Concierge Service Business Plan For Starting Your Own Company
The purpose of this business plan is to outline the formation of a concierge service business. The concierge service helps clients take care of their everyday tasks by providing various services. This plan provides a roadmap for the business’s growth from start-up through maturity. The business plan includes the company’s goals, competitive analysis, financial projections, and marketing strategy.
The purpose of business plans for concierge services is to secure financing for the start-up of a concierge service business. This business plan works best for senior daycare business plans too.
2. Executive Summary
The Business
The purpose of this business plan is to provide a comprehensive overview of the Concierge Service business, its operations, and its potential for success. The company, Frail Care Concierge , will provide an array of services to corporate and individual clients, from personal errands to corporate travel assistance. The owner of the concierge service business has a vast knowledge of how to make a concierge service business plan.
The goal is to become the premier concierge service provider in the city. To achieve this, the company will focus on providing exceptional levels of customer service while also striving to remain competitive with our pricing. The company will also ensure that our team is well-trained and knowledgeable about our services.
Business Target
As a concierge service company, the company anticipates generating revenue by providing personalized concierge services to individuals, families, and businesses. The aim of this sample business plan for personal concierge service is to help with negotiating contracts, advertising, PR, and budgeting.
Our goal is to provide a range of services to clients in order to make their lives easier. The services offered will include errand running, grocery shopping, home organization, event planning, and more. Additionally, the window cleaning business plan will provide window cleaning and house cleaning services.
3. Company Summary
Company Owner
Dave Parker is the owner of Frail Care Concierge. He is highly experienced and qualified professional in the concierge industry. He has more than 20 years of experience in concierge management and has gained extensive knowledge in the areas of customer service, concierge management, marketing, sales, and operations.
Why The Concierge Service Is Being Started
The Dave Parker had over 20 years of expertise as a concierge manager, in addition to experience in other sectors of this industry. Having extensive experience in the industry made him start the business and make this personal concierge services business plan.
How The Concierge Service Will Be Started
The senior concierge service business plan financial experts helped the owner make this business plan which aims to enhance the business so that every individual can benefit from it.
These ready-made business plans for concierge services contain the operational plan involving hiring the initial staff, including a manager, an assistant, and a customer service representative.
Note
The Concierge Service business will be started with a minimal amount of capital. This will be used to purchase the necessary tools and equipment needed to start the business, such as computers, furniture, and office supplies.
With the help of financial experts, the concierge company owner estimates startup costs, including assets, investments, loans, and expenses.
As part of the start-up requirements for a Frail Care concierge service, the following information is provided: total startup expenses, total assets, total start-up funding, total funding requirements, total assets, total liabilities, total planned investment, total capital, total liabilities, and total funding.
| Start-up Expenses | |
| Legal | $135,400 |
| Consultants | $0 |
| Insurance | $18,000 |
| Rent | $39,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $35,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $240,800 |
| Start-up Assets | $253,000 |
| Cash Required | $183,000 |
| Start-up Inventory | $35,000 |
| Other Current Assets | $238,000 |
| Long-term Assets | $243,600 |
| TOTAL ASSETS | $952,600 |
| Total Requirements | $1,193,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $240,800 |
| Start-up Assets to Fund | $952,600 |
| TOTAL FUNDING REQUIRED | $1,193,400 |
| Assets | |
| Non-cash Assets from Start-up | $1,240,600 |
| Cash Requirements from Start-up | $289,500 |
| Additional Cash Raised | $48,000 |
| Cash Balance on Starting Date | $36,000 |
| TOTAL ASSETS | $1,614,100 |
| Liabilities and Capital | |
| Liabilities | $20,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $27,200 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $47,200 |
| Capital | |
| Planned Investment | $1,193,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,193,400 |
| Loss at Start-up (Start-up Expenses) | $373,500 |
| TOTAL CAPITAL | $1,566,900 |
| TOTAL CAPITAL AND LIABILITIES | $1,614,100 |
| Total Funding | $1,193,400 |
4. Services of Concierge Service
The purpose of the business plan for a concierge service company is to raise capital and attract potential partners, as well as to provide stakeholders with an overview of the company’s goals, strategies, and financial projections, the services of the concierge service business include:
- Provide personalized concierge services to clients, including errand running, shopping, appointment setting, scheduling, and event planning.
- Create and manage a database of reliable and trusted service providers, such as cleaners, caterers, and chauffeurs.
- Provide research and recommendations on local attractions, restaurants, and other service.
- The carpet cleaning business plan provides services for carpet cleaning.
- Providing services to the dating concierge service business plan includes helping the clients create a profile, finding and vetting potential matches, providing feedback on the best matches, providing date ideas, arranging dates, providing post-date feedback, and providing relationship advice.
- The handyman business plan provides services such as lawn care, pressure washing, gutter cleaning, and snow removal.
- Arrange transportation and accommodation for clients.
- Vet potential service providers and negotiate the best rates for clients.
- Use online technology and platforms to manage client requests and bookings.
- Develop and implement promotional strategies to increase visibility and reach among target audiences.
- Provide customers with a 24/7 support system to ensure satisfaction and loyalty.
- Monitor customer feedback and use it to improve services.
- Monitor industry trends and devise strategies to remain competitive.
- Track performance metrics, such as customer satisfaction ratings and response times.
5. Marketing Analysis
One of the most important components of concierge service business plan templates is the marketing analysis it provides. The concierge service market is a highly competitive and dynamic one. As such, it is important for entrepreneurs to understand the market’s key elements and develop a marketing strategy that considers the trends, opportunities, and threats present in the market.
Market Trends
The main trends in the concierge service market are the changing consumer preferences, the rise of technology, and the increasing demand for convenience. Consumers are increasingly shifting from traditional services to more technological solutions, such as using apps to manage their concierge service needs. In addition, consumers are increasingly demanding more convenience, making the concierge service market highly competitive.
Marketing Segmentation
The business plan for personal concierge service market segmentation It includes individuals, corporate clients such as companies that require assistance with executive travel arrangements, private clients who need assistance with errands, travel arrangements, personal event planning, and specialty clients such as parents looking for child care assistance, seniors who need elderly care assistance, and others.
Business Target
This is the business plan for investors who want to start a concierge service business, and it targets individuals and corporations. For the concierge service business, the company targets individuals and businesses who need help with their daily activities, as well as those who are seeking professional and personal support. The Frail Care Concierge Company’s services are intended for individuals and businesses from all sectors, such as corporate executives, entrepreneurs, students, families, and others who need assistance.
Product Pricing
The pricing for our concierge services will be based on the service requested. The company will provide a range of services, from basic errand running to more complex tasks, such as event planning and travel arrangements. For each service, the company will offer a base rate, with additional fees for any additional tasks or services requested.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Individuals | 40% | 33,000 | 39,600 | 47,520 | 57,024 | 68,429 | 10.00% |
| Corporate Clients | 30% | 30,750 | 36,900 | 44,280 | 53,136 | 63,763 | 10.00% |
| Private Clients | 20% | 24,550 | 29,460 | 35,352 | 42,422 | 50,907 | 10.00% |
| Speciality Clients | 10% | 15,000 | 18,000 | 21,600 | 25,920 | 31,104 | 11.00% |
| Total | 100% | 103,300 | 123,960 | 148,752 | 178,502 | 214,203 | 10% |
6. Marketing Strategy Of Concierge Service
Competitive Analysis
The concierge service market is highly competitive, with many providers offering similar services. These companies are focusing on expanding their service offerings and launching new services, innovative products, and digital solutions. They are also focusing on strategic collaborations and partnerships to increase their market presence and strengthen their market reputation.
Sales Strategy
In starting a concierge errand business, revenue and profit are the primary objectives. The company will promote our concierge service through a combination of online, print, and word-of-mouth strategies. This will include creating a website and social media profiles, placing ads in local publications, and attending relevant events to spread the word.
Sales Monthly
The luxury concierge business plan focuses on building relationships with other businesses, such as hotels, restaurants, and transportation services, to create a network of partners that can refer customers to the concierge service.
The business generates revenue by selling services to the clients, including errand running, shopping, appointment setting, scheduling, and event planning. According to the experts, the following sales will occur each month, based on the opinions of the experts.
Sales Yearly
The concierge service company earns revenue by providing various services. Based on the experts’ estimates, the following sales are anticipated yearly.
Sales Forecast
There is an expectation of a relatively consistent level of sales for the concierge service company. A steady stream of revenue is expected rather than sharp fluctuations. The following forecasts the sales:
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Errand Running | 3,500 | 3,710 | 3,933 |
| Grocery Shopping | 1,700 | 1,802 | 1,910 |
| Event Planning | 1,500 | 1,590 | 1,685 |
| Home Organization | 3,000 | 3,180 | 3,371 |
| TOTAL UNIT SALES | 9,700 | 10,282 | 10,899 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Errand Running | $565.00 | $655.40 | $760.26 |
| Grocery Shopping | $480.00 | $556.80 | $645.89 |
| Event Planning | $2,000.00 | $2,320.00 | $2,691.20 |
| Home Organization | $800.00 | $928.00 | $1,076.48 |
| Sales | |||
| Errand Running | $1,977,500.00 | $2,431,534.00 | $2,989,814.21 |
| Grocery Shopping | $816,000.00 | $1,003,353.60 | $1,233,723.59 |
| Event Planning | $3,000,000.00 | $3,688,800.00 | $4,535,748.48 |
| Home Organization | $2,400,000.00 | $2,951,040.00 | $3,628,598.78 |
| TOTAL SALES | $8,193,500.00 | $10,074,727.60 | $12,387,885.06 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Errand Running | $480.00 | $528.00 | $554.40 |
| Grocery Shopping | $400.00 | $440.00 | $462.00 |
| Event Planning | $1,700.00 | $1,870.00 | $1,963.50 |
| Home Organization | $700.00 | $770.00 | $808.50 |
| Direct Cost of Sales | |||
| Errand Running | $1,680,000.00 | $1,958,880.00 | $2,180,233.44 |
| Grocery Shopping | $680,000.00 | $792,880.00 | $882,475.44 |
| Event Planning | $2,550,000.00 | $2,973,300.00 | $3,309,282.90 |
| Home Organization | $2,100,000.00 | $2,448,600.00 | $2,725,291.80 |
| Subtotal Direct Cost of Sales | $7,010,000.00 | $8,173,660.00 | $9,097,283.58 |
7. Personnel Plan Of Concierge Service
Company Staff
Professional staff will be hired by the owner to assist in starting a concierge service company. Employees will be needed to operate the Company:
- CEO
- COO
The management staff includes;
- General Manager
- Operation Manager
- Human Resources Manager
The operational team includes;
- Front Desk Coordinator
- Concierge Attendants
- Security Guards
- Housekeeping Staff
Other Staff includes;
- Administrative Assistant
- IT Technician
- Accountant
- Receptionist
- Cleaning Staff
Average Salary of Employees
Average salaries of concierge service employees varies according to the company’s location, size, and services. Concierge services generally pay between $25,000 and $100,000 per year.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| CEO | $80,000 | $88,000 | $96,800 |
| COO | $60,000 | $66,000 | $72,600 |
| General Manager | $40,000 | $44,000 | $48,400 |
| Operation Manager | $35,000 | $38,500 | $42,350 |
| Human Resources Manager | $30,000 | $33,000 | $36,300 |
| Operational Team | $120,000 | $132,000 | $145,200 |
| Other Staff | $130,000 | $143,000 | $157,300 |
| Total Salaries | $495,000 | $544,500 | $598,950 |
8. Financial Plan For Concierge Service
In collaboration with financial experts, Dave Parker assessed the company’s finances and developed a strategy for how to start concierge service. To outline the company’s development, they develop financial plans for three years in advance.
Important Assumptions
In order to calculate the financial plan for the concierge service company:
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 9.25% | 9.36% | 9.40% |
| Long-term Interest Rate | 7.38% | 7.41% | 7.44% |
| Tax Rate | 27.01% | 26.06% | 24.09% |
| Other | 0 | 0 | 0 |
However, deviations are expected to be limited to levels that do not impact the company’s major financial strategies.
Brake-even Analysis
The following is a breakdown of the concierge company’s fixed and variable costs:
An analysis of monthly break-evens is shown in the following table
| Break-Even Analysis | |
| Monthly Units Break-even | 4566 |
| Monthly Revenue Break-even | $122,850 |
| Assumptions: | |
| Average Per-Unit Revenue | $223.00 |
| Average Per-Unit Variable Cost | $0.68 |
| Estimated Monthly Fixed Cost | $169,200 |
Projected Profit and Loss
The following is the projected profit and loss for a concierge service company.
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $8,193,500 | $10,074,728 | $12,387,885 |
| Direct Cost of Sales | $7,010,000 | $8,173,660 | $9,097,284 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $7,010,000 | $8,173,660 | $9,097,284 |
| Gross Margin | $1,183,500 | $1,901,068 | $3,290,601 |
| Gross Margin % | 14.44% | 18.87% | 26.56% |
| Expenses | |||
| Payroll | $495,000 | $544,500 | $598,950 |
| Sales and Marketing and Other Expenses | $123,000 | $126,000 | $128,000 |
| Depreciation | $2,300 | $2,400 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,700 | $2,900 | $29,500 |
| Insurance | $2,000 | $2,000 | $2,000 |
| Rent | $3,200 | $3,500 | $3,700 |
| Payroll Taxes | $24,000 | $25,000 | $26,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $652,200 | $706,300 | $790,650 |
| Profit Before Interest and Taxes | $531,300 | $1,194,768 | $2,499,951 |
| EBITDA | $531,300 | $1,194,768 | $2,499,951 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $106,260 | $238,954 | $499,990 |
| Net Profit | $425,040 | $955,814 | $1,999,961 |
| Net Profit/Sales | 5.19% | 9.49% | 16.14% |
Profit Monthly
Profit Yearly
Gross Margin Monthly
Gross Margin Yearly
Projected Cash Flow
Cash flow projections are shown in the following column diagram.
Detailed information about pro forma cash flow is shown in the following table. It includes subtotal cash from operations; subtotal cash received, subtotal operational expenditures, and general assumptions.
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $54,600 | $58,968 | $63,685 |
| Cash from Receivables | $23,600 | $25,488 | $27,527 |
| SUBTOTAL CASH FROM OPERATIONS | $78,200 | $85,238 | $92,057 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $78,500 | $86,500 | $92,500 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $37,500 | $38,500 | $40,500 |
| Bill Payments | $24,500 | $27,500 | $28,500 |
| SUBTOTAL SPENT ON OPERATIONS | $62,000 | $66,000 | $69,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $62,500 | $67,500 | $72,900 |
| Net Cash Flow | $21,500 | $23,500 | $24,500 |
| Cash Balance | $27,500 | $29,500 | $31,500 |
Projected Balance Sheet
Below is a projected balance sheet that shows data about the pro forma balance sheet, total current assets, total long-term assets, total assets, current subtotal liabilities, total liabilities, total capital, and total liabilities.
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $286,000 | $320,320 | $352,352 |
| Accounts Receivable | $25,500 | $28,560 | $32,101 |
| Inventory | $4,350 | $4,872 | $4,900 |
| Other Current Assets | $2,500 | $2,500 | $2,500 |
| TOTAL CURRENT ASSETS | $318,350 | $356,252 | $391,853 |
| Long-term Assets | |||
| Long-term Assets | $9,000 | $9,000 | $9,000 |
| Accumulated Depreciation | $19,300 | $21,616 | $24,318 |
| TOTAL LONG-TERM ASSETS | $24,500 | $27,440 | $30,870 |
| TOTAL ASSETS | $299,000 | $334,880 | $376,740 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,500 | $20,720 | $23,289 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $18,500 | $20,720 | $23,289 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,500 | $18,480 | $20,772 |
| Paid-in Capital | $20,500 | $29,215 | $38,627 |
| Retained Earnings | $34,500 | $37,605 | $41,366 |
| Earnings | $174,000 | $189,660 | $208,626 |
| TOTAL CAPITAL | $282,500 | $316,400 | $355,969 |
| TOTAL LIABILITIES AND CAPITAL | $299,000 | $334,880 | $376,740 |
| Net Worth | $298,000 | $324,820 | $357,302 |
Business Ratios
Here is a table showing business ratios, ratio analysis, and total assets.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 9.26% | 10.26% | 11.37% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 8.25% | 9.14% | 10.13% | 9.80% |
| Inventory | 6.45% | 7.15% | 7.92% | 9.90% |
| Other Current Assets | 3.24% | 3.59% | 3.98% | 2.40% |
| Total Current Assets | 145.30% | 146.00% | 147.00% | 153.00% |
| Long-term Assets | 11.53% | 11.55% | 11.59% | 11.70% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.93% | 4.97% | 5.02% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.56% | 7.62% | 7.69% | 7.38% |
| NET WORTH | 100.06% | 100.86% | 101.79% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.65% | 97.21% | 99.93% | 99.00% |
| Selling, General & Administrative Expenses | 94.80% | 97.36% | 100.09% | 97.80% |
| Advertising Expenses | 1.54% | 1.58% | 1.63% | 1.40% |
| Profit Before Interest and Taxes | 41.90% | 43.03% | 44.24% | 33.90% |
| Main Ratios | ||||
| Current | 36 | 37 | 38 | 39 |
| Quick | 34 | 34.2 | 35.055 | 33 |
| Total Debt to Total Assets | 0.19% | 0.17% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 73.68% | 74.24% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 97.88% | 102.77% | 107.91% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 345.51% | 356.22% | 367.26% | N.A. |
| Return on Equity | 57.20% | 58.97% | 60.80% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.9 | 7.9 | 8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.3 | 33.915 | 32 | N.A. |
| Accounts Payable Turnover | 15.9 | 17 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.45 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.05 | -0.04 | -0.05 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $245,000 | $258,720 | $273,208 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.8 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 27.06 | 28.13 | 28.77 | N.A. |
| Sales/Net Worth | 2.3 | 2.4 | 2.5 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
9. FAQ
- How much does it cost to start a concierge business?
The cost of starting a concierge business varies significantly depending on the type and size of the business. You may have to pay licensing, insurance, marketing, equipment, and staffing costs. Also, you may need to pay for services such as bookkeeping, web hosting, and other operational costs. Starting a concierge business can cost anywhere from a few thousand dollars to several thousand dollars.
- Do I need a license to start a concierge business?
Yes. Depending on the state you are in, you may need a business license, permits, or other licenses to start a concierge business. Additionally, you may need to be certified or trained in certain areas, such as first aid or CPR. It is important to research the requirements in your area before starting a concierge business.