Tilly Fernandes had a passion for cleaning and organizing. She wanted to turn her passion into a business. This would be a privately owned business that offers high quality cleaning, detail oriented and home organizational services. With these aspects Totally Tidy by Tilly was created in 2015.
Problem:
The main issue is there’s lot of competition through out the Greater Toronto Area. Is there a need for Tilly’s business within the organizing and cleaning service industry? This industry is very competitive and will require numerous upfront costs that could affect pricing. With both local businesses and lager global businesses it’s going to be challenging for a new business to capture market share and out price the competition.
Analysis:
Since …show more content…
This will be able to start her in the right direction of a business plan and marketing plan. These will help her stay organized and will help make the right decisions later on in this venture. Specifically paying attention to the marketing plan that will include information on pricing, distribution and promotion strategies. (Katz and Green, 2014) Since her business is privately owned then I would recommend using managerial accounting. Which is intended for planning, directing and controlling the business. (Katz and Green, 2014) Tilly already knows about liabilities and plans to pay $5,500 annually for insurance policies, which will include general liability insurance, commercial auto insurance, and surety bonds. There will need to be a balance sheet that includes assets, liabilities and equity. (Langen, 2016) Tilly will invest $10,000 of her own money to start the company and also take out a line of credit of $20,000. With $30,000 to start I would also recommend a financial flexibility plan that will offer Tilly to respond appropriately to unexpected needs or opportunities. (Katz and Green, 2014) Using a cash flow statement would be beneficial because it will allow Tilly to see where the cash is going at a specific time. Totally Tidy will use operating activities when producing the services for the business and investing activities with the equipment being used. The target market for this company should be the resident in King Township and Vaughan that are between 20-60 years of age, who require cleaning and organizing services. By serving these areas Totally Tidy is targeting high-income earners that will be willing to pay a premium price for these services, which will increase the businesses revenue. She should start off at $100 per hour for cleaning services this rate is high enough to establish the business and low enough to penetrate the market with new
Problem:
The main issue is there’s lot of competition through out the Greater Toronto Area. Is there a need for Tilly’s business within the organizing and cleaning service industry? This industry is very competitive and will require numerous upfront costs that could affect pricing. With both local businesses and lager global businesses it’s going to be challenging for a new business to capture market share and out price the competition.
Analysis:
Since …show more content…
This will be able to start her in the right direction of a business plan and marketing plan. These will help her stay organized and will help make the right decisions later on in this venture. Specifically paying attention to the marketing plan that will include information on pricing, distribution and promotion strategies. (Katz and Green, 2014) Since her business is privately owned then I would recommend using managerial accounting. Which is intended for planning, directing and controlling the business. (Katz and Green, 2014) Tilly already knows about liabilities and plans to pay $5,500 annually for insurance policies, which will include general liability insurance, commercial auto insurance, and surety bonds. There will need to be a balance sheet that includes assets, liabilities and equity. (Langen, 2016) Tilly will invest $10,000 of her own money to start the company and also take out a line of credit of $20,000. With $30,000 to start I would also recommend a financial flexibility plan that will offer Tilly to respond appropriately to unexpected needs or opportunities. (Katz and Green, 2014) Using a cash flow statement would be beneficial because it will allow Tilly to see where the cash is going at a specific time. Totally Tidy will use operating activities when producing the services for the business and investing activities with the equipment being used. The target market for this company should be the resident in King Township and Vaughan that are between 20-60 years of age, who require cleaning and organizing services. By serving these areas Totally Tidy is targeting high-income earners that will be willing to pay a premium price for these services, which will increase the businesses revenue. She should start off at $100 per hour for cleaning services this rate is high enough to establish the business and low enough to penetrate the market with new