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 |
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 |
Qty/day |
Prod |
Prod |
Prod
cost |
|
Direct Costs |
||||||
|
Chewing gum & |
Ltrs |
9 |
7 |
63 |
1,638 |
19,656 |
|
Water |
Ltrs |
0.005 |
400 |
2 |
52 |
624 |
|
Cleaning |
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 |
Office |
Office |
Total |
Service |
Total Revenue |
|
Office |
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 |