2. Evolution of Cleaning Services
Before: Display of Wealth
Rich Households
Butler/Maid as a Status Symbol
Now: Necessity
Multiple Expected Roles
High Opportunity Cost of Cleaning
3. Typical College Student
Has Multiple “Things” to Do
Procrastinator
Price Sensitive
Spend 40% on Discretionary Items
4. Demand for Cleaning Services
50%
42%
40% 36%
30%
22%
20%
10%
0%
Yes Maybe No
Source: Primary Survey Conducted at Bradley University with 683 Responses
5. Reserve Prices
Apartment Cleaning
House Cleaning
$5 - $20
$21 - $35
$36 - $50
$51 - $65
$65+
0% 10% 20% 30% 40% 50%
Source: Primary Survey Conducted at Bradley University with 683 Responses
7. Cleaning Companies in the
Region
3 Established Firms:
Molly Maid
Cottage Care
Merry Maid
Prices
In a range of $80 - $120 and beyond
Soft-Cleaners
Source: Prices based on Quotes given by Respective Company Officials
8. Cleaning Companies in the
Region
3 Established Firms:
Molly Maid
Cottage Care
Merry Maid
Prices
In a range of $80 - $120 and beyond
Soft-Cleaners
Source: Prices based on Quotes given by Respective Company Officials
9. The Problem
Disconnect between Supply and
Demand due to Low Reserve Prices of
College Students
Students are thus deprived of a Clean
Living Environment
10. “Unclean” Living
Impact on College Students
Roommate Conflicts
Stress
Impact on Health
Embarrassment
11. “Unclean” Living
Impact on College Students
Roommate Conflicts
Stress
Impact on Health
Embarrassment
12. “Unclean” Living
Impact on College Students
Roommate Conflicts
Stress
Impact on Health
Embarrassment
13. “Unclean” Living
Impact on College Students
Roommate Conflicts
Stress
Impact on Health
Embarrassment
14. “Unclean” Living
Impact on College Students
Roommate Conflicts
Stress
Impact on Health
Embarrassment
15. “There has to be a way to give students an
opportunity to live in a clean living
environment”
16. “Actual” Cleaning Needs
80% 69%
60% 59%
60%
40%
20%
0%
Bathroom Cleaning Kitchen Cleaning Vacuuming/Mopping
Source: Primary Survey Conducted at Bradley University with 683 Responses
17.
18. “There has to be a way to give students an
opportunity to live in a clean living
environment”
21. s Provi der for
eaning Service
rdable C l lege St udents
Affo
ive & B usy Col
Price Sensit
22. Begin Operations as a Limited Liability Company
in August 2011 at Bradley University in Peoria, IL
Expand to different college campuses after the first
year of operations
Serve Students Living on or within a 2-Mile Radius
from a College Campus
A part of the $5.5 billion Janitorial Contract Services
Industry
24. Pricing
Apartment House
Cleaning" Silver Cleaning" Silver
Package: Package:
! !
$39.99" $59.99"
Gold Package: Gold Package:
! !
$54.99" $84.99"
These are average prices. Prices may vary based on property size and level of cleaning required.
32. Marketing Strategy
Channels! Highlights! Tactics!
Affordable Bill Your
Print Media!
Services! Parents!
Social “Free-Time” After-Party
Networks! Generator! Cleanups!
Campus Security End of Season
Events! Deposit! Cleanups!
34. Demand from Property Owners
Extremely positive about the Business Idea
“There is certainly a need”
“Will help us reduce stress”
“Help us maintain our property”
Will promote our services to every new tenant
“Would definitely give it a shot”
35. Rental Property Owner’s
Dilemma
End of the Year Turnaround
5 Days - Ideal Rental
3 Weeks - Cambridge Property Management
“Everyone from Owner to Employees Clean”
Cannot hire the “Soft Cleaners”
Students are charged about $35/ hour for the
Cleaning Costs
36. Crew Members
Energetic, Motivated, Reliable, Efficient
Some Industry Experience
Passed Background Checks
Insured (Non-Health) & Bonded
$11 Per Hour, Plus Bonuses for
Additional Services Sales (Plus Tips)
38. Management & Personnel
Oanh Ngo!
• B. Sc. Business Management &
Administration!
• Human Resources!
• Operations!
Parth Sheth!
• B. Sc. Finance & Economics!
• Marketing!
• Finance!
• Business Development!
39. Management & Personnel
Oanh Ngo!
• B. Sc. Business Management &
Oanh Ngo! Administration!
• Human Resources!
• B. Sc. Business Management & Operations!
•
Administration!
• Human Resources!
• Operations! Parth Sheth!
• B. Sc. Finance & Economics!
Parth Sheth! • Marketing!
• Finance!
• Business Development!
• B. Sc. Finance & Economics!
• Marketing!
• Finance!
• Business Development!
40. Management & Personnel
Oanh Ngo!
• B. Sc. Business Management &
Oanh Ngo! Administration!
• Human Resources!
• B. Sc. Business Management & Operations!
•
Administration!
• Human Resources!
• Operations! Parth Sheth!
• B. Sc. Finance & Economics!
Parth Sheth! • Marketing!
• Finance!
• Business Development!
• B. Sc. Finance & Economics!
• Marketing!
Our Synergy will help us successfully Launch,
• Finance!
• Business Development! and Expand Chores No More
Manage
48. Goals & Milestones
Pilot Phase (August 2011 – May 2012) !
• Goal: Build a Replicable & Distinct Business Model!
Expansion Phase (August 2012 – July 2014) !
• Goal: Expand to 2 – 4 New College Campuses!
Expansion Phase II (August 2014 – Beyond) !
• Goal: Franchise Based National Expansion!
Exit Phase (May 2016 – August 2016)!
• Goal: Sell the Business to a Competitor!
50. Funds Needed
Funds
Owners! Investors! Needed!
$5,000! $9,470!
$14,470!
* For a 3% Equity Stake. Company Value based on the total
assets at the end of 3rd year of operations ($271, 500)
56. Monthly Projections
Total Revenue
After Tax Net Income
Cash Flows
$50,000
$37,500
$25,000
$12,500
$0
($12,500)
Aug Sep Oct Nov Dec Jan Feb Mar Apr May
57. Key Ratios
Chores No More Industry Average
2011 2012 2013 2007 2008 2009
After Tax
Return on 10% 325% 761% 106% 101% 98%
Equity
Gross
Profit 31% 32% 33% 63% 64% 66%
Margin
After Tax
Net Profit 1% 6% 7% 6% 7% 7%
Margin
61. n k
a
h u
T o
Y
Oanh Ngo
P.S. We hope that you choose to invest with us Parth Sheth
62. Service Times
Get in, Get out Fast
Silver Gold
1 - 1.5 Hours 1.5 - 2 Hours
Apartment
1 Crew Member 1 Crew Member
1.5 - 2 Hours 2.5 - 3 Hours
House
2 Crew Members 2 Crew Members
63. Crew Members
Crew Members
15
10
5
0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May
65. Supplier
Kendall Janitorial Supplies
Rod Kendall
In the Industry for 15+ Years
Reliable, Trustworthy & Well-Known in the
Local Janitorial Industry
Free Delivery of Supplies
Excited about the Business Idea
68. Possible Campuses to Expand
in Midwest
Drake University Ashland University
Des Moines, IA Ashland, OH
Creighton University Benedictine University
Omaha, NE Lisle, IL
Xavier University Bethel University
Cincinnati, OH St. Paul, MN
69. Off Season Months
Strategize & Reevaluate Operations
Expand to Other Campuses
Serve Residential Clients
Serve Students Enrolled in Summer/
Winter Classes
70. Appendix J
Service Form
1015 W. Sain James St. DATE: 4/15/11
Peoria, IL 61606 Invoice Number 96
Phone: 309.329.5199 Customer ID D112
Email: choresnomorebu@gmail.com Date of Service: 4/17/11
Prepared by: Oanh Ngo
Client
John Smith
15 W Bradley Ave
Peoria, IL
61606
309.111.2222
DESCRIPTION AMOUNT
Apartment
Silver Package 39.99
Gold Package X 49.99
House
Silver Package 59.99
Gold Package 69.99
Premium Services
After Party Clean-ups
End of the Semester Clean-ups
Service Notes:
[42] Subtotal $ 49.99
TERMS AND CONDITIONS
1. Client will be billed after indicating acceptance of this quote Tax Rate 6.750%
2. Payment will be due prior to delivery of service Tax Due $ 3.37
TOTAL $ 53.36
Customer Acceptance (sign below):
x ___________________________________________
Print Name:
If you have any questions about this price quote, please email
us at choresnomorebu@gmail.com
Thank You For Your Business!
71. Detailed Service Packages
Silver Package! Gold Package!
• Empty Trash ! • Make Bed(s) !
• Dust Cobwebs ! • Clean Stove!
• Dust and Wipe • Wash Dishes !
Furniture ! • Wipe Down and Clean
• Vacuum and Mop Floor ! Appliances !
• Clean and Disinfect • Wipe Cabinets and
Bathroom ! Shelves !
• Clean Counter Tops in • Organize Study Desk!
the Kitchen!
72.
73. Preferred Method of Placing
an Order
Internet Email
Phone Office
70%
35% 69%
15% 14%
0% 3%
Respondents
74. Interest in Working as Crew
Member
Responses
70%
62%
35%
25%
13%
0%
Yes No Maybe
75. Demand Frequency
Responses
30%
28%
26%
20% 21%
17%
10%
9%
0%
Weekly Bi-Weekly Monthly Every Semester Never
76. Appendix K
Sample Monthly Demand
December, 2011
Demand Percentage 10%
Target Population (5813) 581
Service Schedule No. of Jobs* Apartments Houses
More than once a week 12 4 2
Once a week 87 31 18
About every two weeks 163 59 33
Once a month 151 54 31
Once a semester 52 19 11
Week 1 Week 2 Week 3 Week 4 Labor Hours/Week
Apartments 80 80 80 80 159
Houses 45 45 45 45 135
Total 300
No. of Labor
Units/Day Hours/Day
Apartments 16 31.85
Houses 9 13.46
Required Labor Hours 45.31
No. Of Employees 8
Available Labor Hours/Day 56
*Includes Dorms
77. Balance Sheet: Chores No More
Aug-11 2011 2012 2013
Assets
Current Assets
Cash & Equivalent 14,470.09 11,566.55 62,386.95 249,548.07
Supplies - - - -
Total Current Assets 14,470.09 11,566.55 62,386.95 249,548.07
Fixed Assets
Machinery & Tools - 4,000.00 13,000.00 22,000.00
Total Fixed Assets - 4,000.00 13,000.00 22,000.00
Total Assets 14,470.09 15,566.55 75,386.95 271,548.07
Liabilities and Owners Equity
Current Liability
Accounts Payable - - - -
Income Taxes Payable - 1,813.74 6,409.65 42,987.65
Total Current Liabilities - 1,813.74 6,409.65 42,987.65
Long-Term Liabilities - - - -
Total Liabilities - 1,813.74 6,409.65 42,987.65
Owners Equity
Investment Capital 14,470.09 14,470.09 14,470.09 14,470.09
Retained Earnings - (717.27) 54,507.21 214,090.33
Total Liability/Equity 14,470.09 15,566.55 75,386.95 271,548.07
78. Appendix Q
Statement of Start-up Expenses
Expenses Cost
Business Registration and other Fees 800.00
Insurance 750.00
Workmen's' Comp (Aug-Dec 2011) 2,670.09
Website 450.00
Logo 100.00
Marketing 400.00
Letter Head 100.00
Professional Housekeeper 1,500.00
Stationery 100.00
Recruitment Expenses 100.00
Other Expenses 1,000.00
Supplies 500.00
Machinery 1,500.00
Tools 500.00
Cash Reserve 4,000.00
Total 14,470.09
Funds Required 14,470.09
Owners' Investment 5,000.00
Required Investment 9,470.09
81. Appendix N
Cash Flow Statements: Chores No More (Monthly)
2011
Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12
Net Income (2,877.19) (1,048.99) (1,198.61) (1,350.04) 472.74 (1,284.02) 1,667.67 1,899.06 3,911.49 4,140.63 (1,284.02) (1,284.02)
Changes in Income Tax Payable - - - - 70.91 - 250.15 284.86 586.72 621.09 - -
Cash flows from Operating Activities (2,877.19) (1,048.99) (1,198.61) (1,350.04) 543.66 (1,284.02) 1,917.82 2,183.91 4,498.21 4,761.72 (1,284.02) (1,284.02)
ctivities
Cash from Owners 9,420.09 - - - - - - - - - - 2.00
Capital Expenditure (2,000.00) (250.00) (250.00) (250.00) (250.00) - (250.00) (250.00) (250.00) (250.00) (250.00) (250.00)
Cash from Debt Security - - - - - - - - - - - 2.00
Cash Flow Provided by Financing Activities 7,420.09 (250.00) (250.00) (250.00) (250.00) - (250.00) (250.00) (250.00) (250.00) (250.00) (246.00)
Cash Balance at Beginning of the Period 0 4,542.89 3,243.90 1,795.28 195.25 488.90 (795.11) 872.70 2,806.62 7,054.83 11,566.55 10,032.53
Cash Balance at End of the Period 4,542.89 3,243.90 1,795.28 195.25 488.90 (795.11) 872.70 2,806.62 7,054.83 11,566.55 10,032.53 8,502.52
Net Increase (Decrease) 4,542.89 (1,298.99) (1,448.61) (1,600.04) 293.66 (1,284.02) 1,667.82 1,933.91 4,248.21 4,511.72 (1,534.02) (1,530.02)
Editor's Notes
\n
\n
\n
Due to the profile of a college student, we felt that we should test if there would be a demand for cleaning services at a college campus\nWe sent out a survey to Student Body at Bradley University. The survey focused on questions about demand for a cleaning service, reserve prices and demand frequency\nWe received about 683 responses \nWe found that about 22% would use a cleaning service if it was made available, \n36% would “maybe” use it\nThat’s over 58% of the target population \nThat’s a lot of demand. And We wondered why has no one served them yet? \nI mean there are cleaning companies all around the nation \nInfact there are about 60 establishments here in Peoria \n\nSo we went a step back, \n\n\n
\n
\n
go up to like 200\n
go up to like 200\n
\n
This issue impacts College students a lot: \n\nRoommate Quarrels can happen, Can Increase Stress, Impact on Grades, Vanish the Security Deposit, You can’t Invite Friends over\nI mean just imagine, your parents are coming over on a short notice\nOr you are about to call over some prospective gf. Bf over, the last thing you want is a dirty room to turn them off? \n\nAnd those Security Deposit. We spoke to a parent of a student here: \nShe was like, my son had to pay more than the security Deposits as a cleaning up cost! \n\n\n
This issue impacts College students a lot: \n\nRoommate Quarrels can happen, Can Increase Stress, Impact on Grades, Vanish the Security Deposit, You can’t Invite Friends over\nI mean just imagine, your parents are coming over on a short notice\nOr you are about to call over some prospective gf. Bf over, the last thing you want is a dirty room to turn them off? \n\nAnd those Security Deposit. We spoke to a parent of a student here: \nShe was like, my son had to pay more than the security Deposits as a cleaning up cost! \n\n\n
This issue impacts College students a lot: \n\nRoommate Quarrels can happen, Can Increase Stress, Impact on Grades, Vanish the Security Deposit, You can’t Invite Friends over\nI mean just imagine, your parents are coming over on a short notice\nOr you are about to call over some prospective gf. Bf over, the last thing you want is a dirty room to turn them off? \n\nAnd those Security Deposit. We spoke to a parent of a student here: \nShe was like, my son had to pay more than the security Deposits as a cleaning up cost! \n\n\n
This issue impacts College students a lot: \n\nRoommate Quarrels can happen, Can Increase Stress, Impact on Grades, Vanish the Security Deposit, You can’t Invite Friends over\nI mean just imagine, your parents are coming over on a short notice\nOr you are about to call over some prospective gf. Bf over, the last thing you want is a dirty room to turn them off? \n\nAnd those Security Deposit. We spoke to a parent of a student here: \nShe was like, my son had to pay more than the security Deposits as a cleaning up cost! \n\n\n
\n
\n
\n
\n
\n
They are satisfied with basic bathroom and kitchen cleaning and vacuuming \nThey don’t care if you clean their furnishings, or even make their beds.. ( I mean not all) \nIf you can provide them with the basics, they’ll be happy and will pay for it! \n\nAnd, that brings me to introduce to you Chores No More\n\n
They are satisfied with basic bathroom and kitchen cleaning and vacuuming \nThey don’t care if you clean their furnishings, or even make their beds.. ( I mean not all) \nIf you can provide them with the basics, they’ll be happy and will pay for it! \n\nAnd, that brings me to introduce to you Chores No More\n\n
\n
Basics, mainly for during the semester\nGold, mainly for end of the season, after parties, and other intense moments\n\n
And we’ll price it right there\n\n
change, make it bigger and easier to read \n
\n
\n
change, make it bigger and easier to read \n
change, make it bigger and easier to read \n
\n
\n
They were telling me about their turnaround time\nhave limited time \n
\n
recruit, select, and train \n
recruit, select, and train \n
recruit, select, and train \n
\n
\n
\n
\n
\n
\n
and to do this, we have developed a marketing strategy\n
