BAHIRDAR UNIVERSITY

B.I.T
FACULTY OF CIVIL AND WATER
RESOURCE ENGINEERING

‘IT’S Not clean until we say its clean’

GROUP 6A
Name Id

‘TSEDET’ Segni Mulatu………… BDU0801221UR

Getnet Molla….......BDU0800825UR

CLEANING AND Ephrem Tamiru…….BDU0800704UR

Fasil Mulugeta…...…BDU0800749UR

GARDENING
FEASBLITY STUDY
 Description of the business
 The building cleaning service and gardening provision will certainly make
money since there are no other companies out there providing this service in a
compressive manner as we intend to.
 As we all know the construction business is highly growing industry especially
in the cities which at end of their construction these large buildings require
intensive cleaning before they are opened for business and our company will
take contracts of this buildings whole cleaning process and get them ready for
inauguration.
 In addition, we take cleaning and gardening contracts for existing buildings
government and private institution hospitals, hotels etc….
 Our company will include highly trained professional, dependable and signed
cleaners equipped with the latest cleaning technologies.
 The services we provide include cleaning services before during and right after
the construction process is finished. And also we take cleaning contracts for
buildings government and private institutions, schools, hospitals, hotels etc.
other part of our services include gardening. All the service will be provided
via contract.
 The cleaning process will be guided with the latest cleaning technologies and
highly professional staff members with great work discipline.
 We currently hope to make the companies HQ in Addis Ababa since our
services are highly required in the capital for the time being and all the raw
materials and equipment’s and machineries we require are also widely available
there. However, we also see great potential in other cities but currently the best-
suited site is our capital Addis Ababa.
 The list of materials we may require may include
1. Vans
2. various chemicals like furniture polish, glass cleaner,
multipurpose cleaner, disinfectant, degreaser, bleach,
etc...
3. Standard and hi tech cleaning equipment's like electrical
cleaners
4. And gardening equipment
 The other input the company will be using will be man power and create jobs
for people and as the company grows more jobs will be created.
 The economic impact the company will have on the local community will
include job creation opportunity for the local youth hence improving the life
standard of the youngsters and their substantial communities as well.
 There will be almost zero environmental impact if there is it will be a positive
one.

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 Market feasibility
 The company at its startup stage will be smaller than what will be possible in
the near future having equipment's, vehicles, various cleaning chemicals and
staff members but will gradually grow into being the biggest and the first
company to take on cleaning services in this grand scale.
 The future direction of the company is to grow as big as possible nation wise
and be the front runner in the cleaning industry with top of the line service and
service quality and work discipline.
 As the amount of contracts gained increases, the company will undergo various
changes and restructuring and also this restructuring will take place when the
company goes nationwide.
 If not already clear the part of the market pie we are targeting will be newly
constructed building owners whose structure can be at various stages; thus
requiring various forms of cleaning,The other stream of the services we provide
will include cleaning services for various already established governmental and
none governmental institutions like hotels, hospitals and resorts and also
gardening jobs.
Estimated market segment

cleaning before
finishing and while
cons. 15%

Inaguration clean
gardening
up 40%
15%

cleaning of gov'tal
&
non gov'tal insti.30%

 The concentration in this field of business is almost close to none except for
very few people under the governments small enterprise institutions.

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 In addition, we strongly believe that this very small competitors lack the vision
and the capacity of what we intend to do. They have a limited vision of what
can be achieved in this line of business.
 The inputs which our company requires are in various forms ranging from vans
and cleaning machineries to chemicals and equipment's which is highly
available in the market with various providers. With prices differing slightly
and since when the company grows this will be in high and large demand prices
may drop when bought in large and constant quantities.
 The prices this very few competitors of small enterprises ask for their services,
is the traditionally low prices and the services they provide are also traditional,
hence only connecting the man power or cleaners with the institutions while the
institutions provide the cleaning equipment, attention is not paid to the type and
quality of services hence making their services of lower in price and quality. As
discussed earlier our company provides various types of cleaning services
maintaining quality, using state of the art cleaning equipment and also carrying
a legally binding contract document. Also providing the hardest task of all
providing cleaning services to buildings for which construction has just been
completed. And during the construction phase.
 The demand for this particular service is high as known since hygiene has
become one of the greatest needs of human beings and with the construction
industry highly growing the need for cleaning of various structures and getting
them ready for inauguration has become high in demand and also various
governmental and private institutions also have high demand for this service,
the difference of our company is it provides its cleaning service to clients with
such grand scale service ;with the highest qualities using the latest technologies
and trends using highly efficient staff and also providing the security the clients
demand by providing a legally binding contract document between our
company and the clients. And thus providing a cohesive cleaning service
required by our esteemed customers.
 The business idea we are proposing has a constantly growing demand
nationwide as buildings and the general industry grows and also for currently
established institutions like offices, hospitals, hotels etc...
 We think branding of our company is possible keeping in mind our goal is
achieved and we become the go to company for leasing professional cleaning
services.
 We estimate that the sales for our particular services will be high as discussed
earlier due to the high market demand for our services and which keeps
growing every day.
 We estimate the usage of our services and that our market shares to be large
since our company is the first in this line of business of such grand scale.

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 We expect our market share of the services to be 85-95%
 And we also expect our company value to increase following the footsteps of
the construction industry, which is highly growing and requires our services
highly and we can safely say it’s in high demand currently in various cities of
our country.
 Since cleaning is required before during and after construction is commenced, it
is also required before finishing work takes place and after our companies’
services will be in high demand.
 We also take contracts of cleaning various governmental and non-governmental
buildings including gardening, site clearing.
 We estimate by the time the company is fully operational we will also under take
jobs like plumbing contracts and various other cleaning and maintenance services
required under the shade of one grand company.
 The potential buyers of our services include owners of various newly
constructed towers, government institutions like hospitals, schools and also
private owned institutions like hotels, resorts, and also others
 We will introduce our services using various marketing schemes starting from
various forms of commercials to providing introductory packages and also by
personally approaching our customer base which is essential. And also via
creating websites internet ads and utilizing the current trend of social media
marketing.
 Following diagram shows our services life cycle simplified.

services
are
provided

contract
signing Payments
from clients
with are realesed
clients

Inventory is
checked

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 Technical feasibility
 We estimate that for starting the company the size of the location for our HQ
needs to be of larger space including parking’s for the required vehicles and
office up to 1000m2 area is required. If not a lesser area could also be utilized
for starting and with the growing of the business and the company larger areas
might be bought or leased whichever is necessary.
 The limitations or constraints our company might face is since it’s a new kind
of service provision in its kind building the trust of our customers; lack of
getting the required amount of area for the companies’ HQ, Getting the required
amounts of technologically advanced cleaning equipment’s, chemicals, and also
various taxation laws from the government and also polices developed will be
of the greatest constraints our company will face.
 Our company will have sufficient access to market because this area of service
provision with this scale is new therefore we will be almost the only ones for
the customer pool we intend our services for.
 The raw materials and equipment’s required will range from cleaning chemicals
to high tech vacuum cleaners and various cleaning equipment’s, man holding
structures for cleaning windows of high rise buildings. The one equipment
requiring a larger investment will be buying of, vans, which are required in
larger numbers but to start three vans, will be bought and as the company grows
their number will also increase, hence the reason for larger space requirement
stated above.
 One of the reason, which makes our company interesting, is its requirement of
labor that is aiding in job creation. Labor is required from professional cleaners,
gardeners, window cleaners for high rising buildings, office workers/blue
collars which will include accountants, marketers, etc….and as the company
grows the requirement of employees with this type of skill also increases.
 Our company will provide chemicals, equipment’s, vehicles and our customers
will provide the electricity and water required for our services.
 The services we provide will have almost zero environmental impact and in
some cases helping the environment in our gardening line of work for resorts,
hotels and parks.
 There are various incentives provided for entrepreneurs by the government but
this money will not be enough for our startup company therefore for equity we
will be considering partnership or even a corporation after we put together our
business plan.
 We think that the community will be highly receptive to our company since it
provides many jobs, and has almost zero impact to the environment of the
community.

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 Estimation of raw materials and equipment’s required at
starting stages

Raw materials Amount Equipment Amount

5
Cleaning chemicals 2000kg Vacuum machine
4
Bleach 1000li Pressure
washing
Mops, brushes 300-500 machines
Dust bans 2
varies Steam cleaner
Rubber gloves 4
varies Dust
Hard floor and carpet remover/blower
Maintenance supplies 1
(floor striper, floor finish
Man holders,
Detergents, spotters, varies
protectors scissor lift
Rinses and others) 300
Land 1000m2 Buckets
2000m
Office Hoses
equipment Amounts 500
Tables 50 Dust bans
Chairs 60 300
Computers 30 Scrub brushes
Shelf 30 and pads
Paper 100 packets 200
Printer 15 Protective
Copy 8 eyewear
machine 100
Dust mask

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Labors type Amount

Janitors 500 Window Varies

washing
High rising 170
window
equipment’s
cleaners (bucket
Gardeners 60 , strip washer,
squeegee,
Small machine 40 scrapers
operators ,steel wool,
After extension
construction 500 poles)
cleaners
50
Temporary variable
labors
Step ladder

Extension 50
ladder

Garbage bins 100

Scissor lift 2

Managerial Auto, 20
employees Amount scrubbers,
General manager 2 burnishes
Accountant 5
Marketing 20
Vans 6
Customer service 30
officers
Security 4
Office janitors 5
Receptionist 4
Purchaser 10
Human resources 10
Lawyers 2

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 In addition, this labors and managerial employees will be of the required
professional level to give our customers the promised level of service.
 The above listed all raw materials, equipment’s and cleaning machineries and
required vehicles are highly available in the market with various types of
companies providing them therefore lack or in availability of raw materials,
equipment’s and vehicles is highly unlikely.
 The other input that our company requires in large numbers is labors and other
types of office employees, both are highly available and with this regard, our
company will face almost no challenges.
Financial feasibility
 The following table shows the total estimates that our company will require to
start and run the company from the first two months after establishment,
Company requirements Estimates(birr)
Raw materials 5,764,000
Equipment’s 4,000,000
Labors 5,460,000
Management staff 2,282,000
Office equipment 692000
Contingency cash 1,000,000
Sum 19,200,000
 We estimate that the required amounts of finances that will enable the company
to take off and run smoothly for two months will be 19,200,000 birr.
 We want to make the company a partnership for now but through time make it a
corporation as we intend it will grow nation wise. In addition, the finances
required will be adopted from investors who are interested after reviewing the
business plan. Also we will address various venture capitalists to see the
potential of our company.
 Based on the current policies we here that the government is developing the
government may also aid us in our finances by providing us loans, long-term
payments for vehicles and equipment’s required and other assistances available
to be provided for entrepreneurs.
 The table below will show how we will calculate or estimate our revenues
based on a 1m2 analysis we drew up.
Services Revenue price
provided 1m2(birr) Cost in 1m2
Cleaning before
finishing is conducted 6 3
During construction 5 3
Final cleaning before
inauguration 8 4
Gardening services 6 3

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 Normal cleaning 6 3
services

 For the first three or four month we expect our company to simply even out the
costs and the revenues, we will start to expect profit right after the fourth month
fiscal mark. After the sixth month we are in business, we expect a monthly
profit income of minimum 150000.and a steady profit growth in the next five to
ten years.
Capacity Estimation
 In the following small example, we try to show the capacity of our company in
two services listed above the normal cleaning and cleaning before inauguration
of the structure.
 For this capacity estimation we took
 20m2 area of a room
 A floor containing 20 rooms
 A building containing 22 floors
 6 janitors are required for the normal cleaning of
2 floors and contracts taken will be 8buldings
 10 after construction cleaners with variable
temporary daily labors, and contracts taken will
be 5 buildings
Normal cleaning service After construction cleaning service

2floors=6janitors 2floors=10cleaners
21floors=x 21floors=x
63 janitors are required for the building 105 cleaners are required
8 63=504 janitors are required 105 4=420 cleaners req.
Cost for 8 bldgs=138600 cost for 5 bldgs=168000
Revenue from 8 bldgs=403200 revenue from 5 bldg=336000
Gross profit=264600 Gross profit=168000

 The above simple example is intended to show the estimated capacity of our
company in the two major streams of services provided.

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 Managerial feasibility
 We propose the legal structure of our company to start with small partnerships,
and grow to be a corporation. That is the final goal of our company to be a
corporation with transferable shares and having a continued or uninterrupted
succession life; we also think branding of our company is also achievable and
growing with various investors, as a corporation will help us reach our goal.
 We do not think the job pool lacks top skilled managerial staff members and
through our screening process, we will select the best of the best, which we
hope will aid highly in the futurity of the company.
 There are also many business consultants out there, which could help, is
realizing the opportunities and increase the confidence of our investors.
 We the founders of the business and the company are highly motivated
individuals with clear visions and goals set to be the next biggest cleaning
company in the nation, and are determined to see this vision in action.
Study conclusion
 After conducting all of the feasibility studies above, we the founders of this
company believe in proceeding in the creation of the company and the intended
services we provide.

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