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Cleaning Business Plan

1. PROJECT SUMMARY
The goal of the project is to open a cleaning company in Rostov-on-Don. The main source of income of the institution is the payment for professional cleaning services. The cleaning company offers a wide range of services in the field of professional cleaning in commercial and private premises.

The target audience is the corporate segment represented by shopping and entertainment centers, offices, restaurants, cinemas; private segment.

The advantages of this business include:

– the demand for this type of service;

– relatively low level of competition, low threshold for entering the market;

– the predominance of the corporate segment allows you to enter into long-term service contracts, which guarantees a stable income.

Investment costs in the amount of 1,578,400 are directed to the purchase of specialized equipment, the purchase of a car, the arrangement of a sales office and the formation of a working capital fund. The payback period of the project is 11 months. The profitability of business in the first year of operation will be 12%.

2. DESCRIPTION OF INDUSTRY AND COMPANY
The market of cleaning services in Russia appeared relatively recently – about 25 years ago, thanks to the arrival of large foreign companies. The introduction of cleaning services began in Moscow and St. Petersburg – these local markets still remain the leaders of the domestic market of cleaning services and occupy almost 60% of the total.

The activity of cleaning companies is a set of measures aimed at cleaning and maintaining cleanliness in commercial and private premises. Recently, this type of service is gaining popularity due to the demand for professional maintenance of the premises, problems in organizing its own cleaning services, actively building construction, and the fashion for outsourcing.

Ready ideas for your business.

The annual growth rate of the Russian cleaning services market is 30%. The Moscow market shows a 68% growth and the market volume is more than 15 billion rubles a year. The turnover of the Russian market of cleaning services at the beginning of 2016 was 222.13 billion rubles. Currently, there are about 1,500 companies operating in the regions of Russia, and about 700 companies in Moscow and St. Petersburg.

According to statistical studies, in 2016 cleaning services entered the top 5 most sought-after services in the domestic market.

Growing demand for professional cleaning leads to a constant expansion of the customer base. Service commercial real estate accounts for 80% of the total market. Today, the main users of the services of cleaning companies are shopping and entertainment centers. But in the segment of individuals, these services are just beginning to gain popularity.

Cleaning Business Plan
Fig. 1 – The structure of the client base of cleaning companies

The dynamics of commercial space input reflect the possibility of expanding the circle of potential customers. The peak of commercial space put into operation was recorded in 2014, and in the past two years there has been a decline. However, in times of crisis, many companies optimize their costs, among which were the costs of staff. So, those companies that refused to hire traditional cleaners in favor of outsourcing supported the demand in the market of cleaning services. This step, according to experts, can bring savings of 20% for the company. Therefore, even with the advent of the crisis in the commercial real estate market, the cleaning business continues to develop dynamically. Recently, the demand for cleaning services has been provided by government organizations that make a choice of cleaning companies through competitions, auctions, and so on.

Cleaning Business Plan
Fig. 2 – Dynamics of the area of ​​commercial buildings commissioned in Russia

Competition in this market is growing very slowly, the threshold for entering the market is quite low. Statistics show that in recent years, the number of cleaning companies has remained unchanged: new companies come to the market every year, but the same amount leaves it. The main trend in the market of cleaning services is the consolidation of companies and the expansion of the range of services, due to which the market grows. At the same time, small enterprises also survive because they are able to react flexibly and quickly to changes in market conditions. The profitability of this business is in the range of 12-15%.

Ready ideas for your business.

This business plan was developed for the opening of the clinic company in Rostov-on-Don, therefore, the local market of cleaning services should be analyzed. According to the results of the search query, the city has 58 cleaning organizations, of which the highest rating is assigned: “CleanOffice”, “Master Brilliance” and “Make a Wish”. The listed companies are serious competitors. It is recommended to study their pricing policy and list of services in order to form their own competitive advantages.

 

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