Concierge Service Business Plan

Introduction
Godsend Concierge Service (GCS) is a full-service concierge primarily serving the untapped corporate market in Eugene, Oregon. The company can do almost any errand the clients need, freeing up their time to develop value for their employer. Employers will welcome our service as it provides another form of compensation to attract qualified workers.

The important objectives for the first three years include: utilizing GCS in at least four of the top 10 local companies, and increasing our number of clients served by 20% per year through superior performance and word-of-mouth referrals.

The Company
This will be a home-based business with Taylor Gogetter as the sole proprietor. The staff will consist of Mr. Gogetter working full-time for GCS. The company intends to hire 3 full-time employees by the end of year 1. As this is an industry that demands high-quality individuals, GCS intends to offer higher wages to ensure quality performance. GCS will provide an extensive employee training program on an ongoing basis.

Services
Godsend Concierge Service will provide a wide range of services for our customers. The tasks for the employees will range considerably; however, the underlying need will be for services/errands made during normal business hours, hours the employees are at work and the company would rather have the employee at work being productive instead of running an errand.

The Market
Corporations recognize that their employees have less free time, so they have begun to contract with concierge companies to provide their employees with a wide range of services as an additional form of compensation. Some of the large corporations that we will target in Eugene are Hyundai, Sony Disc Manufacturing, Levi Strauss, etc. Medium-sized companies include Burley Design Cooperative, Palo Alto Software, Bike Friday, larger law firms, and medical offices, etc.

While some corporations already offer a concierge service for their employees, they typically do this through an in-house employee who does the errands. In the eyes of the employee, having the concierge in house is as much of a perk, but it is less efficient for the company. GCS can provide concierge services to companies at a lower rate.

We will also service individuals who recognize the value in having someone else do tasks that they do not have the time for or, after cost/benefit analysis, decide it is not worth their time to complete the task. We will attract this segment of the market through word-of-mouth marketing.

Currently in Eugene, there are two concierge style companies, both primarily servicing individuals. GCS will be targeting companies because the market has been overlooked, and it provides larger volume and more consistent work.

Financial Considerations
Godsend Concierge Service’s start-up costs will include all the equipment needed for the home-based office, legal fees, website creation, and start-up advertising. The projected growth rate for GCS is over 100% per year, with strong operating margins. GCS expects to have sales of $156,000 by year 3. The company plans to bill its clients on an hourly rate.

Objectives

The objectives for the first three years of operation include:

  • To create a service-based company whose primary goal is to exceed customers’ expectations.
  • The utilization of GCS in at least four of the top 10 local companies as listed in the local newspaper in its annual business listing.
  • To increase our number of clients served by 20% per year through superior performance and word-of-mouth referrals.
  • To develop a sustainable home business, surviving off of its own cash flow.

Mission

The mission of the company is to provide the customer with whatever type of legitimate service he/she desires. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. We will foster a workplace where employees take pride and ownership in their contributions, empowering them to do their best.

Concierge Service Business Plan Example

Company Summary

Godsend Concierge Service, located in Eugene, OR, offers an unlimited concierge service for companies and individuals. GCS provides a wide range of services, including purchasing theatre tickets, picking up dry cleaning, pet care, car repairs, event planning, and grocery shopping. There are no limits to what we can do, aside from legal restrictions.

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The business is based out of the owner’s home and will employ three additional people within 12 months.

If the business goes as planned, it will start making a profit after the first month and continue to grow steadily each month.

Start-up Summary

Godsend Concierge Service’s start-up costs include home office equipment, legal fees, website creation, and start-up advertising.

The home office equipment comprises a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have a minimum 500 megahertz Celeron/Pentium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for system backup. Additionally, a broadband connection will be installed to enhance internet speed and efficiency. Furniture will also be acquired to transform a standard room into an office, and an additional landline will be needed.

The legal fees cover business formation and the creation/review of client contracts.

The web creation fees are for designing and creating the website.

The advertising costs are for communicating our services to potential customers, primarily through establishing full-service contracts with corporations.

As the number of clients increases and more staff is required, training costs for each employee will be incurred. For now, we will not initially hire new employees, and these costs are not included in the start-up expenses.

Concierge Service Business Plan Example

Start-up Requirements:

Legal: $500

Stationery etc.: $50

Brochures: $50

Insurance: $400

Computer: $1,500

Broadband Internet Access: $150

Fax machine: $100

Cellular phone: $50

Pager: $20

Office supplies: $25

Web site creation: $500

Advertising: $250

Licenses: $150

Other: $0

Total Start-up Expenses: $3,745

Start-up Assets:

Cash Required: $1,255

Other Current Assets: $2,500

Long-term Assets: $0

Total Assets: $3,755

Total Requirements: $7,500

Start-up Funding:

Start-up Expenses to Fund: $3,745

Start-up Assets to Fund: $3,755

Total Funding Required: $7,500

Assets:

Non-cash Assets from Start-up: $2,500

Cash Requirements from Start-up: $1,255

Additional Cash Raised: $0

Cash Balance on Starting Date: $1,255

Total Assets: $3,755

Liabilities and Capital:

Liabilities:

Current Borrowing: $0

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $0

Capital:

Planned Investment:

Owner-operator: $7,500

Other: $0

Additional Investment Requirement: $0

Total Planned Investment: $7,500

Loss at Start-up (Start-up Expenses): ($3,745)

Total Capital: $3,755

Total Capital and Liabilities: $3,755

Total Funding: $7,500

Company Ownership:

Godsend Concierge Service will be a sole proprietorship, owned by Taylor Gogetter.

Services:

Godsend Concierge Service will provide a wide range of services for our customers. We will target two customers: corporations and individuals. As Americans work longer hours, they have less time to take care of personal tasks. Therefore, having someone do their errands for them while they work is attractive. Corporations recognize this and have started contracting with concierge companies to offer these services to their employees as additional compensation. We will also serve individuals who value having someone else complete tasks they don’t have time for or decide are not worth their time.

Market Analysis Summary:

GCS will focus on two groups that use concierge services: companies and individuals. Companies hire concierges as a perk for their employees, allowing them to take care of personal tasks during work hours. This benefits employees and adds value for the company. Currently, there are two concierge companies in Eugene primarily serving individuals. GCS will target companies, as this segment has been overlooked and offers a larger volume of consistent work.

Market Segmentation:

Our customers can be divided into two groups: corporate/company customers and individuals. Corporate customers contract with GCS to perform services for their employees. We will target large corporations like Hyundai, Sony Disc Manufacturing, and Levi Strauss, as well as medium-size businesses with 15-40 employees. The tasks for employees will vary, but the underlying need is for services during work hours. The second group comprises individuals who contract directly with GCS. This group can be further divided into three subgroups: those unable to accomplish tasks during work, those who choose to use our service for time-saving reasons, and those from out of town needing tasks done in Eugene.

Concierge Service Business Plan Example

Market Analysis:

Potential Customers

– Growth

– Year 1: 400

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– Year 2: 428

– Year 3: 458

– Year 4: 490

– Year 5: 524

– CAGR: 6.98%

– Year 1: 3,000

– Year 2: 3,300

– Year 3: 3,630

– Year 4: 3,993

– Year 5: 4,392

– CAGR: 10.00%

– Total

– Year 1: 3,400

– Year 2: 3,728

– Year 3: 4,088

– Year 4: 4,483

– Year 5: 4,916

– CAGR: 9.66%

Target Market Segment Strategy:

GCS intends to target people who need daytime services but lack time to complete necessary tasks. We focus on corporations/companies with many employees who would find a concierge service attractive as part of their compensation package. Employers prefer to pay our service to handle their employees’ tasks, enabling them to remain productive at work. Offering companies a discount over our standard hourly rate results in increased usage without the usual costs of attracting individual customers. We bill corporations monthly, reducing labor costs for invoice processing.

We also target individual clients to fill vacancies in our schedule from corporations.

Service Business Analysis:

The concierge industry in Eugene is small and primarily serves individual clients. Medium to large-size companies that offer concierge services to employees usually create an in-house solution. Companies struggle to provide employee perks at reasonable costs and face pressure to become more efficient. This pressure drives the use of concierges as employees stay at work, developing value instead of handling personal tasks outside of the office.

Competition and Buying Patterns:

Currently, there are two competitors in the concierge service space. These services target individuals rather than corporations.

While some corporations offer in-house concierge services, having the concierge on-site is less efficient. GCS can offer concierge services to companies at a lower rate due to our expertise and efficiency.

Strategy and Implementation Summary:

GCS will aggressively pursue corporate contracts. Streamlined administrative details, such as billing, apply when serving entire companies. Therefore, we structure our service for corporate customers. To win contracts, we provide compelling quantitative analysis that demonstrates increased efficiencies through a concierge service.

We attract individual clients through our website.

Competitive Edge:

Our competitive advantage stems from our focus on corporate clients and investment in human capital. By concentrating on the corporate market, we best meet its needs, such as flexibility, monthly billing, and handling a significant number of transactions.

Additionally, we invest in training programs to provide employees with the necessary tools to maintain a high level of customer service. This investment helps us achieve our mission statement of attracting and retaining customers. We believe in offering the organization the resources required to meet our high-service standards.

Sales Strategy:

Our sales strategy prioritizes obtaining corporate clients. We believe individual customers will approach us through word of mouth, based on referrals from satisfied clients.

When closing a sale with prospects, we use a cost-benefit analysis. Quantitative information showcases the value that companies gain by offering concierge services to employees. This value includes attracting and retaining employees and keeping them productive at work during business hours.

We also provide companies with various service options, ranging from no-cost perks to partially-subsidized services, based on their desired investment and employee preferences.

To attract individual clients, we rely on our website. Our marketing efforts drive traffic to the website, where visitors can see our range of services and request service.

Please note that GCS accepts credit payments from corporations, simplifying accounting for both parties.

Sales Forecast:

The first month will focus on setting up the business, primarily dealing with legal and accounting matters, purchasing and setting up equipment, and developing an employee manual. This ensures the quality of the document, as it will cover topics such as company policies and procedures, training programs, efficiency tips, and empowerment principles.

The second month will see increased activity, with the founder serving clients. Administrative details will be managed both remotely for scheduling and answering phones and in or after-office hours. By the fifth month, GCS will require its first employee, as job demand will exceed six hours per day. By the seventh month, a second employee will be added, with a maximum of three employees by month 12. This office flexibility, achieved through remote operations using a pager and cellular phone, allows for a wide range of service needs.

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Years two and three will have similar activity levels to that of month 12.

Concierge Service Business Plan Example

Sales Forecast:

Sales Forecast
Year 1 Year 2 Year 3
Sales
Corporations $64,716 $118,741 $135,000
Individuals $5,334 $14,054 $21,000
Other $0 $0 $0
Total Sales $70,050 $132,795 $156,000
Direct Cost of Sales Year 1 Year 2 Year 3
Corporations $9,605 $26,496 $26,496
Individuals $1,066 $4,500 $6,500
Other $0 $0 $0
Subtotal Direct Cost of Sales $10,671 $30,996 $32,996

Milestones:

GCS will have several milestones early on:

  1. Business plan completion. This will be done as a road map for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Office set up. This will be done within the first month.
  3. Training program. This will be the development of a training program for the employees. The employees will receive initial sessions of training all at once, and then training will become an ongoing process. Continual learning is key.
  4. Quarterly training. This is basically a check up to make sure that the employees are still learning skills and developing.
Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 8/1/2001 9/1/2001 $0 Gogetter Admin
Office Set-up 8/1/2001 9/1/2001 $0 Gogetter Admin
Training Program 9/1/2001 10/1/2001 $0 Gogetter Admin
Quarterly Training 11/1/2001 12/1/2001 $50 Gogetter Admin
Totals $50

Management Summary:

Godsend Concierge Services is owned and operated by Taylor Gogetter. It will be formed as a sole proprietorship. There is no compelling need to incorporate. The advantage of incorporation would be limited liability, and the disadvantage would be the set costs and maintenance (double taxation). An extensive insurance policy should cover any liability GCS is exposed to.

Taylor Gogetter, founder and owner, has a degree in philosophy from Washington and Jefferson College. Taylor spent four years after college managing a retail bicycle shop. As manager, one of Taylor’s principal responsibilities was attending to customer needs. While 40% of their time was devoted to administrative details, 60% was spent dealing with customers, assessing their needs, and exceeding their expectations.

Taylor also spent two years guiding hiking trips of 12-18 people through the Alps on two-week trips. In this experience, Taylor spent 30% of their time accomplishing administrative tasks, with the remaining 70% spent addressing customer needs.

Prior to these experiences, Taylor opened and operated their own Sealcoating business. Taylor developed close relationships with customers and was awarded jobs based on their superior services.

These experiences provide Taylor with practical knowledge to develop a high-quality service organization. Taylor recognizes the importance of properly training employees, as they will be the interface between GCS and the clients.

Personnel Plan:

The staff will consist of Taylor working full-time for GCS. We will hire one full-time employee at $9 per hour in month five, a second full-time employee in month seven, and a third in month 12. GCS has decided to compensate its employees at $9, which is above minimum wage. This wage rate was chosen to attract higher-quality employees, increase morale, and decrease turnover. After month five, the employees will represent GCS, and there is a need to exceed client expectations every time. GCS will provide an extensive ongoing employee training program, recognizing that it costs more to train a new employee than to maintain a current one.

Personnel Plan
Year 1 Year 2 Year 3
Payroll $39,461 $82,992 $98,000
Other $0 $0 $0
Total People 1 1 1
Total Payroll $39,461 $82,992 $98,000

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