Do you want to start window cleaning business?

Are you thinking of starting a window cleaning business? This is an excellent business idea considering the demand for window cleaners is high. So long as there are buildings with windows, you can never miss customers. Window cleaning business is a simple and straightforward process and involves a relatively low startup capital. These days, people and businesses prefer to get professionals to clean their windows especially those that require specialized cleaning equipment. The good thing about this business is it requires less bottlenecks and you’ll be able to soon recover your capital.

Even though there are many window cleaning businesses taking care of both residential and corporate clients, there’s still a good market out there. Considering the relatively low startup, window cleaning businesses have mushroomed especially in many urban areas. However, with a good marketing plan, this business is lucrative as it offers a service that is constantly needed. Windows do get dirty and therefore, services of a professional are required to clean them. Depending on the position and elevation of windows, it may be difficult to reach windows with your bare hands thus necessitating the need for professional use and expertise.

Executive Summary

2.1 The Business

The window cleaning business will be registered under the name Zee Cleaners and will be situated in downtown Manhattan, New York. Zee Cleaners will be owned and managed by Mary Morrison who is a retired high school teacher. With over two decades of a vibrant teaching career, Mary has worked on various environments and realized numerous accomplishments during the course of her career.

2.2 Management Team

Zee Cleaners operations will be managed by Mary Morrison who is a retired teacher having worked for over twenty years. Her passion for cleaning was the driving force why she was keen on starting a window washing business.

2.3 Customer Focus

Zee Cleaners intends to offer a unique and professional window cleaning service to cater for both residential and corporate clients. With an emphasis on exemplary customer service, the business intends to cater for different types of customers.

2.4 Business Target

Zee Window Cleaners plans to invest in modern cleaning equipment and technologies to ensure customer satisfaction is realized. Close emphasis will be put on a consistent excellent customer care strategy to boost relationship between the business and its clients.

Window Cleaning Business Proposal - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Mary Morrison has had a successful career as a high school teacher having taught some of the best performing schools across the country. During her career, Mary was recognized on various occasions for her exemplary achievements and impressive track record.

3.2 Aim of Starting the Business

Mary Morrison’s passion for window cleaning started a long time ago when she was active in her teaching career. She always had plans to start a window cleaning business as she had realized window cleaning services were on high demand.

3.3 How the Business will be Started

To make Zee Cleaners a household name, Mary has sought help from experts to come up with a comprehensive business plan that will ensure her window cleaning business succeeds. Important data associated with the window cleaning business is indicated below.

Window Cleaning Business Proposal - Startup cost

Start-up Expenses 
Legal$2,200
Consultants$2,300
Insurance$22,000
Rent$20,000
Research and Development$8,000
Expensed Equipment$15,000
Signs$6,000
TOTAL START-UP EXPENSES$64,000
Start-up Assets$0
Cash Required$200,000
Start-up Inventory$50,000
Other Current Assets$30,000
Long-term Assets$9,000
TOTAL ASSETS$30,000
Total Requirements$32,000
START-UP FUNDING$0
START-UP FUNDING$70,000
Start-up Expenses to Fund$55,000
Start-up Assets to Fund$45,000
TOTAL FUNDING REQUIRED$0
Assets$25,000
Non-cash Assets from Start-up$12,000
Cash Requirements from Start-up$0
Additional Cash Raised$60,000
Cash Balance on Starting Date$25,000
TOTAL ASSETS$0
Liabilities and Capital$0
Liabilities$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
TOTAL LIABILITIES$0
Capital$0
Planned Investment$0
Investor 1$22,000
Investor 2$36,000
Other$0
Additional Investment Requirement$0
TOTAL PLANNED INVESTMENT$210,000
Loss at Start-up (Start-up Expenses)$55,000
TOTAL CAPITAL$70,000
TOTAL CAPITAL AND LIABILITIES$45,000
Total Funding$120,000

Services for Customers

Zee Cleaners intends to roll-out quality services for its customers to ensure they get full value for their money. Some of the major services include:

  • Residential window cleaning which focuses on private residential homes
  • Retail window cleaning specifically for cleaning retail businesses
  • Commercial window cleaning targeting corporate entities
  • Carpet and blind cleaning services

Morrison clearly has diversified her range of services to cater for a wider market segment. Starting window cleaning business involves knowing in advance what services to offer to clients.

Marketing Analysis of a Window Cleaning Business

Zee Cleaners aims to fully meet its business obligations and realize profits. For this to be achieved, a comprehensive window cleaning business plan has been designed to help the business stay on the path to success. This business plan has a well elaborated strategy that will immediately be put in place once operations begin. For a business to succeed, a market survey needs to be carried out to document which areas need to be focused on for the window cleaning business to meet its targets.

5.1 Market Segmentation

After a detailed market research, Zee Cleaners identified the following customer segment as the main targets for the business. Despite having numerous businesses doing window cleaning services, Zee Cleaners knows there is still high demand for window cleaning services in Manhattan area given the high number of large skyscrapers. As the number of structures with windows continues to increase, the more number of windows that need to be professionally cleaned.

Window Cleaning Business Proposal - Market Segmentation

5.1.1 Local Residents

With a population of approximately nine million residents, there is a huge pool of untapped market when it comes to professional window cleaning services. Despite the high number of providers available, rapid population growth still creates an excellent opportunity for Zee Cleaners to acquire more customers and build long lasting relationships. With the rapid growing housing market in New York and its environs, there’s no doubt residents are constantly in need of a professional window cleaning services. Since many people are busy with work, there is hardly any time to clean house windows and for this reason, professional window services are the preferred option. With the hectic and busy schedules that New York Residents have, the last thing on an individual’s mind is finding time to clean their own windows. A large percentage of residents prefer outsourcing their window cleaning tasks to professionals.

5.1.2 Property Management Companies

Many properties in New York are managed by professional real estate management companies. In this window washing business plan, Zee Cleaners aims to do extensive marketing and reach out to property management companies that manage numerous properties for their clients. With such contracts, it will be easy for Zee Cleaners to get a chance to clean windows for various properties. Property management firms are a lucrative market segment for Zee Cleaners because New York property market is overseen by property management companies. There will be a steady revenue channel if the business is able to approach professional firms. Private residences, schools, offices, hospitals and other facilities outsource their management needs to professionals.

5.1.3 Corporates

New York is a bustling business hub and serves as the headquarters for several global organizations. Due to high number of corporates who have built or rented their offices, Zee Cleaners intends to tap into this lucrative market. In most cases, lucrative window cleaning contracts are offered that bring in a huge amount of revenue. Corporates include different categories of business that operate on a commercial basis and they include schools, hospitals and industries among others.

5.1.4 Retailers

New York City has some of the largest retail outlets across the United States and globally. With the rapidly growing real estate industry, Zee Cleaners understands how important it is for retailers to keep their windows clean to enable customers clearly see the products on display. The business hopes to market its window cleaning services to both new and established retailers across the city. The retail market is amongst the most lucrative customer segments and Zee Cleaners has an opportunity to vigorously market its window cleaning services to retailers. Because of their large floor area, most retail establishments have many large windows that require complex and professional cleaning. With a good strategy in place, Zee Cleaners has a chance to accelerate its growth because retail customers offer steady contracts and in most cases, make monthly payments for window cleaning services.

This window cleaning business plan example outlines the most important customer groups that Zee Cleaners intends to reach out when it commences operations. Anyone in need of a professional to clean their windows is a potential customer for the business. This is a great service that everyone with a house or building requires regularly to keep good standards of cleanliness.

Market Analysis
Potential CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5CAGR
Local Residents35%35,00038,00041,00044,00047,00010.00%
Property Management Companies25%33,00036,00039,00042,00045,0008.00%
Corporates15%20,00023,00026,00029,00032,00011.00%
Retailers15%22,00025,00028,00031,00034,00014.00%
Total100%80,00095,000              110,000125,000140,00016.00%

5.2 Business Target

Zee Cleaners will depend on its strategic location, exemplary customer service and modern cleaning equipment to meet its targets and outshine competitors. Fortunately, the capital for this business is not so high and therefore, initial investment will be fully recovered within the first three years of operation. The business is targeting to be the most famous window cleaning service in Manhattan and the entire New York City.

It is projected that annual sales will grow by an average of 20% ensuring the business impressively grows its revenue. In order to achieve its targets, Zee Cleaners has created a comprehensive window washer business plan that will offer great customer service and do a good job. Every customer will enjoy great services offered by the company and handled with utmost professionalism. The goal is to offer clients an affordable and professional service. Zee Cleaners is relying on its unique and dynamic marketing and sales approach to penetrate in a highly competitive industry segment.

5.3 Product Pricing

Zee Cleaners has identified product pricing as one of the key factors to give the business a competitive edge. A lot of focus has been put into ensuring prices offered are affordable yet sufficient to ensure the business makes a profit. Since there are different types of services offered by the company, the amount charged depends on the service rendered. At this point, competitor prices have been put into perspective to better understand how the window cleaning business can effectively compete.

Strategy

Mary Morrison has engaged the services of experts to help her how to start a window washing business that will be yield maximum profits. This sales strategy has been formulated after carefully observing market trends and is tailored to both grow client numbers and optimize sales margins. With a good sales strategy in place, window washing is a lucrative business with high probabilities of obtaining excellent profit margins.

The following sales strategy has been identified for Zee Cleaners:

6.1 Competitive Analysis

Zee Cleaners comes to the market at a time when there are other numerous established window cleaning businesses within a one mile radius. There is no doubt the business will face tough competition from established industry players. However, the business has identified key factors it believes will give it a competitive advantage over other window cleaning businesses. Strategic location, exemplary customer service, investing in state-of-the-art equipment and excellent friendly staff will tower Zee Cleaners above their competitors. The business has identified this sales strategy that will effectively strike a balance between affordable pricing and realization of good profits. Mary knows to survive in the window cleaning business; she will need to devise a unique approach of dealing with her clients.

6.2 Sales Strategy

For Zee Cleaners to secure more window cleaning contracts, the following sales strategy will be rolled out.

  • Advertise window cleaning services to corporate clients who make up a majority of downtown Manhattan establishments.
  • Offer unique, attractive and customized packages that offer great incentives to attract clients.
  • Come up with intensive marketing campaigns and utilize both local media as well as digital channels to spread awareness about the business.
  • Keep up with the latest cutting-edge technologies and incorporate them into the business to ensure customer needs are fully satisfied.
  • Offer occasional offers and discounts especially to loyal clients to woo them to continue using Zee window cleaning services.
  • Ensure every customer receives personalized attention to understand their needs and ensure they are assisted accordingly.
  • Rely on the business strategic location to attract customers going about their businesses in the downtown Manhattan area.
  • Zee Cleaners emphasizes on provision of top-notch quality window cleaning services especially focusing on tiny areas other service providers may tend to ignore.
  • Offering regular visits to customer premises as well as offer free advice on how to take care of windows and maintain hygiene standards.

6.3 Sales Forecast

Zee Cleaners intends to focus on fully implementing the above sales strategies and keep a close eye on its financial performance to ensure annual sales targets are achieved. The business strongly believes in its strong, well-structured and unique business model to grow its customer base. The window cleaning business has forecasted it will positively grow its annual sales as it seeks to establish a footprint on the market.

The window cleaning business intends to achieve annual sales margins described in the section below. The tables and column charts elaborate more about Zee Cleaners sales forecasts. With this information, it is easier to determine what kind of sales margins the business intends to achieve.

Window Cleaning Business Proposal - Unit Sales

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Residential Window Cleaning320,000350,000400,000
Commercial Window Cleaning210,000230,000260,000
Retail Window Cleaning240,000290,000340,000
Carpet and Blind Cleaning300,000340,000370,000
TOTAL UNIT SALES1,070,0001,210,0001,370,000
Unit PricesYear 1Year 2Year 3
Residential Window Cleaning$150.00$170.00$190.00
Commercial Window Cleaning$80.00$100.00$120.00
Retail Window Cleaning$130.00$150.00$170.00
Carpet and Blind Cleaning$200.00$220.00$240.00
Sales
Residential Window Cleaning$300,000$350,000$400,000
Commercial Window Cleaning$250,000$300,000$350,000
Retail Window Cleaning$90,000$130,000$170,000
Carpet and Blind Cleaning$350,000$400,000$450,000
TOTAL SALES
Direct Unit CostsYear 1Year 2Year 3
Residential Window Cleaning$2.20$2.50$3.70
Commercial Window Cleaning$1.30$2.30$3.10
Retail Window Cleaning$1.60$2.60$3.00
Carpet and Blind Cleaning$2.70$3.80$5.10
Direct Cost of Sales
Residential Window Cleaning$200,000$220,000$240,000
Commercial Window Cleaning$60,000$90,000$120,000
Retail Window Cleaning$27,000$32,000$45,000
Carpet and Blind Cleaning$50,000$55,000$60,000
Subtotal Direct Cost of Sales$337,000$397,000$465,000

Personnel Plan

Zee Cleaners seeks to employ highly trained, experienced and dedicated staff to support its operations. Given the nature of the business, the team will consist of diverse backgrounds and expertise but will work collectively as a team to achieve business targets. When starting your own window cleaning business, you need to identify key staff needed to run the enterprise on a daily basis. The following staff will be employed at Zee Cleaners in various capacities.

7.1 Personnel Plan

Zee Cleaners is owned and managed by Mary Morrison who will be the business manager. In this business setup, the business will have a manager, 1 cashier, an administrator, one assistant manager, two marketing executives, one customer care executive and ten cleaning staff. After going through rigorous interviews, successful applicants will undergo intensive on-job training before beginning to work.

7.2 Average Staff Salaries

In the first three years, Zee Cleaners has planned to pay its staff the following average salaries.

 Personnel Plan   
Year 1Year 2Year 3
Manager$100,000$105,000$110,000
Cashier$32,000$35,000$38,000
Administrator$35,000$37,000$39,000
2 Sales and Marketing Executive$68,000$72,000$80,000
Customr Care Executive$20,000$25,000$27,000
10 Cleaners$200,000$250,000$300,000
Assitant Manager$52,000$55,000$57,000
Total Salaries$507,000$579,000$651,000

Financial Plan

Zee Cleaners has formulated a comprehensive financial plan that will see the business fully realize its mandate. The window cleaning business will be financed by Mary Morrison and two additional investors. The available funding will be supplemented by a loan the business intends to offset within the first three years of opening. This is a breakdown that indicates the various parameters associated with how to start a window cleaning business.

8.1 Important Assumptions

Zee Cleaning has computed its financial breakdown and expectations based on the assumptions indicated below.

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate11.00%13.50%15.10%
Long-term Interest Rate6.00%6.00%6.00%
Tax Rate12.00%14.00%16.00%
Other000

8.2 Brake-even Analysis

Zee Cleaners has used the following Brake-even Analysis for purposes of financial analysis.

Window Cleaning Business Proposal - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even10000
Monthly Revenue Break-even$420,000
Assumptions:
Average Per-Unit Revenue$200.40
Average Per-Unit Variable Cost$1.60
Estimated Monthly Fixed Cost$450,000

8.3 Projected Profit and Loss

The information below depicts the Profit and Loss data for Zee Cleaners which has been calculated on both a monthly and annual basis.

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Sales$600,000$700,000$800,000
Direct Cost of Sales$40,000$60,000$80,000
Other$0$0$0
TOTAL COST OF SALES$40,000 $60,000 $80,000
Gross Margin$200,000$250,000$300,000
Gross Margin %70.00%74.00%80.00%
Expenses
Payroll$200,000$185,000$405,000
Sales and Marketing and Other Expenses$40,000$60,000$80,000
Depreciation$20,000$30,000$40,000
Leased Equipment$0$0$0
Utilities$50,000$70,000$90,000
Insurance$12,000$14,000$16,000
Rent$40,000$42,000$44,000
Payroll Taxes$20,000$25,000$32,000
Other$0$0$0
Total Operating Expenses$320,000$350,000$400,000
Profit Before Interest and Taxes$30,000$40,000$50,000
EBITDA$10,000$20,000$30,000
Interest Expense$0$0$0
Taxes Incurred$25,000$33,000$36,000
Net Profit$120,000$215,000$230,000
Net Profit/Sales20.00%30.00%40.00%

8.3.1 Monthly Profit

Window Cleaning Business Proposal - PROFIT MONTHLY

8.3.2 Yearly Profit

Window Cleaning Business Proposal - PROFIT YEARLY

8.3.3 Monthly Gross Margin

Window Cleaning Business Proposal - GROSS MARGIN MONTHLY

8.3.4 Yearly Gross Margin

Window Cleaning Business Proposal - GROSS MARGIN YEARLY

The following table shows an analysis of the Profit and Loss data for Zee Cleaners.

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Sales$600,000$700,000$800,000
Direct Cost of Sales$40,000$60,000$80,000
Other$0$0$0
TOTAL COST OF SALES$40,000 $60,000 $80,000
Gross Margin$200,000$250,000$300,000
Gross Margin %70.00%74.00%80.00%
Expenses
Payroll$200,000$185,000$405,000
Sales and Marketing and Other Expenses$40,000$60,000$80,000
Depreciation$20,000$30,000$40,000
Leased Equipment$0$0$0
Utilities$50,000$70,000$90,000
Insurance$12,000$14,000$16,000
Rent$40,000$42,000$44,000
Payroll Taxes$20,000$25,000$32,000
Other$0$0$0
Total Operating Expenses$320,000$350,000$400,000
Profit Before Interest and Taxes$30,000$40,000$50,000
EBITDA$10,000$20,000$30,000
Interest Expense$0$0$0
Taxes Incurred$25,000$33,000$36,000
Net Profit$120,000$215,000$230,000
Net Profit/Sales20.00%30.00%40.00%

8.4 Projected Cash Flow

Below is a detailed breakdown for Zee Cleaners showing the pro forma cash flow, subtotal cash spent, subtotal cash spent on operations, subtotal cash from operations and subtotal cash received.

Window Cleaning Business Proposal - Projected Cash Flow

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$520,000$570,000$610,000
Cash from Receivables$82,000$100,000$125,000
SUBTOTAL CASH FROM OPERATIONS$605,000 $670,000 $735,000
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$508,000 $605,000 $720,000
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$200,000$220,000$240,000
Bill Payments$150,000$200,000$250,000
SUBTOTAL SPENT ON OPERATIONS$350,000 $420,000 $490,000
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$350,000 $450,000 $550,000
Net Cash Flow$120,000$150,000$180,000
Cash Balance$230,000$280,000$330,000

8.5 Projected Balance Sheet

Zee Cleaners has prepared its Projected Balance Sheet with key financial information such as startup capital, assets, liabilities, current liabilities and long-term assets.

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 3
Current Assets
Cash$480,000$420,000$460,000
Accounts Receivable$105,000$120,000$150,000
Inventory$30,000$45,000$60,000
Other Current Assets$30,000$30,000$30,000
TOTAL CURRENT ASSETS$645,000 $615,000 $700,000
Long-term Assets
Long-term Assets$100,000$120,000$140,000
Accumulated Depreciation$130,000$150,000$170,000
TOTAL LONG-TERM ASSETS$20,000 $10,000 $5,000
TOTAL ASSETS$230,000 $250,000 $310,000
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$150,000$180,000$210,000
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
SUBTOTAL CURRENT LIABILITIES$150,000 $180,000 $210,000
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$120,000 $140,000 $170,000
Paid-in Capital$250,000$250,000$250,000
Retained Earnings$250,000$500,000$750,000
Earnings$1,000,000$1,200,000$1,400,000
TOTAL CAPITAL$600,000 $630,000 $760,000
TOTAL LIABILITIES AND CAPITAL$150,000 $280,000 $440,000
Net Worth$320,000$450,000$580,000

8.6 Business Ratios

The following table data for Zee Cleaners shows the ratio analysis, business net worth and business ratios for the window cleaning business.

 Ratio Analysis    
Year 1Year 2Year 3INDUSTRY PROFILE
Sales Growth10.00%20.00%30.00%5.00%
Percent of Total Assets
Accounts Receivable8.00%6.00%5.00%9.00%
Inventory5.00%3%2.50%10.00%
Other Current Assets4.00%3.10%3.95%25.00%
Total Current Assets100.20%110.10%120.30%44.00%
Long-term Assets-5.00%-16.00%-20.00%30.50%
TOTAL ASSETS90.00%90.00%90.00%90.00%
Current Liabilities6.00%5.00%4.50%20.50%
Long-term Liabilities0.00%0.00%0.00%22.50%
Total Liabilities6.10%2.00%1.50%40.10%
NET WORTH100.20%90.00%80.50%32.00%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin60.00%62.00%70.00%0.00%
Selling, General & Administrative Expenses50.00%55.00%52.00%60.00%
Advertising Expenses5.00%3.00%1.50%3.20%
Profit Before Interest and Taxes24.00%28.00%30.20%2.50%
Main Ratios
Current1814101.7
Quick322520.31.5
Total Debt to Total Assets5.05%3.00%2.55%50.00%
Pre-tax Return on Net Worth70.00%80.00%82.50%3.20%
Pre-tax Return on Assets54.30%48.00%56.00%6.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin12.00%15.20%20.00%N.A.
Return on Equity40.00%44.00%48.00%N.A.
Activity Ratios
Accounts Receivable Turnover568N.A.
Collection Days8995103N.A.
Inventory Turnover182025N.A.
Accounts Payable Turnover9.21215N.A.
Payment Days232323N.A.
Total Asset Turnover3.63.43.2N.A.
Debt Ratios
Debt to Net Worth0-0.06-0.04N.A.
Current Liab. to Liab.000N.A.
Liquidity Ratios
Net Working Capital$400,000$420,000$440,000N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.550.580.35N.A.
Current Debt/Total Assets6%4%3%N.A.
Acid Test283032N.A.
Sales/Net Worth2.432N.A.
Dividend Payout000N.A.