Housekeeping Business Plan [Sample Template]

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Are you about starting a housekeeping company? If YES, here is a detailed sample housekeeping business plan template & FREE feasibility report.

Starting a housekeeping business is one sure way an aspiring entrepreneur who has the required skills and qualifications can earn cool cash in the United States of America. The truth is that a housekeeping business can be started on a small scale and perhaps with a functional home office.

It is important to note that no matter the type of business you choose to start, before launching the business, you should ensure that you carry out your due diligence as it relates to market research, economic and cost analysis and of course feasibility studies.

If you get things right before launching your housekeeping business, it will not take you long before you secure enough clients and start smiling to the bank.

Business plan is yet another very important business document that you should not take for granted when launching your own housekeeping business. Below is a sample housekeeping business plan template that will guide you towards writing your own business plan and ultimately launching your business.

A Sample Housekeeping Business Plan Template

1. Industry Overview

A maid, or housekeeper or maidservant, is a female domestic worker who cleans and performs various other tasks in and around the house. Usually, housekeepers were servants in large households that reported directly to the lady of the house.

The Maids, Nannies and Gardeners industry is made up of private households that employ workers for activities primarily related to operating a household. Chefs, maids, nannies, butlers and outside workers, such as gardeners, caretakers and other maintenance workers are also part of the industry.

If you are close observer of the Maids, Nannies and Gardeners industry, you will agree that the industry has performed pretty well in recent time. The first half of the period was especially difficult as poor economic conditions forced households to reduce demand for professional nannies and maids.

Going forward, with unemployment rates forecast to continue falling while disposable income levels continue to rise, conditions for the Maids, Nannies and Gardeners industry are expected to improve.

Statistics has it that in the united states of America alone, there are about 652,985 registered and licensed maids, nannies and gardener agencies responsible for employing about 758,944 people and the industry rakes in $18 billion annually.

The industry is projected to grow at 4.1 percent annual growth within 2011 and 2016. It is important to state that there are no establishments in this industry with the lion market share.

A recent report published by IBISWorld shows that the regions with the greatest concentration of industry participation include the Southeast, West, Mid-Atlantic and Great Lakes. The report further stated that the distribution of industry employees is based on the number of households and median income levels by region.

For that reason, the concentration of establishments varies according to population distribution, with the most heavily populated areas corresponding to the areas with the highest number of industry employees.

Just like any other business, the demand for housekeeping agency services usually declined during recession period due to declining household spending on nanny and maid services and reduced demand from business clients.

As the economy grows, and income increases, there will be corresponding increase in the demand for housekeepers. Despite the fact that the industry seems over-saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own housekeeping service.

Some of the factors that encourage entrepreneurs to start their own housekeeping services are that the business is profitable and easy to set up and manage with minimal startup capital. Over and above, housekeeping businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.

2. Executive Summary

The name of our company is Mercy Town® Housekeeping Services, LLC. We are a registered and standard housekeeping business that is incorporated under the law of the United States of America.

Our head office will be in a densely populated residential estate in the heart of Sacramento – California, U.S. We are strategically positioned in between a residential center and a campus community and we are set to service the whole of the community.

Our basic service offering will revolve around recruiting, training and deploying housekeepers that will be involved in running errands in and around the house. Although our intention of starting a housekeeping business is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.

We are quite optimistic that our values and quality of service offering will help us drive our housekeeping services agency business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to hire our (housekeepers) services over and over again. Our corporate business goal is to be among the top 5 housekeeping services in the United States of America.

As a company, we are willing to go the extra mile to invest in some of the finest professionals we can find and also, we have put processes and structures in place that will ensure that we are always at the top of our game when it comes to trust and excellent service delivery. We have been able to secure permits from all relevant departments in the state of California.

Mercy Town® Housekeeping Services, LLC is owned and managed by Mrs. Mercy Townsend and her immediate family members. Mrs. Mercy Townsend has a degree in Management and over 17 years’ experience in the maids, nanny and gardener services industry in the United States of America prior to starting Mercy Town® Housekeeping Services.

3. Our Products and Services

Mercy Town® Housekeeping Services, LLC is a standard housekeeping agency that offers a wide range of services that revolves around the maid, nanny and gardener services industry. We intend giving our customers every reason to always hire our services which is why we have customized our services. The housekeepers under our agency will carry out services such as;

Clean rooms, hallways, lobbies, lounges, restrooms, corridors, elevators, stairways, locker rooms and other work areas so that health standards are met.
Empty wastebaskets, empty and clean ashtrays, and transport other trash and waste to disposal areas.
Care for children and/or elderly persons by overseeing their activities, providing companionship, and assisting them with dressing, bathing, eating, and other needs.
Clean rugs, carpets, upholstered furniture, and/or draperies, using vacuum cleaners and/or shampooers.
Purchase or order groceries and household supplies to keep kitchens stocked, and record expenditures.
Run errands such as taking laundry to the cleaners and buying groceries.
Sweep, scrub, wax, and/or polish floors, using brooms, mops, and/or powered scrubbing and waxing machines.
Other related housekeeping services

4. Our Mission and Vision Statement

Our vision is to establish Mercy Town® Housekeeping Services, LLC as the leading brand in the maid, nanny and gardener services industry in the United States of America while maintaining an unwavering dedication to our people, values and principles.
Our mission as a housekeeping services agency is to develop a highly successful, profitable all round housekeeping services in our community and to become the standard for housekeeping businesses not only in the State of California but also throughout the United States of America.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our housekeeping services agency on the right business foundation.

We want to build a business of dedicated workforce who will ensure that our customers are satisfied and they get value for their money. We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services.

With the wide range of our service offerings and the plan to sell franchise, we are only expected to employ more than it is required to run a conventional housekeeping services business. Mercy Town® Housekeeping Services, LLC will employ professionals and skilled people to occupy the following positions;

Manager (Owner)
Accountant/Cashier
Marketing and Sales Executive
Client Service Executive
Housekeepers

5. Job Roles and Responsibilities

Manager (Owner):

Responsible for providing direction for the business
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing business deals and payment of salaries
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Responsible for managing the daily activities in the organization
Prepares budget and reports for the organization
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Regularly hold meetings with key stakeholders to review the effectiveness of the business Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees

Marketing and Sales Executive

Identify, prioritize, and reach out to new clients, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develop, execute and evaluate new plans for expanding increase sales
Document all customer contact and information
Represent Mercy Town® Housekeeping Services, LLC in strategic meetings
Help increase sales and growth for Mercy Town® Housekeeping Services, LLC

Accountant/Cashier

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for the organization
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for Mercy Town® Housekeeping Services, LLC
Serves as internal auditor for Prime Mercy Town® Housekeeping Services, LLC

Client Service Executive

Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
Manages administrative duties assigned by the manager in an effective and timely manner
Consistently stays abreast of any new information on the organizations’ services and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Housekeepers:

Clean rooms, hallways, lobbies, lounges, restrooms, corridors, elevators, stairways, locker rooms and other work areas so that health standards are met.
Empty wastebaskets, empty and clean ashtrays, and transport other trash and waste to disposal areas.
Care for children and/or elderly persons by overseeing their activities, providing companionship, and assisting them with dressing, bathing, eating, and other needs.
Clean rugs, carpets, upholstered furniture, and/or draperies, using vacuum cleaners and/or shampooers.
Purchase or order groceries and household supplies to keep kitchens stocked, and record expenditures.
Run errands such as taking laundry to the cleaners and buying groceries.
Sweep, scrub, wax, and/or polish floors, using brooms, mops, and/or powered scrubbing and waxing machines.

6. SWOT Analysis

Housekeeping services agency business is one of the many businesses that can easily generate business deals with little stress. We are building a standard housekeeping services agency with variety of services which is why we have decided to subject our business idea to SWOT Analysis.

We hired the services of Mr. Derrick Carrington, a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Mercy Town® Housekeeping Services, LLC;

Strength:

Mercy Town® Housekeeping Services, LLC is centrally located in a densely populated residential estate in Sacramento – California; our location is in fact one of our major strengths. We are also one of the very few housekeeping agencies in the whole of Sacramento – California that is equipped to carry out a wide range of services as it relates to housekeeping services.

Another strength that counts for us is the power of our team; our workforce and management. We have a team of hardworking and dedicated individuals.

Weakness:

Mercy Town® Housekeeping Services, LLC is a new business which is own by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

Opportunities:

We are centrally located in one of the family – oriented areas in Sacramento – California and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the maid, nanny and gardener services industry.

The truth is that there are no standard housekeeping businesses within the area where ours is going to be located; the closest housekeeping services agency to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.

Threat:

Some of the threats that are likely going to confront Mercy Town® Housekeeping Services, LLC is unfavorable government policies, demographic / social factors, downturn in the economy which is likely going to affect consumer spending and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

Market Trends

The housekeeping services market is dependent on loads of factors. It responds to increase in household spending and improvement in the economy which is why it is trendy to find housekeeping businesses located around areas that can afford their services.

8. Our Target Market

Before choosing a location for our housekeeping services agency business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offering. Those who will benefit from our service offering are households, facility managers, hospitals, hotels, hostels and government et al. Below is a list of the people and organizations that our housekeeping services agency is designed for;

The government (government guest house and housing estates)
Households
Facility managers
Hotels and Motels
Residential areas
Campgrounds
Hostels
Lounges
Medical facility (Hospitals)

Our Competitive Advantage

Housekeeping services agency business is an easy to set up business that does not require formal training to achieve; anybody can set up a housekeeping services agency business if they have the required startup capital and informal training on how to hire, screen, train and deploy maids.

It means that the possibility of housekeeping businesses springing up in our location can’t be ruled out. We are aware of this which is why we decided to come up with a business concept that will position us to become the leader in Sacramento – California.

We can confidently say that the location of our housekeeping business will definitely count as a positive for us. For the time being, Mercy Town® Housekeeping Services, LLC has no real competitors that can compete with the quality services we offer.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Mercy Town® Housekeeping Services, LLC will generate income by supplying well – trained and screened housekeepers that will offer the following services;

Clean rooms, hallways, lobbies, lounges, restrooms, corridors, elevators, stairways, locker rooms and other work areas so that health standards are met.
Empty wastebaskets, empty and clean ashtrays, and transport other trash and waste to disposal areas.
Care for children and/or elderly persons by overseeing their activities, providing companionship, and assisting them with dressing, bathing, eating, and other needs.
Clean rugs, carpets, upholstered furniture, and/or draperies, using vacuum cleaners and/or shampooers.
Purchase or order groceries and household supplies to keep kitchens stocked, and record expenditures.
Run errands such as taking laundry to the cleaners and buying groceries.
Sweep, scrub, wax, and/or polish floors, using brooms, mops, and/or powered scrubbing and waxing machines.

10. Sales Forecast

We are well positioned to take on the available market in Sacramento – California and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our housekeeping business and our clientele base.

We have been able to examine the maid, nanny and gardener services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Mercy Town® Housekeeping Services, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;

First Fiscal Year (FY1): $250,000
Second Fiscal Year (FY2): $450,000
Third Fiscal Year (FY3): $750,000

N.B: This projection was done based on what is obtainable in the maid, nanny and gardener services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

The marketing strategy for Mercy Town® Housekeeping Services, LLC is going to be driven by excellent customers service and quality service delivery. We want to drive sales via the output of our jobs and via referral from our satisfied customers.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of Mercy Town® Housekeeping Services, LLC Mercy Town® Housekeeping Services, LLC is set to make use of the following marketing and sales strategies to attract clients;

Introduce our housekeeping services agency business by sending introductory letters alongside our brochure to corporate organizations, households and key stake holders in and around Sacramento – California.
Print out fliers and business cards and strategically drop them in houses, offices, libraries, public facilities and train stations et al.
Use friends and family to spread word about our business
Post information about our housekeeping services agency and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
Placing a small or classified advertisement in the newspaper, or local publication about our housekeeping agency and the services we offer
Leverage on referral networks such as agencies that will attract clients who would need our services
Advertise our housekeeping services agency in relevant magazines, newspapers, TV and radio stations
Engage in direct marketing approach
Encourage the use of Word of mouth marketing
Join estate associations and local chambers of commerce and industry to market our services.

11. Publicity and Advertising Strategy

Mercy Town® Housekeeping Services, LLC is set to create a standard for housekeeping services businesses in Sacramento – California and throughout the United States which is why we will apply best practices to promote our business.

Good enough, there is no hard and fast rule on how to advertise or promote a housekeeping services agency business. Here are the platforms we intend leveraging on to promote and advertise Mercy Town® Housekeeping Services, LLC;

Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
Advertise our housekeeping services agency business in relevant magazines, local newspaper, local TV and radio stations
Promote our business online via our official website
List our business on local directories (yellow pages)
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, twitter, et al to promote our brand
Install our Billboards in strategic locations
Direct coupon mailing approach
Distribute our fliers and handbills in target areas
Ensure that all our staff members wear our customized clothes, and all our official cars and trucks are customized and well branded.

12. Our Pricing Strategy

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 in Sacramento – California.

Be that as it may, we 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 services will be same as what is obtainable in the open market.

Payment Options

The payment policy adopted by Mercy Town® Housekeeping Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mercy Town® Housekeeping Services, LLC will make available to her clients;

Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.

13. Startup Expenditure (Budget)

We have been able to pull cash that will be enough for us to successfully launch a standard housekeeping services agency in Sacramento – California, US and here are the key areas where we will spend our startup capital on;

The Total Fee for Registering the Business in Sacramento – California – $750.
Legal expenses for obtaining licenses and permits – $1,500.
Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
The cost for hiring Business Consultant – $2,000.
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $10,250.
The cost of accounting software, CRM software and Payroll Software – $3,000
The cost for leasing a small office facility – $70,000.
The cost for facility remodeling – $30,000.
Phone and utility deposits – ($3,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $10,000
The cost of launching a website – $600
Miscellaneous – $10,000

We would need an estimate of two hundred thousand dollars $200,000 to successfully launch our housekeeping services agency in Sacramento – California, US.

Generating Funds/Startup Capital for Mercy Town® Housekeeping Services, LLC

Mercy Town® Housekeeping Services, LLC is a business that will be owned and managed by Mrs. Mercy Townsend and her immediate family members. They are the sole financier of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Mercy Town® Housekeeping Services, LLC is to build a business that will survive off its own cash flow without need of injecting finance from external sources once the business is officially running.

Mercy Town® Housekeeping Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Acquiring facility and remodeling the facility: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: In Progress
Recruitment and training of employees and maids: In Progress
Creating Official Website for the Company: Completed
Creating awareness for the business both online and in the neighborhood: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Establishing business relationship with vendors and business associates: In Progress