1.

0 EXECUTIVE SUMMARY

The name of our business is Clean-Neat mobile cleaning and laundry services which is yet to be

started. Clean-Neat laundry services will be a residential, commercial and laundry and cleaning

services that will provide all kinds of cleaning solutions for properties. Hygiene is one important

thing that must be practiced with seriousness; as a matter of fact, it has to be a frequent practice

but academics and work sometimes make it difficult for people get to time to wash their clothes

and clean their homes and properties. We will be a registered laundry and cleaning facility that is

built to serve the people of Igboora - especially the busy corporate executives and students. Our

Laundry and cleaning business will be located in the heart of Igboora which is less than 20

minutes’ drive from college premises, and 10 minutes’ drive from the park. We are strategically

positioned in a commercial center and we are set to services the whole of the community as well

as visitors and travelers alike. This location makes our business clearly visible and the

environment is also conducive. Our goal is to address the needs of the customers who are

looking for top notch cleaning laundry services at reasonable prices for their homes or their

workplaces. We currently, have not started operations but everything is set for it to kick start.

This business plan therefore captures everything about the business. The main target market of

the business is students and most of them are located in the area, also the place is closer to

campus and clients can easily locate us.

1.1 Objectives

Our objectives for the first three years of operation include:

To create a service based company whose number 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 our facility on a regular basis by at least 30% of the leads that contact us for
more information.

1.2 Our Vision Statement

Our Vision is to operate one of the most successful laundry and cleaning services in the country
and beyond.

1.3 Our Mission Statement

Our mission is to develop a highly successful and profitable laundry business with state of the art
facilities in the country; a business that will not only meet the needs of her clients but also
supersede their expectations. Thus, we 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.

1.4 Company Summary

Clean-Neat mobile cleaning and laundry services which is yet to be started. Clean-Neat laundry
services will be a residential, commercial and laundry and cleaning services that will provide all
kinds of cleaning solutions for properties. The business is ready to be started; the location, target
market, pricing, marketing strategies have been determined. We will be a registered laundry and
cleaning facility that is built to serve the people of Igboora - especially the busy corporate
executives and students.

1.5 Company Ownership

The business is going to be a partnership business among the members of the group. All the
partners will have equal shares in the company.

1.6 Startup Summary

Our start-up costs include equipment needed (to be detailed below), initial legal fees, marketing
fees, cleaning equipment and supplies, uniforms, and signs for employee vehicles. The office
equipment includes a computer system. Also required for the office is an additional land phone
line, fax machine, pager, and cellular phone. A few pieces of furniture will also be needed. The
legal fees are used for the formation of the business as well as reviewing/generating employee
and client contracts. Marketing fees are for the production of business cards and brochures.

Cleaning equipment must also be purchased with one set of equipment per employee. The major
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.

Total start-up expenses including leasing of premises, legal costs, logo design, stationery and
related expenses approximate #900,000. Start-up assets required include: #150,000 in long term
assets which include leasing of building, washing machines, motor tricycles, Furniture and
Fittings, etc; #450,000 in initial cash to handle the first few months of operations and #1000 to
meet contingencies.

1.7 Services We Provide

Clean-Neat is a laundry and cleaning that will be equipped with state of the art facility
specifically positioned to become the market leader in the industry. Our major purpose of
starting this business is to provide a suitable and comfortable facility where people can easily do
their laundries at an affordable fee. Much more than providing a facility where people can do
their laundries, we also offer complementary services; services that will get our customers hook
to us. Bottom line is that we will go all the way to help our customers maximize their time when
they patronize our Laundry services. These are the services and amenities that will be made
available to our customers;

Washing Dry cleaning services Ironing Folding and packaging of clothes

Home delivery services Coffee bar Snack bar Children playground Videogames
Big screen movies Free Wi-Fi

We will offer free pick-up and delivery. Our network of laundry professionals will give clients’
clothes the personal care and attention that won’t be found anywhere else.
2.0 MARKET AND INDUSTRY ANALYSIS

The overall size of the cleaning industry is quite huge in Ghana. Cape Coast is one of the major

locations in the industry mainly because it is becoming an industrialized and commercialized city

where cleaning services have become a necessity in nearly every neighborhood that is flocked

with commercial complexes and residential buildings. A lot of tertiary institutions also abound,

where students and lecturers sometimes get so busy with academics that they can afford the time

to clean their properties and do their laundry. Also a lot of constructions are being carried out

which need an after construction cleaning. The analysis of the cleaning and laundry industry can

be easily divided into two categories due to the distinct nature of the two kinds of services that

cleaning companies in this industry concentrate on. The first is the commercial cleaning service

and the second is the residential cleaning service. The market analysis for both of them were

done separately because the nature and intensity of the demand in both of them are highly

different. Commercial clients usually demands cleaning companies that can provide them with

state of the art janitorial services and garbage removal and disposal services. Residential clients

on the other hand look for cleaning companies that can provide comparatively less heavy duty

services such as carpet cleaning, upholstery, 6 hour maid services and vacuuming.

2.1 Changes in the Cleaning Industry Marketplace

During the time of the depression, the office rent rates went up and that compressed the ability of
several corporations and large businesses to afford cleaning services. Since the depression faded
way into oblivion, the office rent rates have somewhat become flatter and companies and
corporations have regained the need and ability to subscribe to cleaning services. With that being
said, certain areas of the city are experiencing a rise in rent of residential spaces. If the rates
continue to rise in a similar fashion, then we will be forced to make our prices more competitive
and increase the efficiency of our services to residential clients. This may sound like an
intimidating scenario for most start-up cleaning businesses, but our company sees this as an
opportunity to adapt, evolve and let the market changes mold our path to success.

2.2 Market Segments in the Cleaning Industry

Most cleaning companies do not provide an all-encompassing service. The cleaning service itself
can be divided into various segments, and the demand for these segmented services in the
commercial or residential market is quite different from one another.

Some of the most common segmented services include janitorial services, maid services, window
cleaning services, carpet cleaning services, dry cleaning, vacuuming, furniture polishing,
washroom cleaning, waste removal and disposal etc.

2.3 Target Market and Customers

One of the more impressive aspects of the cleaning industry is the endless possibilities it
provides when it comes to the target market and customers. Sure, each cleaning company that
establishes itself in the cleaning industry has its own niche and therefore its own target market
and clients. However, for a start-up company like ours, we had the luxury of choosing from a
wide selection of target customers.

2.4 Competitive Environment

From our recently concluded feasibility studies and market survey, we observed that there are
several cleaning and laundry businesses scattered all over the city of Cape Coast, as a matter of
fact, there are two or more laundries in same locations in some areas. This goes to show that
there is stiffer competition in the industry. Before launching our Laundry, we have critically
studied the market and we know that we will have some form of competitive edge.

2.5 Marketing Plan

Socialization will be at the centre of our marketing strategy. We believe that in order for our
business to thrive, we must reach out to people and give them genuine reasons to subscribe to our
services. Our brand of marketing will be an aggressive and effervescent one, where we will
strive to convert every potential prospect into a client within a period of 30 days.
This is the reason why we will be channeling our resources towards inbound marketing, as it
allows us to connect with potential clientele and stay in touch with them at all times. Not only
will we be having our own website, blog and newsletter programs, but we will also be taking our
business to the social media platform, where the goal would be to change people’s general
perception towards laundry and cleaning service businesses and keep them informed about the
advantages and benefits of hiring a cleaning service company, using both a direct and indirect
approach.

2.6 Our Cleaning Business Advertising Strategy

Our advertising strategy will be no less exuberant than our marketing strategy. We believe that it
is all about forming a brand and enticing people to associate themselves with the brand in ways
that appeal to them the most.

2.6.1 Sales Strategy

Once a client shows interest in our cleaning service, our sales team will be implementing a
number of different tactics to retain the interest of the client and make sure that a contractual
agreement is reached. In order to do this, we will be offering our first time customers with
various unknown complimentary services and discounts that will turn out to be a surprise
package for them and will thus intensify their desire to contractually obligate us to clean their
offices. The idea is to make the clients feel that they are getting more than what they are paying
for.

2.6.2 Publicity

Our approach to generating publicity for our business will be divided into three steps. The first
step is to convince trade magazine to publish a feature on our start-up company and the potential
of our services to change offices across the neighbourhood. The second step is to send our
representatives to the local radio stations to promote our business and educate listeners on what
we have in store for them.

2.6.3 Services

Our services are going to be driven basically by making available standard and safe Laundry
facility, excellent customer service and provision of complimentary services. We will work hard
to build a loyal customer base; customers that will always patronize us over and over again and
as well help us use word of mouth publicity to get their friends and acquaintance to patronize us.
We want to drive sales via making available easy to use washing machines, dryers and industrial
irons et al. We are quite aware of how satisfied customers drive business growth especially
businesses like Laundry and cleaning services which is why we will always ensure that our
customer service and facility are top notch.

2.6.3 Pricing

Our pricing system is going to be based on what is obtainable in the 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. However, we would use penetration pricing for the start where
our pricing is very lower than that of our competitors then later switch to completion based
pricing where we would not charge more than our competitors; either the same pricing or a bit
lower but not as lower as it was at start. Be that as it may, the management 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. The prices of our products (snacks, detergents et al) will be same as
what is obtainable in any part of the country.

2.6.3.1 Payment Options

Payment policy is going to be all inclusive because we are quite aware that different people
prefer different payment options as it suits them. Here are the payment options that will be
available in every of our clients

Payment by cash

Payment via bank

Payment via Mobile money

In view of the above, we will choose banking platforms that will help us achieve our payment
plans without any difficulty. We will offer door to door pick up and return of clients clothes.
This will alleviate that burden on customers to bring their things to the place. Quick response to
clients when called to clean their offices and homes.
3.0 DESIGN AND DEVELOPMENT PLAN

We currently, have not started operations but everything is set for it to kick start. We have gotten
a place of operation and will be registering it soon. The business is going to be a partnership
business among the members of the group. All the partners will have equal shares in the
company. We will be having a daily routine of service in which we go to clients to offer our
services. Considering the market size, we would need to employ a number people so that we
would distribute ourselves to all the areas are services would be needed.

Because we are a small business, we do not anticipate a meaningful or prompt reaction to our
market entrance from our larger and more established competitors. We think a strong reaction
from existing cleaning companies is particularly unlikely. However, we have developed
contingency plans for certain reactions that competitors may make. If a competitor lowers their
prices on the exact same product we are offering we will match their price on that product. But
we intend as much as possible to emphasize services that our competitors are not offering to
begin with.

Business involves risks and ours is no exception. A number of risks exist which include the
possibility of having lower than anticipated profits or experience a loss rather than taking a
profit. Business risk is influenced by numerous factors, including sales volume, input costs,
competition, and the overall economic climate and government regulations. Thus, there is
uncertainty in profits or danger of loss and the events that could pose a risk due to some
unforeseen events in future, which causes business to fail.

3.1 OPERATIONAL PLAN

The geographical location of a business is very important to its success. Our Laundry and
cleaning business will be located in the heart of Igboora which is less than 20 minutes’ drive
from college town, and 10 minutes’ drive from the stadium. We are strategically positioned in a
commercial center and we are set to services the whole of the community as well as visitors and
travelers alike. This location makes our business clearly visible and the environment is also
conducive.
3.1.1 Strategy and Plans

Our strategy is to focus much of our efforts on the students. By focusing all of our effort and
energy on this particular niche, we expect to quickly develop and maintain a leadership position.
While other firms try to be all things to all people, we believe that our singular focus will give us
significant advantages. Most of the companies serving this niche now also serve much larger
markets and give only secondary attention to the students. On the other hand, our firm will give
our total focus to this niche; our key people will stay in personal touch with customers in this
niche; and we will be able to respond to changes in this market much faster than our competitors.

We will offer the best, most highly personalized service in the marketplace we serve. Especially
being a very small, owner-operated company, we intend to use this to our advantage to be
absolutely certain that every one of our customers receives excellent service. We will go out of
our way to make sure that our customers know that they truly matter to us. We will also make
display suggestions and to create a number of displays that can be adopted to the needs of
particular customers. Sales reps and in-house employees who deal with customers will be
carefully trained and will be given wide latitude for insuring that customers are always satisfied.
As we focus on the students initially, we will widening out to reach lecturers, offices, and
corporate organizations, individuals in the community. With time we will cover the entire city of
Cape Coast and then start widening our tentacles to the other regions of the country.

3.1.2 Regulatory and legal issues

Processes of getting the business registered have been started to ensure that we legally operate
according to certain guidelines that we will be given. We would also put down certain
regulations and modalities that will guide the operation of our business and the conduct of the
employees.

3.2 Operational strategies

We will be open from 6 a.m. and close 10 p.m. from Mondays to Thursdays and will run a 24
hours service from Friday to Sunday. We decided to operate in this format because from our
market survey and feasibility studies, we realized that customers usually do most of their laundry
during weekends. We are quite aware that in order to become the number one laundry and
cleaning company in Ghana, we must continue to make our facility welcoming and relaxing and
that is exactly what we will do. We are open to the use of latest technology in the industry. No
doubt our excellent customer service and the range of additional complementary services we
offer will position us to become one of the leading laundry and cleaning company.

3.3 Service Delivery

In order to deliver high quality, personalized service we will carefully select all employees–
especially sales reps and customer service representatives who deal directly with customers. We
are currently interviewing candidates for sales reps; we will carefully review references from
past employers those sales reps have served. We will also make sure that each employee
understands our way of delivering quality service to each customer. We will have immediate
back-up support available by phone from our office for more difficult service issues. And we will
give employees enough latitude so that they can respond immediately to almost all customer
requests or complaints, which in this industry usually mean granting prompt credit for damaged
items.

3.4 Customer Service Support

We intend to prioritize customer service and make it a key component of our marketing
programs. We believe that providing our customers with what they want, when and how they
want it, is the key to repeat business and to word-of-mouth advertising. Not only will we train
our employees to deliver excellent service, we will give them the flexibility to respond creatively
to client requests. In addition, we will continually monitor our clients’ level of satisfaction with
our service through surveys and other convenient feedback opportunities. Two of the partners
would be there to handle all customer service issues. As our business grows we intend to hire
additional customer service people one at a time and pay a premium over market labor rates to
attract and retain quality help.

3.5 Management Team

We want to build a team, a dedicated workforce that will work together to help the organization
achieve its set targets. We would employ skilled people to occupy the following position;
Managers, Accountant / Cashier Marketing Officer, Laundry Attendants, and Snacks Bar
Manager, Children’s Play Ground Manager, mobile Cleaners and delivery personnel, Security
Guard.
3.5.1 Key Management Personnel

The Company will be managed by the founding partners, whose individual areas of expertise
cover many of the functional aspects of the business. Manu Seth will serve as the President of the
Company, and will be responsible for services and Sales & Marketing. Sagoe Araba will be the
Vice President, in charge of Administration. She will be responsible for customer service,
accounting, and the general administration of the business. The other partners will take care of
the accounting, and supervisory roles, market analysis and new trends. The resumes of the
partners contain their qualifications and skills.

3.5.2 Organizational Structure

The organizational structure is very simple. The laundry attendants and mobile cleaning and
delivery team will report to the president. And support staff at the office and warehouse will
report to the vice president who will be able to support any day-to-day needs that the reps may
have.

The business is a partner between all the members of the group. All members will own equal
shares and therefore profit will be equally shared among them. A number of people will be
employed as laundry attendants whose work is to wash, dry, iron and pack the clothes of
customers. We would also have mobile cleaners and delivery personnel and their work is to go to
clients’ homes, offices, and properties to get them cleaned. They are also to pick-up clients’
clothes and items from their homes to the laundry to be washed, and after which they will return
them. All employees will receive monthly salaries. Bonuses and commissions will be put when
employees work beyond certain times or when then offer outstanding services. Hardworking
staff will be awarded to motivate the rest to work hard and deliver quality services.

3.6 Critical Risks

When starting a business, it is understood that there are risks and problems associated with
development. Therefore some assumptions about these factors are provided.

Operating Risk

The two main issues that need to be addressed in the operation are the price of the major
equipment, washing machines, vacuum cleaners etc, and the quality and supply of the
componentry. As this venture is located in a place farther away from the Accra where we would
be buying our supplies from cost will be high due to the high transport costs. Strong relationships
will be developed with suppliers of the equipment and detergents which will ensure favorable
trading terms. Quality control checks have been introduced. To ensure only the best supplies are
sourced, two or three suppliers will be sought in the early stages of the venture.

Financing Risk

As no traditional funds are required, this venture is not susceptible to fluctuating interest rates.
However, the venture partner requires to be confident that their expected (or promised) returns
are assured at all stages of the venture. In addition, the venture is self-funding and it is not
envisaged that further injections of venture capital will be required in the future.

Marketing Risk

The initial marketing risk is minimized because of the sensitization that will be carried out before
we finally start operation. However, the broader market needs to be educated in the benefits and
quality of our services. This will involve time and effort but will be assisted greatly with the
involvement of our marketing team.

Management Risk

Although there is a strong team in place, there is always a risk of human relationships souring
over time. This may also be exacerbated given that the partners involved will be required to
relocate. The team are familiar with all facets of the project and are confident that, should one
member be replaced, the skills required to fill that void can be found within the team. This would
be a short term solution and a professional person would be recruited to permanently replace the
team member who may decide to his/her position. In addition, all management team members
have had bottom line responsibility and have successful track records in developing profitable
business ventures.

FINANCIAL PLAN

Financial Projections
It is important to state that our sales forecast is based on the data gathered during our feasibility
studies and also some of the assumptions readily available on the field with reference to similar
business in Las Vegas.

We know that we are well positioned and we will definitely attract clients that will not only
patronize our Laundry and cleaning services but clients that will patronize our coffee care and
snacks bar et al meaning that we will generate additional income from these sources. Below is
the sales projection, it is based on the location of our Laundromat and the type of services and
products that we will be offering;

First Year-: #40,000

Second Year-: #80,000

Third Year-: #100,000

Key Assumptions

The first month will be used to set up the business. It is unlikely much business will be officially
transacted during this month. In addition to dealing with legal and accounting issues for the
business, office equipment will be purchased and set up. Once the physical office is ready the
employee policy and procedure manual will be developed. Then the training program will be
constructed. This will take a bit of time therefore it is very important it is set up at the outset,
ensuring that it is completed and done properly when there are far less time constraints.

The second month will begin to see some activity. We will begin to field inquiries over the
phone and expect to turn some of those into contracts. The first week of jobs will be done as a
team, two employee. As the number of contracts begin to pick up, probably at the end of the
second month, an additional person will be hired to form the first employee team. By the end of
month four there will be enough demand that a new team of two will be trained and begin
working. Having two teams of two will be sufficient until month seven when two more people
will be brought on.

The sales forecast is based on the assumption that increased demand will occur at a steady pace.
This is based on the assumption that a large part of the new clients after month two will be from
word-of-mouth referrals. All this will happen steadily and incrementally. This forecast is on the
conservative side, it is possible that because we are superior to competing services that things
really take off, however, it would not be prudent to take that aggressive of a forecast. It is always
better to error on the side of caution.

Table: General Assumptions

General Assumptions

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 17.08% 25.00% 17.08%

Other 0 0 0

Sources and Use of Funds

The initial funds will be raised through Bank Loans, Venture Capital Trust Fund and Personal
Contribution. Our major sources of income will be from the fees charged on customers for our
services. However, major expenses such as salaries, advertising, utility bills and stock of hair
products will be routine through the year. With respect to our promotion, pricing, service and
distribution strategies, we anticipate profits in a year’s time.

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales #40,000 #80,000 #100,000

Other #0 #0 #0

Total Cost of Sales #5,000 #5,000 #6,000

Gross Margin #35,000 #75,000 #94,000

Expenses

Payroll #15,000 #35,000 #50,000

Sales and Marketing and Other #3,000 #5,000 #5,968

Leased Equipment #0 #0 #0

Utilities #1,200 #1,200 #1,200

Insurance #2,400 #2,400 #2,400

Rent #2,000 #2,200 #2,500

Total Operating Expenses #23,600 #45,800 #62,068

Profit Before Interest and Taxes #11,400 #29,200 #37,932

Taxes Incurred #400 #500 #600

Net Profit #11,000 #28,700 #37,332

Net Profit/Sales 27.50% 35.87% 37.33 %