If funding becomes a challenge for your cleaning business, many banks in Canada can grant you loans to help finance the business. However, you will need a suitable and convincing business plan to qualify for these loans. The business plan does not just explain what your cleaning company is all about. It is also expected to outline how you can generate enough funds to pay back the loan and sustain the business. However, to draft an enticing business plan for your cleaning company, you should follow a certain laid down guideline. This is to ensure you cover the salient points that banks look out for in a business plan. In this post, let’s explore how you can write a business plan for a cleaning company in Canada.
Overview of a Business Plan
A business plan describes the objectives of a company, and how it plans to achieve them, as well as the major activities of the company. A good business plan must follow the right format and fulfill certain criteria. It must essentially include:
- An Executive Summary
- Business Objectives
- Marketing Strategy and Analysis
- Operations plan
- Financial Plan and Budget
Let’s go over how to write a compelling cleaning business plan in detail.
Steps to Write the Perfect Business Plan for a Cleaning Company
Executive Summary
An executive summary is a short piece that introduces your full plan. It emphasizes the most fundamental information that should pique the reader’s curiosity. Your business overview helps anyone to understand how your company operates at a glance. More so, it will tell an investor or financial institution whether or not your cleaning business idea is worth investing in. You executive summary should describe your cleaning service; your products and services. Also, mention the obvious problem you’ll be fixing for clients, and don’t forget to include your contact information.
List and Explain Your Business Objectives (Mission)
Here you will list and explain the goals of your cleaning company. A business objective explains the core function, day-to-day activities, and organizational structure of your company. Also, it outlines the kind of clients you serve and how you can outperform your competition in terms of meeting customer needs. Include your legal structure, ownership and management information, services provided, and marketing strategies. Talk about the type of cleaning service you intend to provide and the necessary equipment. If you will be involved in the day to day operation i.e. cleaning, also outline it in detail.
Market Analysis
Your market analysis summary enables the lender to understand your local market, identify your target client, and how your business intends to meet their needs. It should cover the economic conditions in your location, your intended market share, price, and how it relates to your target clients and sectors. You can illustrate your market analysis statistics in charts or graphs to assist readers to grasp the market data easily.
Financial Details
If your cleaning service will require some type of investment, this section is critical to your plan. Banks, investors, and insurance companies will want to see how the company is doing or will perform financially. Make sure your cleaning company business plan includes financial data and estimates based on your market analysis. You should also include a cost budget, a cash-flow statement, income estimates, and asset and liability management.
Strategy and Implementation
This section of your business plan comprises the strategies your cleaning firm will employ to grow. You need to provide a detailed description of how you will put the approach you listed into action. Things like how to increase sales and build a loyal client base, your competitive advantage are exactly what you should capture here. The use of milestones is one effective technique to accomplish this. Milestones should be accompanied by the appropriate budgets for their full implementation.
Management Summary
This section identifies the people that are responsible for running or managing the cleaning company. It comprises the team and the leader or the person who is in charge of the team’s organization. Aside from the workforce, the structure of your company comes next. Your management overview should also include information about the governing board’s members. You should not leave out your pay, labor costs, and employee remuneration. The number of individuals you’ll need to reach your objective, and the number of jobs you’ll be able to complete in a day, are also paramount.
Insurance and Bonds for Cleaning Businesses
Insurance and bonds can secure your business in the event of unanticipated circumstances. Cleaning companies often require a combination of general liability, commercial motor insurance, and workers’ compensation insurance. So, you may include this point somewhere in your plan.
Conclusion
Aside from helping you define and achieve your business objectives, a good cleaning business plan can facilitate getting loans. With the guide above, you can be sure to have an effective business plan to secure the financial help you need for your cleaning company. At Vaisus, we are a team of business plan professionals who are ready to assist you in creating a comprehensive, customized and funding ready business plan for your cleaning business. Schedule an appointment with us to speak to one of our consultants today!
Photo source: Verne Ho Unsplash
