Business Venture Preparation MGT/465 Version 2 University of Phoenix Material Business Venture Preperation Part One: Business Venture Preparation The business our team chose is: House Cleaning Business – “A1 Cleaners” Our justification for choosing this business is: The house cleaning industry allows for flexilibity in working hours, no need for a real office space, staffing can consist of several on-call employees, and the need for house cleaning will always be around. ▪ List each team member’s name and the role that they will be playing on the Business Start-up Team. ▪ Team member roles should accurately define the expertise each member contributes to the development of the business venture. Team members can possess more than one expertise. Team Member CEO CFO VP of Operations Team Member Kimmek a Lawren ce Team Member Michael Vuong Team Member Tami Royse Team Member Team Member Team Member Kimmeka Copyright © 2016 by University of Phoenix. All rights reserved. 1 Business Venture Preparation MGT/465 Version 2 VP of Finance VP of Marketing Head of IT Role Respond to the following questions regarding team member commitment to the business venture: 1) Discuss and document if the business venture will be a full-time commitment or will start-up team members commit to part-time involvement. It will be part-time involvement. Each member of the team will have their own role and responsibilities and update other team members through Google Docs and weekly meetings. Team members all have days they must be “on” and present to support cleaning staff in their on-site assignments. As the business grows and there are multiple cleanings happening daily and more regularly, there may be a need for more hours of commitment to the business itself, but that won’t occur until there is enough business and money coming in to warrant it. 2) Discuss and document how the team members will get buy-in from family members to enter into this business venture. Family members will get a discount on cleaning. This will help family members see first hand the quality of the cleaning. Family members will also be able to participate in a referral program that will help these family members make money themselves. Lastly, our internal team will work on diagrams and stats to show the potential of the business itself over the course of time. Copyright © 2016 by University of Phoenix. All rights reserved. 2 Business Venture Preparation MGT/465 Version 2 Part Two: Market Research Complete the following template based on the team’s marketing research results for your business venture: Marketing Element Consumer Need for Product or Service Economy of Seattle Research Results House and office cleaning Street Cleaning Target Market Seattle has an unemployment rate of 3.1%. The US average is 3.9%. Seattle has seen the job market increase by 2.6% over the last year. Future job growth over the next ten years is predicted to be 43.8%, which is higher than the US average of 33.5%. Tax Rates for Seattle - The Sales Tax Rate for Seattle is 10.1%. The US average is 7.3%. - The Income Tax Rate for Seattle is 0.0%. The US average is 4.6%. - Tax Rates can have a big impact when Comparing Cost of Living. Income and Salaries for Seattle - The average income of a Seattle resident is $44,167 a year. The US average is $28,555 Consumer Demographics Barrier to Entry Current Market Saturation Suppliers Legal Business Structure to be used and justification ("Seattle, Washington Economy", N.D.) Families in suburban areas Downtown Seattle businesses and office spaces Business Executives with homes in the Seattle Area Industry Research Cleaning businesses are more known as a “word of mouth” type business. A Google search shows well over 50 cleaner-type businesses in the Seattle area Copyright © 2016 by University of Phoenix. All rights reserved. 3 Business Venture Preparation MGT/465 Version 2 for selection Government regulations to be Considered-Local, State, and Federal Types of Insurance to Consider Business License and Registration Obtaining Employer Identification Number (Business.wa.gov, 2019) - Bonding Insurance – Protects business from fraudulent/dishonest acts committed by employees while at customer’s property -Liability – Covers personal injury/property damage caused by business -Commercial Auto – Covers company vehicle used to travel to/from job sites and transport work supplies -Housekeeper Surety Bonds – Reimburses clients for services that were promised but never delivered. -Worker’s Comp – Covers employee medical expenses and a portion of lost wages if employee is injured on the job. (Insureon, 2014) (Winningham, 2011-2019) Competitor Data Pricing Model Business Model Business Model Key Customers Suppliers Business Size (Annual Revenue $ ) Business Location Seattle, Washington Area Copyright © 2016 by University of Phoenix. All rights reserved. 4 Business Venture Preparation MGT/465 Version 2 Part 3: Reflection and Observations Answer the following questions: 1) What role did each team member provide to obtain business plan information? 2) What roadblocks did the team face when obtaining required information? 3) What lessons were learned during the week’s Learning Team assignment,which can be applied during the specific phase of business startup? 4) What is the team’s overall observations of this week’s assignment relative to the type of information needed to develop a comprehensive business plan? 5) How does this week’s Learning Team assignment support the Learning Objectives? Copyright © 2016 by University of Phoenix. All rights reserved. 5 Business Venture Preparation MGT/465 Version 2 References Business.wa.gov. (2019). Start you business. Retrieved from https://www.business.wa.gov/site/alias__business/876/smallbusiness-guide--start.aspx Insureon. (2014). Dusting up on business Licenses, bonds, and contracts: legal documents for cleaning businesses. Retrieved from https://buildingservices.insureon.com/resources/business-center/licenses-bondscontracts Seattle, Washington Economy(N.D.). Retrieved from https://www.bestplaces.net/economy/city/washington/seattle Winningham, J. (2011-2019). House cleaning business insurance. Retrieved from https://www.cleaningbusinessacademy.com/cleaning-service-insurance/ Copyright © 2016 by University of Phoenix. All rights reserved. 6
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