OFFICE AND FLOOR CLEANING SERVICES

Introduction
Floors of various buildings are always exposed to a lot of dust, chewing gum, graffiti, rubbish and dirt. There is need to keep on cleaning the floor as a way of living in a healthy environment. In Kampala, there are many offices which employ people on either temporary or permanent basis as office cleaners but they do lack the right equipment, materials and skills to execute their duties. Therefore, by using modern machines and materials, the project can be a very lucrative one. The project idea has been designed with a good understanding of the service sector especially in cleaning services targeting offices and building floors. An estimated fixed capital of 30,635US$ when injected into the project together with operating costs of 135,267US$, can realize an estimated revenue of 400US$ in the first year of operation.

 

Market Analysis
Cleaning services are needed by many organizations which are employing office cleaners with little skills and equipment to handle complicated materials to clean such as gum materials. Extending services to cleaning hospitals can really increase the project revenue.


Process of Executing the Service
The required detergents like chewing gum removal, graffiti removal, scouring powder, omo and soap etc. together with water in certain cases are used to clean the floors, and dust blowers can also be used in blowing off the dust in carpets or using a carpet cleaning machine and later spray detergents can be applied.


Investment Scale, Capital Requirements and Equipment
The investment scale largely depends on the project objectives, and work coverage prospects. The basic required equipments are as shown in the table below
Capital Investment Requirements in US$

Capital investment item

units

Qty

unit
cost

Total

Floor scrubber

No

4

600

2,400

Dust blower

No

3

750

2,250

Carpet cleaning machine

No

3

1,200

3,600

Delivery van

No

2

7,000

14,000

No

2

550

1,100


Steam cleaning equipment

No

4

1,050

4,200

Wipers

No

7

105

735

Furniture and fittings

No

-

-

1,450

Buckets

No

36

25

900

Total




30,635


Production and Operating Costs
Direct Materials, Supplies and Costs in US$

Cost Item

Units

Unit
cost

Qty/day

Prod
cost/
day

Prod
cost/
month

Prod cost
/yr

Direct Costs







Chewing gum &
graffiti removal
detergents

Ltrs

9

7

63

1,638

19,656

Water

Ltrs

0.005

400

2

52

624

Cleaning
detergents& spray
perfumes

Ltrs

5

16

80

2,080

24,960

Window wood Kiln

Ltrs

6

9

54

1,404

16,848

Sub-total

432

199

5,174

62,088



General Costs(Overheads)







Gloves Uniforms

140

1,680





Labor

4,100

49,200





Utilities

87

1,040





Administrative expenses

183

2,200





Rent

500

6,000





Fuel

350

4,200





Miscellaneous expenses

100

1,200





Depreciation

638

7,659





Sub-total

6,098

73,179





Total Operating Costs

11,272

135,267





1) Production costs assumed 312 days per year with daily capacity of cleaning 20 offices.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
3) Direct costs include materials, supplies and other costs that directly go into production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.

Project Product Costs and Price Structure in US$

Service

Office
cost/day

Office
cost/yr

Office
 cost

Total
cost/yr

Service
charge

Total Revenue

Office
Cleaning

20

6,240

21.68

135,267

35

218,400

 

Profitability Analysis Table

Profitability Item

Per Day

Per Month

Per Year

Revenue

700

18,200

218,400

Less: Production &Operating Costs

235

6,098

135,267

Profit

465

12,102

83,133