Business Plan On Maid Service

Business Plan
On
Kathmandu Enterprise Pvt. Ltd.
Submitted to:
Mr. Ashish Tiwari
Mr. Bishal Shrestha
Mr. Pradeep Rajopadhyay
Submitted by:
Sandarva Pal
July 23, 2012
Business Plan: Kathmandu Enterprise Pvt. Ltd.
Acknowledgement
My sincere thanks goes to the faculties of Ace Institute of Management, Mr. Ashish
Tiwari, Mr. Bishal Shrestha and Mr. Pradeep Rajopadhyay for providing me with study
material, guiding me, providing with valuable information for completion of the business
plan and helping me to make sound business development plan and giving me valuable
comments during this period.
Lastly I would like to thank everyone who has directly or indirectly supported me for
completing my business development plan
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Executive Summary
Business venture aims to provide maid facilities for busy household of urban areas of
Kathmandu valley. The venture will be conducted under the management of Kathmandu
Enterprise Pvt. Ltd. This plan will serve as the financial and operational outline and plan
for the first five years of the ventures operation. The company will obtain a loan through
commercial bank in the amount of 12, 00,000. Additionally, remaining amount of Rs. 8,
00,000 will be financed by the founder.
The concept of Kathmandu Enterprise is to provide maid facilities such cooking, cloth
washing, dish washing, house cleaning, baby and old age care to the households in
Kathmandu valley. The venture will focus on middle, upper middle and upper class
people living in both private homes and separate apartments who do not have time for
such household activities. For this sake, the company plans to advertise its service
facilities through various media and above all it will rely more on personal links and
relationships. The venture will start from the beginning of 2013. The office will be
located in Koteshwor, Kathmandu.
The concept is entirely new of its kind. Even though there are no such players with
similar concept in the market, but still some indirect competition can pose a challenge to
Kathmandu Enterprise Pvt. Ltd. and its business concept.
The market survey conducted shows the business plan to be feasible and also financial
projections for Kathmandu Enterprise Pvt. Ltd. show the potential for success and
growth in the existing market.
Total initial capital investment will be Rs. 20, 00,000 with 40 % equity contribution and
60% loan.
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Table of Contents
Acknowledgement........................................................................................................................ i
Executive Summary .................................................................................................................... ii
1.
Company Overview ....................................................................................................... 1

1.1 Background of the Business ............................................................................................. 1
1.2. Basic Philosophy ............................................................................................................. 2
1.2.1 Vision ......................................................................................................................... 2
1.2.2 Mission ....................................................................................................................... 2
1.2.3 Objectives .................................................................................................................. 2
1.2.4 Critical Success Factors ............................................................................................. 2
1.2.5 Company Values ........................................................................................................ 2
1.3 Registration ...................................................................................................................... 3
2.
BUSINESS ENVIRONMENT ANALYSIS ........................................................................ 4

2.1 Industry Analysis .............................................................................................................. 4
2.2 SWOT ANALYSIS ............................................................................................................ 5
2.2.1 Analysis of Kathmandu Enterprises Pvt. Ltd. .............................................................. 5
2.2.2 Analysis of Competitors.............................................................................................. 6
2.3 PEST Analysis .................................................................................................................. 7
3.
SERVICES PROVIDED ................................................................................................... 8

3.1 Services............................................................................................................................ 8
4.
MARKET RESEARCH AND ANALYSIS ......................................................................... 9

4.1 Primary Research ............................................................................................................. 9
4.2 Sampling Plan .................................................................................................................. 9
4.3 Research Instrument ........................................................................................................ 9
4.4 Target Market ..................................................................................................................10
4.5 Data sources ...................................................................................................................10
4.6 Survey Findings ...............................................................................................................10
4.7 Analysis ...........................................................................................................................11
4.8 Company strategy ...........................................................................................................11
5.
Company Profile ...........................................................................................................12

5.1 Form of Business.............................................................................................................12
5.2 Legal Status ....................................................................................................................12
5.3Organization Structure ......................................................................................................12
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5.4 Recruitment and Selection ...............................................................................................14
5.5 Remuneration and Compensation System.......................................................................14
5.6 Training and Retention Plan ............................................................................................14
6.
Operational Plan ...........................................................................................................15

6.1 Quality Management .......................................................................................................15
6.1.1 Safety and security....................................................................................................16
6.1.2 Training .....................................................................................................................16
6.1.3 Securitymeasures .....................................................................................................16
6.2 Process of Service Delivery and Capacity Design ...........................................................17
6.2.1 Process of Service Delivery ......................................................................................17
6.2.2 Capacity Design ........................................................................................................17
6.3 Location strategy .............................................................................................................18
6.3.1 Site Selection ............................................................................................................18
6.4 Layout Design Strategy ...................................................................................................19
6.4.1 Office layout ..............................................................................................................19
6.5 Human Resource Plan and Job Design ...........................................................................20
6.5.1Job Duties and Responsibilities..................................................................................20
6.5.2Human Resource Personnel ......................................................................................21
6.6Management of Demand and Work Load .........................................................................23
6.7 Labor Supply Management ..............................................................................................23
6.8Operation Schedule ..........................................................................................................23
6.9 Procurement ....................................................................................................................24
7.
Marketing Plan ..............................................................................................................25

7.1 Demand Analysis.............................................................................................................25
7.2 Marketing Strategy ..........................................................................................................26
7.3 Marketing Mix Strategy ....................................................................................................27
7.3.1 Service Strategy ........................................................................................................27
7.3.2 Pricing strategy .........................................................................................................27
7.3.3 Promotional strategy .................................................................................................28
7.3.4 Positioning Strategy ..................................................................................................30
7.3.5 Partnering strategy ....................................................................................................30
7.4 Growth rate......................................................................................................................30
7.5 Profitability .......................................................................................................................30
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7.6 Sales Strategy .................................................................................................................30
8.
Financial Plan ...............................................................................................................32

8.1 Capital Structure ..............................................................................................................32
8.2 Uses of Capital ................................................................................................................32
8.3 Pre-Operating Expenses .................................................................................................32
8.4 Service Revenue for the next five years ..........................................................................32
8.5 Operating Expenses for the next five years .....................................................................33
8.6 Projected Income statement for next five years ...............................................................34
8.7 Projected Cash flow Statement for the next five years .....................................................35
8.8Statement of Retained Earnings for the next five years ....................................................36
8.9 Projected Balance Sheet for the next five years...............................................................36
8.10 Profitability Ratios ..........................................................................................................37
8.11 Computation of Net Present Value (NPV) ......................................................................37
8.2 Computation of Payback Period ......................................................................................37
9.
Critical Risk and Contingencies ..................................................................................38

9.1 Internal risk ......................................................................................................................38
9.2 External risk .....................................................................................................................38
10.
Schedules and Milestones ...........................................................................................39
11.
Future Plan and Exit Strategy ......................................................................................41
11.1 Future plan ....................................................................................................................41

11.2 Exit strategy ...................................................................................................................41
APPENDIX................................................................................................................................42
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LIST OF TABLES
Table 1 : Industry Analysis ........................................................................................................................ 4
Table 2 : Capacity Plan for the next five years .................................................................................... 18
Table 3 : Total number of staffs and their salary ................................................................................. 21
Table 4 : Qualification and skills of staffs and management team ................................................... 22
Table 5 : Work Schedule of Maids ......................................................................................................... 22
Table 6 : Kathmandu metropolitan: Population, household size....................................................... 25
Table 7 : Service Rate per month for each year ................................................................................ 28
Table 8 : Marketing program and expenses ........................................................................................ 28
Table 9 : Service Revenue Forecast for next five years .................................................................... 31
LIST OF FIGURES
Figure 1 : Organizational Structure Chart ........................................................................................... 13
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1. Company Overview
1.1 Background of the Business

Kathmandu Enterprise Pvt. Ltd plans to offer various types of household chores related
services to target customers in Kathmandu through its head office. The life in
Kathmandu and other cities is getting busy; people spend less time in their home and
more at work place. Also the trend of nuclear family is catching on in city areas.For
these reasons, city people are finding it difficult to manage timing between household
chores and working life. With this in mind, Kathmandu Enterprise Pvt. Ltd will provide
the helping hand to those who are seeking helpers/maids who can assist them in
managing their domestic tasks. The clients can use any or all services provided by the
company as per their need. The company will offerits services to everyone ranging from
young professionals, elderly, busy working mums, and to disabled people in helping
them to carryout day to day cleaning is being professionally taken care of. All the staff of
Kathmandu Enterprises Pvt. Ltd will be CRB checked (Criminal Records Bureau).
Kathmandu Enterprises Pvt. Ltd is fully dedicated to make sure that the requests of its
clients will be carried out to the highest standards. Services provided by the company
allow people to get rid of the burden of having to do all the household chores by
themselves. Kathmandu Enterprises Pvt. Ltd will recruit and select female candidates;
new and experienced. They will be given orientation and training to prepare them to suit
the clients requirements. The services cover maids working as housemaids, care
takers, cooks, and nannies.
All the maids will have to work under the terms and conditions of Kathmandu Enterprise
Pvt. Ltd. They will represent the company and the company will be responsible for the
work of maids. Salaries and benefits will be given by the company as per the contract.
The current scenario shows an opportunity for Kathmandu Enterprise to provide this
kind of services to households in Kathmandu Valley
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1.2. Basic Philosophy

1.2.1 Vision
To become a top class service provider to households in Kathmandu
1.2.2 Mission
Provide excellent professional services & improve its position as a leader in this field.
Build & maintain a team motivated & committed workforce with high work ethos; Use
customer satisfaction & act as an effective catalyst for making lives of people easier and
comfortable.
1.2.3 Objectives
To provide wide range of services related to domestic chores
To provide reliable and reasonable services all year round
To create congenial working environment where all employees rights are

protected
To work towards fair competition
1.2.4 Critical Success Factors

Ensuring availability of adequate number of manpower across different locations.
Continuous improvement in quality, reduce turnover of employees, reduce costs
Increase Customer satisfaction
1.2.5 Company Values

Kathmandu Enterprises will demonstrate its values through its decisions, actions and
service it provides. The company believes putting values into practices creates long
term benefits for customers, employees and the community at large
Customer satisfaction will be the first priority which will be achieved through
customer oriented services.
Appreciate suggestions and recommendations given by customers and

employees
Regularly seek feedback from customers and improve service accordingly
All the employees can work with dignity and have gainful employment
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Abide with rules and regulations of the country
1.3 Registration
In order to register the company under the name of Kathmandu Enterprise Pvt. Ltd
some of the legal formalities are done which are as follows:
An application form is submitted along with Rs. 5 stamp at the office of the
registrar which is situated at Tripureshwor. Besides this citizenship certificate of
owner and alteast 5 people and the company register stamp is provided to the
office of the registrar
Once the company is registered the next step is to take PAN number from the In
Land Revenue Department which is situated at Lazimpat. For this necessary
documents are : Application Form, copy of the citizenship certificate of the
partners, copy of the company/firm registration certificate, two passport size
photo of the partners, hand drawn sketch of the business location
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2. BUSINESS ENVIRONMENT ANALYSIS
2.1 Industry Analysis

For the industry analysis Kathmandu Enterprise Pvt. Ltd has choose Michael Porters
industry forces model. The five forces are threat of new entrants, bargaining power of
customers, bargaining power of suppliers, threat of substitutes, and competitive rivalry
within the industry. Using these forces Kathmandu Enterprises found its business in the
following point scale.
Table 1 : Industry Analysis

Porters 5 forces
Strong
Moderate
Weak
Threat of new
entrants
Bargaining power
of customer
Bargaining power
of supplier
Threat of
substitutes
Competitive rivalry
within the industry.
Competitive Rivalry: The level of competition in the market is expected to be moderate

due to huge market and ability of each firm to differentiate its services
Threat of New Entrants: In present situation there are only informal groups providing
the service but seeing the profit making opportunity it is expected that there will be
entrance of huge number of companies trying to duplicate business plan of Kathmandu
Enterprises.
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Threat of Substitutes: There arefew services that are of close substitute to the service
provided by the company. Laundry and Dry Cleaners companies are the major
substitutes for cloth washing and old age homes and Kindergarten for Care taker
service but these are expensive compared to companys service. So the threat of
substitutes is moderate
Bargaining Power of Supplier:For Part time maids the suppliers will have weak
bargaining power since the company can directly negotiate with potential maids
eliminating suppliers role. Hence they will have weak bargaining power.
Bargaining Power of Customer: The ability to bargain for the price and quality in the
present period will be high of customers. Also with the increase in number of new
companies providing similar services will further make their bargaining power of
customers strong.
2.2 SWOT ANALYSIS

SWOT analysis helps to give the clear picture of the effectiveness of the company
strategies. For every marketing plan of the company, the marketer needs to see the
service strength, weakness, opportunity and threat.
2.2.1 Analysis of Kathmandu Enterprises Pvt. Ltd.

Strength
The Managing Director has experience in the field of marketing; finance will be looked
after by well experienced officer. The company will provide quality service within
economical price range. The service process is customer oriented and will have good
database of employees. Strength will be the consistency in the quality of the service
which creates the loyalty among the targeted customers. Location of the company
makes it accessible to both employees and customers
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Weakness
The companys management team does not have prior experience in this field. It does
not have established connection with dispersed individual maids in the Kathmandu. It
lacks better technology to maintain the record of employees and transactions.
Opportunity
The changing lifestyle of people and more inclination towards nuclear family provides
opportunity for huge demand for maid service within Kathmandu. Also there is an
increasing trend of keeping a part time maid indicating the rising living standard of
people. By the time competitors will enter the market the company will have penetrated
in the major areas of Kathmandu. Moreover, so the company can get the first mover
advantage.
Threat
The existing businesses providing substitute services like laundry and dry cleaners,
cook services and old age home centers and Kindergarten could pose a threat to the
company. Also the direct hiring of individual maids by households might reduce the
demand from the company and also customers will have high bargaining power.
2.2.2 Analysis of Competitors

In Price/Quality dimension, Kathmandu Enterprise Pvt. Ltd will be preferable than the
competitor because it is specialized in quality service. Direct competitors of Kathmandu
Enterprise Pvt. Ltd are those individuals who are involved in providing house cleaning
services, dish washing services, cloth washing services, cooking services, care taker
services individually. There are also some companies which specialize in providing
these services but only provide one or two segments of services. The indirect
competitors will be laundry and dry cleaners companiesin the market.
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2.3 PEST Analysis

The following general environmental analysis has been made from the survey.
-Political/ Legal: Political uncertainty and instability of government with the collapse
of constituent assembly can negatively affect the business plan. But favorable business
scenario for investment has increased after the agreement of the Peace process and
formal end of civil war.
The proposed company should be registered in the Company Office of Registrar and
the trademark should be taken for the product. The company should be oblique to the
legal rules and regulations. Legal rules and regulation remains changing, rules such as
tax, labor union acts can reduce the earning of company.
-Economic:With the liberalization of economy and commitment of government towards

free market economy. There has been rise in both domestic and foreign investment.
Financial sector and capital market has shown positive indication. This creates a
favorable economic environment to invest at this time.
-Socio-Cultural:The country is seeing the changing family structure and rising middle
and upper middle class. Womens participation in the job market and ageing population
is another social changes happening in the country. This can be an opportunity for the
company to commence a business.
-Technology:The advancement in the ICT has given businesses to better manage its
customer profile, transactions and relationships with key stakeholders. Nepalese
companies have realized the importance and power of having updated technology and
have focused on Product innovations, applications of knowledge, new communication
technologies. Kathmandu Enterprises can benefit from this rapid change in technology
as long as the cost of new technology is reasonable.
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3. SERVICES PROVIDED
3.1 Services
The company will specialize in providing following services to households
House Cleaning
Dish Washing
Cloth Washing
Cook
Care Taker
o Baby
o Old Aged
o Disabled
All the employees working as house cleaner, dish washer, cloth washer, cook and care
taker will do only those tasks for which they are assigned for and will be categorized
under the part time workers and will have to do all the household chores everyday
The customers will have to fill a form mentioning their need and type of service they
require. Then the company will either search the maid or assign the existing maid to the
customers service.
Customers can directly contact the company for any complaints regarding the work of
maids. Customers can discontinue the service at any time.
Company will provide service with experienced maids and train them if necessary.
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4. MARKET RESEARCH AND ANALYSIS
4.1 Primary Research

The objectives of survey of the residents of Kathmandu valley towards maid service are
to:
Identify the potential size of the market
Identify the target group for providing service profitably
To know the specific needs and expectation from our service so that their
feedback would be incorporated to design our service.
Determine the price range they will be willing to pay for each type of service.
To know the future of our service for upcoming years.
To know our potential competitors
4.2 Sampling Plan

Sampling unit
Household
Sample size
60 household from 2 wards of KTM Valley
Sampling procedure
Quota with Convenience sampling method
4.3 Research Instrument

The tool for primary data collection will be questionnaire which will be distributed to 60
households from 2 wards of Kathmandu Valley.
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4.4 Target Market

Kathmandu Enterprise have segmented its market on the basis of:
Geographical
Kathmandu Valley
Residential area (private homes, apartments and colonies)
Demographic
Family size i.e. nuclear family and joint family.
Age and life-cycle stage i.e. elder people, disabled people and young people
Income ( middle and uppermiddle income group)
4.5 Data sources

The research aims to collect the primary data. It will also use secondary databy
accessing Central Bureau of Statistics (CBS) report to get relevant data on household
survey 2012.
4.6 Survey Findings

1. Currently 38%* of the household are in need of atleast one type of maid service;
it is high among household living in apartments (46%) whereas 30% among
people living in single homes.
2. Age group of 27-59 wish to have maid service the most (77.77%) followed by age
group of 60 and above (16.66%), it is low among age group of 16-26 (5.55%)
3. Family with 3-4 members are in need of maid service the most (50%) followed by
5-6 (32.35%).
4. In occupation, private service holders are in need of maid service the most (50%)
followed by businesspersons (32.35%).
5. People with monthly income ranging 13000 to 26000 are most willing to have a
maid service
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4.7 Analysis
The survey of 60 households from two wards showed that 38% of the households need
maid service. This shows that about 3,43,891 households/families need maid service
(40,00,000/4.42=904977*38%=343891; population of Kathmandu is about 4 million and
average household size taken 4.42 from ward no. 36 of table no. 6)
The demand for the service is expected to increase annually as the survey shows high
number of working women and nuclear family with two income households.
The survey might not be representative because only 2 wards was taken as sample
from 36 total wards in Kathmandu but the statistical tools used to analyze makes it
statistically valid.
4.8 Company strategy

1. Make plans and strategy to serve the existing 38% informal maid service market
with reliable, trustworthy and reasonable maid service.
2. Target apartments which are lucrative segment.
3. Target age group between 27-59 and 60 above
4. Target private service holders and business people.
5. Design service to better suit the need of households with income ranging from
13000-17000, 18000-22000, 22000-26000 and above 26000.
*Appendix: 1.13
Primary source:
Questionnaire Survey on Peoples attitude towards maid service, Appendix: 1.1
Quota with Convenience sampling method
Researcher administered survey
Secondary Source:
Central Bureau of Statistics (CBS): www.cbs.gov.np
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5. Company Profile
5.1 Form of Business

The company will be operating in the service industry. The business model is based on
service revenue and direct sale of service. The company will be financed using debt and
equity. All the equity finance will be contributed by the owner (Sandarva Pal). It will be a
sole partnership business. The company will start in January 1, 2013; the company will
consist of management professionals with background and expertise in the related
fields.
5.2 Legal Status
The company will be registered as private limited company under the company Act
2063 by fulfilling all the legal and administrative aspects outlined by the company Act
and other administrative requirement. The owners will be personally liable for any
amount owed by the company during the transaction of the business. It will be guided
by company act and other rules and laws of the government of Nepal.
5.3Organization Structure
I, Sandarva Pal, will be the major decision maker in the overall management of the
company. I will be responsible for the overview of the overall business. I will be working
as managing director of the company. So I will be responsible for planning, goal setting,
strategy formulation and implementation and manage daily operation of the company.
The company will hire two officers; Administrative officer and Human Resource/
Customer Relationship Officer. Both the managers will be given full authority to manage
and operate their respective divisions. All are independent to formulate plans and
strategy for their divisions. However, final approval will be made by managing director
Besides maids the total number of staffs at the initial years of operation will be four. All
the staffs will be made permanent within two months of work in the organization.
The detailed organizational structure of the company is as follows:
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Figure 1 : Organizational Structure Chart
Managing Director
Administrative/
Account Officer
Human Resource /
Customer Relationship
Officer
Database
Operator
Maids
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Security
Guard
5.4 Recruitment and Selection

There will be two types of staffs working for the company; permanent and part time. A
permanent staff consists of those working in the management team. They will be hired
for post like administrative officer, human resource/customer relationship officer,
database operator. Newspaper advertisement and personal referral will be used for
recruitment of these staffs. Selection will be done on the basis of review of qualification,
prior experience, soft skills (communication skills) and completion of interview.
Part time staffs consist of maids. Personal network, referrals and agents will be used to
recruit of these staffs. Selection will be done on the basis of prior work experience and
no criminal records (all the maids will be checked for criminal records by using Criminal
Records Bureau (CRB))
5.5 Remuneration and Compensation System
Permanent staffs will be paid on monthly basis and part time staffs will be paid monthly
with but on the basis of number of days worked in a month. Any permanent staffs doing
overtime (OT) work will be given additional OT payment. Part time staffs working double
shift will be paid according to the salary fixed for each type of service rendered.
5.6 Training and Retention Plan
Management team will be given training every year through seminars and workshops
related to their work. Education and coaching on customer service will also be provided
to management staffs on periodic basis to handle and serve customers. It will also cover
managing and mobilizing resources effectively and efficiently. In case of part time staffs,
they will be given 2 to 3 days of training on code of conduct and job related tasks prior
to assigning them to the work.
Remuneration package will be reviewed on an annual basis and compensation will be
provided to those who perform well in an annual performance review to ensure talents
and enthusiasts are motivated and retained.
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6. Operational Plan
6.1 Quality Management

The company will focus on continuous improvement of its service to its valuable
customers. For this the companys quality service to its customers can be defined in
terms of:
Reliability
Our service will be reliable in terms of consistency in the service provided to
customers. For this the company plans to focus on following vital aspects:
Code of conduct will be developed by the company and strictly
implemented. This will prevent any unethical activities at the workplace and
assures customers trustworthy maids at their service.
Prepare a checklist containing the type and quality of work done, time of
arrival and departure from client house which would be filled by the client
and his/her maid at the end of every month. Any inconsistency between
client and maids checklist response will be discussed. This will help to
monitor the work performance of the maids.
Households with be provided with new maid within three days of leaving by
the prior maid.
Company will take full responsibility of its maids and willing to compensate
for any damages done by maids.
Only trained maids will be assigned for service to clients. Training will be
given on both vocational (if needed) and moral aspects.
Accessible
Company will be located in area where prospective clients and staffs can easily
reach the office. For this the company has chosen Koteshwor area. This will help
company in providing quality service in following ways:
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This site location provides the best proximity to customers using public
transportation.
Customers will not have difficulty in finding the office.
The office building is situated near the main road with good infrastructure.
Office building has space (room) for expansion. This will help to setup
additional departments to better cater service to clients in future.
Courtesy
The values of the company will guide its staffs to serve the customers with
hardwork, sincerity, loyalty and devotion.
6.1.1 Safety and security

This is the most vital area where the company will focus. The company will be guided by
its efforts to cover all the aspects of safety of its customers. I believe the business
model depends on how well and safely the company will provide services with staffs
with good moral, behavior and with no criminal records. All the staff of Kathmandu
Enterprise Pvt. Ltd will be CRB checked with (Criminal Records Bureau)
6.1.2 Training
Provide one month training prior to formal operation of the service. The training
will focus on teaching maids about ways to conduct activities in an effective way.
Provide vocational training to upgrade skills of staffs
Training will highlight on need and importance of providing reliable and
satisfactory services.
6.1.3 Securitymeasures
All the staffs will be registered with the company, their criminal records will be
checked with Criminal Records Bureau and company will take responsibility of
any immoral activities of staffs.
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The well-being and security of the customers will be the companys top priority. This is
especially vital for image /reputation buildingof the company.
6.2 Process of Service Delivery and Capacity Design
6.2.1 Process of Service Delivery
The company will follow the following procedure in delivering the service to its valuable
customers:
The prospective customer will enquiry about the services provided by the
company
The enquiry will be handled by the customer relationship officer
Customers will visit the company office and talk with customer relationship
officer
Customer will fill a form mentioning the type of service they need and the
timings.
Appropriate employee (maid) will be selected and given needed training and
information on the need of the customer.
Enter into contract with the customer regarding the terms and conditions of
employment, payment procedure, benefits to maids and termination of service.
6.2.2 Capacity Design

The marketing survey entitled Peoples attitude towards maid service was conducted
among households of Kathmandu Valley. 60 households from two wards of Kathmandu
were taken as sample. Itshowed that 38%* of the households of Kathmandu Valley
need maid service.**Age group of 27-59 needs maid service the most followed by age
group of 60 and above and family with 3-4 members*** are in need of maid service the
most. With this survey in mind, the company will provide five types of services from the
beginning of its operations. However,due to manpower and capital constraints the
company will commence its service with only fraction of the actual demand for the
service by the households.
Questionnaire Survey on Peoples attitude towards maid service.
*Appendix: 1.13:, **Appendix:1.8, ***Appendix: 1.9

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From the second year the company plans to increase the number of employees by 50%
of the previous number.
Table 2 : Capacity Plan for the next five years
Year
1
2
3
4
5
House Cleaner
8
12
18
27
40
Cloth Washer Dish Washer

8
8
12
12
18
18
27
27
40
40
Cook
10
15
22
33
49
Care Taker
7
10
15
22
33
6.3 Location strategy

6.3.1 Site Selection
Being a service provider the location strategy will focus on revenue maximization. The
higher contact with clients means higher possibility of turning prospective clients into
actual clients. So the company has given careful consideration while selecting the site
location.
Factors considered while selecting the site
Office site should be located in the area easily accessible by clients and staffs
(maids) i.e. transportation facilities
The site should provide proximity to target business area
The office site should be located with room for future expansion
Office should be located on the ground or at least first floor
Office should cover space not less than900 square feetand reasonable rental
charges.
Considering all the above factors, I have selected the office site inKoteshwor,
Kathmandu.This site location provides the best proximity to customers using public
transportation. Customers will not have difficulty in finding the office. Most importantly it
provides proximity to target business area (Koteshwor is one of the most populated
wards of Kathmandu). The office building is situated near the main road and has room
for expansion. The office space meets the requirement of 900 square feet for the office
setup.
18 | P a g e
6.4 Layout Design Strategy

6.4.1 Office layout
The office layout in the case of Kathmandu enterprise is not as important to other
service providers because we cater our customers outside our office premises.
However, the company will have comfortable furnishings and reasonable ambience in
order to attract all the visiting clients and create good working environment.
Kathmandu enterprise will use a rented house of approximately 5 rooms from where to
conduct business operations.
The companys layout consists of following areas:
Managing Directors Room
Administrative/ Account Officers Room ( with database operators cabin)
Human Resource / Customer Relationship Officers Room
Maids Room
Security Guard Room
(Layout partition is shown on appendix: 5.1)
19 | P a g e
6.5 Human Resource Plan and Job Design

Kathmandu Enterprise Pvt. Ltd will be owned, managed and run by me (Sandarva Pal)
as the head and managing director of the company. The company plans to have two
major divisions/departments i.e. Administrative and Human Resource (Customer
Relationship) department to smoothly operate its daily activities.
6.5.1Job Duties and Responsibilities
Managing Director: He will be responsible for the overall management of Kathmandu
Enterprises Pvt. Ltd. and will take the responsibility of the risk associated with the
implementation and operations of venture. Besides managing and supervision of the
daily activities he will also be responsible for handling marketing/promotional of the
company and its services.
Human Resource/ Customer Relationship Officer: He/She will be responsible for all
the activities related to human resources in the organization. Recruitment, selections,
development and training are some of the responsibility performed by Human Resource
officer.
He/ She will also be responsible for managing customer relationship. The duties to be
performed will include: handling potential customers enquiry and existing customers
complaints, search for new customers, profile customers needs and maintain
communication with potential clients.
Administrative/Account Officer: Account Manager will be responsible for maintaining
accounting records of activities carried out by the company. His duty and responsibility
will be to maintain record of transactions, disburse salary and other expenses, check
inflow and outflow of materials and cash, prepare financial statements and make
forecasts of costs, revenue and profits.
Database Operator: He will be responsible for recording, maintaining, tabulating,
categorizing data on work appraisal of staffs, approving leave and adjustment of salary
and benefits. He will be responsible for the update and management of data, and
disseminate decision making information to officers and managing director. He will be
accountable to Administrative officer.
20 | P a g e
6.5.2Human Resource Personnel

Table 3 : Total number of staffs and their salary
Position
Number of Staffs
Expected Salary (Rs.)
Managing Director
20,000
Administrative/Account
15,000
20,000
Database Operator
8000
Security Guard
7,500
House cleaner
2100
Dish washer
2200
Cloth washer
10
2100
Cook
2500
Care Taker
3200
Officer
Human Resource/
Customer Relationship
Officer
Total
21 | P a g e
Table 4 : Qualification and skills of staffs and management team

Position
Qualifications
Managing Director
MBA
Degree
with
specialization
on
finance and work experience in marketing

field
Administrative/Account Officer
Bachelors Degree with atleast 3 years of

experience in related field
Human Resource/ Customer
Bachelors Degree with atleast 3 years of
Relationship Officer
experience
Database Operator
Bachelors Degree in IT
Maids
Security Guard
Table 5 : Work Schedule of Maids

Shift/type
Starting Time -Ending Time
Ending Time
1/Part time maids
6 am
9 am
2/ Part time maids
10 pm
3 pm
Shift 1/ Part time maids: It will consist of cook, dish washer, house cleaner. They will
work for three hours a day.
Shift 2/ Part time maids: It consists of cloth washer and care taker. They will work for
five hours a day.
Kathmandu Enterprises will operate throughout a week. Maids can take leave for up to
4 days a month by giving prior notice to management
22 | P a g e
6.6Management of Demand and Work Load

Part time maid: Part time workers fall under shift 1& 2 of above work schedule.
Demand for shift 1 maids will be twice than that of shift 2 maids according to the survey.
Each maid in this category can also work in shift 2 if they are able and willing. Work in
shift 2 starts from 10 pm so company can allocate maids in shift 1 to shift 2 according to
the need. The company plans to allocate about 50% of its maids to shift 2 category
Currently, the demand for shift 2 category maids is quite low. Each maid will look after
single clients need. This is a category where special skills are needed. Some of the
maids in shift 2 will come from shift 1 so a single maid can work in two places in a day.
Remaining 50% of maid need in shift 2 category will hired
6.7 Labor Supply Management

Kathmandu Enterprise will use two sources for the supply of labor.
Local Labor Supply: The requirement of personnel for the business will be fulfilled
by local labor market. The company will make use of informal channels like local
agents and also those individuals trying to find permanent job. Also it will vacancy
announcement in the appropriate media to attract the maids working in the
Kathmandu valley. It will also use informal channels to inform labor about the
employment opportunity. The company will recruit the best personnel from the
available market source.
6.8Operation Schedule
It is estimated to take about five months to carry out pre-operating activities. That
means starting from August 1 2012 the company will tentatively come into operations in
January1 2012.
Preparation for licencing
First step will be to trying to get licence to operate the business; this is expected to take
about 1 month. Documentation for licencing will take another two months. Licence
Approval is expected to take about three months
Preparation for site location
23 | P a g e
Search and evaluation of the office site is expected to take about one month.
Finalization of site will take tentatively one month. Completion of architectural layout
design will be completed within one month. Complete layout in next one month.
Marketing/ Promotion
The company will conduct all the marketing and promotional activities throughout its
operational years. Also it will carry marketing activities for first one month prior to
operation and continue for following months.
Office Supplies
Evaluation of suppliers/Sellers, Selection and Purchase of office supplies will take about
three months
Human Resource
Recruitment and selection of employees will take about four months and one month for
training.
Service
Kathmandu Enterprise Pvt. Ltd will formally begin its operation from January 1, 2013.
(Operation Schedule is shown in Appendix)

6.9 Procurement
Furniture and fixtures will be bought from MD furniture wholesalers in Maharajgunj.
Equipments will be bought from Hirand Suppliers situated in Sundhara.
Computers will be bought from Yantra Computers located in Computer Bazar,
Putalisadak. Telephone sets will be bought from Mobile Centre situated in Pako, New
road. Office Supplies will be bought from Yukti Office Suppliers, Maharajgunj. All the
items will be bought on negotiations and bargaining, bidding will not be used.
24 | P a g e
7. Marketing Plan
7.1 Demand Analysis

The demand for maid service is increasing. The market survey conducted showed that
38% of the households need maid service in Kathmandu. With this in mind, the
company plans to increase the number of maids by 50% of previous year number every
year. The market size is large but supply is less and there are only informal groups
providing such service in Kathmandu and people want a safe and reliable service from
private company. Therefore there is huge opportunity in this sector.
The demand for the maid service is related to the changing demographic and
geographical factors. The following table shows the household size in different wards
of Kathmandu. It is a good indicator to identify the potential wards to target and do
marketing/ promotional activities:
Table 6 : Kathmandu metropolitan: Population, household size
Ward
HH
Ward
Population
Population
No.
size
no
1
8464
5.01
19
2
13655
4.27
20
3
20782
4.55
21
4
29539
4.36
22
5
15340
4.29
23
6
39316
4.48
24
7
39530
4.24
25
8
9434
4.36
26
9
29263
4.36
27
10
25977
4.21
28
11
15244
4.37
29
12
10313
4.95
30
13
29721
4.62
31
14
34488
4.4
32
15
32441
4.36
33
16
45450
4.21
34
17
19876
4.36
35
18
8065
4.66
36
25 | P a g e
HH size
7400
8240
12369
5840
8289
5272
4310
3764
7789
5462
24543
9896
14502
24355
21597
46136
35184
671846
5.01
4.84
4.93
5.79
4.85
5.7
5.79
4.97
5.05
5.02
4.4
4.85
4.46
4.28
4.26
4.18
4.04
4.42
The above table shows the most attractive ward to target and serve is ward number 36
which has the highest population i.e. 6, 71,846. However, looking at the household size it
is the ward number 22 and 25 which has the highest household size i.e. 5.79. The
company can expect higher demand in these wards (22, 25 and 36).
7.2 Marketing Strategy

Kathmandu Enterprise will follow Cost Focus under Porters generic strategy matrix. The
cost focus strategies have narrow scope and its source of competitive advantage is cost.
The strategy company chooses depends upon the needs and expectation of customers,
competition in the industry, and other external environmental factors
Marketing strategy in different stages of PLC

Introduction stage
Build buyer awareness and entering slowly towards other stages of buyer
readiness stages.
Price of service kept constant for some years
Focus on inexpensive & effective marketing strategy-referrals, newsletters
Growth stage
Number of households starts to increase at higher rate
Company will increase price of service to adjust demand pull and supply
push inflation in later years
Focus will be to train employees.
Advertising/Promotion goal will shift from awareness to convincing and

encouraging use of service
Maturity
26 | P a g e
Retaining existing customers
Reducing price according to competition and demand
Aggressive sales promotions
Strategic alliance, if possible.
Decline
Reviewing sales, market share, and cost and profit trends on a real time
basis and designing counter strategy
Maintain brand image
Reposition or revive brand to move back to growth stage, look for new
segments
7.3 Marketing Mix Strategy

7.3.1 Service Strategy
Kathmandu Enterprise aims at providing maid service to households of different wards
of Kathmandu. Since there is a no formal provider of such services our main objective is
to meet the demand with all types of services according to the need and demand of the
households. All the services will be provided within three days of formal request.
Customers can choose any or all services. All the maids will be trained before assigning
them to customers. Any wrong doing by maids will be taken responsibility by the
company. Customers can discontinue the service from our company by notifying to
customer relationship officer one week ahead of decision to formally discontinue
service.
7.3.2 Pricing strategy
The pricing objective of Kathmandu Enterprise Pvt. Ltd is to provide service at low cost
without compromising on quality service. It wants to establish as low cost leader in the
industry. The price per type of service is set on the basis of cost plus profit margin.
27 | P a g e
Table 7 : Service Rate per month for each year

Service Facilities
Increased %
5%
5%
10%
10%
Year
2
Rs.
Year 1 (Rs.)*
Year 3 Rs. Year 4 Rs. Year 5 Rs.
House Cleaning
3800
3990
4190
4609
5069
Dish Washing
4200
4410
4630
5093
5602
Cloth Washing
4000
4200
4410
4851
5336
Cooking
6500
6825
7166
7883
8671
Care Taking
7000
7350
7717
8489
9338
nd
rd
*rate increases by 5% in 2 and 3 year and then by 10% thereafter annually
7.3.3 Promotional strategy

Kathmandu Enterprise Pvt. Ltd will promote its services using different promotional
tools. The company will give advertisement in the local newspaper; will distribute flyers
to potential customers and greeting cards to existing customers. Local FM station and
TV Channels (Scroll ads.) will be used for electronic advertisement. Informal media like
word of mouth and referrals too will be used.
Table 8 : Marketing program and expenses

Items
Business Cards
Flyers
Greeting Cards
Print Advertising
Electronic Media (FM; 40 sec.)
Electronic Media (TV Scroll Ads.)
Other Media (Newsletter etc.)
Total
Year 1
Year 2
Year 3
Year 4
Year 5
4,500
4,950
5,445
5,990
6,588
3,000
3,300
3,630
3,993
4,392
4,250
4,675
5,143
5,657
6,222
45,000
49,500
54,450
59,895
65,885
65,900
72,490
79,739
87,713
96,484
21,600
23,760
26,136
28,750
31,625
5,750
6,325
6,958
7,653
8,419
150,000 165,000 181,500 199,650 219,615
Business cards and Flyers

Business Cards will be given to most potential customers and flyers will be
distributed to customers visiting the company office. Office staffs will also
distribute flyers to their contact people.
28 | P a g e
Greeting cards
Greeting cards can be used as a great Marketing Tool when it comes to repeat
business and referrals. Kathmandu Enterprises will use them to thank customers
for accepting our services and for the continuity of the business. Kathmandu
Enterprises send them greeting cards for most of the holiday occasions.
Kathmandu Enterprise will try to send cards as early as possible so it can be the
first in our clients mailbox and a way to always remember us. Kathmandu
Enterprise also use handwritten messages to show more appreciation to
customers
Print advertising
For a maid service business it makes no sense and would be a waste of money
to advertise in a large magazine or buy a TV commercial. Besides being
expensive, these ads will most likely not reach our target audience. The common
print ad, run in a local newspaper or shopper, is the most basic unit of advertising
Electronic media
Kathmandu Enterprise plan to buy ads in electronic media especially in local FM
stations and TV scroll advertisement. FM advertisements will be carried out 20
days in a year and its frequency will increase every year. TV Scroll
advertisements will be carried out 135 times in a year and its frequency will
increase every year. This can deliver information right to the households that
need our services.
Other Media
Other inexpensive and efficient strategies that Kathmandu Enterprises target will
use are Referrals, Newsletters, and Word of Mouth (WOM).
29 | P a g e
7.3.4 Positioning Strategy

Kathmandu Enterprise Pvt. Ltd. will be positioned in the customers mind as a company
that provides complete quality maid service at economical prices and gives top priority
to safety and reliable service. The tagline for the company will be "We Are Here for
Complete Maid Services".
7.3.5 Partnering strategy
Alliance with housing companies & colonies
For company the ideal market would be the housing companies and colonies.
Kathmandu Enterprises plans to alliance with them in a contract basis. Our
prospective alliance partners will be:
Sunrise homes
Guna colony
Civil homes
Horizon homes
Oriental Apartments
7.4 Growth rate

The basis for measuring the growth of the company will be in terms of service revenue
which is expected to increase by about 50% of previous year service revenue every
year.
7.5 Profitability
The company is expected to incur losses for first two years of operation and then earn
profit from third year at a rate of about 60% every year. Profitability can be in terms of
Net income generated for the company.
7.6 Sales Strategy

The *survey of 60 households from two wards showed that 38%** of the households
need maid service. This shows that about 3,43,891 households/families need maid
service (40,00,000/4.42=904977*38%=343891; population of Kathmandu is about 4
million and average household size taken 4.42 from wars no. 36 of table no. 6). Also,
30 | P a g e
age group of 27-59 wish to have maid service the most followed by age group of 60 and
above and family with 3-4 members are in need of maid service the most. So with this
finding the company plans to target and sell its service to age group of 27-59 and family
size of 3-4 (this will be give high priority groups among all) with total of 40 maids at the
beginning year of its operation. And increase the number of maids by 50% annually.
The companys strategy is to have cost focus strategy so it will not increase its number
of maids aggressively. Service charge will increase 5% in 2 nd and 3rd year and by 10%
thereafter annually.
Table 9 : Service Revenue Forecast for next five years

House
Dish
Cloth
Care
Total Service
Year Cleaning
Washing
Washing
Cooking
Taking
Revenue
2013
364,800
403,200
480,000
702,000
588,000
2,538,000
2014
574,560
635,040
756,000 1,146,600
882,000
3,994,200
2015
905,040 1,000,080
1,217,160 1,805,832 1,389,060
6,317,172
2016 1,493,316 1,650,132
1,979,208 3,027,072 2,241,096
10,390,824
2017 2,433,120 2,688,960
3,265,632 4,994,496 3,697,848
17,080,056
*Appendix: 1.1, 1.13
31 | P a g e
8. Financial Plan
8.1 Capital Structure

Source
Self-contributed capital
Bank loan @13% for 6 years
Total start-up capital
Amount
Rs. 8,00,000
Rs. 12,00,000
Rs. 2,000,000
Ratio
40%
60%
100%
8.2 Uses of Capital

Particulars
Purchase of fixed assets
Preliminary Expenses
Working capital (50% of operating expenses)
Total start-up capital
Amount
556,500
55,000
1,388,500
2,000,000
8.3 Pre-Operating Expenses

Particulars
Feasibility Study
Registration Charges
Transportation
Telephone Line
Training Expenses
Total
8.4 Service Revenue for the next five years
Increased %
57%
Year 1
Year 2
(Rs.)*
(Rs.)
Service
Revenue
2,538,000
3,994,200
32 | P a g e
Amount
5,000
15,000
5,000
10,000
20,000
55000
57%
Year 3
(Rs.)
6,317,172
64%
Year 4
(Rs.)
10,390,824
64%
Year 5
(Rs.)
17,080,056
8.5 Operating Expenses for the next five years

Particulars
Staff salary *
Maid salary **
Depreciation***
Rent
Audit/Legal charges
Marketing expenses
Electricity
Telephone expenses
Office Supplies/Stationery
Training expenses
Miscellaneous
Preliminary expenses written off
Total
*Appendix: 3.4
**Appendix: 3.7
***Appendix: 3.9
33 | P a g e
Year
2015(Rs.) 2016(Rs.)
1,023,660 1,126,026
3,284,424 5,396,820
111,300
111,300
302,500
332,750
5,000
10,000
181,500
199,650
20,000
20,000
58,080
63,888
30,250
33,275
24,200
26,620
12,100
13,310
2013 (Rs.) 2014 (Rs.)

2017(Rs.)
846,000
930,600
1,238,629
1,203,600 1,981,320
8,866,704
111,300
111,300
111,300
250,000
275,000
366,025
5,000
5,000
10,000
150,000
165,000
219,615
20,000
20,000
20,000
48,000
52,800
70,277
25,000
27,500
36,602
20,000
22,000
29,282
10,000
11,000
14,641
55,000
2,743,900 3,601,520 5,053,014 7,333,639 10,983,075
8.6 Projected Income statement for next five years

Particular
Service Revenue#
house cleaning
dish washing
cloth washing
cook
care taker
Total Service Revenue
Operating Expenses
Staff salary
Maid salary
Depreciation
Rent *
Audit/Legal charges
Marketing Expenses **
Electricity
Telephone expenses
Office Supplies/Stationery
Training expenses
Miscellaneous
Preliminary expenses written off
Total Operating Expenses
EBIT
Add: Interest on investment
Less: Interest
EBT
Less: Tax @25%
Net Income/(Loss)
Year
2013 (Rs.) 2014 (Rs.) 2015(Rs.)
2017(Rs.)
364,800
403,200
480,000
702,000
588,000
2,538,000
574,560
635,040
756,000
1,146,600
882,000
3,994,200
846,000
1,203,600
111,300
250,000
5,000
150,000
20,000
48,000
25,000
20,000
10,000
55,000
2,743,900
(205,900)
930,600 1,023,660
1,981,320 3,284,424
111,300
111,300
275,000
302,500
5,000
5,000
165,000
181,500
20,000
20,000
52,800
58,080
27,500
30,250
22,000
24,200
11,000
12,100
1,126,026
5,396,820
111,300
332,750
10,000
199,650
20,000
63,888
33,275
26,620
13,310
3,601,520 5,053,014
392,680 1,264,158
50,000
30,000
137,256
116,075
305,424 1,178,083
76,356
294,521
229,068
883,562
7,333,639 10,983,075
3,057,185 6,096,981
60,000
160,000
92,141
65,095
3,025,044 6,191,886
756,261 1,547,971
2,268,783 4,643,915
156,000
(361,900)
(361,900)
#Appendix: 3.3
*Appendix: 3.10,
**Appendix: 2.1
# Key financial assumptions on Appendix: 4.1
34 | P a g e
2016(Rs.)
905,040 1,493,316 2,433,120

1,000,080 1,650,132 2,688,960
1,217,160 1,979,208 3,265,632
1,805,832 3,027,072 4,994,496
1,389,060 2,241,096 3,697,848
6,317,172 10,390,824 17,080,056
1,238,629
8,866,704
111,300
366,025
10,000
219,615
20,000
70,277
36,602
29,282
14,641
8.7 Projected Cash flow Statement for the next five years
Particulars
Preoperating
Cash Inflow
Beginning Balance
Equity
Bank Loan
Interest on Investment
Revenue
Total Cash Inflow (A)
Cash Outflow
Fixed Assets
Principal and interest
payment*
Operating Expenses
Staff salary
Maid salary
Rent
Audit/Legal charges
Marketing expenses
Electricity
Telephone expenses
Office
Supplies/Stationery
Training expenses
Miscellaneous
Tax paid
Total Cash Outflow (B)
Surplus/Deficit (A-B)
Investment #
Ending Cash Balance
2013(Rs.)
Year
2014((Rs.) 2015(Rs.)
2016(Rs.)
2017 (Rs.)
1,388,500
548,715
426,154
636,906
1,208,945
2,538,000
3,926,500
50,000
3,994,200
4592915
30,000
6,317,172
6,773,326
60,000
10,390,824
11,087,730
160,000
17,080,056
18,449,001
300,185
300,185
300,185
300,185
300,185
846,000
1,203,600
250,000
5,000
150,000
20,000
48,000
25,000
930,600
1,981,320
275,000
5,000
165,000
20,000
52,800
27,500
1,023,660
3,284,424
302,500
5,000
181,500
20,000
58,080
30,250
1,126,026
5,396,820
332,750
10,000
199,650
20,000
63,888
33,275
1,238,629
8,866,704
366,025
10,000
219,615
20,000
70,277
36,602
20,000
10,000
22,000
11,000
76,356
24,200
12,100
294,521
26,620
13,310
756,261
29,282
14,641
1,547,971
2,877,785
1,048,715
500,000
548,715
3,866,761
726,154
300,000
426,154
5,536,420
1,236,906
600,000
636,906
8,278,785
2,808,945
1,600,000
1,208,945
12,719,931
5,729,070
3,000,000
2,729,070
800,000
1,200,000
2,000,000
556,500
55,000
611,500
1,388,500
1,388,500
*Appendix: 3.8
# Investment is made for short term at the interest rate of 10%
# Key financial assumptions on Appendix: 4.2
35 | P a g e
8.8Statement of Retained Earnings for the next five years

Particular
Beginning balance
Add: Profit for the period
Ending Balance
Year 1
(361,900)
(361,900)
Year 2
(361,900)
229,068
(132,832)
Year 3
(132,832)
883,562
750,730
Year 4
750,730
2,268,783
3,019,513
Year 5
3,019,513
4,643,915
7,663,428
8.9 Projected Balance Sheet for the next five years

Particulars
Year
PreOperating
2013(Rs.)
2014 (Rs.)
548,715
426,154
636,906
1,208,945
2,729,070
500,000
800,000
1,400,000
3,000,000
6,000,000
1,388,500
1,048,715
1,226,154
2,036,906
4,208,945
8,729,070
Furniture *
368,500
368,500
294,800
221,100
147,400
73,700
Equipment **
188,000
188,000
150,400
112,800
75,200
37,600
Fixed Assets
611,500
556,500
445,200
333,900
222,600
111,300
111,300
103,930
103,930
103,930
111,300
445,200
333,900
222,600
111,300
2,000,000
1,493,915
1,560,054
2,259,506
4,320,245
8,729,070
800,000
800,000
800,000
800,000
800,000
800,000
(361,900)
(132,832)
750,730
3,019,513
7,663,428
800,000
438,100
667,168
1,550,730
3,819,513
8,463,428
Bank loan *
Total Long Term
Liabilities
1,200,000
1,055,815
892,886
708,776
500,732
265,642
1,200,000
1,055,815
892,886
708,776
500,732
265,642
Total Equity and Liabilities
2,000,000
1,493,915
1,560,054
2,259,506
4,320,245
8,729,070
Assets
2015(Rs.)
2016(Rs.)
2017 (Rs.)
Current Assets
Cash
1,388,500
Investment
Total Current Assets
Fixed Assets
Less: Acc. Depreciation

Net Fixed Assets
611,500
Total Assets
55,000
Equity and Liabilities

Shareholders' Equity
Equity
Retained Earnings
Total Shareholders Equity
Long Term Liabilities
*Appendix: 3.2, **Appendix: 3.1

**Appendix: 3.8
# Key Financial assumptions on Appendix: 4.3
36 | P a g e
8.10 Profitability Ratios

Year
Net profit margin (%)
ROA (%)
ROE
2013 (Rs.)
(14.25)
(24.22)
(82.60)
2014 (Rs.)
5.74
14.68
34.33
2015(Rs.)
13.98
39.1
56.97
2016(Rs.)
21.83
52.51
59.39
2017(Rs.)
27.19
53.2
54.87
Analysis: The company will have negative profit margin for the initial year. However,
from second year it will increase by about 8% annually. Return on assets is high in the
beginning year. It will increase by 24.42% in 2nd year and by 13.41 % in 3rd year but in
third year it will increase at minimum rate. ROE is negative in the first year due to huge
loss in year 1, it will increase positively from 2nd year due to increase in profits.
8.11 Computation of Net Present Value (NPV)

Year
Cash Flow
PV Factor @ 13%
Present Value (PV)
1 548715
0.8849
485557.90
2 426154
0.7831
333721.19
3 636906
0.6930
441375.85
4 1208945
0.6133
741445.96
5 2729070
0.5427
1481066.28
Total Present Value
3483167.18
Less: NCO
2000000
NPV
1483167.18
Analysis: Since the NPV is positive, the business is feasible and lucrative.
8.2 Computation of Payback Period
Year
Cashflows
0
-2000000
1
548715
2
426154
3
636906
4
1208945
5
2729070
Cum. Cash Flows

-2000000
-2548715
-2122561
-1485655
-276710
2452360
Analysis: Here the payback period for the initial investment is 4.12 years which is less
than the life of the project. Therefore, from the perspective of the payback period, the
project is feasible.
37 | P a g e
9. Critical Risk and Contingencies
For establishing Kathmandu Enterprise Pvt. Ltd, the owner should also have a clear
concept and understanding of possible future uncertainties that might be created.
9.1 Internal risk

Level of managerial skills of Managing director and officers
Issues related with the manpower turnover
Low productivity of maids
Motivational level of employees
Problems of cash management and cost inefficiencies
9.2 External risk

Instability in the political system
Change in law and policies such as tax regulations and labor and employment laws
Raise in the level of competition due new entrants and informal service providers.
38 | P a g e
10. Schedules and Milestones
Throughout the entire life cycle of a business, there are going to be a number of natural
time gradients that exists, and are more than likely to be defined by the eventual and
natural ebbing and flowing of the task workload and the momentum of the teams
performance and the business of the schedule. However, it is typically helpful in
attempting to assure that the business is moving effectively as well as to allow points in
time for the management team to pause and look back on what has been accomplished
to date.
August
Establish conceptual ideas of maid services
Begin research of the industry and trends
September
Business plan: This will be done as a roadmap for the organization. It will be an
indispensable tool for the ongoing performance and improvement of the
company.
October
Complete Registration and Licensing: This will be done within the first three
months. This includes setting up the physical office where business will be
transacted.
November
Site search, evaluation and selection
Completion of architectural layout design
Complete recruitment and selection
Select suppliers
39 | P a g e
December
Complete layout
Training program: This will be the development of a training program for the
employees. The employees will receive initial sessions of training up-front, but
will undergo constant training and orientation part of our constant effort to deliver
quality service.
Establish corporate relationship
January
Begin operations
40 | P a g e
11. Future Plan and Exit Strategy
11.1 Future plan

Kathmandu Enterprise plans to serve other segments of the market especially the
following ones:
Private organizations and public corporations which usually need cleaning

service
Colleges and schools which need cleaning and food preparation service
Kindergartens which need care taker service
To serve these new segments the company will hire additional employees in
management and as well as hire additional maids. Provide training to maids according
to the need of new clients.
11.2 Exit strategy

On the basis of the present analysis all the financial parameters seems to be in the
positive trend. So company should not stop its service in the future.
Nonetheless, due to no entry barriers for this industry, there might exists tough
competition in the market and sustaining in the market might become difficult. So if our
company could not retain itself in the market, we need to pre-plan for the exit strategy.
In such worst situation if the company goes in unfavorable condition, we will sell the
company.
41 | P a g e
APPENDIX
1. Market Research
1.1 Questionnaire Survey On Peoples attitude towards Maid Service
General information
Name: GenderAge.. No. of family members
Address.Occupation
Monthly Income Rs..
Specific information
1. Do you have helper/maid to do household chores?
a. Yes
b. No
If, yes, then what kind of tasks does your helper (maid) do (multiple
Response)
a.
House Cleaning
b. Dish Washing
c. Cloth Washing
d. Cooking
e. Care Taking
f. All above
2. Is your maid part time or full time?

a. Part time
b. Full time
3. How much do you pay for your part time/ full time maid?
a. Part time: Rs.. b. Full time: Rs
4. Is it getting difficult to get maid in Kathmandu valley?

a. Yes
b. No
5. Would you be willing to take maid service from a private company?

a. Yes
42 | P a g e
b. No
6. What advantages/ disadvantages you think would be in taking a maid service

from private company?
7. For what purpose you need a maid service the most? (single response)
a.
House Cleaning
d. Cooking
e. Care Taking
b. Dish Washing
f. Others (Please Specify)
(Thank you for your kind cooperation)
43 | P a g e
c. Cloth Washing
1.2 Frequency distribution based on Gender

Gender
Frequency
Percent
male
22
36.67
female
38
63.33
Total
60
100
1.3 Frequency distribution based on Age group

Age Group
Frequency
Percent
16-26
8.33
27-59
45
75
60 and above
10
16.67
Total
60
100
1.4 Frequency distribution based number of Family Members

No. of Family Members
Frequency
Percent
1-2
13.33
3-4
25
41.67
5-6
18
30
15
60
100
Above 6
Total
44 | P a g e
1.5 Frequency distribution based on Occupation

Occupation
Frequency
Percent
15
Private Service
26
43.33
Business
13
21.66
Housewife
12
20
Total
60
100
Government service
1.6 Frequency distribution based on Monthly Income

Monthly Income
Frequency
Percent
8000-12000
13.33
13000-17000
24
40
18000-22000
11
18.33
22000-26000
10
16.67
Above 26000
11.66
60
100
Total
1.7 Frequency based on household having maid service

Household
Residential Area
Frequency
Percent
Total
9/30=30
30
Apartment
14
14/30=46
30
Total
23
23/60=38
60
45 | P a g e
1.8 Cross tabulation between age group and willingness to have maid service
Age Group
Maid Service
Yes
No
16-26
2(5.55)
3(12.5)
27-59
28(77.77)
17(7.08)
6(16.66)
4(16.66)
36
24
60 and above
Total
1.9 Cross tabulation between number of family members and willingness to have
maid service
No. of Family Members
Maid Service
Yes
No
1-2
2(5.88)
6(23)
3-4
17(50)
8(30.76)
5-6
11(32.35)
7(26.92)
4(11.76)
5(19.23)
34
26
Above 6
Total
1.10 Cross tabulation between occupation and willingness to have maid service
Occupation
Maid Service
Yes
No
Government service
3(5.88)
6(23)
Private Service
17(50)
9(30.76)
8(32.35)
5(26.92)
Business
46 | P a g e
Housewife
Total
4(11.76)
8(19.23)
32
28
1.11 Cross tabulation between number of family members and purpose of having
a maid
Monthly
Income
Dish
Washing
3
Cook
Cloth
Washing
4
Care
Taker
8000-12000
House
Cleaning
1
13000-17000
18000-22000
22000-26000
Above 26000
1.12 Cross tabulation between monthly income and willingness to have maid
service
Monthly Income
Maid Service
Yes
No
2(6.25)
6(21.42)
13000-17000
9(28.125)
15(53.57)
18000-22000
8(25)
3(10.71)
22000-26000
8(25)
2(7.14)
Above 26000
5(15.625)
2(7.14)
32
28
8000-12000
Total
47 | P a g e
1.13 Findings:
1. Currently 38% of the household need atleast one type of maid service; it is high
among household living in apartments (46%) whereas 30% among people living
in single homes.
2. Age group of 27-59 wish to have maid service the most (77.77%) followed by age
group of 60 and above (16.66%), it is low among age group of 16-26 (5.55%)
3. Family with 3-4 members are in need of maid service the most (50%) followed by
5-6 (32.35%).
4. In occupation, private service holders are in need of maid service the most (50%)
followed by businesspersons (32.35%).
People with monthly income above 13000 and above 26000 are willing to have a maid
2. Marketing Plan
2.1 Marketing activities and its expenses
Items
Business Cards
Flyers
Greeting Cards
Print Advertising
Electronic Media (FM; 40 sec.)
Electronic Media (TV Scroll Ads.)
Other Media (Newsletter etc.)
Total
48 | P a g e
Price
9
5
85
4,500
3,295
160
Qty.
500
600
50
10
20 days
135
Amount
4,500
3,000
4,250
45,000
65,900
21,600
5,750
150,000
3. Financial Plan
3.1 Details of Office Equipment
Items
Computer
Printer
Photocopy Machine
Telephone Sets
Water Filter
Total
No.
2
1
1
4
1
9
Cost Per Unit

40000
20000
80000
800
4800
Total Cost
80,000
20,000
80,000
3,200
4800
188000
Quantity
5
2
1 set
4
4
1000 sq. ft
25 meters
Rate Per Unit

1000
1500
20000
2000
5000
300
300
5000
Total Cost
5,000
3,000
20,000
8,000
20,000
300,000
7,500
5,000
368,500
3.2 Details of Office Furniture

Items
Chairs
Office Table
Sofa
Executive Chairs
File Cabinets
Carpet
Curtains
Mis
Total
3.3 Percentage increase in service revenue for the next five years
Service
Revenue
49 | P a g e
Increased %
Year 1
(Rs.)*
2,538,000
57%
Year 2
(Rs.)
3,994,200
57%
Year 3
(Rs.)
6,317,172
64%
Year 4
(Rs.)
10,390,824
64%
Year 5
(Rs.)
17,080,056
3.4 Staff Salary for the next five years

Staffs/ Year
1
24000
0
18000
0
24000
0
Managing Director
Administrative Officer
Human Resource/Customer
Relationship Officer
Database Operator
Security Guard
96000
90000
846,0
00
Total
2
26400
0
19800
0
26400
0
10560
0
99000
930,6
00
290400
319440
351384
217800
239580
263538
290400
319440
351384
116160
108900
1,023,6
60
127776
119790
1,126,0
26
140554
131769
1,238,6
29
3.5 Number of maids for the next five years

Yea
r
1
2
3
4
5
House Dish
Cleaner Washer
8
12
18
27
40
8
12
18
27
40
Cloth
Washer
10
15
23
34
51
Coo
k
9
14
21
32
48
Care
Taker
7
10
15
22
33
Total
42
63
95
142
212
3.6 Maid salary per month for each year for the type of work done
Year
1
2
3
4
5
50 | P a g e
House Cleaner Dish Washer Cloth Washer

2100
2200
2100
2310
2420
2310
2541
2662
2541
2795
2928
2795
3074
3221
3074
Cook Care Taker

2500
3200
2750
3520
3025
3872
3327
4260
3660
4686
3.7 Maid salary for the next five years
Types of Service
House Cleaning
Dish Washing
Cloth Washing
Cooking
Care Taker
Total
2013
201600
211200
252000
270000
268800
1,203,600
2014
332640
348480
415800
462000
422400
1,981,320
Year
2015
548856
574992
701316
762300
696960
3,284,424
2016
905580
948672
1140360
1277568
1124640
5,396,820
2017
1475520
1546080
1881288
2108160
1855656
8,866,704
3.8 Loan amortization Schedule

Loan Amortization
At D:E=60:40 (1200000:800000)
1200000=APVIFA (13%,6 years)
A=300185
Year
0
1
2
3
4
5
Installment
Int.@13%
Principal
300185
300185
300185
300185
300185
156000
137256
116075
92141
65095
144185
162929
184110
208044
235090
Principal O/S
1200000
1055815
892886
708776
500732
265642
3.9 Depreciation calculation using straight line method

Items
Equipment:
Computer
Printer
Photocopy Machine
Telephone Set
Water Filter
51 | P a g e
Value
80000
20000
80000
3200
4800
Depreciation rate (%) Depreciation Amount

20
20
20
20
20
16000
4000
16000
640
960
Furniture
Total
368500
556500
20
73700
111300
3.10 Rent expenses for office space

Particulars
Office Space
Sq. Ft.
850
Rate
24.5
Rent per month

20,833
2
229,068
111300
340368
3
883,562
111300
994862
Rent per Year

250,000
3.11 Cash inflow for next five years

Year
Net Income/Loss
Add: Depreciation
Cash Flow
52 | P a g e
1
(361,900)
111300
-250600
4
2,268,783
111300
2380083
5
4,643,915
111300
44755215
4. KEY FINANCIAL ASSUMPTIONS

4.1 Income Statement Assumptions
Service Revenue
Customer base: It increases by 50% of preceding year demand for maids.
Service rate: It increase by 5% in 2nd and 3rd year and then by 10% thereafter
annually.
Operating Expenses
Rent: It increases by 10% of preceding year expense.
Depreciation: The organization will follow straight line method with
depreciation rate of 20% on an average of all depreciable fixed assets of the company.
On average the life of total fixed assets is assumed to be 5 years with zero salvage
value.
Audit/Legal Charges: It will remain constant for 1st, 2nd and 3rd year and
increase by 50% of preceding year.
Marketing Expenses: It increases by 10% of preceding year expenses.
Office Supplies/ Stationery: It increases by 10% of preceding year expenses.
Electricity: It remains constant throughout the year.
Telephone Expenses: It increases by 10% of preceding year expenses.
Miscellaneous: It increases by 10% of preceding year expenses.
Interest Rate: The long term interest rate for the organization will be 13% and
this interest rate is not subjected to change for 5 years. This is in accordance with the
contract with the lending bank.
Tax Rate: Corporate tax rate is 25%. They are paid in the year they are
occurred.
Staff Salary: It increases by 10% of preceding year expenses.
Maid Salary: It increases by 10% of preceding year expenses.
Net Income/Loss
Profits: All the profits (net income) will be retained for further investment.
53 | P a g e
4.2 Cash Flow Assumptions

Investment: Surplus fund will be invested at 10% interest rate in marketable
securities. It will not be sold for 5 years.
4.3 Balance Sheet
Current Assets
Investment: Investment in marketable securities will not be sold thus
accumulated for each year.
Fixed Assets:
Furniture/ Equipment: The value of furniture and equipment decreases by 20%
annually. No additional assets will be added in 5 years time.
Equity and Liability
Equity: Equity is not expected to change for next five years
Loan: Loan will be amortized at 13% for six years
54 | P a g e
5. Operation Plan
5.1 The actual layout design
Managing Director
Room
Administrative
/Account Division
Human Resource
Division
Figure No.2: Layout Design

Appendix2
Security Guards
4.2 Operation Schedule for First Year
Room
Year 0 (in months)
55 | P a g e
Entrance
year 1 (in months)
5.2 Operation Schedule

Type Of work
Preparation
Preparation for
getting Licence
Documentation
for Licencing
Licence
Approval
Preparation for
Site Location
Search and
Evaluate Site
Finalize Site
Completion of
architectural
layout design
Complete layout
56 | P a g e
10 11 12 1
10
Marketing/
Promotion
Office Supplies
Evaluate
suppliers/Sellers
Select and
Purchase of
office supplies
Human
Resource
Recruitment and
selection
Training
Service
Start Service
57 | P a g e

Business Plan On Maid Service

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Business Plan

July 23, 2012

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Company Overview ....................................................................................................... 1

BUSINESS ENVIRONMENT ANALYSIS ........................................................................ 4

SERVICES PROVIDED ................................................................................................... 8

MARKET RESEARCH AND ANALYSIS ......................................................................... 9

Company Profile ...........................................................................................................12

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Operational Plan ...........................................................................................................15

Marketing Plan ..............................................................................................................25

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Financial Plan ...............................................................................................................32

Critical Risk and Contingencies ..................................................................................38

Schedules and Milestones ...........................................................................................39

Future Plan and Exit Strategy ......................................................................................41

11.1 Future plan ....................................................................................................................41

Business Plan: Kathmandu Enterprise Pvt. Ltd.

1.1 Background of the Business

Business Plan: Kathmandu Enterprise Pvt. Ltd.

1.2. Basic Philosophy

To provide reliable and reasonable services all year round

To create congenial working environment where all employees rights are

To work towards fair competition

1.2.4 Critical Success Factors

Continuous improvement in quality, reduce turnover of employees, reduce costs

Increase Customer satisfaction

1.2.5 Company Values

Appreciate suggestions and recommendations given by customers and

Regularly seek feedback from customers and improve service accordingly

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Abide with rules and regulations of the country

Business Plan: Kathmandu Enterprise Pvt. Ltd.

2. BUSINESS ENVIRONMENT ANALYSIS

2.1 Industry Analysis

Table 1 : Industry Analysis

Competitive Rivalry: The level of competition in the market is expected to be moderate

Business Plan: Kathmandu Enterprise Pvt. Ltd.

2.2 SWOT ANALYSIS

2.2.1 Analysis of Kathmandu Enterprises Pvt. Ltd.

Business Plan: Kathmandu Enterprise Pvt. Ltd.

2.2.2 Analysis of Competitors

Business Plan: Kathmandu Enterprise Pvt. Ltd.

2.3 PEST Analysis

-Economic:With the liberalization of economy and commitment of government towards

Business Plan: Kathmandu Enterprise Pvt. Ltd.

Business Plan: Kathmandu Enterprise Pvt. Ltd.

4. MARKET RESEARCH AND ANALYSIS

4.1 Primary Research

Identify the potential size of the market

Identify the target group for providing service profitably

To know the future of our service for upcoming years.

To know our potential competitors

4.2 Sampling Plan

60 household from 2 wards of KTM Valley

Quota with Convenience sampling method

4.3 Research Instrument

Business Plan: Kathmandu Enterprise Pvt. Ltd.

4.4 Target Market

4.5 Data sources

Appendix: 1.13:, Appendix:1.8, Appendix: 1.9