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Executive Summary

Overview: Pro Cleaning Services’ goal is to provide cleaning services to customers throughout Manhattan, both residential and commercial. From one-time cleaning to large-scale facility maintenance, a broad variety of services will be provided. Our customers will come from nearly every work sector since competent cleaning and maintenance are required by everyone. On the other hand, our potential and frequent customers are classified as follows: Community of Residence, Small and Large Businesses, Educational Resources, and Production Units. All of the basic cleaning services will be provided by us from Cleaning, Rooms, and Bathrooms, Sweeping, Dusting, Vacuuming, Laundry, Sweeping Kitchen.

Mission: “The purpose of Pro Cleaning Services is to provide all residential cleaning services in an environmentally friendly, entirely trustworthy, and skilled manner. We’re here to bring in and keep customers.

Vision: “We shall exceed our clients’ expectations with our services.”

Industry Overview:

The cleaning sector is brimming with possibilities; according to a previous prediction, the industry will earn over $46 billion in 2020 and will rise by 10% by 2026. Despite the fact that the cleaning industry employs over 1.7 million people, job openings are predicted to increase by 6% year over year. Let’s not overlook how popular this business is, particularly among America’s 27 percent of single-person families. Cleaning is also a recession-proof industry.

Financial Overview:

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency     
Interest coverage ratio  8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability     
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage:

Industry Analysis:

Overview: Residential cleaning service franchises in the United States have an estimated market value of $888 million, according to IBISWorld. Commercial cleaning services have a market of $47.5 billion, according to Statista. People prefer to hire professional cleaners to renovate their homes, resulting in increased demand for cleaning services in general. In addition, the commercial and industrial sectors have a high need for specialized services to dispose of their vast quantities of hazardous waste. People are becoming more aware of workplace hygiene and concerned about workplace sustainability and employee well-being, which is fueling the growth of the cleaning services business. Commercial and industrial businesses primarily offer cleaning services such as floor, upholstery, carpet, and window cleaning to maintain a clean and healthy atmosphere. Corporate entities, particularly large corporations, engage in contractual arrangements with service suppliers. The kind of service sought and the frequency of services required, which might be daily, once a week, once a month, semiannually, or annually, are the main elements that determine how much business organizations are charged. North America was the leading region in the cleaning services market in 2020, and it is predicted to continue to develop at a significant pace throughout the forecast period. In terms of revenue share in 2020, the United States was the most dominating nation, and this trend is likely to continue throughout the projection period


During the projection period, Asia-Pacific is predicted to expand at the quickest rate of 7.4%. The development in corporate infrastructure and significant rise in economic growth over the past decade have contributed to the expansion of this section of the cleaning services industry.
Health constraints and rising awareness of wellness have necessitated the employment of house cleaning services. In addition, the governments of a number of nations have issued a set of standard operating procedures (SOPs) and recommendations that businesses must follow in order to limit the danger of future pandemic waves. Companies in the commercial and industrial sectors must adhere to the guidelines not only to protect the safety of their employees but also to prevent legal action.

Market Segmentation:

Cleaning services are classified by service type, end-use, and geography. Window cleaning, vacuuming, floor care, maid services, carpet & upholstery, and other services are the different types of services offered in the market. It is classified as commercial or residential depending on the final purpose. North America (the United States, Canada, and Mexico), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and the rest of Europe), Asia-Pacific (China, Japan, Australia, South Korea, India, Indonesia, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa) are the regions studied (Latin America, Middle East, and Africa).

According to market research of cleaning services by type, the floor care sector was the most prominent in 2020 and would continue to be so during the projected period. The increasing demand for high-end cleaning products is responsible for this segment’s rise. In addition, the segment’s market is developing due to the rising demand for cleanliness in offices and homes. Throughout the projection period, however, the carpet and upholstery industry is predicted to increase at the fastest pace.

According to market research of cleaning services by type, the floor care sector was the most prominent in 2020 and would continue to be so during the projected period. The increasing demand for high-end cleaning products is responsible for this segment’s rise. In addition, the segment’s market is developing due to the rising demand for cleanliness in offices and homes. Throughout the projection period, however, the carpet and upholstery industry is predicted to increase at the fastest pace

The paper includes a quantitative analysis of current cleaning services industry trends, predictions, and market size dynamics from 2020 to 2030 in order to determine the degree of prospects. Porter’s five forces research emphasizes the importance of buyers and suppliers in allowing stakeholders to make profitable business choices and improve their supplier-buyer network. The current cleaning services market opportunities are determined via an in-depth study of market size and segmentation.

Each region’s key nations are plotted according to their market revenue contribution. The market player positioning section of the cleaning services market research gives readers a comprehensive picture of the industry’s current state.

Marketing Plan:

Social Media: To advertise our business, we should use the internet and social media platforms such as Instagram, Facebook, Twitter, YouTube, Google+, and others.

List Mother’s House Cleaning Service in local phone books and directories.

Advertise Mother’s House Cleaning Service on our official website and use marketing methods to drive visitors to it. Advertise our company in Health magazines and on the internet. Build an app for our services.

Commute Advertising: By employing individuals to display signs alongside [route or highway], we will draw attention to Mother’s House Cleaning Service. We can reach a significant number of working people with disposable income by advertising on heavily frequented commute routes.

Referral Marketing: Encourage people to use word-of-mouth marketing (referrals), Participate in direct marketing.

Customer Loyalty Program: Mother’s House Cleaning Service. will develop a successful customer loyalty program to keep its most loyal customers coming back for more. When our staff and other personnel are not actively offering services to consumers, they will make occasional, routine phone calls to customers. These phone calls will (a) ensure that consumers are satisfied with their memberships/services, and customers who have been with the company for a long time will be eligible for the loyalty program, and referrals will be recognized as well.

Organogram:

Financial Plan:

Earnings:

Break-Even Analysis:

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES     
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES     
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables     
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables     
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
      
CASH FLOW from INVESTING ACTIVITIES     
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
      
CASH FLOW from FINANCING ACTIVITIES     
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS     
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
      
CURRENT ASSETS     
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
      
LIABILITIES     
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
      
EQUITIES     
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122