sustainable home-based business, living off its own cash flow. The utilization of SAJE Cleaning Service on a regular basis by at least 30% of the leads

that contact us for more information.

Mission statement

SAJE Cleaning Service's mission is to provide the customer with all residential cleaning

services in an environmentally sound, completely trustworthy, and professional manner. We exist

to attract and maintain customers. When we adhere to this maxim, everything else will fall into

place. Our services will exceed the expectations of our customers.

SAJE Cleaning Service, soon to be located in Multan, will offer residential home cleaning

services. We will offer a wide range of services to the residential client, from general on site

cleaning to a full plumbing and wiring checkup.

The business will be based out of our own office rented in Business city, Multan. All the partners

will be responsible for scheduling, estimates, training, inventory, ordering, payroll and customer

care management. The business organizational type will be a partnership, with 8 employees

within the first 6 months.

Business environment

The concept that we are offering is not currently in practice. We are providing cleaning services

to the newly constructed homes and offices. It is common observation and our market analysis

also suggests that people face a lot of problems in making their newly built homes and offices

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useable. We are of the view that our business will expand exponentially once people get to know

about our services and listen to our satisfied customers. Up till now people hire labor to clean up

the waste and debris left behind after construction but they lack the required skill and

professionalism to do the job in the correct manner. People get annoyed when due to their

inexperience; these workers do more harm than good.

Marketing plan

SAJE Cleaning Service will target the upper end of the house cleaning market. SAJE is offering

a high quality, totally trustworthy service for high income households. Our service will ooze

professionalism. We are perfectionists and this will be clear by our service.

We will be targeting two segments of the populations:

1. Wealthy one-income households.2. Affluent two-income households.

Both of these targeted groups appreciate a professional, reliable, trustworthy, cleaning service

and are willing to pay a premium to get this top shelf level of services.

Market Segmentation

We will target the market of people who have recently constructed their homes and also want to

move in quickly. There are many housing schemes in our city where construction is in process or

completed already. We are going to offer different packages for people of different income

groups. Our main target is those people who belong to working class/office going/business

oriented population. People who have little or no time to take the pain of supervising the cleanup

work.

We are dividing these people into two main categories;

1. One income households(one person earning a very handsome amount)2. Two income households(salaried people)

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People belonging to the first class have 1 person earning (generally the male) and thespouse is dependant so there is no chance that she can take part in the supervision

process. Generally this class will include the high earning business men or executives

(with an annual turnover of more than Rs. 10 million) that usually go for constructing a

house of minimum 15 Marla and above.

People belonging to the second class usually have 2 people who are earning but aremostly salaried (with a monthly salary of more than Rs. 50,000 individually or more than

Rs. 100,000 combined). It very difficult for any of the partner in the house holds to leave

their job and look after the cleaning process. This group of people will can generally pay

for the cleaning services but they want a complete package and want a guaranteed and

honest working force. These people usually go for constructing houses from 5 Marla to 1

kanal.

Additionally, there are some potential customers that MHCS has labeled as assorted "well-off"

households. These are families that have the money for our services that do not fit neatly into the

two previous categories.

Promotion Strategy

SAJE is focusing on these people because they appreciate a professional, reliable, trustworthy,

and immaculate house cleaning service, and are more than willing to pay for this. The wealthy

are consistent customers. These groups always have the money for our services, just as they

always need/desire a clean house.

Our customers desire quality and are willing to pay a premium price for a service that they can

trust and which extrudes professionalism. This basically allows them to 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 three-pronged approach. One prong is the distribution of

a color brochure detailing our services. The distribution of this document will be targeted to hit

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our chosen segment. This will be done by setting up strategic relationships with contractors and

developers of newly emerging housing schemes. Along with brochures, news paper ads will also

be printed in leading English and Urdu news papers with high circulation e.g. Nawa-e-waqt and

Dawn or The News.

The second prong of our approach will be through word of mouth referrals. Since, in Pakistan,

the social network of people is very strong and they tend to talk about the experiences of their

lives, so a positive word of mouth will definitely boost our business and help us make new

clients.

The third prong of our approach will be the airing of cable TV ads on local cable channels. These

ads will depict a model house that our team has cleaned detailing the pricing and the different

packages along with our salient features.

Competitive Analysis

The competitive analysis is a statement of the business strategy and how it relates to the

competition. The purpose of the competitive analysis is to determine the strengths and

weaknesses of the competitors within your market, strategies that will provide you with a distinct

advantage and the barriers that can be developed in order to prevent competition from entering

your market. The potential competition that our business may face in its initial and growth stage

is from all the contractors, sub contractors and laborers, who want to cash in on the clean up

business, once the construction is done. The strengths of the existing potential competitors

include experience, contacts, networking, and influence over existing workforce and well

established credibility in the market. Their weaknesses include lack of professional expertise,

well established procedures, highly trained personnel, carelessness on the part of the laborers due

to temporary hiring and exploitation of workers. The strategy that would provide us with a

distinct advantage over our potential competition is that we would highlight our expertise and

professionalism (i.e. Cleaning would be our core/primary service whereas for our competition it

would be secondary). Also our competitive advantage will be based on our large investment in

human capital. SAJE begins with a training program for new employees. At the outset,

employees will be trained on how to clean. Granted everyone has some idea on how to clean, but

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we will show them a methodical way producing a far cleaner home more efficiently. We will

then be training employees to work effectively on teams. While there are some households that

prefer individual cleaners instead of a team, a request that we are more than happy to oblige, we

generally work in teams as they are more efficient. Working efficiently on a team takes training,

and through this team training, we are able to make significant gains in efficiency.

To create barriers for new entrants in our market, we would adopt the approach of building an

excellent market image through timely and extremely satisfactory service that would be achieved

through well defined processes and high emphasis on quality of services rendered. The first step

is to look at the market from the customer's viewpoint. Based on our own observations and

conversations with people who have interacted with contractors or sub contractors in the near

past, we conclude that people prefer to have their homes cleared of debris and construction waste

by specialized professionals and some even prefer to sell it.

An analysis of strong performers will reveal the causes behind such a successful track record.

This analysis, in conjunction with an examination of unsuccessful companies and the reasons

behind their failure, should provide a good idea of just what key assets and skills are needed to

be successful within a given industry and market segment. Through this analysis we will create a

marketing strategy that will generate an asset or skill which our competitors do not have and will

provide you with a distinct and enduring competitive advantage. Once we establish the key

assets and skills necessary to succeed in this business and have defined our distinct competitive

advantage, we will need to communicate them in a strategic form that will attract market share as

well as defend it. Strategies primarily revolve around establishing the point of entry in the

product life cycle and an endurable competitive advantage.

Sales Strategy

The sales process will begin through the qualification of leads generated from our marketing

campaign. The marketing campaign will primarily generate leads through interest sparked from

our brochures. Someone will call to receive more 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

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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. SAJE 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 SAJE is indeed different

from the run of the mill laborers who are hired to clean up and thus our prices are 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.

Start-up Summary

SAJE Cleaning Service's start-up costs include equipment needed for a home-based business (to

be detailed below), initial legal fees, marketing fees, cleaning equipment and supplies, uniforms,

and signs for employee vehicles.

The home office equipment includes a computer system (with the following minimumspecifications: 2.88 GHz processor, 1GB RAM, 500 gigabyte hard drive, printer, and

CD-ROM).

Also required for the office are an additional land phone line, fax machine, and cellularphone. A few pieces of furniture will also be needed.

The legal fees are used for the formation of the business as well as reviewing/generatingemployee and client contracts.

Marketing fees are for the production of business cards and brochures.

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Cleaning equipment must also be purchased with one set of equipment per employee. Themajor per employee expense is a commercial vacuum cleaner (consumer models will not

withstand continuous use) and assorted brooms, mops, and chemicals (biodegradable).

Uniforms will be used to give off a professional image.

Financial data

Start up expenses:

Stationery Rs. 3600/-

Bill invoices 1500 (4 bill books)

Business cards 650 (500 cards)

Stamps 300 (2 stamps)

Brochures 1000(300 pieces)

Ball points 150(20 pieces)

Cleaning equipment Rs. 40,000/-

Uniforms Rs. 4500

Office Rs. 30,000Rent 10,000

Office furniture 20,000

Total startup expenses 78100

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Pro forma Profit & Loss account

Year 1 Year 2

Revenue ( services ) 400000 560000

Other revenue 100000 140000

Total revenue

500000 600000

Expenses

Payroll 288000 288000

Additional payroll 20000 30000

Utilities 15000 20000

Rent 72000 72000

Marketing & promotion 15000 10000

Other expenses* 10000 0

Operating Income 80000 180000

Interest expense

0 0

Taxes (15%) 12000 27000

Income after taxes and

interest

68000 153000

Reinvestment 17000 50000

Net profit 51000 103000

Other revenue from selling the re-useable material from debris collected from construction site.

Payroll; 6 employees working at 300 per day, 20 days approx a month, 8 months in a year

Reinvestment; 25% of the net income will be re invested for expanding business.

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Pro forma Balance sheet

Year 1 Year 2

Assets

Current assets

Cash 25,000 34875

Inventories 20,000 27625

Noncurrent assets 2000 3300

Total assets

47000 65800

Liabilities and owners

equityCurrent liabilities 18000 6000

Account payable 12000 9800Loan 0 0

Owners equityRe-investment 17000 50000

Total liabilities &owners

equity

47000 65800

We assume that there is an increase of 40% in the activity of business from year 1 to year 2.

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Pricing:

We are currently offering three packages that are designed to best meet the varying needs of the

customers keeping in mind their budget restraints.

Golden package

cleaning: Rs. 7/sq. feet plumbing: Rs. 300/day electrician: Rs. 300/day

Complete cleaning solutions including removal

of the waste material and debris and cleaning

of window and paint stains. This package will

also include a complete check up of the

plumbing and the final testing of the wiring of

the house.

Silver package

cleaning: Rs. 8/sq. feet plumbing: Rs. 300/day

or

electrician: Rs. 300/day

Complete cleaning solutions including theremoval of the waste material and debris and

cleaning of window and paint stains. The

customers can choose between either a

plumbing check up or an electrical wiring

check up.

Bronze package

cleaning: Rs. 9/sq. feetComplete cleaning solutions including the

removal of waste material and debris and

cleaning of window and paint stains.

We will be paying our employees a competitive hourly wage, quite a bit more than minimum

wage. This is calculated to attract a much higher caliber employee that is not looking for

temporary employment, but a stable job environment. This is compounded by the fact that in

order to make our training cost effective for us, we need this person to be a part of the company

for an extended period of time, not just a few months until a better job comes along. In addition

to paying an above market wage, we will be offering extensive training. This personal

development will be another attraction for the high caliber employee. The need for the higher

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class employee is necessitated because of the upper end clients that we serve. In order to exceed

the customer's expectations of our services, we need to have the right employee that has been

properly trained and feels a sense of empowerment on the job.

Conclusion:

SAJE cleaning solutions will be one of its kind cleaning business in Multan. People still dont

have an idea about a proper cleaning service that exudes professionalism and will get them their

moneys worth. We are still a long way from success but we believe that though dedicated

services and evident professionalism, we will create awareness about ourselves and our work

will speak for itself. SAJE cleaning solutions is designed keeping in mind the idea of reliving the

customer from the hassle of another daunting task of cleaning up the house once they are done

with the construction. We take all your problems and make them our own and what you get is a

clean house ready for moving in.

SAJE strives to excel in its services because we are a newbie and only through hard work, we

can get recognition. Our business plan details all the important aspect of our business ranging

from the segmentation, targeting, marketing plan and the relevant financial data.

So if you have a newly constructed house that needs cleaning, look no further, because at SAJE

cleaning solutions, we sure know how to clean upsomeone elses mess!!