Business Plan

[adufe]

I want to become an entrepreneur, a sole trader, cleaning company in Finland and am presently writing my business plan.
Can someone here help me with the cleaning services price lists in Finland?

[cors187]

start with making salary 11,50hr x1.6=18.40euro/hr
how long does it take you to clean a toilet? for the example lets say 15min
18.40\4= 4,60euro +chemicals per toilet

[Rosamunda]

Try googling: hinnasto siivouspalvelut

and you should find some eg:

http://www.lindankotipalvelu.fi/hinnasto.html
http://moppi.com/?gclid=CjwKEAjwzJexBRC ... oCyz3w_wcB
http://aratto.fi/siivouspalvelut.html?g ... oCuUrw_wcB

etc etc

Remember, if you are pricing for private cleaning (business to customer) then your customers need to know the full price including 24% VAT because they will have to pay the VAT. (If you are selling cleaning services to businesses then it is the price without VAT that is usually advertised because businesses can claim it back).

For your business plan, usually no VAT is shown anywhere. VAT is just cash flow through your business to the Treasury (Vero).

[cors187]

start with making salary 11,50hr x1.6=18.40euro/hr
how long does it take you to clean a toilet? for the example lets say 15min
18.40\4= 4,60euro +chemicals per toilet

i would use a multiplier of 1.8 for all future cost predictions from now on.
1.6 might not cover you in todays finnish business system.

[007]

May I know why exactly a multiplier of 1.6 or 1.8? Could you break down the figure illustrating how you have come up with it? Thanks.

[Rosamunda]

Just charge what everyone else charges. if you charge more, you won't find any business. If you charge less... well, there is no point charging less - it just makes you look like you're a dodgy geezer (ie not paying your tax and contributions).

Total waste of time trying to calculate breakeven points and stopwatching yourself every time you clean a toilet. You will spend a significant amount of time travelling from one place to another (not cleaning) and no two places are the same. There are so many variables, it is impossible to draw up a business plan factoring everything into your calculations.

Just get started and you can work on your pricing later on. Or ask a friend who is already in the same business.

If you use some magic number, like Cors187 is suggesting, you may end up seriously underselling yourself. As soon as you put your prices up, you will lose all your customers. It's easier to reduce prices later or give discounts to your 'favourite' clients than to try hiking up prices when you realise you are undercharging.

[cors187]

May I know why exactly a multiplier of 1.6 or 1.8? Could you break down the figure illustrating how you have come up with it? Thanks.

because when you send someone there to clean the floor you will generally have to pay x1.6 of the workers salary to staying above the waterline

Its common knowledge in business circles that finland and parts of Europe have a shocking ratio of worker(pocket money in) to customer(out of pocket money).
Now you guys better start understanding that some countries, lets take Australia for example has a superior worker to customer ratio so the money that is available or the budget of whats available gets to the peoples pockets better that do the work.
Are you really ready to know how fudgy this place is, its almost laughable and theres a good handful or more regulars here that keep dropping hints when they have nothing better to do.Or basically when they get a spare moment to confess publicly

lets put it this way
Do not count pensions and other retirement money as yours until you get to that age and claim it. Disregard those items because those are promissory notes based on your ability to stay employed and live to an age where you gained an advantage over the system.

heres the truth
You pay someone 10 euro/hr to clean a floor
It really costs you 16euro/hr to clean the floor. Im reporting to you that dont use that 1.6 figure, use x1.8 as a safe level, So now your estimating that 18euro/hr will cover your costs for a worker whose there.
BUT wait your a business, you need to make some money for the service right
Lets put 5 euro an hour onto the costs so you can profit 5 euro hr.
5 x 40 hr = 200 euro per week profit from 1 worker

Now you have to sell your service for 23 euro/hr to make 5 euro
But wait you still havent added a full spectrum of running costs because the x1.8 only but safely covered holiday loading/sick days/employer contributions/ meal allowances/travel bonuses. Some industries can justify x1.6 but im suggesting to use x1.8
So depending on the work, for example you need to clean a floor and it really requires some heavy attack chemical with preperation time/saturation time and this chemical isnt as cheap as fairy. HAH. Cleaners get a chuckle from the fairy joke.

Vehicle costs and whatever else you need to spend and some running costs just so the company can be a company and some other costs that creep in from sources you cant predict until you are up and running.
So all those running costs are not included yet in your 23euro/hr.
Some of you are already adding extra costs like administartion of the business to collect the job and allocate the job, deal with the premises etc etc.

Lets throw a few more Euro on top and say 26euro/hr to clean..
WAIT WAIT , boy thats cheap, your company can come and clean my mess anytime, we can make a contract so i can bind you down to your price.


here


26 add VAT %24 =6.24 total 32.24

Customer out of pocket 32.24
worker in pocket 8.75

case closed

[Rosamunda]

@cors187

May I know why exactly a multiplier of 1.6 or 1.8? Could you break down the figure illustrating how you have come up with it? Thanks.

because when you send someone there to clean the floor you will generally have to pay x1.6 of the workers salary to staying above the waterline

The OP asked about becoming a SOLE TRADER. ie he is NOT going to employ other people. He/she is doing the work himself.

Its common knowledge in business circles that finland and parts of Europe have a shocking ratio of worker(pocket money in) to customer(out of pocket money).
Now you guys better start understanding that some countries, lets take Australia for example has a superior worker to customer ratio so the money that is available or the budget of whats available gets to the peoples pockets better that do the work.
Are you really ready to know how fudgy this place is, its almost laughable and theres a good handful or more regulars here that keep dropping hints when they have nothing better to do.Or basically when they get a spare moment to confess publicly

The OP wants to be a SOLE TRADER ie self-employed. What does 'fudgey' mean? I have no idea what you are alluding to here.

lets put it this way
Do not count pensions and other retirement money as yours until you get to that age and claim it. Disregard those items because those are promissory notes based on your ability to stay employed and live to an age where you gained an advantage over the system.

??? What does that mean? OK, so we all understand that you have no interest in learning Finnish because you can get by effortlessly without it (except that I've noticed when you advertise for workers on here you make a point of saying they must speak Finnish) but living in Finland requires that you contribute to society - that's how Finland works. "Do not count pensions...as yours" is not advice to someone who is asking for help. It is just facetious drivel from someone seems to have no qualms about trashing the very system that is providing his own income and benefits (and yes, you do benefit from the system as we all do).

heres the truth
You pay someone 10 euro/hr to clean a floor
It really costs you 16euro/hr to clean the floor. Im reporting to you that dont use that 1.6 figure, use x1.8 as a safe level, So now your estimating that 18euro/hr will cover your costs for a worker whose there.
BUT wait your a business, you need to make some money for the service right
Lets put 5 euro an hour onto the costs so you can profit 5 euro hr.
5 x 40 hr = 200 euro per week profit from 1 worker

Now you have to sell your service for 23 euro/hr to make 5 euro
But wait you still havent added a full spectrum of running costs because the x1.8 only but safely covered holiday loading/sick days/employer contributions/ meal allowances/travel bonuses. Some industries can justify x1.6 but im suggesting to use x1.8
So depending on the work, for example you need to clean a floor and it really requires some heavy attack chemical with preperation time/saturation time and this chemical isnt as cheap as fairy. HAH. Cleaners get a chuckle from the fairy joke.

Vehicle costs and whatever else you need to spend and some running costs just so the company can be a company and some other costs that creep in from sources you cant predict until you are up and running.
So all those running costs are not included yet in your 23euro/hr.
Some of you are already adding extra costs like administartion of the business to collect the job and allocate the job, deal with the premises etc etc.

Lets throw a few more Euro on top and say 26euro/hr to clean..
WAIT WAIT , boy thats cheap, your company can come and clean my mess anytime, we can make a contract so i can bind you down to your price.
here

26 add VAT %24 =6.24 total 32.24
Customer out of pocket 32.24
worker in pocket 8.75
case closed

I might be repeating myself here but the OP wants to operate as A SOLE TRADER.

Also, if you had bothered to check out the links I supplied at the top of the page you would know that most cleaning companies charge way more than 32e/hr!!! So if the OP follows your in-depth activity-based costing assumptions and pricing calculations he is going to be pricing way below the going rate.

And the customer is not "out of pocket" by the amount you suggest because (a) if the customer is a private person they get personal tax relief on the cost of hiring domestic help and (b) if the customer is a company the VAT is deductible.

[cors187]

Im not going to spend time debating you on facts.My company pays a lot of taxes and so do i. Ive done business in 3 continents.Im here now but not out of any other fact that im stuck here right now.
I will never pretend that the earnings related pension i will earn here is mine until ive used it to the point where i spent more than i put in, much like some 35year working finns are now.

If the guy wants a business plan he needs to realize that times 1.6 to 1.8 is a worker cost that he can use for himself or another second worker that he hires into his TMI.

No one should get caught up in the idea that because he is self employed he can lower his pension to a sub standard level. I dont say that.
He should treat himself as a worker so he can replicate the business plan.
I gave him sound advise to understand that the pocket money of a worker and the cost to the customer is at an shocking level.(You need to understand this as the price of a job is not what its worth , the price of a job is set at what the customer is willing to pay until they say"Ill do it myself", which ironically is becoming so evident in Finland.Cleaning is one of those jobs.
The deductions are blah blah but the facts remain steadily evident of an arse ripping system supported by hardworking partnerships and associations.

I dont rip on Finland or people, i rip on crap.

[cors187]

Let me just say to the people who are following .
Theres a line of income that someone needs in their pocket to live here . There is also a line or budget of something that cannot be increased(like a project to clean the dead leaves from the roof gutter)

Finnish brain is suggesting there is, i believe finns are sneaky with their estimates and just as neat with their budgets.
Whether you start washing floors by yourself and you propose to be a one man wash cloth(i dont believe this is a business plan and neither does the government(factually).
So you are needing to Replicate and understanding the costs versus the customer outlay is desirable.
Disregard selective deductions until they become evident to use as a promoting tool.

[cors187]

(except that I've noticed when you advertise for workers on here you make a point of saying they must speak Finnish)

Its the same as an old business owner looking for a worker.
The owner is old but hes not a hypocrite, yet he still aint hiring old people to do a young persons job.
Theres speaking jobs and txt jobs that require language support.
I would drive a taxi part time if i could get by but i cant so i focus on other strengths.

Being a language deficient person has pushed me to other strengths.
Business plans should develop using strengths that you can use to beat the competition.

Finland is so macaroni in its integration that everyone is a macaroni