Entrepreneurial Business Operations

ENT202 SPR-2024/M-19947

Group members:
 Abdul Rehman 20221-33056
 Okasha Junaid 20221-32220
Submitted to: Sir Sardar Muhammad Nawaz
 Table Of Contents
Executive Summary:.................................................................................................................................... 3
Purpose Of Document:................................................................................................................................ 4
Brief Description Of Project & Services:...................................................................................................... 5

4.1. Three Major Digital Marketing Services for HVAC Cleaning Businesses in the USA…………………………6

4.1.1 Search Engine Optimization (SEO)........................................................................... 6

4.1.2 Pay-per-Click (PPC) Advertising................................................................................. 6
4.1.3. Social Media Marketing................................................................................................. 6

Additional Tips for HVAC Cleaning Business Digital Marketing in the USA……………………………………………….7

Critical Factors for HVAC Services Business:………………………………………………………………………………………..…..7

Geographical Potential for Investment in HVAC Cleaning (USA):…………………………………………………………..… 8

Potential Target Markets for HVAC Cleaning (USA):…………………………………………………………………………………8

9.1. Project Cost………………………………….……………………………………………………………………………………..9

9.2. Space Requirement.............................................................................................................. 10

9.2.1. Building Renovation Cost..................................................................................................... 11

9.2.2. Office Equipment ………………………….…………………………………………………………………………………….12

9.2.3. Furnitures & Fixtures …………………………………..……………………………………………………………………13

9.2.4. Vehicle Requirement ………………………………………………………………….……………………………..……..14

9.2.5. Security against Building………………………………………………..…………………………………………..…..15

9.2.6. Pre-Operating Expense……………………………………………………………………………………………………..16

Executive Summary:

The HVAC (Heating, Ventilation, and Air Conditioning) cleaning services industry encompasses a
wide range of niches, all centered around the core concept of providing customers with clean
and efficient HVAC systems. These services are essential for maintaining indoor air quality,
maximizing energy efficiency, and prolonging the lifespan of HVAC equipment. Common
services include duct cleaning, coil cleaning, filter replacement, and overall system
maintenance.

This study focuses on the establishment of an HVAC Cleaning Services Business. HVAC systems,
including air ducts, coils, and filters, accumulate dust, debris, and allergens over time, leading to
reduced efficiency and potential health hazards. The proposed business will offer
comprehensive cleaning services to residential, commercial, and industrial clients to ensure
optimal performance and air quality.

The target market for the HVAC Cleaning Services Business includes homeowners, building
managers, facility maintenance departments, and industrial facilities. Services will be tailored to
meet the specific needs of each client, ranging from one-time cleanings to regular maintenance
contracts.

The proposed business will require investment in equipment such as high-powered vacuum
systems, rotary brushes, and specialized cleaning agents. Additionally, skilled technicians
trained in HVAC system cleaning procedures will be essential to delivering high-quality services.

The HVAC Cleaning Services Business will be established in a strategically located facility,
equipped to accommodate equipment storage, administrative offices, and training facilities.
The initial investment for the project is estimated at [INSERT AMOUNT], including equipment
procurement, facility setup, and working capital.

The proposed project will create employment opportunities for [INSERT NUMBER] individuals,
including technicians, administrative staff, and managerial positions. With a focus on quality
service delivery and customer satisfaction, the HVAC Cleaning Services Business aims to
become a trusted provider in the industry.
Purpose Of Document:

The objective of this pre-feasibility study is primarily to assist potential entrepreneurs in

identifying and assessing the viability of investment opportunities. The document aims to
provide a foundational analysis that could lead to significant investment decisions in the HVAC
cleaning industry. By covering various facets of project concept development, startup,
production, marketing, finance, and business management, this study seeks to equip potential
investors with the comprehensive insights necessary for informed decision-making.

The purpose of this document is to facilitate potential investors in establishing

an HVAC Cleaning Services Business by offering a detailed understanding of the
business landscape. It supports investment decisions by highlighting essential
industry practices, market trends, potential returns, and operational
requirements.

The creation of pre-feasibility reports for sectors that are either undocumented
or minimally documented gains importance as the research preceding such
reports uncovers valuable rules of thumb. These include best practices that
have been developed by existing enterprises through trial and error, as well as
industry standards that provide guidance on various aspects of setting up and
successfully managing a business.

Investors are advised to thoroughly examine the entire document and pay
special attention to the critical aspects highlighted later, which are
fundamental to any investment decision in the HVAC cleaning business sector.
This analysis aims to ensure that entrepreneurs are well-prepared to establish
and grow their business in this evolving industry.
Brief Description Of Project & Services:

This document outlines the steps for establishing an HVAC Cleaning Services Business in the
United States. This business will provide essential cleaning and maintenance services for
heating, ventilation, and air conditioning (HVAC) systems to both residential and commercial
clients. The primary goal is to enhance the efficiency and prolong the lifespan of HVAC units
while ensuring optimal indoor air quality.

The HVAC cleaning industry has seen steady growth due to increased awareness of indoor
environmental quality and energy efficiency demands. As buildings and homes continue to
prioritize clean and efficient HVAC systems, the demand for professional cleaning services has
risen. This trend reflects the growing importance of maintaining air quality and system
efficiency in the face of environmental and health concerns.

The services offered by the proposed HVAC Cleaning Business will include comprehensive
cleaning of air ducts, HVAC coils, vents, and filters, along with regular maintenance checks.
These services not only improve the air quality within indoor environments but also help in
reducing energy costs by ensuring HVAC systems operate at peak efficiency. The proposed
project will require leased office space adequately sized for administrative operations and
equipment storage. Initial capital investments will cover the costs of specialized cleaning
equipment, vehicles for on-site services, office furniture, and fixtures. The business is planned
to operate during regular business hours, providing services throughout the year.

From market research, it has been identified that duct cleaning, coil cleaning, and preventative
maintenance are the primary services in demand within the U.S. market. These services are
crucial for both achieving regulatory compliance in commercial buildings and meeting the
health and efficiency standards expected by residential customers.

This HVAC Cleaning Services Business aims to establish a reputation for reliability, effectiveness,
and professionalism in improving indoor air quality and system performance across the United
States.
4.1. Three Major Digital Marketing Services for HVAC Cleaning
Businesses in the USA:

While the provided information is about digital marketing agencies in general, here's a
breakdown of the three major digital marketing services specifically relevant to HVAC cleaning
businesses in the USA:

4.1.1. Search Engine Optimization (SEO):

 Focus on keywords like "air duct cleaning near me", "HVAC cleaning services", and
"dryer vent cleaning [city]".
 Optimize website content and local listings to rank higher in search results for these
terms.
 This drives organic traffic to your website, attracting potential customers who are
actively searching for HVAC cleaning services.

4.1.2. Pay-per-Click (PPC) Advertising:

 Run targeted ads on search engines and social media platforms like Google Ads and
Facebook Ads.
 Pay only when someone clicks on your ad, driving high-intent leads to your website or
landing page.
 Effective PPC campaigns can quickly generate leads and sales, but require careful
budgeting and management.

4.1.3. Social Media Marketing:

 Build a presence on social media platforms like Facebook, Nextdoor, and Instagram.
 Share educational content about the benefits of HVAC cleaning, showcase before-and-after
photos, and offer promotions.
 Social media helps build brand awareness, trust, and local engagement, converting followers into
customers.
Additional Tips for HVAC Cleaning Business Digital Marketing in the
USA:

 Content Marketing: Create valuable blog posts, articles, and videos about air
quality, HVAC maintenance, and the importance of cleaning.
 Email Marketing: Capture leads through website forms and nurture them with
email campaigns offering promotions and educational content.
 Online Reputation Management: Encourage customer reviews on Google My
Business and other platforms, and promptly address any negative feedback.
 Track and Analyze Results: Use analytics tools to monitor website traffic, lead
generation, and campaign performance. This allows you to refine your strategy for
better results.

By implementing these digital marketing strategies, HVAC cleaning businesses in the USA can
reach a wider audience, generate more qualified leads, and ultimately grow their customer
base.

Critical Factors for HVAC Services Business:

 Target local searches (SEO): Focus on "[city] + air duct cleaning" and similar
keywords.
 Prioritize paid ads (PPC): Use Google Ads for high-intent terms like "dryer vent
cleaning near me".
 Social media matters: Showcase before-and-after photos on Facebook,
Nextdoor, and Instagram.
 Balance digital & non-digital: Consider print ads and online review
management.
 Consistent, valuable content: Educate about air quality, benefits of cleaning,
and offer promotions.
 High-quality video marketing: Showcase cleaning process, results, and
testimonials.
  Target local homeowners: Focus on families, allergy sufferers, or pet owners
(depending on your area).
 Track & analyze results: Monitor website traffic and social media insights to
improve your strategy.

Geographical Potential for Investment in HVAC Cleaning (USA):

 Target Metropolitan Areas: Focus on major cities with high population density
and a growing housing market. These areas typically have more disposable income and
a higher likelihood of homeowners neglecting HVAC maintenance.
 Consider Affluent Suburbs: Wealthier neighborhoods often have a higher
concentration of single-family homes and residents willing to invest in preventative
maintenance.
 Research Local Market: Analyze existing competition, demographics, and
housing trends in your target area.

Potential Target Markets for HVAC Cleaning (USA):

 Homeowners: This is your primary target market. Focus on single-family

homeownership areas.
 Real Estate Agents & Property Managers: Partner with real estate
professionals to offer pre-listing cleaning services or bundled packages for new
homeowners.
 Commercial Properties: Target small and medium-sized businesses with office
buildings or retail spaces that require regular HVAC maintenance.
9.1. Project Cost:

COST ITEM COST (PKR)

Space Requirement -

Building Renovation Cost 5,000

Office Equipment 230,000

Furnitures & Fixtures 1,375,000

Vehicles -

Security against Building 25,000

Pre-Operating Cost 600,000

Total Capital Cost – (A) 938,000

Working Capital

Computer Accessories 12,500

Upfront Office Rent 40,000

Upfront Insurance Payment 3,420

Cash 500,000

Total Working Capital – (B) 555,920

Total Project Cost – (A+B) 1,493,920

9.2. Space Requirement:

The proposed project will be established in a rented building. Suitable location for setting up of
business like this can be easily available on rent. Total space requirement for the proposed
project has been estimated as 1,125 sq. feet (5 Marla).

Table 1: Breakup of Space Requirement

Break-Up Of Area % Break-Up Area (Sq. ft.)

Executive Office 11% 120

Staff Work Station 36% 400

Conference Room 15% 165

Reception/Waiting Area 13% 150

Admin & Finance 9% 100

Kitchen 8% 90

Washroom 9% 100

Total Area 100% 1,125

9.2.1. Building Renovation Cost:

There will be no cost of building construction since the business will be started in the rented
premises. However, there will be a renovation cost required to make the building ready to be
used by the business. The proposed agency requires estimated electricity load of 2 KW for
which an electricity connection under the General Supply Tariff-Commercial single phase will be
required. Cost of such electricity connection has not been considered in this document since
electricity connection is generally available in such buildings, which are offered for rent.
Building rent of PKR 75,000 per month has been included in the operating cost. Table 6
provides details of building renovation cost.

Table 2: Building Renovation Cost Detail

Cost Item Unit of Total Cost / Unit Total

Measurement Litre / / sq. ft. Cost
Area (PKR) (PKR)
/Number

Paint Cost Litre 113 750 84,375

Labour Cost Feet 11,250 15 168,750

Wall Racks Units 8 20,000 160,000

Curtains Units 4 7500 30,000

Blinds Units 4 5000 20,000

Total 463,125
9.2.2. Office Equipment:

Table 3 provides details of office equipment required for the proposed project.

Table 3: Office Equipment

Cost Item No. Unit Cost Total Cost

(PKR) (PKR)

1.5 Ton Inverter AC 5 200,000 1,000,000

Laptop Computers 4 125,000 500,000

Desktop Computers 5 50,000 250,000

Printers 2 50,000 100,000

LCD 32” 1 60,000 60,000

Water Dispenser 1 40,000 40,000

Ceiling Fan 7 8,500 59,500

Exhaust Fan 2 5,000 10,000

WIFI Router and Connection 2 10,000 20,000

 CCTV System 1 50,000 50,000

Multimedia Projector (235 1 100,000 100,000

Watts)

UPS 3 KW (Inverter) 1 100,000 100,000

UPS Battery 2 50,000 100,000

Total 34 2,389,500

9.2.3. Furniture & Fixtures:

Details of furniture and fixtures are provided in Table 4.

Table 4: Furnitures & Fixtures

Cost Item No. Unit Cost Total Cost

(PKR) (PKR)

Office Tables 4 30,000 120,000

Workstations 5 50,000 250,000

Executive Table 4 40,000 160,000

Executive Chair 4 20,000 80,000

Sofa Sets 3 50,000 150,000

Chairs for Conference Room 8 15,000 120,000

 Table for Conference Room 2 150,000 300,000

Office Chairs 13 15,000 195,000

Total 1,375,000

9.2.4. Vehicle Requirement:

Vehicle Requirement Details of vehicle are provided in Table 5.

Table 5: Vehicle

Cost Item Number Unit Cost Registration Total Cost

Cost (PKR)
(PKR) (PKR)

Motorcycle 1 170,000 1,000 171,000

Total Cost 171,000

9.2.5. Security Against Building:

Details regarding building security are provided in Table 6.

 Table 6: Security against Building

Cost Item No. Of Months Rent Per Month Total Cost

(PKR) (PKR)

Security 3 75,000 225,000

Total Cost 225,000

9.2.6. Pre-Operating Cost:

Details of pre-operating cost are provided in Table 7.

Table 7: Pre-Operating Cost

Particulars No. Hiring Before Unit Cost Total

 Year 0 (PKR) (PKR)
(Month)
Owner/SEO Expert 1 2 150,000 300,000
SEO Expert 1 1 125,000 125,000
Content Writer 75,000
Utility Charges 89,438
Total Cost 589,438