A business plan is necessary to approach lenders for financial support for your business, but it is also a good exercise to go through as a prospective business owner. Merry Maids franchise owners create business plans when they start their franchises and review them annually with our business coach to ensure they are on track.
There are different business plan formats ; however, here are key elements any business plan should include:
1. Executive Summary
This section is a summary of the key points of your business plan. It appears at the start of your plan, but you will write it after you have all the other sections of your cleaning services business plan completed.
2. The Team
Introduce yourself and other key people in your business (i.e., partners and investors) and provide a short biography for each of you including your background and the skills you’re each bringing to this business. Also include a list of your advisors, including your accountant or bookkeeper, lawyer, mentors, and business coach; people who will contribute knowledge and experience to various aspects of your business.
3. Business Environment
In this section of your cleaning services business plan, you prove there’s a market for your cleaning business opportunity . Reference the territory you plan to serve and the potential customer base and list the current competitors in your area. You want to show that the industry is strong and sustainable and provide an overview of the competition currently in your market.
4. Marketing Plan
In this section, you lay out the plan to attract and retain customers. Include both an online and offline strategy and the niche you can establish that will differentiate you from your competition. The more detail you can provide in the marketing plan, the better as this is your roadmap for growing your business and driving revenues.
5. Operations Plan
Explain your legal structure (i.e., LLC, corporation, partnership ), list the cleaning services you’ll provide, and detail your pricing strategy. Include whether the business will be run from home or if you’ll rent an office and why you made that decision. You should also include your hiring plan.
6. Startup Costs
While the financials are included at the end of your business plan, it can make writing the plan easier if you start with this section first. There are four parts of the financial section. The startup costs spreadsheet is a list of everything you need to get started and the estimated cost. To help you with this list, you can reference the Merry Maids investment page where we provide the expenditures involved in getting your cleaning franchise up and running.
7. Cash Flow Statement
This section of your house cleaning business plan includes ongoing expenses plus revenue projections. Create a 12-month spreadsheet and list every expense as it occurs. For example, insurance (business, employee, and vehicle) will be paid annually while supplies may need to be ordered quarterly. Staffing, phone service, utilities, fuel, loan payments, banking, marketing, and internet fees will be monthly. Finally, add a line for contingency costs to cover anything you didn’t anticipate. The income part of your cash flow statement is where you project the revenue for your business. You can break this down by regular cleaning contracts, one-time cleaning services, and specialty services for carpets, windows, and walls. If revenue doesn’t exceed expenses, you need to reduce expenses or increase revenue to show a profitable venture.
8. Break-Even Statement
Take your cash flow statement and pare it down to the bare bones of expenses and income showing the minimum revenue required to meet expenses and break even in your business.
9. Five-Year Projections
Plug in the numbers from your cash flow statement as your first-year projection, and then predict an increase in revenue for years 2-5. Your revenues can increase by taking on new cleaning services and increasing the number of cleaning contracts you secure. You also need to show an increase in expenses, as most costs predictably rise. You want your house cleaning services business plan to show your business is sustainable and can grow.
Create Your Cleaning Services Business Plan with Merry Maids
Merry Maids franchisees benefit from 40 years of experience and hundreds of franchise operations when creating their business plan for franchise ownership. When you’re looking for a business with growth potential, you should consider joining our team. Take the first step in building a profitable business plan by requesting information about the Merry Maids franchise opportunity.