Cleaning Service Business Plan

Mother's House Cleaning Service

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Market Analysis Summary

Mother's House Cleaning Service will target the upper end of the house cleaning market. It would appear, at least if you opened the yellow pages, that there is not a need for another house cleaning service. Make no mistake however, there is a need for a quality, honest service. MHCS 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.

Cleanly, WA currently has quite a range of different residential house cleaning services, from independent companies to franchise services. No one else is specifically targeting the wealthy. We will be targeting two wealthy 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 service. We will be marketing our service to these people through word of mouth referrals as well as through membership lists from Cleanly's exclusive membership clubs.

Cleanly, WA, like most cities, has lots of cleaning services. Although there are lots of competitors, we are the only company to go after the upper socio/economic class exclusively. Demand for a upper-end cleaning service will allow us to have steady growth.

Market Segmentation

Mother's House Cleaning Service will be focusing on two upper socio/economic groups. The first is the affluent where only one spouse works. Although the other spouse is at home and has time to clean, he/she chooses not to. This spouse would rather volunteer for a public interest organization, play tennis and golf, or just spend time how he/she chooses to. They have no desire to clean the house. To them that is not enjoyable and they have the money to pay someone to do that kind of work. This market has annual incomes over $200,000 and live in expensive houses. While Cleanly, WA only has 650 families that fall into this category, this group reliably uses cleaning services.

Our second segment of the market that we are targeting is the two income family. Over the last couple of decades, the number of two-income households have increased, to a point where in parts of the country they exceed one income families. Our target customer is two income families whose combined annual income is over $125,000. These families don't really have the time to clean, can afford a cleaning service, and choose to hire a service because the opportunity costs are too high to waste time cleaning their house. These households are typically age 32-55 and live in houses valued over $250,000. Cleanly has approximately 10,000 families that fall into this demographic. It is this segment which has tremendous potential for us. Nearly 80% of dual income households use an outside cleaning service for some of their house cleaning according to the U.S. Department of Commerce.

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.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Wealthy One-income Households 11% 7 8 9 10 11 11.96%
Affluent Two-income Households 13% 8 9 10 11 12 10.67%
Assorted "Well-off" Households 6% 8 8 8 8 8 0.00%
Total 7.75% 23 25 27 29 31 7.75%

Target Market Segment Strategy

MHCS 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. While Cleanly, WA has several different cleaning services, we are the only one that targets the affluent exclusively. The wealthy are consistent customers. Whether they have a house cleaning service does not depend on the finances each month. These groups always have the money for our services, just as they always need/desire a clean house.

The affluent desire quality and are willing to pay a premium for a service that that they can trust 100%, that extrudes professionalism, and 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 two-pronged approach. One prong is the distribution of a color brochure detailing our services. The distribution of this document will be targeted to hit our chosen segment. This will be done by setting up strategic relationships with organizations or clubs whose members fits our targeted customer profile. Examples of this would be higher-end athletic clubs, country clubs, wine connoisseur clubs, etc. We will gain access to these clubs membership through deals where the club owners will receive our services for themselves to test the quality so they then feel comfortable with helping us by being a "cheerleader" for our service.

The second prong of our approach will be through word of mouth referrals. We will offer an economic incentive (such as a free visit) to our customers if they bring in new business for us. We believe this will be effective because the financial incentive will motivate their behavior, and people naturally like to share good things with their friends.

Competition and Buying Patterns

Although there are lots of competitors in the cleaning service space, there is good reason for this competition, demand is high. Plenty of maid/janitorial services have waiting lists, they are unable to meet demand. Additionally, many of the maid and janitorial services are "mom and pop" operations without enough employees. Cleaning service customers want quality, and not everyone in the cleaning service space offers quality. How often when you ask one of your friends for a referral do they tell you they have been using a bunch of different companies and they have yet to find one that they are truly happy with.

The residential house cleaning niche is a subset of the larger cleaning business. Within the cleaning business, there are both residential as well as commercial cleaners. The commercial cleaners are typically a janitorial service that offers a wide range of services from general office cleaning, to carpet cleaning, to window cleaning. Janitorial services are a one-stop service offering for commercial businesses. There are also residential cleaning services. The residential house cleaning market is serviced predominately by independent companies. There are however, a few large franchises. Residential services are divided into a couple of different categories, maid or house cleaners, carpet cleaners, window cleaners, and a variety of other services that are required on a less frequent basis. They are far more restricted in their range of offered services relative to the commercial janitorial services.

We charge a premium for our services, and people are willing to pay to get our unsurpassed level of professionalism, trustworthiness, and attention to detail. We provide the most pleasant experience possible.

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