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Cleaning Products Business Plan
1. Products Cleaning Business Plan For Starting Your Own Company
The business plan for cleaning products outlines the strategies and tactics needed to launch and grow a successful cleaning products company. The plan covers business objectives, target markets, competitors, marketing strategies, sales techniques, operations, financial projections, and more.
The business plan for a products cleaning company can help you run your business more efficiently in several ways. The plan can help you define your business objectives, goals, strategies, and resources. Furthermore, it will help you determine your target market, pricing strategy, and marketing and advertising tactics. Moreover, a business plan can help you develop a budget and financial projections so you can see where your business stands.
Several product businesses can benefit from this business plan, such as a carpet cleaning business plan, window cleaning business plan, janitorial services business plan, etc.
2. Executive Summary
The Company is a professional business that will offer a wide range of cleaning products to the public. All of our products will be of the highest quality and competitively priced. The MLM cleaning products business plan’s mission is to become our area’s leading cleaning products and services provider, providing our clients with the highest quality and cost-effective solutions. We will accomplish this by focusing on customer service, developing innovative products and services, and leveraging our established relationships with top-tier suppliers.
Writing a cleaning products business plan outlines the strategies and tactics to launch and market the company, including developing an effective marketing strategy and budget, creating an online presence, and utilizing social media. It includes detailed financial projections and outlines steps to fund the business adequately.
The Company’s plan is to start a cleaning products business targeting residential and commercial markets. The cleaning products company will offer a wide range of cleaning, including general cleaning services, cleaning & repairs services, and specific product cleaning services.
The purpose of writing a cleaning products business plan is to help the business to identify potential opportunities and to develop a plan to capitalize on them. It will also help identify potential risks and develop mitigation strategies. Finally, the business plan explains the resources a business needs to succeed, financial and otherwise.
3. Company Summary
Company will be owned by owner name. Owner has over 20 years of experience in the cleaning products industry, having worked for major companies in the sector. His goal in the sample business plan for cleaning products is to provide the best customer experience, stay ahead of changing regulations, and continually develop new cleaning product strategies.
Why The Cleaning Products Business Is Being Started
The owner name had over 20 years of experience as a worker in a cleaning products company. He aims to provide consumers with a reliable and cost-effective source of cleaning products. The business plan for household cleaning products is specialized to meet the needs of various customers.
How The Cleaning Products Business Will Be Started
Personal capital, loans, and grants will fund the business. The Cleaning Products Business will be organized as a limited liability company in the State of Washington. The owner of the company will also serve as its CEO. An advisory board will be formed to oversee the company’s operations and provide guidance.
The company’s products and services will be sold through retail outlets and by showing a web presence. The company’s organic cleaning products business plan will also offer services such as cleaning, installation, and maintenance of its products.
The cleaning service business plan will also focus on providing excellent customer service and support and will strive to build strong customer relationships. The company’s operational business plan emphasizes brand development, marketing, and advertising to ensure its services and products are well known.
The following is a detailed breakdown of start-up requirements, including startup expenses, assets, funding, capital required, planned investments, liabilities, and funding:
4. Products of Cleaning Products Company
This part includes what is products in cleaning products business plan, and their services. The duct cleaning business plan and cleaning & repairs business plan include top-notch duct cleaning services for the customers.
- Cleaning products that are non-toxic and eco-friendly.
- Cleaning services customized to the needs, including deep cleaning, post-construction cleanup, and move-in/move-out cleaning
- A wide selection of detergents, soaps, and other cleaning products.
- Air purification services to help improve indoor air quality.
- Specialized cleaning products for furniture and carpets.
- Solutions designed specifically for cleaning bathrooms, kitchens, and other rooms.
- Cleaning services for offices and industrial facilities.
- Cleaning technologies and equipment that make cleaning easier, faster, and more efficient.
- Cleaning driveways, decks, patios, and more with pressure washing.
- Residential and commercial window cleaning services.
- Tools for cleaning include brooms, mop, vacuum, sponge, and scrubbers.
- High-pressure sprayers fit for reaching hard-to-reach corners and crevices to ensure that the surfaces are properly cleaned.
- Cleaning services using natural and organic products and eco-friendly methods.
5. Marketing Analysis
The marketing analysis for the cleaning product business plan will focus on identifying the primary target market and developing a comprehensive strategy for reaching that market. The company’s marketing analysis involves market trends, market segmentation, business targets, and product pricing.
excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!
The cleaning products market is expected to continue to grow over the next three years. The industry is growing due to consumer demand for more efficient and environmentally friendly cleaners than traditional methods.
For the cleaning products business plan pdf, the target market will be commercial, residential, janitorial, and institutional customers. As the largest market segment with the greatest growth potential, the company will concentrate its efforts on the commercial sector.
An effective cleaning products business plan targets both commercial and residential customers. Commercial customers include businesses, offices, schools, hotels, and other large organizations that require regular cleaning services. The residential market consists of individuals looking for products to clean their homes, such as all-purpose cleaners, floor cleaners, window cleaners, and other cleaning products.
The company will price the cleaning products and services in such a way that it appeals to a wide range of customers. The company will offer a range of pricing options, from budget-friendly to premium. The budget-friendly range will include the lowest-priced products with essential components and functionality for customers who do not need high-end products. The premium range will offer the highest-priced product and service with more advanced components and functionality designed to meet the needs of higher-quality customers.
6. Marketing Strategy of Cleaning Products Company
The cleaning products industry is highly competitive. The primary competitors are well-established companies that have been in business for many years. The company’s competitive analysis will include the elements of product quality, pricing, advertising, and Distribution.
After analyzing the cleaning products business plan template, which includes marketing analysis, the sales strategy is designed to generate revenue and profit for the company. This strategy includes leveraging its competitive advantage by providing superior cleaning products at competitive prices. The company will also utilize online marketing platforms such as social media, search engine optimization (SEO), pay-per-click (PPC) advertising, and email marketing.
The cleaning products company plans to generate monthly income through duct cleaning services. The duct cleaning and repair products business plan aims to generate revenue for the company on a high level. According to our experts, the following sales are expected monthly.
The cleaning products business generates revenue by selling cleaning products and services to consumers, businesses, and institutions. The marketing strategy will emphasize convenience and customer satisfaction, competitive pricing, and product differentiation. Experts predict the following annual sales.
Our cleaning products company anticipates relatively consistent sales throughout the year. As far as sales are concerned, we don’t expect any significant spikes or dips but rather a steady stream of revenue. Our sales forecast is as follows:
Personnel Plan Of Cleaning Products Company
Owner will hire professional company staff to start a cleaning products business. As part of the sample cleaning products business plan template, the following employees will be needed:
- CEO/Business Manager
- Sales and Marketing Manager
- Product Development Manager
- Operations Manager
- Financial Manager
- Customer Service Manager
- Administrative/Office Manager
- Distribution Manager
- General staff
Average Salary of Employees
The average salary of employees in a cleaning products company ranges between $30,000 and $50,000. However, salaries for higher-level positions may be significantly higher.
8. Financial Plan For Cleaning Products Company
Financial experts helped owner analyze the company’s financial needs and develop a financial plan for business plan for selling cleaning products. To outline the company’s development, they develop a three-year financial plan.
The following are important assumptions for the financial plan of the cleaning products company:
These assumptions are quite conservative, but deviations should not have a significant impact on the company’s major financial strategies.
Below is a breakdown of the cleaning products company’s fixed and variable costs:
Below is a table that shows the monthly break-even analysis
Projected Profit and Loss
The following is the projected profit and loss for a cleaning products company.
Gross Margin Monthly
Gross Margin Yearly
Projected Cash Flow
This column diagram shows the projected cash flow.
A detailed description of pro forma cash flow, subtotal cash from operations, subtotal cash received, subtotal expenses, and general assumptions are provided in the table below.
Projected Balance Sheet
The following projected balance sheet for cleaning products business shows data about the pro forma balance sheet, total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities, and capital.
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Cleaning Products Business Plan
- Retail , Business Plan , Browse by Categories , Browse by Industry , Deals , Retail Business Plan
$ 350 $ 245
Introducing our Cleaning Products Business Plan – the ultimate solution for aspiring entrepreneurs in the cleaning industry! This comprehensive template is packed with strategies to attract potential investors and customers. With detailed market research, financial projections, and a step-by-step guide to starting and growing your cleaning business, this template will help you turn your dreams into reality. Whether you’re starting a janitorial service or a specialized cleaning business, our Cleaning Products Business Plan Template has everything you need to succeed. Don’t wait – order yours today!
With our business plan, planning a business won’t seem a daunting task. We have prepared this complete Cleaning Products Business Plan for your convenience. You can edit it according to business or any other change that you wish to see in it.
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- This Product: Cleaning Products Business Plan - $ 350 $ 245
- Cleaning Service Excel Financial Model - $ 150
- Basic Pitch Deck Template - $ 25
- Reviews (2)
Table of Contents
Is selling cleaning products profitable? The Cleaning Products industry has evolved and steadily grown since 2014. As people’s lives get more active and they seek convenience and time-saving options while on the go, Cleaning Products operators have many opportunities. Also, have you been thinking about starting a Cleaning Products Business Plan and drafting a business plan for each detail?
Our Cleaning Products Business Plan Template
Drafting a business plan can be upsetting, especially if you don’t know how to compose a business plan. The document must be precise in providing the correct information and being set out correctly. Whether you are looking for a loan, an investor, or a startup business looking for a loan, this document is crucial for your business. It is the first part of a business shown and has to exhibit you as a company. Many people will view this business plan, so it must always have accurate information. Buying a custom business plan with Oak Business Consultant will guarantee the ideal start when starting or expanding your business.
Our professional business writers have vast experience in this area, and we know what goes into the ideal business plan. In addition, we know how to ensure your executive summary provides all the relevant information. Hence, the investor or banker knows the benefits of backing your business. With extensive experience in all sections of business writing, why would you look anywhere else than Oak Business Consultant? Therefore, if you plan to buy a business plan template online, why not order with us today?
Highest Quality Available
We, as business consultants , understand that the business plan document has to be of the highest quality. The executive summary is the first part of the plan that you will see. When we write the business plan, we will leave the executive summary to show the best information. The program will contain a Business description, marketing strategy, marketing plan, financial plan, competitor analysis, SWOT , and operational plan accustomed to our business. Buying a custom business plan template online is the best option because it will save you time; we include a complete guide, and you can also contact our expert for any guidance.
We must sell your business to the business plan readers and let them know why they need to be a part of your business and future endeavors. All the plan sections will be well written and thoroughly researched to correct every figure and fact accordingly. We pride ourselves on coproducing flawless work and work hard to produce only the highest quality business documents. Therefore, if you need to buy a business plan template online, look no further than Oak Business Consultant, where ideal business plans are our specialty.
After purchasing a custom business plan template online , we will share all contact details with our expert if you need guidance. The first 30 mins are free of cost. We take pride that 100% of our customers were satisfied with the template. The work we produce is unlike any other company. So why buy a business plan template online from anywhere else?
What is included in the Business Plan?
Below are some contents of the Business Plan
- Executive Summary
- The Products
- Our Distribution Model 6
- Our Mission
- Keys to Success
- Our Products
- Our Business Model
- Market Segmentation
- Individual Customers
- S. Cleaning Products Industry – Statistics & Facts
- Market Overview
- The Surface Cleaners Segment Leads the Household Cleaners Market
- North America Remains One of the Largest Household Cleaners Market
- Competitive Landscape
- Recent Development
- Marketing Plan
- Marketing & Sales
- Publicity and Advertising Strategy
- Internet Strategy
- Market Positioning
- Inbound Marketing Plan
- Inbound Marketing
- Product Readiness
- Signup process Improvement
- User Onboarding
- Market Readiness
- Brand Story
- Marketing tool Integration
- Marketing Execution
- Market Research
- SEO Strategy
- On-page SEO
- Off-Page SEO
- Social Media Plan
- Social Media Posts (Owned)
- Important Assumptions 20
- Cost of Goods Sold & Operational Expenses
- Income Statement
- Operating Activities
- Investing Activities
- Financing Activities
- Balance Sheet
- Investor’s Value
- Investment Required
Highlights of Cleaning Products Business Plan
- Company Details
- About Company Ownership
- Product Details
- Internal Analysis
- Sample of Swot Analysis
- Management Team And
- Company Structure
How this Template will help you
Here are some key benefits of this business plan, which are as follow:
First, to help you with critical decisions.
This robust business plan can do a forcing function—you have only to sit down and think about your store’s significant components before getting started, like marketing strategy, operation plan, and what products you’ll sell. However, an entrepreneur can answer many tough questions before they arise and think deeply about core strategies to understand how those decisions will impact a broader objective plan.
Attract Outside Funding
This business plan will enable potential investors and banks to clearly understand your passion, allowing them to acknowledge the flow of money and resources. Furthermore, communicating clear ideas to investors will persuade them that your business is an excellent opportunity to get involved; therefore, they will invest in your business venture to help you thus achieve your objectives.
The Bigger Picture
This Cleaning Products Business Plan gives you the right path to connect the dots in your plan, so as an entrepreneur, you will achieve a whole snapshot of your venture. In addition, this business plan will help you to prioritize tasks and activities. By looking at the bigger picture of your experience, you can decide which challenges to tackle first or which job to address later, enabling you to allocate your effort, time, and resources strategically.
All updated content is included in the Business Plan with references. In addition, the user must have the company name, employees, and other office-related information. Therefore it is ready to go template with financials .
This Business Plan can primarily use within the company as an implementation plan. This may also improve and provide more consistent performance, improved coordination, and consistency among various company segments. Moreover, these business plans may help identify your strengths and weaknesses along with potential problems and emerging issues. It also sets forth performance benchmarks on which expectations will be based. Finally, it delineates goals and objectives to coordinate and better communicate between all company areas accordingly.
The in-depth market research about the Cleaning Products industry will also help you gain a better perspective and understanding of the market or target audience, enabling you to mitigate or minimize potential loss. It also allows you to keep up with market trends and analyze a competitive edge by sizing business opportunities.
How to Use this Template
This Cleaning Products business plan template provides a professional and carefully structured Executive summary for your store as a sample. Hence we know that writing an executive summary is the most vital portion of a business plan since venture capitalists and many other stakeholders prefer to decide further consideration by just reading the Executive Summary ; if they don’t like what they read from this section, they might not even bother to read ahead and instantly thus decline the project.
The Executive Summary we provide as a sample is of great use. We made this template so you can use this same Executive summary by just filling in the blanks. We have also highlighted these blanks in yellow where you can put your company’s factual information and make this Plan Template your own.
You can easily add more information specific to your company to further customize this template. This information may include the following:
- Nature and type of operation,
- To whom you sell,
- How the product is distributed,
- Business support systems.
- Competitive advantage
- Trade Market situation
- Social relation
This Cleaning Products Business Plan Template provides a general sample description of your business. If you wish, you can use this same description without hesitation, and it will still portray your business idea to all the stakeholders. You can also add more information to customize the Business Plan further. Points that you may include can involve:
- Size of the Business,
- Major players in the industry,
- Barriers to Entry,
- Target market,
- The estimated profitability,
- The macro and microeconomic factors,
- Any Special Regulation.
Therefore, the above factors are only optional. You may choose to add all of these or don’t include any of them accordingly. It is altogether up to you.
Oak Business Consultant Experts has a complete research framework specialized for startups. Our research methodology includes the measurement, collection, and market analysis of various business trends relevant to the venture or project. Thus, our market research team is equipped with cutting-edge tools and technologies to gather relevant market data, analyze them, and derive actionable valuable information for your business plan template. The market analysis is based on the US market. However, you can contact our experts anytime if you need analysis for any other market.
Another crucial section of this Cleaning Products Business Plan is the Marketing strategy . Usually, businesses spend enormous effort and resources to develop a rock-solid marketing strategy.
Hence in our experience, a company’s marketing strategy differentiates between a successful or unsuccessful business since it tells your target customer about your product/ services and induces them into purchasing your products/services.
Thus, using our decade-long experience, we have formulated this marketing strategy specific to your business industry. It, therefore, provides you with a very easy-follow path to success. Consequently, we highly recommend using this marketing strategy without any reduction, especially for a retail business.
Since a Marketing Plan is a much-detailed roadmap based on the Marketing Strategy decided in the above section. So in this Cleaning Product Business Plan Template, we have included a generic Marketing Plan as a sample that companies usually do within the industry. Finally, you can make changes to this plan according to your specific budget and, thus, special requirements,
You can also add an operational plan which is vital for two reasons:
1- It includes details of almost all of the business’s activities to achieve success.
2- Finally, it also provides benchmarks and sets standards for employee performance and the industry.
Nevertheless, having benchmarks helps a business thrive and perform even in the most challenging times, such as the Year 2020. It also evaluates the performance more accessible. Therefore, it also reduces the response time to any uncertain event by thus having contingency plans in hand.
Thus, you can also use this template to guide this section and include the activities you plan to implement into your business plan. The activities will relate to the following:
- Operational and production management,
- Human resources planning,
- Marketing objectives,
- Financial management ,
- The allocation of staff.
- Your quality control measures
- Risk Management practices,
- Internal control systems,
- Risk Assessment procedures,
- What-if scenarios to mitigate these risks.
In conclusion, we take pride in our financial analysis skills. Our experts also carry out rigorous accounting and financial planning for your venture. In Financial Plan, we have included financial Statements, Financial Indicators, Project evaluation , Projections, Funding requirements , Financial Commentary, Cash flow analysis & Valuations. We also have expertise in various tools that help us standardize the financial analysis process.
For your ease, we have highlighted those words requiring business plan changes. Finally, you only have to see highlighted words and replace them accordingly to save time.
Developed economies have a retail industry that is both well-established and highly competitive. A study was undertaken to investigate the influence of the retail sector on a country’s economy. The research applied statistical techniques and examined the dynamics of the retail industry in order to gain a deeper understanding of its significance. To understand more about the dynamics of the retail industry, please visit the following link .
Our goal is to offer services that meet the needs and expectations of our customers, as this is vital for establishing a positive reputation and cultivating a loyal customer base. Consequently, it is beneficial to collect customer feedback to assess how well our products perform and identify areas for improvement. A testimonial from the retail industry that underscores the importance of customer feedback can be found below.
Note: If you cannot understand what is included in the business plan and whether it will fit your business. You can consult our consultants. Just drop us a message, and within 24 hours, we will send you a meeting invite.
2 reviews for Cleaning Products Business Plan
Mariah – July 10, 2022
I must say, it has exceeded my expectations! The template provided is incredibly comprehensive and well-structured, making the process of planning my cleaning business so much easier. Thank you for providing such a valuable resource for aspiring entrepreneurs like me.
Virginia – May 12, 2023
I am extremely satisfied with my purchase. The Cleaning Products Business Plan has provided me with a solid foundation and the tools I need to turn my dreams into reality. I highly recommend this template to any aspiring entrepreneur in the cleaning industry. It’s worth every penny!
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Cleaning Chemicals Manufacturing Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business Plans » Chemical Sector
Do you want to start a cleaning chemical production company? If YES, here is a sample cleaning chemicals manufacturing business plan template & feasibility report.
If you are convinced that you can produce quality cleaning chemicals, then you should consider launching your own cleaning chemical manufacturing company. This business is open for investors to come and compete for the available market in the country.
A Sample Cleaning Chemicals Manufacturing Company Business Plan Template
1. industry overview.
Cleaning chemical manufacturing companies are part of the Soap and Cleaning Compound manufacturing industry and players in this industry produce substances that loosen and remove dirt from a surface. It is important to point out that this industry does not include manufacturers of synthetic glycerin, industrial bleaches or shampoos.
Research conducted by IBIS World shows that in the united states of America, during the past five years, the Soap and Cleaning Compound Manufacturing industry contended with steep competition from foreign-based soap manufacturers.
Foreign manufacturers benefit from lower wage and operating expenses abroad and, as a result, have inundated the market with competitively priced soap products.
In response, domestic soap and cleaning compound manufacturers have advertised eco-friendly products to appeal to environmentally conscious consumers, which has helped buoy demand. In addition, the production costs have gone up leading to a decline in industry profit and revenue. As a result, revenue is anticipated to decrease over the five years to 2019.
The report also shows that over the past five years, global demand for industry products experienced the largest growth in emerging markets, particularly in the Asia Pacific region, which prompted many multinational companies to expand or relocate their operations abroad.
However, domestic growth in the number of small- to medium-sized enterprises offset any large corporations relocating facilities to emerging markets. Over the five years to 2024, the increase in unemployment rate will lead to consumers to slowly shift toward less-costly brand name soaps and cleaning products.
Rising demand from downstream markets, such as restaurants, hotels and other accommodation industries, will require more cleaning products to comply with regulations and maintain cleanliness in line with the rise in consumer foot traffic.
The Soap and Cleaning Compound manufacturing industry is a thriving sector of the economy of the United States of America and they generate over billion annually from more than 4,928 registered and licensed soap and cleaning chemical compound manufacturing companies.
The industry is responsible for the employment of over 46,377 people. Experts project the industry to grow at a 3.1 percent annual rate between 2015 and 2022. Procter & Gamble Company, Ecolab Inc. and S.C. Johnson & Son Inc. are the leaders in the industry.
Due to the high cost of manufacturing, marketing and distribution of cleaning chemicals and related products, large corporations dominate the industry and despite the fact that there are big corporations who are into the production of cleaning chemicals, the fact remains that starting a small – scale business has minimal barriers to entry, with low start-up capital.
Most players in the Soap and Cleaning Compound Manufacturing industry are small – to medium – sized establishments that cater to the local community. Some of the factors that encourage aspiring entrepreneurs to venture into the industry is that the market is pretty huge and not seasonal.
This makes it easier for entrepreneurs who are interested in the business to come into the industry at any time they desire; the entry barriers are quite affordable and any serious-minded entrepreneur can comfortably raise the start-up capital without collecting loans from the bank.
The Soap and Cleaning Compound Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in as long as you are able to obtain the required chemical handling license.
2. Executive Summary
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is a licensed cleaning chemical manufacturing company that will be located in Bowling Green – Kentucky.
We have been able to secure a lease for a facility in a strategic location with an option of renewal on terms and conditions that are favorable to us. The facility has government approval for the kind of production business we want to run and the facility is easily accessible.
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is in the cleaning compound manufacturing industry to produce widely accepted liquid soaps and detergents products. We are also in business to make profits at the same to give our customers value for their money.
We are aware that there are several cleaning chemical manufacturing companies scattered all around the United States of America whose products can be found in nooks and crannies of the United States and Canada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our products and brand.
We ensured that our facility is easy to locate and we have mapped out plans to develop a far – reaching distribution network for wholesalers.
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is family business that will be owned by Harry Williams and his immediate family members. Mr. Harry Williams who is the Chief Executive Officer of the Company is a Graduate of Chemical Engineering and he holds a Master’s Degree in Business Management (MBA).
He has a Chemical Handler’s Certificate and he is a Certified Soap, Washing Powder and Synthetic Detergent Manufacturer. He has over 10 years’ experience working in related industry as a senior manager prior to starting Carol White™ Cleaning Chemicals Manufacturing Company, Inc.
3. Our Products and Services
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is going to run a standard cleaning chemical manufacturing company whose products will not only be sold in Bowling Green – Kentucky but also throughout the United States of America and Canada.
We are in the cleaning compound manufacturing industry to make profits and also to give our customers value for their money. These are some of the products that we will be manufacturing and distributing in wholesale;
- Cleaning chemicals
- Household soaps and detergents
- Commercial soaps and detergents
- Polishes and other sanitation goods
- Surface active agents
4. Our Mission and Vision Statement
- Our vision is to establish standard cleaning chemical manufacturing company whose products will be not only be sold in Bowling Green – Kentucky, but also throughout the United States of America and Canada.
- Our mission is to establish a standard cleaning chemical manufacturing company/brand that will favorably compete with leaders in the industry.
- We want to build a business that will be listed amongst the top 20 cleaning chemical brands in the United States of America.
Our Business Structure
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is established with the aim of competing favorably with other leading cleaning chemical product brands in the industry. This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
Human Resources and Admin Manager
Sales and Marketing Manager
- Machine Operators
Distribution Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization.
- Responsible for overseeing the smooth running of the cleaning chemical manufacturing plant
- Part of the team that determines the quantity and quality of cleaning chemicals that are to be produced
- Maps out strategies that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw chemicals and other packaging materials to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office and factory activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of chemicals and packaging materials
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- 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
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Welcomes guests and clients 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 a 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 products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels/documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager
Production Workers/Machine Operators:
- Operates machines for making cleaning chemicals
- Assists in packaging and loading cleaning chemicals and related cleaning products into distribution trucks
- Responsible for cleaning and maintaining the machines
- Assists in loading and unloading cleaning chemicals and related cleaning products
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
6. SWOT Analysis
We are quite aware that there are several cleaning chemicals manufacturing companies both in the United States of America which is why we are following the due process of establishing a business so as to compete favorably with them.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. employed the services of an expert HR and Business Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Carol White™ Cleaning Chemicals Manufacturing Company, Inc.;
Part of what is going to count as positives for Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is the vast experience of our management team, we have people on board who are highly experienced on how to grow a business from the scratch to becoming a national phenomenon.
So also, our closeness to leading raw chemical production companies, large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new cleaning chemical manufacturing company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Procter & Gamble and S.C. Johnson & Son Inc.et al are already determining the direction of the market.
The opportunities available to cleaning chemical manufacturing companies are enormous. This is due to the fact that people make use of cleaning chemicals when cleaning and washing.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.
Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new cleaning chemical manufacturing company in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
Some of the latest trends as captured by IBISWorld shows that weak sales growth potential in developed markets over the next five years will cause more and more companies to look to emerging markets for growth. While volumes should pick up in the near term as the economy recovers, growth beyond this temporary upturn will be more difficult to achieve.
On the other hand, as income levels rise in developing countries, consumers in these areas pose an untapped market potential. Environmental concerns among consumers and governmental regulators are expected to continue. Increasing emphasis will be placed on factors such as biodegradability, aquatic toxicity, renewable feedstock and environmental footprint concerning CO2 emissions throughout the supply chain.
In addition, retailers are forwarding consumer demands for greener products. The introduction of more stringent regulations may further pressure manufacturers to reformulate their standard formulas.
New product development and company restructurings have been buttressing sales and profits, while retailer consolidation and private label products have acted as head winds to continued growth. Innovation has enabled industry manufacturers to maintain growth.
Extending a well-known brand name to a different product category has also helped companies attract consumers who already use the core brand. During the five years up to 2010, profit has grown as players have cut costs and raised prices, creating profit margin growth even with a tough economic market.
Higher prices have been generated most notably with environmentally friendly “green” products, which are continuing to expand in popularity. Some companies are strictly natural, and for large soap manufacturers, moving into this segment has involved a combination of acquisitions and product development.
Some of the impetus for the industry to go greener is coming from Walmart, which has been pushing manufacturers to shrink the size of their packaging. The quick reaction to Walmart’s demand illustrates the rising power of a handful of large low-priced retailers.
Many retailers have also pushed their own higher margin private label brands in competition with industry players. After facing continued high commodity costs during the five years to 2010, and with retail consolidation forcing players to focus on their best-selling brands, many companies have been restructuring to cut costs and reduce product lines. Accordingly, employment has also fallen.
Lastly, some strategic price adjustments are expected to occur in reaction to retailer pressure and private-label products. Lower prices will help increase the number of items sold, keep products on the shelves of major retailers and compete with lower-priced private-label goods.
The resulting volume sales increases are expected to be countered somewhat by lower prices per item. Most soap manufacturers have not caught up with the three years of above average commodity cost increases. In addition, the price of oil is expected to rise. As a result, profit margin as a percentage of revenue is expected to fall.
8. Our Target Market
When it comes to selling cleaning chemicals, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in our target market locations. We are in business to engage in wholesale distribution and to retail our cleaning chemicals to the following groups of people;
- Commercial cleaning companies
- Laundries and Laundromats
- supermarkets and stores
- Everybody in our target market location
Our competitive advantage
A quick of the cleaning compound manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are prepared to compete favorably with other companies in Bowling Green – Kentucky.
Part of what is going to count as competitive advantage for Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is the vast experience of our management team, we have people on board who are highly experienced on how to grow a business from the scratch to becoming a national phenomenon.
So also, closeness to some of the largest raw chemical manufacturing plants, our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the cleaning compound manufacturing industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is established with the aim of maximizing profits in the cleaning compound manufacturing industry and we are going to ensure that we do all it takes to manufacture and sell the following products;
10. Sales Forecast
One thing is certain when it comes to cleaning chemical manufacturing company, if your products are well-packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales.
We are well positioned to take on the available market in Bowling Green – Kentucky and every city where our cleaning chemicals and related products will be sold 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 the business and our clientele base.
We have been able to examine the cleaning chemical manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Carol White™ Cleaning Chemicals Manufacturing Company, Inc., it is based on the location of our business and other factors as it relates to small and medium scale cleaning chemical manufacturing company startups in the United States;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $950,000
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care 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
Before choosing a location to start Carol White™ Cleaning Chemicals Manufacturing Company, Inc., we conducted a thorough market survey and feasibility studies.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America.
We hired experts who have good understanding of the cleaning compounds manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bowling Green – Kentucky and other cities in the United States of America.
In summary, Carol White™ Cleaning Chemicals Manufacturing Company, Inc. will adopt the following sales and marketing approach to sell our cleaning chemicals and related cleaning products;
- Introduce our cleaning chemicals and related cleaning products brand by sending introductory letters to cleaning companies, laundries, residents, merchants, retailers and other stakeholders in Bowling Green – Kentucky
- Engage in roadshow in targeted communities from time to time to sell our products
- Advertise our products in community – based newspapers, local TV and radio stations
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our cleaning chemicals and related cleaning products brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. has a long term plan of distributing our cleaning chemicals and related cleaning products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Bowling Green – Kentucky before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Carol White™ Cleaning Chemicals Manufacturing Company, Inc.;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in roadshow from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
We are aware of the pricing trend in the cleaning chemicals production industry which is why we have decided to produce various sizes of cleaning products.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.
- Payment Options
The payment policy adopted by Carol White™ Cleaning Chemicals Manufacturing Company, Inc. 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 Carol White™ Cleaning Chemicals Manufacturing Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment without any stress on their part.
13. Startup Expenditure (Budget)
Starting a standard cleaning chemical manufacturing company is indeed a capital – intensive business. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing chemical mixer, vessels, crystalizing machines, burner and conveyor belt system, protective gears, a mini lab and good drainage system.
Aside from that, you are expected to purchase distribution trucks, raw materials, pay your employees and utility bills. These are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Carol White™ Cleaning Chemicals Manufacturing Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $150,000.
- The cost for construction of a standard cleaning chemical manufacturing plant – $150,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (chemical mixer, vessels, crystalizing machines, burner and conveyor belt system, protective gears, a mini lab and good drainage system, supply of chemicals, and packaging materials et al) – $80,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $60,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- Miscellaneous – $10,000
We would need an estimate of five hundred and fifty thousand dollars ($550,000) to successfully set up our cleaning chemical manufacturing plant in Bowling Green – Kentucky. Please note that this amount includes the salaries of all the staff for the first 3 months of operation.
Generating Funds/Startup Capital for Carol White™ Cleaning Chemicals Manufacturing Company, Inc.
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is owned and financed by Harry Williams and his immediate family members. They do not intend to welcome any other business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of any business lies in the number of loyal customers that they have, the capacity and competence of the 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 closes shop.
One of our major goals of starting Carol White™ Cleaning Chemicals Manufacturing Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our cleaning chemicals a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Carol White™ Cleaning Chemicals Manufacturing Company, Inc. 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 re – training of our workforce is at the top burner.
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.
- 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
- Leasing of facility and construction of standard cleaning chemical manufacturing plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: 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 Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – wholesalers, raw chemicals production companies, suppliers and merchants: In Progress
- Chemical Manufacturing Plant Business Plan [Sample Template]
- Chemical Trading Business Plan [Sample Template]
- Liquid Soap and Detergent Business Plan [Sample Template]
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MLM Cleaning Products Business Plan
Start your own mlm cleaning products business plan
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
Earthly Clean is a start-up organization using the multi-level marketing (MLM) business model to sell environmentally friendly cleaning products. Earthly Clean has been founded by Devon McGregor. The company has been registered as an Illinois LLC.
The Products Earthly Clean sells a complete line of non-toxic, environmentally friendly cleaning supplies for all possible household uses. Earthly Clean is finalizing a contactual agreement with a major cleaning supply manufacturer for the production of a complete line of private label products. Product prices will be quite competitive since Earthly Clean is buying direct from the manufacturer. Another feature of this relationship which is of significant value to Earthly Clean is the willingness of the manufacturer to allow Earthly Clean to place orders as small as $150. This will assist Earthly Clean in their goal of efficient inventory management. Products that will be part of the initial product line include: all purpose soap, bathroom cleaner, basin/tub and tile cleaner, detergent, window cleaner, bleach, laundry liquid and a variety of different air fresheners. Earthly Clean is able to offer competitively priced products that are of the highest quality.
The Market Earthly Clean will sell products to two customer segments. The first segment are individual consumers who are purchasing the products for personal (household) use. These individuals are environmentally conscious consumers who are looking for non-toxic cleaners for their home. demographics for this group are younger, politically liberal people who are interested in making an individual contribution to the betterment of our environment.
The second target segment is a select group from within the first segment of individual customers. Some of these individuals will be recruited to become distributors of Earthly Clean products. A distributor is a person who sells the Earthly Clean products on their own to their own set of customers. This segment is taken from the actual consumers that purchase and use products. This creates a sales force that passionately believes in the products that they sell. The distributors that make up this segment receive a sales commission if they are able to recruit new distributors who then make sales. This is how the MLM business model works. Earthly Clean sells to consumers, some of those consumers then become distributors earning revenue for Earthly Clean as well as themselves. If these new distributors attract more people to sell, they then make money on their specific sales as well as money on everything that their recruited sales people sell.
An Efficient Distribution Model This is an efficient and effective distribution model where the products are purchased private label direct from the manufacturer ensuring the highest quality and low prices. They are then sold direct to the consumer. The traditional bureaucratic distribution model with huge corporate profits is eliminated. MLM businesses are often confused with pyramid schemes which are illegal in the U.S.
Pyramid schemes are business forms that offer compensation specifically for the recruitment of new sellers. People are promised economic rewards for the more people they recruit, independent of what these people sell. Herein lies the crucial distinction that regulatory authorities analyze when determining if a business is a pyramid scheme: the way compensation is rewarded. If it is based on recruitment it is presumed illegal. Earthly Clean only compensates distributors for sales, an effective and efficient sales and distribution system.
Earthly Clean is an exciting new business that channels individuals’ passion for making a positive contribution to the environment and the ability to make money while sharing this passion with friends and colleagues. By carefully using the efficient multi-level marketing business model, Earthly Clean will quickly generate sustainable revenue. Sales forecasts indicate that sales for years two and three respectively will be $90,000 and $125,000. Net profit for the same years will reach 4.19% and 8.66%.
Earthly Clean’s mission is the development of a environmentally friendly distribution company that uses grassroots and network marketing techniques to sell the product and make a meaningful contribution to the environment. Earthly Clean exists to support its members and to support the environment.
- To create a profitable company that sells environmentally friendly cleaning products.
- Design an organization that compensates individuals for sales made by other people that they recruit.
- Design a more efficient marketing machine that does away with the inefficient traditional distribution systems.
1.3 Keys to Success
- Distribute only quality, environmentally friendly products.
- Recruit new people to assist in the sales of the products.
- Build the company on a solid basis of integrity.
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How to write a business plan for a cleaning products manufacturer?
Writing a business plan for a cleaning products manufacturer can be an intimidating task, especially for those just starting.
This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.
We'll cover: why writing a cleaning products manufacturer business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.
Let's get started!
In this guide:
Why write a business plan for a cleaning products manufacturer?
- What information is needed to create a business plan for a cleaning products manufacturer?
- What goes in the financial forecast for a cleaning products manufacturer?
- What goes in the written part of a cleaning products manufacturer business plan?
- What tool can I use to write my cleaning products manufacturer business plan?
Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a cleaning products manufacturer business plan in the first place.
To have a clear roadmap to grow the business
Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.
In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your cleaning products manufacturer is vital to establish a successful and sustainable venture.
To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.
Once you have a clear destination for your cleaning products manufacturer, you'll have to:
- Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
- Determine the pace at which the business needs to progress to meet its objectives as scheduled,
- Recognize and address the potential risks you may encounter along the way.
Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.
To maintain visibility on future cash flows
Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your cleaning products manufacturer's future cash flows is critical.
How do I do that? That's simple: you need an up-to-date financial forecast.
The good news is that your cleaning products manufacturer business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.
To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.
Monitoring your cleaning products manufacturer's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).
To secure financing
Whether you are a startup or an existing business, writing a detailed cleaning products manufacturer business plan is essential when seeking financing from banks or investors.
This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.
Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.
Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.
To do so, they will be looking for evidence that your cleaning products manufacturer has the potential for healthy growth, profitability, and cash flow generation over time.
Now that you understand why it is important to create a business plan for a cleaning products manufacturer, let's take a look at what information is needed to create one.
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Information needed to create a business plan for a cleaning products manufacturer
You need the right data in order to project sales, investments and costs accurately in the financial forecast of your cleaning products manufacturer business plan.
Below, we'll cover three key pieces of information you should gather before drafting your business plan.
Carrying out market research for a cleaning products manufacturer
Carrying out market research before writing a business plan for a cleaning products manufacturer is essential to ensure that the financial projections are accurate and realistic.
Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.
In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.
Your market research may reveal that consumers may be looking for more natural cleaning products, such as those with fewer chemicals and more natural ingredients. Additionally, your research may find that consumers might be interested in more sustainable packaging options, such as those made from recycled materials.
This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your cleaning products manufacturer.
Developing the sales and marketing plan for a cleaning products manufacturer
As you embark on creating your cleaning products manufacturer business plan, it is crucial to budget sales and marketing expenses beforehand.
A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.
This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.
The staffing and capital expenditure requirements of a cleaning products manufacturer
Whether you are starting or expanding a cleaning products manufacturer, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.
Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.
A cleaning products manufacturer might incur staffing costs such as wages for employees, benefits, and payroll taxes. Equipment costs might include purchasing and maintaining production machinery, purchasing of raw materials, and any other necessary supplies or tools.
In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.).
Once you have all the necessary information to create a business plan for your cleaning products manufacturer, it is time to start creating your financial forecast.
What goes into your cleaning products manufacturer's financial forecast?
The financial forecast of your cleaning products manufacturer's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.
The four key outputs of a financial forecast for a cleaning products manufacturer are:
- The profit and loss (P&L) statement ,
- The projected balance sheet ,
- The cash flow forecast ,
- And the sources and uses table .
Let's look at each of these in a bit more detail.
The projected P&L statement
The projected P&L statement for a cleaning products manufacturer shows how much revenue and profits your business is expected to generate in the future.
Ideally, your cleaning products manufacturer's P&L statement should show:
- Healthy growth - above inflation level
- Improving or stable profit margins
- Positive net profit
Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established cleaning products manufacturer. And similarly, an established company should showcase a higher level of profitability than a new venture.
The projected balance sheet of your cleaning products manufacturer
The balance sheet for a cleaning products manufacturer is a financial document that provides a snapshot of your business’s financial health at a given point in time.
It shows three main components: assets, liabilities and equity:
- Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
- Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
- Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.
Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your cleaning products manufacturer's liquidity and solvency:
- Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
- Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.
Looking at the balance sheet can also provide insights into your cleaning products manufacturer's investment and financing policies.
In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).
The cash flow forecast
A projected cash flow statement for a cleaning products manufacturer is used to show how much cash the business is generating or consuming.
The cash flow forecast is usually organized by nature to show three key metrics:
- The operating cash flow: do the core business activities generate or consume cash?
- The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
- The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?
As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your cleaning products manufacturer business plan to pay close attention to your cash flow forecast.
Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the cleaning products manufacturer is appropriately funded.
The initial financing plan
The sources and uses table or initial financing plan is a key component of your business plan when starting a cleaning products manufacturer.
It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).
This table helps size the investment required to set up the cleaning products manufacturer, and understand how risks will be distributed between the business owners, and the financiers.
The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.
Now that you have a clear understanding of what will go into the financial forecast of your cleaning products manufacturer business plan, let's have a look at the written part of the plan.
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The written part of a cleaning products manufacturer business plan
The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.
Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.
The written part of a cleaning products manufacturer business plan is composed of 7 main sections:
- The executive summary
- The presentation of the company
- The products and services
- The market analysis
- The strategy
- The operations
- The financial plan
Let's go through the content of each section in more detail!
1. The executive summary
The executive summary, the first section of your cleaning products manufacturer's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.
To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.
Subsequently, provide an overview of your cleaning products manufacturer's addressable market, highlighting current trends and potential growth opportunities.
Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.
You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.
Lastly, address any funding needs in the "ask" section of your executive summary.
2. The presentation of the company
As you build your cleaning products manufacturer business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.
In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.
Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.
When describing the location of your cleaning products manufacturer, you could mention that it is situated in a region that has access to a large consumer base. This could be an area with a highly populated urban center or a sprawling suburban area, both of which could be ideal for selling products. Additionally, you could point out that the region has access to an extensive infrastructure, such as transportation and logistics networks, which could be beneficial for distributing your products. You could also explain that the area is home to a highly educated workforce, indicating that the manufacturer could benefit from a talented and diverse talent pool. Finally, you could emphasize that the region has a vibrant business climate that could provide additional opportunities for growth and expansion.
Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.
It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.
3. The products and services section
The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market.
For example, your cleaning products manufacturer might offer a wide range of cleaning products, including all-purpose cleaners, glass cleaners, degreasers, and more. They could also provide additional services such as equipment repair, custom product formulation, and a recycling program for used containers. These services and products provide customers with a comprehensive solution to their cleaning needs, helping them to ensure that their business runs smoothly.
4. The market analysis
When you present your market analysis in your cleaning products manufacturer business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.
The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.
Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your cleaning products manufacturer, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.
Next, focus on your target market, zooming in on the specific customer segments your cleaning products manufacturer aims to serve and explaining how your products and services fulfil their distinct needs.
For example, your target market might include busy families. These are households with two working parents and multiple children who need to manage their time effectively. They would be interested in cleaning products that are easy to use, time-saving, and of a high quality.
Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.
Finally, conclude your market analysis with an overview of the key regulations applicable to your cleaning products manufacturer.
5. The strategy section
When you write the strategy section of your cleaning products manufacturer business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.
In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.
The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.
Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.
For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.
Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.
Your cleaning products manufacturer faces a variety of risks. For example, there may be a risk of contamination in the raw materials used to produce the cleaning products. If contaminated raw materials are used, the finished products could be unsafe or ineffective. Additionally, there may be a risk of litigation if the products are found to be defective and cause harm to the end user. In this case, the manufacturer could incur significant financial losses.
6. The operations section
The operations of your cleaning products manufacturer must be presented in detail in your business plan.
Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.
Next, clearly state your cleaning products manufacturer's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.
The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.
You could have a unique formula for your cleaning products that may be protected as a trade secret. The design of your product packaging might also be an important asset to your company and could be considered intellectual property, as it could be trademarked.
Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.
7. The presentation of the financial plan
The financial plan section is where we will include the financial forecast we talked about earlier in this guide.
Now that you have a clear idea of the content of a cleaning products manufacturer business plan, let's look at some of the tools you can use to create yours.
What tool should I use to write my cleaning products manufacturer's business plan?
In this section, we will be reviewing the two main options for writing a cleaning products manufacturer business plan efficiently:
- Using specialized software,
- Outsourcing the drafting to the business plan writer.
Using an online business plan software for your cleaning products manufacturer's business plan
Using online business planning software is the most efficient and modern way to create a cleaning products manufacturer business plan.
There are several advantages to using specialized software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You are guided through the writing process by detailed instructions and examples for each part of the plan
- You can access a library of dozens of complete business plan samples and templates for inspiration
- You get a professional business plan, formatted and ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .
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The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.
Hiring a business plan writer to write your cleaning products manufacturer's business plan
Outsourcing your cleaning products manufacturer business plan to a business plan writer can also be a viable option.
Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.
However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.
Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.
Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.
Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.
For these reasons, carefully consider outsourcing your cleaning products manufacturer business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.
Why not create your cleaning products manufacturer's business plan using Word or Excel?
I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your cleaning products manufacturer business plan. Let me explain why.
Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.
Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.
And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.
Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.
Now, let's talk about the written part of your cleaning products manufacturer business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.
Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.
- Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
- A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
- A business plan has 2 main parts: a financial forecast outlining the funding requirements of your cleaning products manufacturer and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.
We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your cleaning products manufacturer business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.
Also on The Business Plan Shop
- How to write a business plan to secure a bank loan?
- Key steps to write a business plan?
- Top mistakes to avoid in your business plan
Do you know entrepreneurs interested in starting or growing a cleaning products manufacturer? Share this article with them!
Founder & CEO at The Business Plan Shop Ltd
Guillaume Le Brouster is a seasoned entrepreneur and financier.
Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.
Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.
Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.
Published on 28 Sep 2023 , last update on 28 Sep 2023 , as per our editorial standards .
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MLM Cleaning Products Business Plan Sample
This sample plan will provide you with important guidelines when creating a business plan for a company offering MLM cleaning products.
Interior design business plan sample, florist sample business plan, handyman maintenance sample business plan, 1. executive summary.
Earthly Clean is a start-up organisation using the multi-level marketing (MLM) business model to sell environmentally friendly cleaning products.
Earthly Clean has been founded by Devon McGregor. The company has been registered as an Illinois LLC.
Earthly Clean sells a complete line of non-toxic, environmentally friendly cleaning supplies for all possible household uses. Earthly Clean is finalising a contactual agreement with a major cleaning supply manufacturer for the production of a complete line of private label products. Product prices will be quite competitive since Earthly Clean is buying direct from the manufacturer.
Another feature of this relationship which is of significant value to Earthly Clean is the willingness of the manufacturer to allow Earthly Clean to place orders as small as $150. This will assist Earthly Clean in their goal of efficient inventory management.
Products that will be part of the initial product line include: all purpose soap, bathroom cleaner, basin/tub and tile cleaner, detergent, window cleaner, bleach, laundry liquid and a variety of different air fresheners. Earthly Clean is able to offer competitively priced products that are of the highest quality.
Earthly Clean will sell products to two customer segments. The first segment are individual consumers who are purchasing the products for personal (household) use.
These individuals are environmentally conscious consumers who are looking for non-toxic cleaners for their home. Demographics for this group are younger, politically liberal people who are interested in making an individual contribution to the betterment of our environment.
The second target segment is a select group from within the first segment of individual customers. Some of these individuals will be recruited to become distributors of Earthly Clean products.
A distributor is a person who sells the Earthly Clean products on their own to their own set of customers. This segment is taken from the actual consumers that purchase and use products. This creates a sales force that passionately believes in the products that they sell.
The distributors that make up this segment receive a sales commission if they are able to recruit new distributors who then make sales. This is how the MLM business model works.
Earthly Clean sells to consumers, some of those consumers then become distributors earning revenue for Earthly Clean as well as themselves. If these new distributors attract more people to sell, they then make money on their specific sales as well as money on everything that their recruited sales people sell.
An Efficient Distribution Model
This is an efficient and effective distribution model where the products are purchased private label direct from the manufacturer ensuring the highest quality and low prices. They are then sold direct to the consumer.
The traditional bureaucratic distribution model with huge corporate profits is eliminated. MLM businesses are often confused with pyramid schemes which are illegal in the U.S.
Pyramid schemes are business forms that offer compensation specifically for the recruitment of new sellers. People are promised economic rewards for the more people they recruit, independent of what these people sell.
Herein lies the crucial distinction that regulatory authorities analyse when determining if a business is a pyramid scheme: The way compensation is rewarded. If it is based on recruitment it is presumed illegal. Earthly Clean only compensates distributors for sales, an effective and efficient sales and distribution system.
Earthly Clean is an exciting new business that channels individuals’ passion for making a positive contribution to the environment and the ability to make money while sharing this passion with friends and colleagues.
By carefully using the efficient multi-level marketing business model, Earthly Clean will quickly generate sustainable revenue. Sales forecasts indicate that sales for years two and three respectively will be $90,000 and $125,000. Net profit for the same years will reach 4.19% and 8.66%.
Earthly Clean’s mission is the development of a environmentally friendly distribution company that uses grassroots and network marketing techniques to sell the product and make a meaningful contribution to the environment.
Earthly Clean exists to support its members and to support the environment.
- To create a profitable company that sells environmentally friendly cleaning products.
- Design an organisation that compensates individuals for sales made by other people that they recruit.
- Design a more efficient marketing machine that does away with the inefficient traditional distribution systems.
1.3 Keys to Success
- Distribute only quality, environmentally friendly products.
- Recruit new people to assist in the sales of the products.
- Build the company on a solid basis of integrity.
2. Company Summary
Earthly Clean has been formed as an Illinois registered LLC. The company has been founded by Devon McGregor. The company exists to distribute environmentally friendly cleaning supplies through an efficient, networking distribution system.
2.1 Start-up Summary
Earthly Clean has incurred the following expenses for the start-up phases of the organisation:
- Storage space: This will be used for the storage of product inventory. While Earthly Clean could get away with a smaller space such as a closet in Devon’s home, he is able to achieve costs breaks by purchasing larger quantities and will take these discounts and place the inventory in storage.
- Service provider fees: Earthly Clean has incurred both accountant and attorney fees in the set up of the business. The accountant will set up the PeachTree accounting system and the attorney will develop and register the business formation as well as draft some sale agreements for distributors.
- Computer system: The computer system will be used for correspondence, accounting purposes as well as to develop marketing and sales information. The system will include a laptop computer, printer, fax/scanner, and a broadband Internet connection. Earthly Clean will use Microsoft Office and PeachTree Accounting as their preferred software.
- Assorted types of paper and stationery: Personalised with a logo, return addresses, etc. for catalogs, and brochures.
- Assorted office furniture and accessories: The office will be located in Devon’s house.
2.2 Company Ownership
Earthly Clean is solely owned by Devon McGregor. In addition to his own investment Devon has received an investment from friends and family as well as a long-term bank loan.
Earthly Clean sells a wide range of private label environmentally friendly cleaning products. All products are designed to be effective at cleaning, yet easy and non-toxic on the environment.
Earthly Clean has contracted with a large national producer of environmentally friendly products to manufacture these products with the Earthly Clean private label.
This vendor was chosen because of their quality products as well as their flexibility in offering low minimum orders ($150). The following are the initial products that Earthly Clean will offer.
As the company grows they will consider adding new items to the product list as demanded by the market:
- All purpose soap: A concentrated formula for washing walls, floors, cabinets, and all other washable surfaces. Orange oil and sodium citrate based.
- Bathroom cleaner: Quickly and easily removes dirt and grime, cleaning and deodorising the entire house. An all vegetable-based cleaning agent.
- Basin, tub & tile cleaner: Effective at removing soap scum from all surfaces. Citric acid, glycolic acid and orange oil.
- Dishwashing detergent: Easy on hands, tough on cleaning. A mild coconut oil based detergent.
- Window cleaner: A streak free cleaner. Citrus based, either orange of lemon.
- Oxygen bleach cleaner: A wonderful cleaner that works on sinks and bathtubs. Made from sodium percarbonate, calcium carbonate, soda ash, and sodium sulfate.
- Laundry liquid: Concentrated, biodegradable, natural cleaner for laundry. This is a vegetable-based surfactant detergent.
- Air fresheners: Natural, healthful, eco-mists containing essential oils, emulsifiers, and water. Available scents include, wild cherry, vanilla and hazelnut, citrus, lavender, and natural fruit.
Environmental cleaning products were chosen for a several reasons:
- It allows the participating individuals to make a positive contribution to the protection of the environment.
- The environmentally friendly cleaning industry is in its infancy in terms of growth. It is on the verge of market wide acceptance as more and more people are participating in activities that take into account environmental impacts.
- The MLM and environmental cleaning products is a perfect combination as it combines emotional, and economic factors in a selling opportunity to friends and other network contacts. The seller has an emotional reason for selling the products. They also have an economic incentive because if they find additional people to help sell the product then they get additional commissions on product the new people sell.
Because Earthly Clean buys private label goods direct from the manufacturer, even after paying out the sales commissions, their products are competitively priced. This is achieved through the private label procurement as well as the more efficient, grassroots system of distribution.
3.1 Business Model
Earthly Clean will use a multi-level marketing approach (MLM) to the sale of these products. An MLM approach is a grassroots networking based approach where products are sold direct from an individual (distributor) to the end consumer.
The distributor receives the products from Earthly Clean who buys direct from the manufacturer. When a distributor is able to recruit a new person to sell these products (new distributor) then the “recruiter” receives a sales commission for all of the sales made by person #2.
If person #2 is able to recruit another distributor (person #3) then both the original distributor and distributor #2 receive commissions from sales generated by person #3.
The MLM system in essence leverages peoples relationships and networking skills. It creates the ability to be your own boss, making sales pitches to friends and associates on your time schedule. It creates a common man, grassroots implementation of a real world distribution channel.
This arrangement differs significantly from pyramid schemes which are illegal in the United States. A pyramid scheme is a system where individuals sell products and get commissions from the recruitment of new people to also sell the products. The more people they recruit, the more money they make.
Pyramid schemes are illegal and are broken up when they are found to exist. The regulatory analysis that is applied to determine if the business is a MLM or a pyramid scheme is as follows:
- Is the compensation merely for introduction of additional participants into the programme;
- Or is the compensation related to the sale of goods.
If regulators believe the business is more like #1 it will be found illegal, against public policy, and shut down.
As it stands, Earthly Clean is clearly a MLM venture as participants get compensated for the products others sell, not for the specific recruitment of individuals.
4. Market Analysis Summary
Earthly Clean has identified two distinct type of customers. The first customer type is the end user of the cleaning products. These are people with an environmental consciousness in need of appropriate cleaning supplies.
The second customer group is comprised of a select number of people from the first group with an interest in becoming distributors of the cleaning products. The following sections will provide more detailed information regarding these two groups.
4.1 Market Segmentation
Earthly Clean has identified two groups of customers who are the most attractive marketing prospects.
- Consumers of environmentally friendly cleaning products.
- Members of the consumer group who are interested in being product distributors.
These are people who are looking for products that will reduce their individual impact on the environment. Cleaning products are an excellent product category to concentrate on since they can be particularly abrasive to the environment.
Some demographic information for this group is as follows:
- Median household income of $41,000
- 22% of the people commute by bicycle or use mass transportation
- 97% of the people are active recyclers
- The majority routinely consider what consequences their choices or actions will have on the environment.
- 41% are vegetarian
- 93% are registered Democrats
A distributor is an individual consumer who is interested in also selling the products. In the world of MLM, the sellers are called distributors because they are essentially doing the activities that a distributor would do in a more traditional distribution channel.
These individuals have a passion for the product and the time to sell the product to their friends.
- 89% of the people will take on the role of distributor in addition to their already existing part or full time employment.
- They see the chance of selling Earthly Clean as an opportunity to do something that they are passionate about (positive environmental actions) as well as a means of making supplemental income.
- 87% of the distributors will have the goal of signing up more distributors and establish an additional source of revenue.
4.2 Target Market Segment Strategy
The two enumerated customer segments are particularly attractive because they represent people who are most likely to be consumers of environmentally friendly cleaning supplies. The individual consumers have a sensitive perspective toward the environment and are looking for a way that they can have a positive impact on the environment.
Recognising that so many traditional cleaning agents are toxic for the environment, it then becomes relatively easy for the individuals to make a positive contribution. This attitude follows the slogan “think globally, act locally.” Buying these products allows them to do their part.
The distributors are individual consumers who have an even stronger conviction and belief in the products as well as the time to sell the products and find potential people to recruit into the distribution effort.
To be a distributor does not require a huge sacrifice of time, the majority of distributors will have full-time jobs in addition to marketing Earthly Clean. This makes the job of distributor all that more attractive, the person is able to balance their already existing job with another source of revenue and personal satisfaction.
4.3 Industry Analysis
Earthly Clean arguably participates in two industries, the product industry of environmentally friendly cleaning supplies and the business model industry of MLM. The environmentally friendly cleaning supply industry is small but just now beginning to develop momentum. These supplies are typically sold in health food type stores. These stores generally sell a smaller variety than what Earthly Clean sells, they have just the basics.
Some larger retailers such as Safeway and Alberston’s are beginning to carry one or two products, typically an all purpose cleaner and a washing machine liquid. As the market demands more outlets for these products it is likely that more retailers will begin to sell environmentally friendly cleaning products.
Earthly Clean also participates within the multi-level marketing industry. However Earthly Clean does not, per se, compete within this industry. Currently, market research has yet to find an MLM company that sells environmentally friendly cleaning products.
The largest and most well known MLM company is Amway which sells a wide range of products. Amway is different from Earthly Clean in the sense that the majority of products that they sell are branded rather than private label products.
While that is beneficial for Amway in that they are able to use the manufacturer’s marketing efforts to assist in sales, Amway is often not that cost competitive.
4.3.1 Competition and Buying Patterns
Earthly Clean faces competition from several sources:
- Local and national health food stores: These stores typically have a small selection of cleaning products. National competitors include:
- Whole Foods
- Large supermarkets: These competitors have a very limited selection
- Mail order/Internet sales: These are remote retail companies that sell a range of products. More often than not these companies sell national brands as opposed to private label goods. Competitors include:
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