Fast Cleaner Cleaning Company Business Plan
Legal Structure of Business
Fast Cleaner Cleaning Company is constituted as a limited liability company. Fast Cleaner Cleaning Company will have one Director.
The organization will comprise one direcrtor who will also be the owner of the company. The director will be followed in hierarchy by the marketing positions. The marketing positions will generally consist of advertising and sales. The operations will comprise of service, facilities and production. The finance will be made of two sections; there will be the accounts that will be receivable and the payable accounts. The receiver accounts will be dealing with billing and collection of accounts. The payable accounts will deal mainly with purchasing and payroll.
The company will have a general supervisor with several crews working under him. Each crew of workers will have their leader and their assistant leader who will act as the crew leader in the absence of the leader. The above structure makes the chart to appear as below;
The employees of Fast Cleaner Cleaning Company will be organized according to the departments in which they are situated. The organization chart will have a horizontal structure among the major departments
There are several companies in San Diego offering cleaning services. However, as stated earlier, there are only three competitive companies in San Diego downtown where Jan Kin is the leading. Therefore, First Cleaners will get into the market focusing Jan King as the role model company. This will imply having quality services to beat the other two companies (The business cleaning company Inc., and Coverall San Diego).
There are so many people that require the services of professional cleaners in the United States of America(Professional Management of Housekeeping Operations, Thomas A. Jones). The three companies cannot be able to provide all the necessary cleaning services required by the people from San Diego. This then leaves a very large space for cleaning experts like Fast Cleaners Cleaning Company.
The cleaning industry helps the state in many ways; it ensures that the environment is always clean besides generating millions of jobs across the US.
Barriers to Entry into the Industry
In defining the barriers to the entry of new firms into the industry, Geroski (2013) takes a general perspective. The author refers this as the cost of production that a new firm has to undertaker in the industry that the existing firm doesn’t take. Therefore, Smith (2012) emphasizes that a firm has to have a deep understanding of these barriers and lay down structural strategies on how to contain them. Likewise this will be the same for First Cleaners Company.
The main barriers in these industries are the price wars among companies within the same vicinity. The competitors will have no respect to other players in the industry, they try as much as possible to get the maximum clients. Their actions can lead to a cleaning company providing non services at all. These barriers include: Advertising, capital, control of resources, customer loyalty, economies of scale, distributor agreements, Inelastic demand, government regulation, intellectual property, investment and network effect.
It is indubitably clear that cleaning industry is one of the top ranking growing industries in the United states. In fact, it has been forecasted that there will be a five percent rate of growth between 2008 and 2018 (Durkee, 2006). According to Durkee, among other factors, there is estimated increase of the elderly people who will need the services over the period. In addition, there will be personnel consumption in terms of cleaning has been predicted that they are deemed to increase by three times between 2015 to2030.
Ceris Burns international communication management (2015) carried out a survey where they focused on the future of the cleaning industry. This management used consumer perceptions through a series of surveys to enable the cleaning professionals to create the product servuces that will lead to high service for the coming years. Theefore, factors such as the company branding, practical research, investment in machinery and development were taken into account leading to the following findings:
• About seventy eight percent of the participants said ‘machinery is more effective than a mop’
• 66% stated that the effectiveness is the most important factor when designing a cleaning equipment or service.
• 51% preferred to see cleaners in branded uniforms
• Thirty four percent did not talk to the cleaner at work
• 72% stated that cleaning enables them to feel very satisfied.
• 38% provided that they are contented with cleaning.
From this study, it is pretty clear that there is every future for the cleaning industry, hence potential growth for the firms. However, individual firms have to form their own strategies that will enable them grow. For instance, firms can expand to the intercontinental markets such as the pacific and Pan-Africa markets. This will involve support of franchisees over the seas or opening more branches. First Cleaners will be at the forefront in ensuring that it not only focused on the San Diego Downtown market, but also laying down strategy for its growth over the sea.
Internal Analysis Anticipated
The success of any organization determines highly on own understanding in terms of the strengths, weaknesses, opportunities and threats. This implies that consistent and comprehensive information has to be accumulated, organized and synthesized for decision making. Therefore, this part will provide a detailed SWOT analysis of First Cleaners Company. It will then be the basis for decision making. Understandably, SWOT and TWOS matrix are acronyms only that there is a different arrangement of the words. However, the emphasis in each case brings out a little bit difference as will be explained in the detailed paper.
In definition, core competency refers to a Company unique characteristic that makes it gain a competitive advantage over the others in the marketplace, contribution to continued organizational growth and delivery of value to customers. core competency comprises of essential knowledge, expertise or ability in a particular subject area to enable the company achieve particular objectives. Fire Cleaners will be entitled to specific capability such as incorporation of it in the management to enable competent planning, organizing, leading, and transparency.
On the other hand, key performance indicators are essential measurement tool that enables evaluation of an organizational achievement in a given action it is engaged. These KPIs include the Sales KPIs, social Media KPLs, marketing, financial, Supply chain among others.
This is a technique used in identifying strengths and weaknesses of the cleaning industry and the threats that the company might face and the opportunities which the organization can have. Fast Cleaning Company will use the information from this analysis to spell out the way forward. It will do this by capitalizing on the strong points both within the company itself and in the industry. Through this analysis, it will be able to overcome many of the challenges in the industry.
• Strong Leadership- The owner of the Fast Cleaning Company who happens to be its CEO has been at the management level of several companies. All the companies that he had managed were very successful during his tenure. His leadership skills will be very crucial for the company.The Advancement-The machines that will be used by the company will be of hi-tech. This will minimize the cleaning costs besides provide most efficient services.
• Tailor-made Services-Our product will be tailored to suite the taste of our clients. It will be made according to his lifestyle and home appearance.
• Green Services-Our company will have a green service option. None of the three major players have this option. This will make us the only provider of green services option cleaning within San Diego area.
• Staff Resources are already stretched-The company will start off by hiring so many worker. This will overstretch the resources of the comp any since the wages to be paid to workers will be very high.
• High Cost of Project- The hi-tech cleaning machinery that will be required during the starting of the business will make the project to be costly. We cannot reduce the number of machinery since by doing so our services will be substandard.
• Fast Growth-The cleaning industry is one of the fastest growing sections of the economy of The United States. We can be assured that customers will always increase provided that we give good services.
• High Quality Services-Three major players in the area offer poor services. We will give better high quality services compared to that of the three.
• Increasing Demand in the Target Market-The increase in the number of residents in San Diego who require cleaning services has made the demand for cleaning services to be high.
• New Technology-The cleaning industry has been experiencing technological development. Good efficient machines will reduce the cleaning cost.
• Cut-throat competition-The three cleaning companies are already in a competition. Fast cleaning company will only make the competition stiffer. This will give the customer more bargaining power while disadvantaging the company.
• Expensive Machinery-The machinery are quite expensive and this means that buying new machinery will be costly to all the players in the industry.
The matrix is used to analyzing and setting the necessary strategies to be pursued by the company using the internal analysis of strength and weaknesses of the company and the external analysis of the industry through the opportunities and threats in the SWOT analysis above. The main aim of this is to capitalize on strengths and opportunities and get the most out of them while at the same time correcting the weaknesses and controlling the threats.
These will enable Fast Cleaning Company to value its customers. The competencies should be difficult to copy or develop by our competitors. The main core competence of Fast Cleaning Services will be the diverse nature of its human resource. The workers are also very skilled. This will ensure that both the majority of the population and the minority feel at home with our workers since our company has hired workers from all groups of the community around. Their skills will be very crucial in retaining the clients since they will give the best services.
Furthermore our hi-tech machines will e the most advanced among all those companies in San Diego. This will ensure that our cleaning company is the at the most affordable price.
Key Performance Indicators
Competitive PrRRofile Matrix
Product Positioning Map
Anticipated Competitive Advantage
Competitive Intelligence Methodology