Executive Summary
TimeSavers is a full-stack concierge service business that serves both residents and corporations. Our main keys to success include our 24/7 service and ability to carry out any errand imaginable. We've also managed to save hundreds and thousands of dollars in utility expenses, given that our business is run remotely.
TimeSavers also has an aggressive marketing strategy. We've set out to become a monopoly in the underserved community of Baltimore. We have numerous customers across the more affluent suburbs of Baltimore City. This includes areas such as Fells Point, Cedar Croft, and Little Italy.
It's evident that the areas that we've chosen to serve have helped us generate sales. Our studies suggest that individuals who have a median household income of $40,000 are more likely to use concierge services. Considering that they're more likely to lead busy lifestyles or run their businesses, they rely on concierges to make their lives easier.
As more businesses and households become available in Baltimore, we expect a growth in sales. Our forecasts suggest that we'll experience a growth of at least 2,2% YoY over the next 5 years.
By continuing to serve the many concierge requirements of our customers, recruiting a high-quality staff, and continuously studying the market, we'll be able to achieve our ambitious sales goals consistently.
TimeSavers Concierge is seeking $50,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Gross margin | 73% | 73% | 73% |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Company Overview
TimeSavers Concierge is a personal & corporate concierge service founded by Christine Bailey, operating as a LLC. Headquartered in New York, New York, USA, TimeSavers Concierge was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
TimeSavers was founded by Dylan Troussard in 2017. Dylan is currently the acting CEO of the company. It's registered as an LLC in the state of Maryland.
Our founder has just over a decade of experience as a procurement manager. He worked for companies such as Acrinvest and Barloworld, making him a highly respected professional in his field.
This corporate experience has allowed the company to grow fairly quickly, given the competitive nature of the market.
TimeSavers has 5 full-time employees. 4 of these employees have worked for the company since its inception. The company's primary mission is to provide high-ticket clients with a high level of concierge services.
Market & Customer Analysis
The concierge service industry is especially vibrant. It's also expected to grow significantly over the next few years. According to Allied Market Research, the concierge industry is worth over $645 million. Over the next 6 years, it will be worth just over $1 billion.
We intend to increase our market share consistently by capitalizing on key industry trends. By taking advantage of the various opportunities that are bound to present themselves, we'll be able to stay ahead of the competition.
One such trend that we’ve acted upon is providing luxury concierge services. This ultimately transcends what concierge services are typically known to deliver for their customers.
Overseeing world-class lifestyle experiences such as shark diving, gallery exhibits, and pet pampering for hotel guests in particular. Offering these services has certainly been instrumental in standing out from our Maryland-based competitors.
Contrary to popular belief, there is a significant demand for concierge services in the US. This apprehensive attitude towards the industry is a result of a lack of experience and adequate research amongst entrepreneurs. We predict that the market will become less saturated as the current industry players gain a larger market share and continue to innovate.
Customer analysis:
Our target audience is made up of 25 - 80-year-olds who have a disposable income. They quite simply don't have the desire to carry out menial tasks such as paying traffic fines, buying groceries, and washing their pets.
One can also quantify their support of our business to their desire to have flawless lifestyle experiences. For instance, roughly 35% of our customers are hotel guests who require a professional concierge service to ensure they have a pleasant experience.
We have a rigorous feedback procedure that has provided us with valuable insights into the preferences and expectations of our target audience. For instance, we've established that our clients don't mind our considerably higher price points. We've also learned that over 90% of our customers think of us as a 5-star concierge service.
The second customer segment that we look to to reach our sales goals is medium to large companies. These organizations need our concierge services to increase the productivity of their staff members. This customer base is highly lucrative for our company as we receive a great deal of repeat business.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Quintessentially | Established brand, wide reach | Higher price point, less personalised |
| John Paul | Strong marketing, national presence | Generic offering, less specialist focus |
| Velocity Black | Competitive pricing | Lower service quality, limited expertise |
Personal & Corporate Concierge Service's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
We’ve opted to focus on a direct-to-consumer sales strategy. By reaching out to hotels and companies in and around Maryland, we've been able to achieve significant success in terms of our revenues and profits.
This has required us to employ 2 talented sales agents who reach out to these customer segments daily. We've implemented an incentive program to motivate our sales team and ultimately fast-track our growth. This includes a commission structure and paid vacations.
It's crucial to have extraordinarily high customer service standards in this industry, especially since our customers are made up of high-income individuals who expect the very best. Our level of customer service for our clients has proven to be an excellent tool when it comes to generating sales.
As mentioned above, price is no problem for the vast majority of our target customers. However, we offer a 10% discount at the start of the year, which is our off-peak season.
Our sales forecasts suggest that we'll experience a minimum of 2% growth every year. This consistent growth will help us generate just under $1,6 million in profits over the following 3 years.
Additional marketing notes:
Developing an effective marketing plan has required a substantial amount of trial and error. We've placed emphasis on digital marketing to reach hotel guests in Maryland. This targeted advertising on Google reaches Maryland residents and visitors directly.
This digital marketing tactic is considerably expensive. However, it has yielded desirable results over the last 4 years. Considering that over 79% of mobile travel bookings are made online, this marketing strategy should prove essential moving forward.
We also advertise our concierge service in the establishments of our accommodation partners. We enlisted the services of a graphics designer to create a poster to attract clients who are already staying in local hotels and B&Bs.
Hyatt Place, Days Inn, and Hampton Inn are the restaurants that have helped us yield significant profits with this marketing strategy.
Beyond that, a large portion of the hotels we work with share a list of activities that their patrons can partake in during their stay. TimeSavers is listed as a partner in 17 hotels across Maryland.
Social media marketing is an essential part of the bulk of businesses across the US. In our experience, it's been relatively ineffective. Making use of our targeted traditional marketing tactics has yielded the desired results for our company.
Operating Plan
Personnel Role Duties Phillip Graham Concierge Manager
- Responsible for overseeing the daily operations of our business
- Working as a bridge between our concierges and upper management
- Ensuring that all customer bookings are scheduled and budgeted for Pierre Connors
James Lampard
Kent Smith Concierges
- Carrying out our client demands as per their unique demands
- Handling customer inquiries and complaints promptly Fettie Brown Operations Manager
- Ensuring that all parts of our businesses are running smoothly
- Assisting with customer inquiries where necessary Harriet Hargreaves Sales Manager
- Ensuring that our sales team is achieving its goals consistently
- Developing new sales strategies to enhance our sales performance Frank Moore Social Media Manager
- Managing our social media pages
- Keeping an eye on the growth of our business whilst ensuring we achieve the necessary levels of growth William Thomasville Concierge Assistant
- Assisting our senior concierges where necessary
Management Team
Given the nature of the concierge service business, we've been able to run a tight ship with a relatively small management team. These are the individuals who are responsible for driving the growth of our business.
CEO: Dylan Troussard
Dylan has the inherent ability to make key business decisions. This has enabled our business to grow at a relatively fast rate. His professional experience as a procurement manager has been complemented by his MBA from John Hopkins University.
CFO: Regina Wilde
Regina is the second longest staff member at TimeSavers. She's responsible for balancing our books, drafting sales forecasts, and helping us stay within our budgetary constraints. Regina is a natural-born leader and has contributed to the personal and professional development of our staff members over the years. She studied accounting at the reputable University of Baltimore.
CMO: Carla Stewart
Carla is in charge of organizing and implementing our marketing efforts. She also has ample customer service experience - she worked as a teller whilst putting herself through university. This is a testament to her hardworking personality. She gained her communications certification from the University of Nebraska.
HR Manager: Gary Player
Gary has helped us recruit our members of staff over the years. Beyond that, he also ensures that our recruits are content in their respective positions. He studied finance at Loyola University and later pivoted to human resources.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Concierge Service Business Plan Concierge is a synonym for miracle worker, so your standards need to be particularly high.
This is an exciting industry that's brimful with opportunity. However, it's not all about booking trips and running errands. You'll also need to have an exceptional level of customer service, even when things are not ideal.
Putting in some hard work will be equally as important as the direction of your document.
You'll never truly be done writing your concierge service business plan. It's an ongoing process. You'll need to revisit and refine your business plan for it to remain effective. If you need a business plan tailor-made for your company, get in touch with us and we'll have you sorted out briskly!
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Direct labour and contractor costs | $86,400 | $151,200 | $237,600 |
| Gross profit | $233,600 | $408,800 | $642,400 |
| Gross margin | 73% | 73% | 73% |
| Salaries and wages | $102,400 | $179,200 | $281,600 |
| Marketing and advertising | $35,200 | $61,600 | $96,800 |
| Rent and utilities | $24,000 | $24,000 | $25,200 |
| Other operating costs | $19,200 | $28,000 | $35,200 |
| Total operating expenses | $180,800 | $292,800 | $438,800 |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Break-even analysis:
- Estimated monthly fixed costs: $15,100
- Monthly revenue required to break even: $20,600
- Break-even is projected to be reached within the first 12–18 months of trading.