home services management company sample

Sam

ple

Doc

umen

t by

ww

w.d

isse

rtat

ionp

rim

e-uk

.com

Business Plan

Helping Hands: Home Services Management Company

Type of Documents : Business Plan No of Words : 7,000

Disclaimer: This is a sample document prepared by DissertationFirst.co.uk and has been submitted on turnitin. To order the similar paper please contact at: Email : [email protected] Phone: (UK) +44 203 3555 345 Website: www.dissertationprime-uk.com

http://www.dissertationprime-uk.com/

This is a sample document owned by www.dissertationprime-uk.com

Email : [email protected], Phone: (UK) +44 203 3555 345

Table of Contents Executive Summary……………………………………………………………………………1

Introduction ...............................................................................................................................1

Business Concept........................................................................................................................1

Business Plan Structure..............................................................................................................2

Business Name and Address .................................................................................................. 2

Proprietor’s Name and Address ............................................................................................. 2

Business Form ........................................................................................................................ 2

Business Activities ................................................................................................................. 2

Vision and Mission Statement ............................................................................................... 4

PEST analysis ........................................................................................................................ 4

Government Support and Rules and Regulations .................................................................. 5

Rational for Launching the Business ..................................................................................... 5

Market Size and Growth ........................................................................................................ 6

Selection of Location with Reasons Thereof ......................................................................... 7

Proposed Customers............................................................................................................... 7

Competitor Analysis .............................................................................................................. 8

Self Analysis .......................................................................................................................... 8

Competitive Advantages ........................................................................................................ 9

Advertising and promotion Strategy ...................................................................................... 9

Pricing Strategy .................................................................................................................... 10

Various Sources of Finance ................................................................................................. 10

Source Selected for Financing the Business ........................................................................ 11

Key People and Job Functions ............................................................................................. 12

Financial Plan...........................................................................................................................13

Financial Highlights ............................................................................................................. 14

This is a sample document owned by www.dissertationprime-uk.com


Forecast Income Statement .................................................................................................. 15

Forecast Cash-flow Statement ............................................................................................. 15

Monthly Cash-flow Forecast ................................................................................................ 17

Forecast Balance sheet ......................................................................................................... 18

Sensitivity Analysis ............................................................................................................. 18

Long Term Strategy of Helping Hands....................................................................................22

Conclusion................................................................................................................................22

References................................................................................................................................24

This is a Sample, for complete Paper

kindly contact at

[email protected]


List of figures and Tables

Figure 1Sensitivity Analysis based on Sales ........................................................................... 19

Figure 2 Sensitivity Analysis based on Direct Cost................................................................. 20

Figure 3 Sensitivity Analysis based on Fixed Cost ................................................................. 21

Figure 4 Sensitivity Analysis based on all the Factors ............................................................ 22

Table 1 Raw Material (Stock) .................................................................................................. 13

Table 2 Formation Expenses .................................................................................................... 13

Table 3 Working Capital Expenses.......................................................................................... 14

Table 4 Product/Service information (Sales Forecast) ............................................................ 14

Table 5 Key People and Job Function and Salary ................................................................... 14

Table 6 Financial Highlights .................................................................................................... 14

Table 7 Forecast Income Statement ......................................................................................... 15

Table 8 Forecast Cash Flow Statement .................................................................................... 15

Table 9 Monthly Cash Flow Statement ................................................................................... 17

Table 10 Forecast Balance Sheet ............................................................................................. 18

Table 11 Sensitivity Analysis based on Sales .......................................................................... 18

Table 12 Sensitivity Analysis based on Direct Cost ................................................................ 19

Table 13 Sensitivity Analysis based on Fixed Cost ................................................................. 20

Table 14 Sensitivity Analysis based on all the Factors............................................................ 21


Executive Summary

Before starting any business, the company starts with preparing a business plan. Here

we have prepared a business plan for Helping Hands which is a home services management

company. Helping Hands provides services related to home cleaning, maintenance, day care,

and many other services on demand. The vision of the company is to help people enjoy life.

Business Concept

In this report, we are coming up with a business plan on the same concept as stated

above, i.e. home service management. In today’s environment, most of the people find it

difficult to manage office and home simultaneously. And situation becomes worsen in case of

individual or when both the persons are working. So, to overcome from these problems, we

are suggesting a business that will provide large number of household services to individuals

and families. Its service portfolio will include:

Home Cleaning

Services

Maintenance Services Day Care Services Other Services

Regular Scheduled

Cleaning

Electrical To Child Below 5 years Daily Household

Purchasing

Move in / Move out

Cleaning

Electronic To Child Below 10 years Pest Control

Deep Clean Services Sanitary Pet care Laundry and Ironing

Seasonal Cleaning Automobiles Gardener


kindly contact at

[email protected]


Our business will basically focus on working individuals, houses where both the

partner are working, retired persons and high class families.

Business Plan Structure

Business Name and Address

Helping Hands

Aerodrome Road

London, NW9

Email: [email protected]

Proprietor’s Name and Address

Ben Lefort

Aerodrome Road

London, NW9

Email: [email protected]

Business Form

“Helping Hands” is into customer service provider, providing services related to routine

household tasks.

Business Activities

The service portfolio of Helping Hands is very vast. It includes services such as:

Home Cleaning Services:

Regular Scheduled Cleaning:

It includes services like regular scheduled cleaning, under which company will

provide you with a sweeper who will look after general sweeping and mopping activities. As

per the customers demand, he will either come daily, thrice a week or weekly.

Move In / Move Out Cleaning Services:

In this, cleaning services are provided to those customers who are relocating to new

place. Before they relocate to the new place, the company will make up the entire house. This

type of service is also useful for the customers who are returning to their home after a week’s

or 10 days outing.


Deep Clean Services:

Under this category, the company will provide services such as cleaning the entire

kitchen, bathrooms, toilets and electronics home appliances such as refrigerator, microwave

oven, etc.

Seasonal Cleaning:

This kind of service will cater the demand of those customers who want seasonal

cleaning of their homes. E.g. some people wants to completely clean their house after rainy

season, or some people wants to get their homes clean after some storms. Further painting

and colouring of homes are also included in this section.

Automobiles Maintenance Services:

In this, complete washing and cleaning services will be provided to the customers by

the company. In addition, the company will also provide services like starting four wheeler

and two wheelers, and other services like oil change etc.

Day Care Services:

Child Care and Pet Care:

Now days in most of the families both the partners are working and their main

concern lies in upbringing of their children. In this regard the home service management

concept by Helping Hand will prove boon to the customers. As it provide different-different


kindly contact at

[email protected]


day care services for children belonging to different age groups. In addition, the company

will also provide pet care services to the customers.

Other services:

In addition to the above services, the company will also provide services such as,

daily household purchasing, pest control, gardener, laundry and ironing. These services will

be customized and will be delivered on special demand of the customers.

Vision and Mission Statement

Vision Statement:

To help people enjoy life.

Mission Statement:

To build strong relationship with the customers, and ensure healthy lifestyle by

constantly offering superior customer services.

PEST analysis

There are many environmental factors that can have negative or positive impact on

organizations costs, supply and demands. These changes can either produce threat or

opportunity for an organization. In this regard, we are analyzing the UK service industry so

as to study the impact of these factors.

Political – It tells about government policies such as the degree of intervention in the

economy. The political environment of the country can impact the business like

infrastructure, workforce qualification etc. Presently, UK is one of the most

financially stable nations to start a business and the present situations in the country

will favor service industry. Company can easily trap skilled professionals and further

can also build infrastructure that can assist business.

Economical – Economical factors include taxation changes, interest rates, economic

growth, rate of inflation and exchange. With the introduction of new interest rates,

service industry has seen a growth in sales. But, on the other hand, with the rise in

inflation, workers are demanding higher salaries and this has resulted in increase in

business cost.

Social – Under social, demographical factors of a country like age, gender, culture

family size, etc. are included. Study of these factors tells about living standard and life


style of the local people. It also tells about present trend in the country. The business

of home service management will definitely flourish in the country like UK because

here people are ready to spend money on the services that can reduce their workload

and help them to spend more time for leisure activities. Further, increase in per capita

income is an added advantage to this industry.

Technological – Recently lots of innovation have been seen in the field of technology.

All these years, UK’s government is spending time and money in order to attract

entrepreneurs to start up business in UK. And to achieve this, UK government has made

many changes in its annual budget. The government has lowered the entry barriers to start a

new business in UK. The government has regularised its tax structure, and business houses

are benefitting from it. Government has come up with various financing schemes to finance

new and existing businesses. E.g. Entrepreneurs Relief was just £1 mn in 2008, now it has

been raised to £10 mn. Government has made some changes in its visa norms also. Now

anybody from anywhere can enter in UK and can start his business if he has around £50,000

to invest in UK (Mytton, 2012).

Rational for Launching the Business

Nowadays people are finding it very difficult to meet their basic requirements. So in

order to fulfil their basic needs, in most of the families both the partners are working. By

doing this, they are now able to meet their basic needs and are able to live a better life, but it

has come up with a problem of managing house. As both the partners are working, so they


kindly contact at

[email protected]


are not able to manage both home and office simultaneously. Moreover, for those who are

living, it is very difficult for them to look after their house. Further, if both the partners are

working, they also face the problem in upbringing their child. Moreover household works

consumes lot of time and demands lot of energy.

So to overcome from all these problems, Helping Hands is coming up with the

concept of home service management. It will not only help individuals and family in keeping

their house out of mess, but will also provide maintenance services like electric and

electronic maintenance, and automobile maintenance. It will help the customer in focusing on

other activities which gives them more pleasure. The company is also providing day care

facilities for the children and pets. Thus, now customers will not have to bother about their

children or pets. The company will take care of them and will provide healthy environment to

the children.

One more reason behind launching of this business is to help older people. A recent

report shows an increase in population of the older people above 65 years. It is not possible

for these people to maintain their homes. So the services provided by the company will help

these people in improving their standard of living. Now they don’t have to search for

different-different home service provider. Service portfolio of the company is so vast, that it

will meet most of the needs of the customers.

Now if all these services will be provided under one roof or just on a phone call at

reasonable services charges, people will find it more convenient and it will save their time,

money and energy. So these are the major reasons behind launching this business.

Market Size and Growth

Entire London is the market place for the company. Presently the population of

London is around 8.2 mn. And report shows that the population is increased by 12% in last

10 years. Moreover the average family size in London is around 2.47 people. So if we use

above data, we can estimate that total number of families in London is around 3.27 mn

(Glaintelligence Unit, 2012). And all the families of the London are the customer base for the

company. So the market size for the company is very huge and consists of 3.27 mn

households. So, if the company can cater the demand of all the households, it can reap huge

profits (Office for National Statistics, 2012).

In addition, report shows that the trend will continue and London’s population will

grow to 8.9 mn by 2028. It means there will be rise in the potential customers. And company

can take advantage of this. So for Helping Hands, there is vast opportunity to grow in the


London market as in the coming years both market size and market growth will continue to

rise (London Higher, 2011).

Selection of Location with Reasons Thereof

For this particular business, London is selected as the market place. The main views

behind selecting London are:

It is the largest city, and metropolitan area with highest urbanisation rate. Thus, will

provide large number of customer base as compared to other cities.

Most of the people in London are educated and are urbanized, so the company can

target them.

charges can stop some people in utilizing these services.

The main customer base of the company will be the household in which both the

partners are working. As they both are working so they don’t have much time with them to

carry out their household chores. So the company can target them.

The next section, which the company can target, is individual working people. As

individuals lives on the concept of work hard, party hardy; they don’t like to do household

work. So the company can also include them in their potential customers.


kindly contact at

[email protected]


Another section of the customers can be elderly people. At old age, people are not

able to perform all their household work, and want some help from others. So the company

can also include them in their potential customer base.

Lastly, the company can also focus on females having small child. If they are

working, they find it difficult to properly look after their child. Helping Hands will help them

in this regards by providing experienced caretakers. Sometimes, non-working women are also

not able to establish sync between household work and caring their child. So, they can also

benefit from the services of Helping Hands.

Competitor Analysis

Name Strengths Weaknesses

Miss Maid Ltd

Deals in both commercial

and domestic cleaning.

Well established and

recognised and operating

from last 10 years.

Superior management

system and professional

training to cleaners.

Operates in many parts of

the London.

Service portfolio is limited.

Services are limited to high

society.

Home Clean

Quick service

Wider geographical reach

Reasonable service charges

Service portfolio is limited

Unskilled staff.

Whitehills Daycare Serving London for many

years

Experienced staff

Service limited to child care

Narrow geographical reach

Self Analysis

Strengths Weaknesses

Service portfolio is very large.

Superior quality service provider.

Wider reach.

Reasonable service charges.

Most of the services are outsourced, so

able to provide skilled staff.

Initially will not be able to cater entire

demand.

Intense competition in the market.

Company is new in the market, so brand

is not recognised.


Competitive Advantages

Service portfolio of Helping Hands is very wide. It provides all kind of services, such

as home cleaning, maintenance, day care facilities, etc. On the other hand most of its

competitors provide limited services.

Helping Hands outsources most of its services, so its staff will be highly skilled. And

thus, the company will provide superior quality services to its customers.

Service charges of the company for delivering different services are very reasonable

and thus provide a competitive edge over the peers.

The company has wider geographical reach.

Another method that the company can adopt is to put its ads in some local newspaper.

As local newspaper have wider reach and most of the people read newspaper, so company

can take advantage of this. The company can also print some prospectus and distribute it with

newspaper. While doing this, the company should keep in mind that it should put the ads 2

weeks prior to the launch of its business. The company can also go for printed flyers.

Next, the company can put its ad in the local information provider booklets such as

golden pages. Moreover it can put ads on street side hoardings. All these methods are not

very expensive, but have deeper impact in the customers mind.


kindly contact at

[email protected]


After this, once operations starts, the company will majorly depends on the word of

mouth advertising and publicity. The main advertising and publicity of the service industry is

done by the people who have already used the services. So in order to get presence in the

market, company should provide excellent services to the customers, and if the customer gets

satisfied, he will rely on the services of the Helping Hands and will bring more customers

with him (Kotler, 2008).

Finally, the company should promote themselves as professional, trustworthy home

service provider which helps people enjoy life.

Pricing Strategy

Normal pricing of regular cleaning in London varies from £10 - £20 per labour, per

hour. Further prices also depend on the materials used and who is providing materials. If the

customer is demanding natural products to clean their home, prices will be higher as compare

to normal products. Moreover if the materials are provided by the company, the company will

charge extra for it. E.g. Helping Hands competitor Miss Maid Ltd charges £10 for two hrs per

visit every week (Miss Maid, n.d).

Similarly, Nice and Clean Ltd charges £10 for two hrs per visit every week, but

cleaning equipments and detergents have to be supplied by the customers. Its ironing rates are

£10 per hour per week and £12 per hour fortnightly (Nice and Clean, n.d).

So in order to capture the market, initially Helping Hands will have to keep its prices

lower than its competitor. The company will charge £9.50 for two hours per visit per week.

Further, if the customer wants it services on daily basis, in that case the company will charge

£7 for two hours per day.

Similarly, for day care services, Whitehills Day Care charges £23.53 per day. For this

service also, Helping Hands will charge lower services charges as compare to Whitehills Day

Care. The company will charge $22.5 per day, and will provide exceptional quality care and

nutritious meals to the children (Whitehills Daycare, n.d).

Moreover, if the customers will demand complete package or some combo package,

in that case the company will charge £6 per hour per labour (Oxenfeldt, 1982).

Various Sources of Finance

Personal savings and informal loans from family and friends

Banks

Overdrafts

Loans


Credit cards

Government sources funding

Grants

Early growth fund

Private equity investors

Business angels

Venture capital

advertising and promotion activities and in buying some cleaning equipments. So initially the

company will not require huge investment. It investment requirements will be fulfilled

partially by owners own capital and partially by bank loan. The company will choose bank as

the external source of finance because it has many advantages such as,

It is the best way to dip back into the equity, i.e. the owner will have funds, and still

his taxable income will be less.

It legitimises the spending and the owner will have funds to spend on his business.

It helps to pay off and consolidate of smaller loans, and thus results in reduction in

cost of capital.

It helps in creating buffer that can be used to operate business when there is no cash

flow.


kindly contact at

[email protected]


Company can pay repay loan anytime without any penalty.

Company can choose the repayment option.

So because of the above stated advantages, Helping Hands will borrow money from the bank

in the form of loan to meet its investments.

Key People and Job Functions

Key Person Functions

Owner Will look after entire business

Coordinate with all the supervisor

Look after marketing and promotional

activities

Arrange finance for the company

Supervisor – Home Cleaning Services

Look after services related to home cleaning

Maintain relationship with customers

Liaising with suppliers of detergents and

cleaning equipments

Supervisor – Maintenance Services

Look after services related to maintenance


Liaising with suppliers of electrical and

electronics items

Supervisor – Day Care Services

Look after services related day care (both

child and pet)


Liaising with the suppliers of baby food and

pet food

Supervisor – Other Services

Look after services related to grocery

shopping, Laundry and Ironing, pest control

etc


Liaising with grocery shops and other retail

chains

Office Assistants – 4 no’s

Day to day office work

Data operations

Accounting work

Recordkeeping and inventory


Financial Plan

Sources of fund: Amount

(£) Loan - 1000000 Self-cash 1000000 Self-asset 381700 Total Sources of Funds 2381700

Premises: Rent per year 15000

Raw-Material (Stock)

Table 1 Raw Material (Stock) Detergents 1500 Scrubbers 1000

2500

Formation Expenses

Table 2 Formation Expenses Start up cash requirement estimations

Registration (Legal) 1500 Marketing and Promotion 2000 Insurance 500 Total Start-up Expenses 4000


kindly contact at

[email protected]


Working Capital for Expenses

Table 3 Working Capital Expenses Cash Required 44000 Start-up Inventory 2500 Other Current Assets 2000 Total Working Capital 48500

Product/Service information (Sales forecast)

Table 4 Product/Service information (Sales Forecast) Total number of families in London 3270000

Targeted market (20% of the total) 654000 Average cost of providing different services 5 Average price charged for providing different services 10 Total cost per annum 3270000 Total revenue per year 6540000 3270000

Key people and Job function and Salary:

Table 5 Key People and Job Function and Salary President/owner (1) 35000 35000 Supervisors (4) 15000 60000 Office Assistants (4) 8000 32000 Part-time employees (10) 5000 50000 Drivers (4) 3000 12000 Total Monthly Salary Payment

189000

Yearly Salary Payment 2268000

Financial Highlights

Table 6 Financial Highlights

Year 1 Year 2 Year 3 Year 4 Year 5

Turnover (£): 6540000 6932400 7348344 7789245 8256599 Profit (£): 644039.2 838575.6 1045269 1267770 1507130 Break-even (£): 4458529 4346407 4254378 4177198 4112913 GP% 40.8 42.7 44.5 46.2 47.9 NP% 9.8 12.1 14.2 16.3 18.3 ROCE% 46.61% 41.40% 36.49% 32.43% 29.11% Projected growth of Turnover

6% 6% 6% 6%

Projected growth of NP

30.21% 24.60% 21.30% 18.90% Gearing 0.72374611 0.578997 0.434248 0.289498 0.144749 Interest coverage 17.95 28.58 46.85 84.41 199.31


Forecast Income Statement

Table 7 Forecast Income Statement


Amount (£)

Amount (£)

Amount (£)

Amount (£)

Amount (£)

Sales revenue 6540000 6932400 7348344 7789245 8256599 Less direct (variable ) costs

Development cost inclusive of all other costs 3270000 3358290 3448964 3542086 3637722 Wages 600000 616200 632837 649924 667472 Gross Profit 2670000 2957910 3266543 3597235 3951405 Salaries 1668000 1713036 1759288 1806789 1855572

Capital 1000000 Loan 1000000 Total Cash Receipts 2000000 6540000 6932400 7348344 7789245 8256599

Cash payments Cash Purchases Capital expenses: Fixed Assets 46200

Revenue expenses:

Stock 2500 Registration 1500 0 0 0 0 0

Marketing and Promotion 2000 0 0 0 0 0


kindly contact at

[email protected]


Working Capital Expenses 46000

Rent

15000 15405 15820.94 16248.1 16686.8 Interest

50000 40000 30000 20000 10000

Insurance

500 500 500 500 500 Tax

203380.8 264813.4 330084.9 400348.3 475935.9

Wages

600000 616200 632837.4 649924 667472 Salaries

1668000 1713036 1759288 1806789 1855572

Developmental Cost

3270000 3358290 3448964 3542086 3637722 Loan Repayment

200000 200000 200000 200000 200000

Total 98200 6006881 6208244 6417495 6635895 6863889

Net cash flow 1901800 533119.2 724155.6 930849 1153350 1392710 Opening cash 0 1901800 2434919 3159075 4089924 5243274

Closing cash 1901800 2434919 3159075 4089924 5243274 6635984

Email : [email protected], Phone: (UK) +44 203 3555 345 Website: www.dissertationprime-uk.com

Monthly Cash-flow Forecast

Table 9 Monthly Cash Flow Statement Month Pre operating period 1 2 3 4 5 6 7 Sales (£)

130800 130800 196200 392400 523200 588600 654000 457800

Volume

13080 13080 19620 39240 52320 58860 65400 45780 Value (£)

10 10 10 10 10 10 10

Receipts Sales-cash (£)

130800 130800 196200 392400 523200 588600 654000 457800 Capital introduced (£) 1000000

Grants, Loans etc (£) 1000000 Total (X) (£) 2000000 130800 130800 196200 392400 523200 588600 654000 457800

Payments Fixed Assets (£) 46200

Materials (£) 2500 Registration (£) 1500 Marketing &

Promotion(£) 2000 Working Capital expenses 46000 Insurance (£)

500

Rent (£)

1250 1250 1250 1250 1250 1250 1250 1250 Interest (£)

Tax Payment (£) Payments of Salaries (£) 189000 189000 189000 189000 189000 189000 189000 189000

Developmental Cost (£) 65400 65400 98100 196200 261600 294300 327000 228900 Loan Repayment (£)

Total (Y) (£)

256150 255650 288350 386450 451850 484550 517250 419150 Cash balances

Cash flow (X) - (Y) (£) 1901800 -125350 -124850 -92150 5950 71350 104050 136750 38650 Opening balance (£) 0 1901800 1776450 1651600 1559450 1565400 1636750 1740800 1877550 Closing balance (£) 1901800 1776450 1651600 1559450 1565400 1636750 1740800 1877550 1916200

http://www.dissertationprime-uk.com/


Forecast Balance sheet

Table 10 Forecast Balance Sheet


(£) (£) (£) (£) (£)

Non-current assets Fixed Assets 36960 27720 18480 9240 0

Owner's Assets 305360 229020 152680 76340 0 Current assets

Cash 2434919 3159075 4089924 5243274 6635984 Working Capital 48500 48500 48500 48500 48500 Total assets 2825739 3464315 4309584 5377354 6684484

Based on Sales

Table 11 Sensitivity Analysis based on Sales

Sales (X) Profit (Y) 4578000 -133580 5232000 146999.2 5886000 395519.2 6540000 644039.2 7194000 892559.2 7848000 1141079 8502000 1389599


kindly contact at

[email protected]


Figure 1Sensitivity Analysis based on Sales

In the above table we have varied the sales from -30% to 30%, keeping all the other

factors constant. The above table and the above graph shows that with the increase in sales

and all factors constant, the profit is going to increase. So from the above table it can be

concluded that, if due to change in certain internal or external factors, if the sales is declined

by 10% or 20%, the company will still make profits. But if the sales are declined by 30%, the

company will book losses. On the other hand, with the increase in sales, profits will

obviously going to increase. It means, to book profits, company will have to see that it sales

do not decline by more than 20%.

Based on Direct Cost

Table 12 Sensitivity Analysis based on Direct Cost Direct Cost (X) Profit (Y)

2709000 1526399 3096000 1232279 3483000 938159.2 3870000 644039.2 4257000 349919.2 4644000 55799.2 5031000 -313580

-400000-200000

0200000400000600000800000

1000000120000014000001600000

Pro

fit

Sales

Sensitivity Analysis based on Sales

Profit (Y)


Figure 2 Sensitivity Analysis based on Direct Cost

Based on Fixed Cost

Table 13 Sensitivity Analysis based on Fixed Cost

Fixed Cost (X) Profit (y)

1273356 1058789

1455264 920539.4

1637172 782289.3

1819080 644039.2

2000988 505789.1

2182896 367539

2364804 229289

-5000000

500000100000015000002000000

Pro

fit

Direct Cost

Sensitivity Analysis based on Direct Cost

Profit (Y)


kindly contact at

[email protected]


Figure 3 Sensitivity Analysis based on Fixed Cost

The case of fixed cost is similar to the case of direct cost, i.e. with the rise in fixed

cost; the company’s profits will fall. The above table and the above graph show that with the

decline in the fixed cost, while all other factors are constant, the company’s profit is rising.

But with the rise in company’s fixed cost, the profits are declining. Although, profit of the

company is not very sensitive to the fixed cost (because the company is reaping profits even

its fixed cost is raised by 30%), still Helping Hands should try to keep the fixed cost

minimum so as to reap higher profit.

Based on all the above factors

Table 14 Sensitivity Analysis based on all the Factors

Percentage Change Fixed Cost v/s

Profit Sales v/s

Profit Direct Cost v/s

Profit -30 1058789 -133580 1526399 -20 920539.4 146999.2 1232279 -10 782289.3 395519.2 938159.2 0 644039.2 644039.2 644039.2 10 505789.1 892559.2 349919.2 20 367539 1141079 55799.2 30 229289 1389599 -313580

0

200000

400000

600000

800000

1000000

1200000

1273356145526416371721819080200098821828962364804

Pro

fit

Fixed Cost

Sensitivity Analysis based on Fixed Cost

Profit (y)


To diversify its services portfolio by adding more and more home services like

providing cook etc. Further it can enter into interior designing business also.

Although, right now the company’s business boundary is limited to London only, but

in the coming years, it can expand its business boundaries and cover more cities of

UK.

In order to give more satisfaction to the customers, the company should provide better

training to its staff and employees so as to enhance their skills.

Conclusion

The above business plan is prepared to find out the attractiveness of the home services

management business. After preparing the business plan it can be concluded that Helping

-500000

0

500000

1000000

1500000

2000000

-30 -20 -10 0 10 20 30

Pro

fit

Change in all the Factors

Sensitivity Analysis based on all the Factors

Fixed cost vs profit

Sales vs Profit

Direct Cost vs Profit


kindly contact at

[email protected]


Hands can proceed further with its idea of providing home services in the London. Firstly,

nowadays people prefer to enjoy their life rather than wasting their time in doing household

work. So in order to save time and employ it in leisure activities, people prefer to utilize the

services provided by the home service provider companies. Secondly, household income of

the London is increased to £900 per week. So company can take advantage of this also. And

thirdly, the population of elderly people is increasing in London day by day, and is expected

to grow by 33% by 2031. So, all these factors will surely tend to increase the demand of

home services in London. And Helping Hands can seek significant benefits.


References

Bangs, D. H., 2002. Business Planning Guide. Kaplan Publishing.

Barclays. 2009. A Summary of Sources of Finance for Starting a Business. [pdf] Available through: <http://www.business.barclays.co.uk/BBB/A/Content/Files/bif40_A_Guide_to_Financing_a_New_Business.pdf> [Accessed on 29th December, 2012].

Eugene, E. F. and Ehrhardt, M. C., 2011. Financial Management: Theory and Practical. OH: Cengage Learning.

Mytton, D., 2012. Five Reasons Britain May Be The Best Place To Start A Company In 2012. [Online] Available through: <http://www.forbes.com/sites/parmyolson/2012/07/09/five-reasons-why-britain-may-be-the-best-place-to-start-a-company-in-2012/> [Accessed on 29 th December, 2012].

Nice and Clean. n.d. Prices. [Online] Available through: <http://www.niceandcleanlondon.co.uk/Prices.htm> [Accessed on 29th December, 2012].

Office for National Statistics. 2012. Census Result Shows Increase in Population of London as it Tops 8 Million. [Online] Available through: < http://www.ons.gov.uk/ons/rel/mro/news-release/census-result-shows-increase-in-population-of-london-as-it-tops-8-million/censuslondonnr0712.html> [Accessed on 29th December, 2012].

Oxenfeldt, A. R., 1982. Pricing Strategies. Amacom.

Tinson, J., 2004. Marketing Strategies- A 21 st century approach. FT/prentice hall.


kindly contact at

[email protected]

home services management company sample

Business

business concept

business form

business activities

business plan structure

sample document

pest analysis

competitor analysis

self analysis