Cleaning services tend to have lower up-front costs than other ventures. It is one of the few businesses you can start operating quickly with little capital unless you’re willing to work hard for a modest profit and gradual gains. The US general revenue for residential cleaning businesses can grade up to $36K to $100K per year.
Most cleaning businesses can be run either part-time or full-time from your home or commercial premises. This flexibility makes the industry firmly appealing to a wide range of people with different goals.
If you are also thinking of diving into the cleaning industry. Here are some steps to keep in mind while starting a Cleaning business.
Steps To Keep In Mind While Starting A Cleaning Business
⇒ Create A Business Plan
Not having a proper business plan is one of the major reasons why cleaning business fails. Prepare a business plan before doing anything. It should include details like -What type of cleaning service do you want to offer, and what are your target customers or homes? It also shows different cleaning packages and their respective prices.
First, determine the type of service – whether to provide commercial or residential premises. It’s also essential to understand what your paying customers are looking for in a cleaning service and what is the current market demand for cleaning services. Plan your business accordingly.
Conduct detailed market research. The customer you serve determines the type of equipment needed to meet their needs. One of your missions should be to end the stigma around the cleaning industry, so that such services get resources to grow, along with respect.
⇒ Select Your MarketÂ
Based on market research, you should establish your business focus.
Commercial cleaning services manage areas like offices, hospitals, schools, retail stores, and other large spaces used for business purposes. This service provides janitors for large businesses that need to keep everything clean so people can move around the room freely.
Also, they will likely be required to work overnight to avoid disrupting their daily operations, and cleaners will need to take courses or be certified.
Residential cleaning services involve working in living spaces. Cleaners should be adaptable and respectful of the customer’s home. Also, apartment cleaners need to be more meticulous and pay attention to the layout of the rooms. Cleaning also takes a long time because of these details.
Here are some questions you can ask yourselves –
- Weather commercial services or residential services in high demand?
- Where is the least competitive?
- Which includes more risks?
- Which services require more capital?
The route you choose determines the type of training you need and the financial help you need. So choose carefully.
⇒ Arrange Fund For Your BusinessÂ
Not everyone has cash in the bank to jump into a new business. Luckily, there are financing options that help you to start your cleaning business with minimal capital.
Startups, do not have any track record yet but can use business plans, forecasts, and other documents to raise money from some investors or banks.
↳ Lines Of Credit
Instead of fixed interest rates, lenders offer tight credit limits. Banks offer you the facility to withdraw funds as needed to cover your operational and business expense instead of receiving all your funds at once.
↳ Business Credit CardÂ
A business credit card is a credit card intended for use by a business rather than for personal use. Business credit cards are available to businesses of all sizes and can help them build a credit profile to improve future borrowing terms, according to the US Federal Credit Union (FCU).
↳ Start-Up Loan
Some lenders are happy to lend to new businesses, but they may have some potential drawbacks. They offer higher interest rates and lower credit limits. They can also fund your business in exchange for equity in your business.
↳ Personal Loan For Business
Another option for startup financing is a personal loan for your business.
If you have good credit, a low debt-to-income ratio, and a steady income, you may be able to get a good, low-interest loan. However, if you pay the loan as agreed, you may be able to get a cheap long-term loan to fund your startup.
⇒ Name your cleaning business
Choosing a company name could make or break your cleaning business. While you can always change your company name later, you should get it right the first time. Here are some tips to help you pick the right name for your business in the right place at the right time:
- Avoid long names or names that are tough to spell, difficult to remember, or very similar to another existing business.
- An engaging or endearing name may work well for a residential cleaning service but seem unprofessional to a corporate client. On the other hand, a commercial cleaning company’s name may come across as stuffy and unapproachable to residential clients.
- If you have a specialty that differentiates you from the competition, it may be helpful to include that in your business name. For example, if your company uses only eco-friendly products, you could involve the word “green” in your business name.
Don’t forget to research to make sure that the name you chose hasn’t already been taken. You can also check with your local county clerk’s office to ensure someone else isn’t already using that name.
⇒ Register Your Business
Starting a new business is always an exciting experience. But before you start, you need to decide what your company will be like a sole proprietorship, partnership, or corporation. Once the form of the company is determined, it must be incorporated into the relevant government agency.
All home cleaning businesses are required to register with the government to pay taxes. You may be required to register with different levels of government such as local, state, and federal. You can usually register online or by phone.
↳ Sole Proprietor
A sole proprietorship is the simplest type of legal structure for starting a cleaning business but also one with the most risk exposure. As a sole proprietor, you can be held personally responsible for any liabilities and the performance of your business.
You don’t have to register with your local government or pay any fees to start running your business, you may need to register your Employer Identification Number (EIN) with the IRS( Internal Revenue Service).
↳ Partnership
A partnership is a business agreement between two or more people who agree to be co-owners, distribute responsibilities for running an organization and share the income or losses that the business generates.
↳ Corporation
A corporation is an entity owned by shareholders who elect a board of directors that oversees the activities of the organization. A company is responsible for its actions and finances, but its shareholders are not.
A business can be for-profit, like a corporation, or non-profit, like a charity. Forming a corporation is more expensive than remaining a sole proprietorship
↳ Limited Liability Company (LLC)
A limited liability company is the most common business structure for cleaning businesses. An LLC offers protections similar to those of a corporation but comes with different tax and legal requirements. To form an LLC, you’ll need to pay a fee to register with your state or local small business association.
⇒ Cleaning Business Insurance
Insurance is more than financial protection. It also enhances business stability. In addition to insurance, a cleaning deposit is a way to show customers that they can trust your business with a valuable asset.
Let’s take a look at different types of business insurance for cleaning services that can protect your business at every stage of its development:
↳ General Liability Insurance
General liability insurance covers common injuries such as Gliding Accidents and Damage to Your Property. It is an essential policy for cleaning companies, as employees frequently handle other people’s property. Make sure that care, storage, and control (CCC) approval is added.
↳ Workers’ Compensation Insurance
In most states, you’ll have to purchase workers’ compensation insurance when you hire your first employee. This policy pays for employees’ medical bills for work-related injuries and lost wages while they cannot work. Even if your state doesn’t require workers’ compensation, you should still consider it.
↳ Commercial Auto Insurance
Most states require commercial auto coverage for business-owned vehicles, even if you don’t own a company vehicle. Your auto insurance may not cover you if you’re in an accident on your way to or from cleaning. You may want to buy hired and non-owned auto insurance (HNOA) for work-related travel in your car.
↳ Janitorial Bonds
Janitorial bonds, also called surety bonds, guarantee that a client will be reimbursed if one of your employees steals from them. Bonds protect you if an employee steals valuables or cash or makes an illegal funds transfer. If you need additional help, you should vet your new hires carefully.
⇒ Set Pricing
A cleaning business can be lucrative, but you need to set profitable pricing and for that, you need to do your homework and know how much/what your competitors are charging. Don’t overcharge nor sell too cheaply
Call other local cleaning services to see how they charge and what price. Many cleaning services charge by the hour, while others charge by the number of rooms or square footage.
Once you have a general idea of ​​local fees, you need to factor in material costs and whether you need to hire additional help. When you’re first starting your business, using hourly rates may be best. Once you’ve decided on a price, it’s time to look at how long it will take you to complete the task or property.
Written service-level agreements help clients receive money on time and maintain clear financial records. If you’re not already using it, there are some bare contract deployments available.
⇒ Get Your Equipment Ready.
Depending on the services you provide, you may need to purchase equipment such as cleaning supplies, trash bags, commercial vacuums, and other necessary things to start your business.
Get high-performance equipment that will withstand wear and tear and last for years. Make sure you have the proper safety gear to keep you and the employees you hire safe.
Renting all the necessary types of equipment is preferable at the initial stage as it can save you money and you can get an idea if it fits your criteria before buying.
⇒ Find Clients For Your Cleaning Business   Â
Building and maintaining a solid clientele is critical to the success of your cleaning business. As part of that, you need to develop a marketing strategy to attract customers.
Here are some cleaning business marketing strategies to help you grow your business.
↳ Start A Cleaning Company Website.Â
Most people start their search for cleaning services online and make their business grow. You should set up a website for your cleaning business so people can find you online. Apart from that, there are many other reasons your business needs a website.
Your website should include all the services that you offer, who you typically work with, and how to contact you.
↳ Sign Up For A Google Business Profile
If you set up a Google Business Profile (formerly “Google My Business”), your cleaning business will appear on Google Search and Google Maps. A free and easy way to get your business seen by users searching for cleaners in your area.
↳ Speak Directly To Prospects
An effective strategy for finding new customers is to seek out businesses and homeowners who might benefit from your cleaning services and ask them directly. It is a great way to get your name out there, introduce yourself to other businesses in your area, and find new customers you wouldn’t otherwise meet.
↳ Advertise In Your Locality
You can grab the attention of potential customers by handing out flyers around town. You can also contact your local Chamber of Commerce to see if they have a locality board where you can promote your business. Also, consider advertising in your local newspaper, news station, or radio station.
↳ Use Social Media
In addition to your website, consider sharing information about your cleaning business with people on social media. By using the most effective way to book clients on social media you can increase your revenue. You can use Facebook, Instagram, Pinterest, and many other social media sites with potential customers online and give them a behind-the-scenes look at your business…
↳ Use Google ads
Google Ads is Google’s online advertising platform, which allows you to create online ads to reach audiences that are interested in the products and services you offer. The Google Ads platform runs on a pay-per-click (PPC) advertising model, i.e. you have to pay every time a visitor clicks your ad.
They show your ads to the right people, in the right place, and at the right time. Google Ads offers several benefits, like targeting Ads, managing campaigns, controlling your costs, and many more.
Summing up
This blog explains in detail how to start a cleaning business. As this is one of the growing companies in the world. However, before starting a cleaning business, there are a few steps you should consider.
It’s essential to start with your marketing plan and then choose your market. Financing is another aspect to consider when starting a business. Then the company is named. Every company should have certain recognition values.
Then register your business for legal reasons. Also, take out full insurance for your business to cover any losses. And most importantly, find satisfied customers to serve.
