Power clean carpet and upholstery cleaning services

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“Unique power clean carpet and upholstery cleaning services”

Task 1

Introduction

The objective of this assignment is to conduct a business proposal to gather information and data about the population and using this proposal as a base to develop and setup a new choice business of my own in my local area. The proposal I have made, is about to setup a business proposal of carpet cleaning and upholstery for the households and businesses in Canning Town and other areas of London. The proposed name for these cleaning services will be the “Unique carpet-clean and upholstery cleaning services” and this business will be home based. Starting a new business is exciting but full of challenges. Opening a small business especially like carpet and upholstery cleaning services is a great and simple way to make money. This is a very simple business to start, with little initial overhead and with very little experience required. Start up costs can be £50,000.00, especially when it is home based. According to Newham council, there is a steady market for the quality services and that was the opportunity I realize to start this business. As we know carpet has become an essential item of household and large business offices, churches, mosques, temples etc. So it is a good opportunity to avail to start such a low cost business. For the success of the business proposal, there is need to formulate the long term strategy. The focus is on the identifying the target market, and provide best services to the customers to gain market share and a competitive advantage to achieve profit making goals.

1.2 Objective of Business:

The objective of Power clean carpet and upholstery cleaning services is to provide best cleaning services (carpet and upholstery) in my local area Canning Town and all over London and to create awareness about business through advertisement , brochures, business cards, etc. Objectively, my target is making profit from the business and to achieve strategic goals through competitive advantage and reasonable price.

1.3 Target market:

The aim of marketing is to meet and satisfy the customers' needs and wants better than the competitors. It deals with identifying and meeting human and social needs. In shortest way, the marketing is “meeting needs profitability” (Philip Kotler Kevin lane Keller). The specific group of people at which a company aims its product or services is target market. When choosing target market it is necessary to keep in view and assessment of some factors like who are they? What are their wants and requirements? What is the Gender, age and their purchasing power? When identifying the market it is necessary for this business to define and select our customers carefully and more important to keep in view that either it is residential or commercial? The target market for this new carpet cleaning business is all households in my local area Canning Town and all over London. I will target mostly residential areas and some of businesses they also. Before the starting of a business, it is very important to analyze Canning Town's population very carefully and properly in which the business will operate.

1.4 Data analysis:

Our carpet and upholstery cleaning services will base in London so, it is very important to know about the population of that area, income and number of households for the successful planning of business.

1.4.1Population of London:

From my research (google), the population in London was 12% of the total United Kingdom population in 2007 and the resident was around 7.6 million. London was the highest increasing population region in UK, and increase in population was 9.3% with net increase of 70,700 people in 2006 which is more than fourfold to 2.2% increase in people (14,800 people) in 1981. If we consider highest proportion of the people living in work class household it was 19% 2008. In London the flats were the most common and in South East and South West where the detached home were most common for residence (Data Management Analysis Group). The population of England according to the 2001 was 49,138,831 and number of households are the 21,262,000 (Barry turner). This data shows us a very huge and expanding market for small businesses like cleaning services if we further analyze the population data of London from 2005 to 2008 we can arrange this in the following table 1.1

Population of London

Table 1.1

Year

2004

2005

2006

2007

2007-2008

British

6,019,000

5,994,000

5,981,000

5,946,000

5,968,000

Non-British

1,296,000

1,388,000

1,461,000

1,552,000

1,563,000

Total

7315,000

7382000

7442000

7498000

6531000

This data shows that we have large scale of potential market for our carpet and upholstery cleaning services.

1.4.2 Households projection in London:

It is also very important to analyze the data about households in London because in our carpet and upholstery cleaning services we will target most of the residential area. This data will show us the potential market for our business. The recent UK Gov. Census (2001) revealed the projected household rise from 2006 to 2026 expected to account for the major share of the net growth in households, 428 thousand out of 566 thousand. There is decrease in married couples and increase in the cohabiting couples and there are modest rises in lone parent households (81 thousand) and ‘and the other type of household is the couple with no kids (64 thousand) (Data Management and Analysis Group).We can show the number of households in following table1.2

The following table shows the number of households with their type.1

Table 1.2

Number of households in London

Type of Households

1991

1996

2001

2006

2011

2016

change

Lone Parent

Households

191000

231000

268000

295000

316000

332000

64000

One Person

Households

882000

957000

1094000

1130000

1208000

1298000

248000

Household with other Multi person

299000

329000

310000

335000

361000

384000

74000

Cohabiting couple

households

195000

245000

284000

352000

401000

429000

146000

Married couple

Households

1,245 000

1134000

1113000

1026000

963000

916000

-196000

Total

2811000

2896000

3023000

3139000

3249000

3359000

336000

91 1996 2001 2006 2011 2016 2001-16

1.4.3 Income and life style of households in London:

Another factor which is necessary to keep in mind, which is also an important factor of data analysis, is the income of the target market. It should be consider that the people we are going to attract for unique power cleaning carpet and upholstery services from which income groups are they belonged. Is the area well fit for your business in respect of income? So before starting this business cleaning services it is important to analyze the data about the people of London which is our main target market. Very positive point which inspires me to do business in London is that the households in London has highest gross income per week, which is a £766 and it is more than £80 in a week from the next highest weekly income region which is the south East. And the GDHI (Gross Disposable Household Income) in the Whole UK is around £14000 but in London it is £17,000. If we go into more details, the 25% household's gross weekly income is either £1000 or more and it more than any other region in proportions. And more than 58% households have access to internet (Annual Survey of Hours and Earnings, Office for National Statistics). It is also an advantage if we use internet as medium of advertisement. We can show the income of household in London in following table in term of percentage

Table 1.3

Wages and salary

Self employed

Investor

Annuity & pension

Social security benefits

Any type of other income

Gross average weekly income of households

72

10

4

4

9

1

£766.00

Task 2

2.1Literature review:

Starting the carpet cleaning business is easy and the success rate of business is comparably high than other businesses. Everybody knows that every house has wall to wall carpeting in house, especially in London; it is a very rare chance of any home without carpeting. The literature review of this work is a new business of carpet cleaning and upholstery for the households and businesses in Canning Town where by everybody wants to keep his or her house neat and clean, although some people think that daily vacuuming can keep their carpet clean but reality is different, Carpets have soft and absorptive material which absorbs the dust easily. So Mostly, people know that it is better to get services from specialist carpet cleaning companies to remove dust and mud from their carpets twice in a year it is very common item in a house and every one want to keep their house clean. Households are also interesting to clean their home carpet when they want to rented out or selling it. It has some benefit like easy sellable because of the easily understandable services. In addition, some ceremonies are also an edge for this business. It is easily expandable business in commercial market like pub and restaurants. And the upcoming smoking ban is also an opportunity for this business. Generated figures from market survey reveal the accessible rates of £120 for a house and £20 for one single room. And most cleaning businesses have their minimum fee like £30. It is also labor intensive job. We need equipment to start this business, transport, labor (carpet cleaner) and finance to meet the advertising and insurance expenses.

The main benefit to start a carpet cleaning services is that we do not need too much financial resource to start that. Even we can rent the carpet cleaning equipments and we can use our own van if we have to go on job. From wholesale we can purchase all equipment in bulks. It is estimated that we can start this business with $10,000. It should be kept in mind that we do not need to go overboard renting or purchase materials including machine and other stuff like chemicals and so on. It is also require to estimates the rates that we will charge to our customer. We should forecast our income and according to that income estimation of expenses is necessary. We must consider how we are going to advertise our business. According to the budget and resources we should spend on ads and promotions. We should consider the Laws of society before starting business and should get legal advices about that. And one more thing which is necessary is to prepare ourselves in case of any mishap (Jason Glucman).

In today's era two conditions have made Carpet cleaning services industry a "billion dollar business", and it also assure us of success in the business. One, since 1960 every home and offices has wall to wall carpeting and the second thing, replacement cost cyclical faltering of the economy. These two factors caused the individuals or groups want to make the long lasting of the things they already have and especially in carpet case which needs a lots of investments (Hoover web design).

Task 3

3.1 Market competition of the cleaning services in Canning town:

The business of cleaning services has challenge of competition because there are many small and large cleaning companies at local area. The main competitor of this business is premium clean which are in Kentish town. But it is far from my local area and it is predicted by the stakeholders that it will not affect our business too much. There are some other companies that are providing the cleaning services like Alba Carpet and Upholstery Cleaning, Pilgrim Payne Co. limited United Carpet Domestic Cleaner, Hard Floor Cleaning, and Cosmopolite Cleaning Services. Carpet Cleaning, The Clean Pointe Limited and Privor cleaning & Co, are based in my very local area. These companies and more are providing the same services with mine which will have to decide on what (quality & price) to provide to the public. These cleaning companies have been working from long time and are very successful in business. Some of these companies are operating with limited resources, but we have decided to capture large market to compete these rival businesses by giving quality services to our customers at an affordable price. It is very necessary to analyze our competitors carefully and should keep in mind their weaknesses and strengths.

3.2 Possibility of success for Unique Power Clean carpet and upholstery cleaning services:

Unique power cleaning services can face the problems at local level due to the some local area cleaning services. From avoiding the competition it is necessary to formulate the best strategy on basis of different factor like providing the low cost, best cleaning services, using references to get the work from the different types of businesses like restaurants, flats, apartments, offices, churches, temples and mosques. We can also provide different types of discounts rates to our customer. Initially we started our business with discount of 25% which attracted lots of customers. This tactics will be used to get market share and to get awareness of our business in market. Due to the large number of household, increasing number of population, health and safety awareness and current economic situation it is believed the cleaning services business have lots of potential for success. So if we properly advertise our business, more chance of success for the business of Cleaning Services.

In future we can provide them additional services for air dust cleaning, tile and floor cleaning and ceiling cleaning. This is a good strategy which needs to develop your business in future to secure your business and achieving the goals of business. Everyone wants his or her house neat and clean which is very important to keep yourself in good health. This is one reason which inspires me to open this business. Secondly this business is very easy to expand from my local area to all over the London. So it is easy to penetrate in the market and gaining market share to make money. It's a huge populated city, very commercial and has every type of business in it, hotels, apartments and offices. So it is very easy to understand that it's a huge market for this business available here.

So it is a good opportunity for small business to flourish across London. In this business, it is very easy to create long term relations with customers and achieve long term goals.

The other opportunity which I am seeing is to open such a small and cost effective business but the current situation of economy is not good as it were some years ago. According to the new report the drop in GDP is the worst for 50 years. The economy has shrunk at its fastest rate in the first three months of 2009 and there about. The recession has caused fall in output by 2.4 percent and it's the sharpest decline in since 1958. And 4.9 percent decline in GDP has also shown in figures and it's the biggest decrease since 1948. The GDP in 2008 was £1.4 trillion and after the drop of 4.9 percent it is £17.5 billion less in this first quarter (John Higginson). The conditions are not good for the big organization at the moment because the purchasing power of customer has down. Consumer planning to reduce their spending on everything from supermarket food to short breaks and eating out because they are facing struggle to cope with the increasing squeeze on income. And according to high street survey the people think they have no choice reduce their spending outside. According to the price water house coopers survey 43% of consumer expected to reduce going out to eat, 37 percent will spend less on electronics and 33% will cut their expenses on the purchase of clothes. It is said that 30% will shift to the cheaper supermarket (Steve Hawkes). So this all forecast shows that consumers now want to save money to fight with the credit crunch. It is a clear indicator that most of the consumer will prefer to get cleaning services instead of purchasing new products. That is a healthy sign to start a carpet cleaning business and try to capture market share in current worse economic situation, which are not also favorable for jobs. So needs to start own business and play a role for the betterment of economy of the country. The cleaning services business is not difficult to start. It is very easy; you hardly any house or business which has not carpet. And surely everyone wants to keep his or her house or work place to keep clean and tidy. Carpet needs some extra care because it can absorb dust very quickly. Secondly it is very easy to sell the cleaning services, because everyone knows the importance of clean and healthy environment. It is very easy to get finance if you have business plan and government is also introducing schemes for the support of small and medium firm. The mayor of London has given the economic recovery plan in which he has allocated a large amount to support small and medium size business. This plan called “The Mayor's Economic Recovery Action Plan” in which he has announced that they will provide easily access to finance resource and will train the small firm entrepreneurs to make them able and capable on how they can improve their businesses and overcome current bad economic situation. The London Development Authority is making a total investment of £23.4 million for new comprehensive financial support for business. It will improve communication and the take-up of its services by businesses, and refocus its business support program to address the current needs (Greater London Authority April 2009). Another very important factor for opening cleaning business is that, at the end of tenancy most of the landlords want to get the services to clean the house especially the cleaning of carpet. So it is another opportunity to open this cleaning service business.

References:

1. Data Management and Analysis group (2009). DMAG Update, GLA authority, London (http://www.london.gov.uk/gla/publications/factsandfigures/dmag-update-05-2009-social-trends.pdf)

2. GLA (2008). The Mayor's Economic Recovery Actions Plan, Greater London authority, City Hall, London

3. Hawkes, Steve (Aug 6 2008). “The cut in consumer purchasing power”, The Times, London

4. Higginson, Johan (July 1, 2009). Drop in GDP is the worst for 50 years, Metro, London

5. Hoover web design. How To Start Your Own Carpet Cleaning Business (http://www.hooverwebdesign.com/business/pages/carpet-cleaning-business.php)

6. John (2007). business opportunities and idea(http://www.businessopportunitiesandideas.co.uk/95/start-a-carpet-cleaning-business)

7. Kottler, Philip and Keller, Kevin Lane (2007). Marketing Management, Twelfth edition, Person Education, UK

8. Office for the National Statics and Home Office (2009). GLA Demography Update (http://www.london.gov.uk/gla/publications/factsandfigures/DMAG-02-2009-cob-nationality.pdf).

9. Turner, Barry (2009). The statesman's year book, 145th edition, London

10. UK Gov. Census (2001). A Case for London (http://www.london.gov.uk/mayor/case_for_london/docs/ch4_housing.pdf)

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