Executive Summary

CLC Capstone: Five-Star Cleaning Services

Jessica Cisneros

Nicholas Gaudet

Cory Nicholson

Rebekah Reno

MGT-485

April 2, 2017

Business Plan Objectives

At Five-Star Cleaning Services, we are confident that setting attainable goals and objectives will help drive our business. Our goals help establish where we intend to take our business, while our objectives outline the specific steps we will take to achieve them. Thus, we have identified three main objectives within our business plan. Our first objective is to increase our customer acquisitions year over year through differentiation and advertising. The differentiation strategy is an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different in ways that are important to them (Hitt, Ireland, and Hoskission. 2015.). We will gain awareness through our use of advertising across several social media platforms including Twitter, Instagram, and Facebook. Our second objective is to maintain customer loyalty—this will be achieved through our product uniqueness and unparalleled customer service. Additionally, we offer prompt assistance to address any customer concerns, issues, and enquiries. Our third objective, entering the international market through low levels of diversification, is our long term objective. We plan to diversify our activities by creating new products and expanding into markets that are related to our current business. For example, we are working to implement a new on-the-go product line which includes a pack of chemical-free cleaning wipes, hand sanitizer, and discrete carrying case that fits in most purses and handbags.

Contingency Fund for Five-Star Cleaning Service

In as much as an organization may have accurately prepared financial plan, emergencies are inevitable. Thus any organization must prepare a contingency fund during financial planning. Unavoidable emergencies such as job losses, death, business losses as well as accident can affect a business and the most crucial thing is to have an arrangement for the needed funds without hurting the financial plan. This calls for contingency fund. To increase its revenues, an organization may expand its marketing activities and grow its capital expenditures. Finally, the company can lower its variable costs.

Components of the Contingency Plan

Handling of Liquidity

Given that liquidity is a major feature of contingency fund, Five-Star Cleaning Service will build a cash reserve by opening a savings account. According to Daft and Marcic (2006) an organization must build a cash reserve to cushion itself against any interruption as prevent any chances of tapping into its long term investments. With the cash reserve Five Star Cleaning Service can easily cover its short term expenditures.

Alternative Fund Sources

Alternatively, the company needs to establish mutual fund schemes such as flexi deposit accounts as well as short term debt schemes to finance its business activities during emergencies. Daft and Marcic (2006) asserts that an organization must strike a balance between its fixed costs, variable costs as well as sales volume.

References

Daft, R. L., & Marcic, D. (2006). Understanding management. Boston, MA: Cengage Learning.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015).  Strategic management: Competitiveness and globalization: concepts (11th ed.). Stamford, CT: Cengage Learning