Business Plan
Of

https://www.facebook.com/help4rhire

Section 1

Aditya R

DM16102

Ferzaad

DM16117

Rashmica R

DM16134

Sindhoora S

DM16146

Sruthi V

DM16150

Acknowledgment

Our sincere gratitude goes to Dr. K. Pelly Periasamy and Mr. N. Anerudh for guiding us with valuable information and comments, and helping us make a sound business development plan.
We would also like to thank everyone who has directly or indirectly supported us in completing our business development plan.

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EXECUTIVE SUMMARY

Help4Hire is an internet--enabled startup services provider which aims to service the housekeeping needs of the IT crowd in Chennai. This venture will be a partnership amongst
Aditya.R, Ferzaad.M, Rashmica.R, Sindhoora.S & Sruthi V.Ramanan. The domain name help4hire.in will also be registered online to facilitate our business. The total capital investment would be 20, 00,000 with 25% equity and 75% debt.
The main moto of our service would to provide professional, top-notch quality services at a reasonable price and gain customers’ trust. We aim to reach a client-base of 100 at the end of our first year of operation. Our Major focus will be on the affluent, upper-middle-class, dualincome, and IT employee households. The company will be based in Chennai.
We will be providing a range of services with a tariff for each basic package. In case the requirement is different, we will provide a flexi-tariff to suit the needs of the client. Since this market has not been tapped much, we expect to reap good returns and make this an organized segment. Also we propose to attract clients from commercial quarters like event management firms, clubs, schools, colleges etc. in the long run.
By using emerging technologies and employing skilled workers, we aim to capture the market in Chennai and later expand to other metros. Within the next five years, it is the objective of the company to establish itself a market leader in this segment in the country.

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Contents
EXECUTIVE SUMMARY ................................................................................................. 3
GENERAL COMPANY DESCRIPTION........................................................................... 6
1.1 Background of the Business .................................................................................. 6
1.2. Basic Philosophy ................................................................................................... 7
1.2.1 Vision ............................................................................................................... 7
1.2.2 Mission............................................................................................................. 7
1.2.3 Objectives ........................................................................................................ 7
1.3 Legal Structure ....................................................................................................... 7
BUSINESS ENVIRONMENT ANALYSIS ........................................................................ 8
2.1 Industry Analysis – Porter’s Five Forces ................................................................ 8
2.2 SWOT Analysis ...................................................................................................... 9
SERVICES .................................................................................................................... 11
3.1 Residential Services: ........................................................................................... 11
3.2 Commercial Services: .......................................................................................... 11
MARKETING PLAN....................................................................................................... 12
4.1 Primary Research - Survey .................................................................................. 12
4.2 Target Market ....................................................................................................... 12
4

4.2.1 Geographical ................................................................................................. 12
4.2.2 Demographic ................................................................................................. 12
4.3 Positioning ........................................................................................................... 13
4.4 Marketing Strategy ............................................................................................... 13
4.5 Promotions ........................................................................................................... 14
OPERATING PLAN ....................................................................................................... 15
5.1 Quality Management ............................................................................................ 15
5.1.1 Security and Legal compliance ...................................................................... 16
5.1.2 Hiring ............................................................................................................. 16
5.1.3 Safety and security ........................................................................................ 17
5.1.4 Training .......................................................................................................... 17
5.2 Process of Delivery .............................................................................................. 17
5.3 Human Resource Plan and Job Design. .............................................................. 19
FINANCIAL PLAN ......................................................................................................... 20
6.1 Capital Structure .................................................................................................. 20
6.2 Capital Expenses ................................................................................................. 20
FUTURE PLAN ............................................................................................................. 22
REFERENCES .............................................................................................................. 23

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GENERAL COMPANY DESCRIPTION
1.1 Background of the Business
‘Help4hire’ is a startup company in the services industry which provides manpower for all sorts of domestic cleaning purposes. Our company strives to cater to the needs of the urban population of Chennai. Our primary focus will be in the fields of house cleaning, gardening, plumbing and electrical services. We would also be providing services on demand like window cleaning, carpet and upholstery cleaning, furniture dusting, restroom sanitation and other interior cleaning services. We also plan to expand it further by adding cooking, child-care, and event management to our portfolio.
People in cities spend less time at home and more time in office. The urban population of
Chennai is growing rapidly because of all the Information Technology services companies setting shop. This creates a big demand for housekeeping services as these IT professionals are high on cash but low on time. The trend of nuclear family is also spreading in city areas. For these reasons, working people are finding it difficult to manage time between household chores and working life. With this in mind, Help4hire will seek to help those who are in need of male/female helpers/helpers, who can assist them with their domestic household chores.
Our philosophy is “Start small and Aim big”. We plan to provide localized services in different areas of Chennai, starting with the IT hub in Old Mahabalipuram Road and then moving to neighboring areas. By providing best-in-class-service, we hope to rope in loyal customers and through their referrals we hope to grow into a household name in the near future.

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1.2. Basic Philosophy
1.2.1 Vision
“To service the needs of clientele through professional, first-class quality service and convenient timings and to become a top class service provider to households in India”
1.2.2 Mission
Provide excellent professional and quality cleaning services in Chennai city & steadily expand the services to the suburban areas and other nearby towns. To create a highly skilled, motivated & dedicated workforce with high level of integrity and values, so as to attain complete customer satisfaction
1.2.3 Objectives


To reach a client-base of 100 at the end of first year of operation.



To provide timely service at a very reasonable price.



To employ quality manpower.



To employ latest technology wherever possible so as to provide quality service, and reduce cost.



To achieve customer satisfaction through customer oriented services and regular feedback. 1.3 Legal Structure
We propose to register the name Help4hire Pvt. Ltd. in accordance with the Companies act 2013. This startup is a partnership amongst Aditya R, Ferzaad, Rashmica R, Sindhoora S and
Sruthi V. Help4hire is incorporated. Hence the business name will be protected in India. The domain name Help4hire.in will also be registered to facilitate our business online.
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BUSINESS ENVIRONMENT ANALYSIS
2.1 Industry Analysis – Porter’s Five Forces
The cleaning services industry is a fragmented one in India. It is mostly comprised of small startups and companies. As such there are few barriers to entry in this sector since the startup costs are low and experience required is little. Also, the awareness about such services being provided is less. So, the key for our venture to succeed lies in the marketing and awareness creation. As far as India is concerned, people employed as domestic help are not considered to be gainfully employed as they are a part of the unorganized sector. Hence, the services provided by these people go unnoticed and unrecorded. With the creation of companies such as Help4hire, an attempt is made at organizing this sector and the earnings of the people employed can contribute to the GDP and improve the employment rate
Industry Analysis using Porter’s Model
Porters 5 forces
Threat

of

Strong

Moderate

Weak

new

entrants
Bargaining power of customer
Bargaining power of supplier
Threat

of

substitutes
Competitive
rivalry within the industry. 8

Competitive Rivalry: It is moderate as the scope of market is very high and lot of different services to be offered.
Threat of New Entrants: It is high as there are not much entry barriers
Threat of Substitutes: Some services that can be substitute to our services are laundry and dry cleaners. Also the use of washing machines, vacuum cleaners and dishwashers could also pose a challenge. Hence threat is moderate.
Bargaining Power of Supplier: It is weak as the industry is fragmented and unorganized.
Also there is abundant labor.
Bargaining Power of Customer: It is very strong as they are hard pressed for time and want services at economical prices.

2.2 SWOT Analysis
Strength
Quality of service, ease of access through mobile apps, flexible pricing system and timing, easy payment options strategic location in the IT corridor of Chennai are some of the strengths of the company
Weakness
The company’s management team does not have prior experience in this field. The market is totally new and has unlimited potential. But there is lack of proper primary data and other logistic details. Also the resource base should be created from the scratch
Opportunity
Rising standard of living, changing lifestyles and more women going to work has triggered a huge demand. By the time competitors emerge, the company can establish its presence in the city and leverage benefits. The company also gets the first mover advantage.

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Threat
Building a trust factor with the clients is very important. Since it involves safety and security aspects of a household, building trust factor can take a long time as the company is a startup venture and has no brand image. Also the local agents can pose a threat as this venture may eat into their profits. Since entry barrier is low, the onus of performing well in the helperen attempt becomes even higher.

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SERVICES
The company will specialize in providing following services to households under following categories. 3.1 Residential Services:


House Cleaning



Car Washing



Dish Washing



Clothes Washing



Cook



Plumbers/ Electricians



Care Taker o Children o Old Aged o Disabled

3.2 Commercial Services:

The company also plans to provide services for event management firms, marriage functions, and any other similar requirements from clubs, offices, old age homes etc. Clients can choose the services they need. In case of any requirement for specialized people with expertise in certain area, such services will also be provided on case to case basis.
All the employees working as house cleaner, dish washer, cloth washer, cook and care taker will be trained in basic communication skills so that they can communicate easily.

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MARKETING PLAN
4.1 Primary Research - Survey
The objective of the survey would be to get answers to the following questions.


Size of the potential market in numbers.



To know the specific needs and expectation from our service



To determine the price range people will be willing to pay for each type of service.



To know the concerns people have about the service

4.2 Target Market
4.2.1 Geographical


Chennai City – Non Residential



Chennai City - Residential



Sub Urban Areas.

4.2.2 Demographic


Family size i.e. nuclear family and joint family.



Age and life-cycle stage i.e. elder people, disabled people and young people



Income ( middle and upper middle income group)

The major focus would be on


Affluent Families and Upper Middle Class Households- These households will be easier to be targeted as they will be more willing to pay for better services, trustworthiness,

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security and timely service. Such groups will be reached through word of mouth referrals and also through the clubs and gymnasiums in the area.


IT Employee Households- Households where the members of the family work with IT companies would rely on helper services due to time pressure. Such groups can be reached through referrals from IT companies and also through various councils in the companies. 

Two income households: These are families in which both the members of the family are working, they wouldn’t find time to balance work and life. These are generally low age group households where both the spouses are not interested in doing household chores.

4.3 Positioning
Help4hire will be projected majorly as a web based helper service provider focusing on the timely service and security. The ease of access and also the flexible payment options will be highlighted while positioning the service. Flexible and client’s preferred work timings, with immediate replacement of helpers will also be and add on that can be used to take an edge over the other service providers.

4.4 Marketing Strategy


Word Of Mouth Referrals



Tie Ups with Event Management Companies



Tie Ups with Apartment Associations



Contacts through the Clubs and gymnasiums in the area



Contacts through the super markets and shopping complexes in the locality

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4.5 Promotions


Referral incentives would be provided for those who refer their friends and families.



Promotions done through the councils in the various IT companies through the existing clients. 

Distribution of flyers in malls, entrances of companies, and other public places



Free trial services on random basis to households for promoting the service.



Social Media marketing through Facebook, Twitter and Blogs.

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OPERATING PLAN

Our business venture is one that will make use of the Internet & smartphone technologies as a means to help people with housekeeping needs. From the perspective of the administrators of the website/mobile application, all that would be needed would be a server framework, a couple of
PCs, of which one will be used to make sure that we have back-up data stored as contingency. In the beginning stages, it would be sufficient to operate.
We would be having an automated system where every time a client registers for our service, we would be intimated by a mail sent to our mailbox.

5.1 Quality Management
The main focus of a service-oriented business is quality of service. To ensure quality management we will ensure that following measures are taken care of
Discipline
Our service will aim at consistency in the service provided to customers. For this the company plans to focus on following aspects:


Rule book will be developed by the company and strictly implemented. This will contain norms and behavior to be followed by the employees in workplace and non-adherence penalty will also be mentioned.



Regular feedback forms will be distributed to the helpers and the customers for the improving the quality.



Helper will be changed as per wish of the customers even within a short time period

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Accessibility
The office is to be located in a central location where most of the people can access it physically. Moreover company is going to launch applications and websites where customers and potential employees can easily access. This will help company in providing quality service in following ways:


This location is as accessible to potential customers and also potential employees as this is centrally located.



Just with few clicks in the applications through their smart phones customers can get the help they wanted.



We can easily manage the application and the website with the help of few PC’s and backup databases.



Depending upon our performance in the market we will expand to more areas.

5.1.1 Security and Legal compliance
All the employees’ background will be checked for any criminal background or misdeeds. Labor rules, safety standards and proper wage structure will be followed.
5.1.2 Hiring
For getting a set of helpers, we will use the contacts that we know of, talk to them, tell them about our initiative, ask them suggest those who are good and trustworthy (in and around the OMR) and recruit them. We will also use the support of the local members who will know

16

job wanted people. All the employees will be compulsorily made to undergo a personality check to make sure that they are honest, trustworthy and reliable.
5.1.3 Safety and security
The company will give importance to safety and security of employees as well as its client. The workers will be given ID cards and uniforms. This is especially vital for image
/reputation building of the company.
5.1.4 Training


Training every year through seminars and workshops related to their work.



Coaching on customer service will also be provided to management staffs to handle and serve customers.

5.2 Process of Delivery
The company will follow the following procedure in delivering the service to its valuable customers:
Registration
The process of registration for the clients will be relatively easy as most people nowadays are tech-savvy. The process will entail giving us their following details on our website at least 2 days in advance:
Name, Email address, Residence Address, Phone Number, Choosing what kind of service they want to avail and time at which they would like to have the helper come.
The client would need to choose the package of services that they require from the basic set that we have provided on the website. The price of the services would depend on the area to

17

be covered. We would need a rough estimate of the sq. measure to be provided so we can come up with the pricing, although we would have a sample basic tariff provided.
There would be no need to make payment upfront by the client. They would be required to make the payment once the helper has completed her work. Payment can be made through our online portal/mobile app/debit or credit card at their residence.
What happens after registering with us:
After registration, we will check the availability of helpers at the time requested. If available, then we would put down their name on a timetable, and make sure that we have a person for back-up in case the primary person is unable to go for the duty.
Confirmation Process
After confirming the availability internally, we would send out a mail as well as call up the client to inform them the name of the worker who will be coming and their employee id so that the client can confirm if needed.
On the day of the duty, we will send a reminder message to the helper, and inform her regarding the address where she would need to report. First she would need to come to our office, collect the set of equipment and cash for the to and fro travel, and after that leave for work. After completing the work, the helper would need to report to us and return the cleaning equipment along with the card reader.
Once the work is completed, the helper will inform us, so that we can send out a mail to the client asking about their opinion regarding the service that they have availed, and if required a link for the online payment
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5.3 Human Resource Plan and Job Design.
Managing Director: Responsible for the overall management of the company, managing and supervision of the daily activities, bringing new clients etc.
Customer Relationship Office/ HR: Responsible for all the activities related recruitment, development and training, handling potential customers query

and existing

customers complaints.
Administrative/Account Officer: Responsible for maintaining accounts of activities carried out by the company, give salary and account other expenses, check inflow and outflow of materials and cash.
Database Operator: Responsible for recording, maintaining, data regarding all aspects right from customer to employee. He would help in decision making process and.
Position

Qualifications

Managing Director

MBA Degree with specialization on finance and work experience in marketing field

Administrative/Account Officer

Bachelors Degree with atleast 2 years of experience in related field

Human Resource/ Customer Relationship Bachelors Degree with atleast 3 years of
Officer

experience

Database Operator

Diploma IT

Supervisor

Basic Higher Education

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FINANCIAL PLAN
6.1 Capital Structure
The project doesn’t require extensive amount of capital. We propose that each of the five stake holders would be investing 1 lakhs each and a sum of 10 lakhs would be borrowed as loan.
Source

Amount

Ratio

Self-contributed capital

Rs. 5,00,000

25%

Bank loan @ 12% for

Rs. 15,00,000

75%

Total start-up capital

Rs. 20,000,000

100%

6.2 Capital Expenses
Particulars

Amount

Purchase of fixed assets

6,50,000

Preliminary Expenses

50,000

Working capital (50% of operating expenses)

13,00,000

Total start-up capital

20,00,000

Preliminary expenses include company registration, legal expenses, website setting up charges along with miscellaneous expenses borne by the investors.
Purchase of fixed assets include expenses towards buying cleaning equipment for different services like dusting, car wash, etc., furniture, computers, printers, office accessories, software packages for databases, accounting etc. and some bank deposits.
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We have set aside 50% of the operating expenses as working capital. Working capital breakup would be as follows.
Particulars

Expenses(annual)

Staff salary (For the admin team) 7,00,000
Helper salary (30 – 35 workers)

12,50,000

Rent, Advance, and others

3,00,000

Audit/Legal charges

15,000

Marketing expenses

1,00,000

Electricity, Telephone etc

70,000

Travel expenses

1,00,000

Training expenses

30,000

Miscellaneous

35,000

Total

26,00,000

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FUTURE PLAN

We plan to expand our services into other segments once we establish ourselves well


Organizations and office spaces



Schools and colleges



Housing apartment and shopping complexes

These are however distant goals which can be reviewed and revised depending on the performance and market scenario. We would however make sure that we don’t deviate from value proposition of catering to households in an easy and reliable way.
We would also look forward to introduce technical devices and gadgets so that in future there will be a direct contact between the client and the service provider, with us being the facilitator. 22

REFERENCES http://www.business.gov.in/starting_business/index.php http://www.entrepreneur.com/ http://www.doingbusiness.org/methodology/starting-a-business http://www.bplans.com/members/downloads/free-business-startup-guide/ http://www.propay.com/products-services/accept-payments/jak-card-reader/ http://www.criteriacorp.com/solution/pre_employment_testing_for_maids_and_housekeepers.ph p 23