The cleaning business is booming due to the Covid-19 pandemic! Yes, the market size of cleaning services will grow at a CAGR of 6.2% and will reach $74,299 million by 2022. Now is the right time to dive into this business. But, how to start a cleaning business from scratch?
That’s what I will talk about in this blog. By the end, you will have the answer. So, without wasting your time, let us begin.
Table of Contents
- What is a Commercial Cleaning Business?
- How to Start a Cleaning Business: A Simple 8-Step Guide
- Make an Appropriate Plan For Your Business
- Be Clear About the Cleaning Business Budget You Need To Set
- Gather a List of Cleaning Equipments For Your Business
- Identify the Best Brand Name For Your New Cleaning Company
- Setup Proper Licensing and Fulfill Legal Requirements
- Start Marketing For Your Cleaning Company
- Organize Staff Hiring Process to Enhance Business Strength
- Use Cleaning Business Management Software
- The Pros and Cons of Starting a Cleaning Business
- Essential Equipment You Need To Start a Cleaning Business
- Is Starting a Cleaning Business Worth?
What is a Commercial Cleaning Business?
The commercial cleaning service is associated with providing expert cleaning solutions to companies. This business can be profitable because it contains additional add-ons like floor waxing, window cleaning, and even deep disinfecting the various sections of office buildings.
The commercial cleaning business primarily deals with covering square feet, requiring working faster with a minimal detail-oriented approach.
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How to Start a Cleaning Business: A Simple 8-Step Guide
You can start your cleaning business if you have proper planning, resources, and a good implementation strategy. For starting a cleaning company from scratch, you require minimum capital and very few overhead expenses in your business structure.
Now, it’s time to see how you can effectively start your company. The detailed steps are mentioned below:
Make an Appropriate Plan For Your Business
Before starting any business, it is a must that you do appropriate planning to make things succeed. Your plan should include essential business structure information like target audience, revenue details, prediction of operating costs, and even marketing plan in social media.
In the plan, you should specify the target audience’s details, especially when you need to target potential lenders or investors.
To be on the top of the competition, you need to take care of the following aspects of your plan:
- Startup costs: Generally, you need to purchase a pressure cleaner and some cleaning supplies on the initial level. So when deciding the costs, it’s better to check what other contractors are charging.
- Ongoing expenses: It is very much essential to maintain equipment cost that is used regularly. Also, you need to keep the entire stock of cleaning supplies.
- Target audience: Next, you need to define your customers you want to target. In most cases, they are residential homeowners, apartments, or complexes. Do a thorough market research.
- Company Name: Naming a business is the most significant and most challenging decision for many business owners. Select the business name that is readily available as a web domain, and it should be secure.
When you create a plan for the first time, make sure the following components are mentioned in the plan.
- The overall business model defining the idea of the company
- Essential information, including goals and vision to start your business
- The list of service offering
- Complete information about the specific market you will target
- Number of employees working in your business
- Details on startup costs like maintenance, licenses, permits, and others
- Financial projections like expected profit-margins yearly or monthly
So, the business plan is nothing but the blueprint that highlights all the essential information about your business in a well-defined and straightforward manner.
In your business plan, you need to be very careful while deciding the business location. It includes excellent networking opportunities, giving a company plenty of future clients to enhance the strong relationships.
Be Clear About the Cleaning Business Budget You Need To Set
Budget is the primary constraint for any business. Generally, the following budget-based questions arise in your mind when you’re planning to start a new business.
- Is it possible to start a cleaning business with no money on hand?
- How can I keep my costs down?
- Is starting a new company expensive?
You must have to keep aside money for paying taxes and insurance when opting for a business plan.
However, if you want to save your money, you can plan to consider other budget measures like hourly rate, maintaining cleaning supplies, and even purchasing other low-cost cleaning products.
Gather a List of Cleaning Equipments For Your Business
As a part of the business plan, cleaning companies need to make sure about the equipment and cleaning products required for cleaning a customer’s home & business.
One of the best recommendations is that cleaning industry owners need to split up their cleaning supplies and equipment into two essential categories:
- The items like clothes, mops, gloves, face masks, bleach, and all-purpose cleaners need to be purchased regularly.
- The items like vehicles, caddies, window cleaners, vacuum cleaners, and carpet cleaners can be used for many years.
Before purchasing any home equipment for your cleaning organization, keep in mind the type of product you may want, whether traditional cleaners or environmentally friendly cleaners.
Identify the Best Brand Name For Your New Cleaning Company
Branding is an essential part of any startup company. You need to select the best brand name and business logo for the cleaning business to have a user attraction at first sight effectively.
You need to decide the type of brand identity like:
- It precisely describes the company information
- It is easy to read and spell
- It’s a unique one
- It enhances your market value
Try searching online for better suggestions for the business name. However, if another organization has already taken the brand name, it will lead to legal issues and even cost them a pretty high penalty.
You can use a quirky or fun nickname, or something based on your geographical location or the specific type of cleaning services you offer, whether it’s residential cleaning or commercial cleaning.
Setup Proper Licensing and Fulfill Legal Requirements
For starting commercial cleaning services from scratch, you must have a business license. The primary aim of having a business license is that no other company can use your business name.
However, such licensing requirements typically vary based on different states and local legislation to ensure that it follows local ordinances for small businesses.
Generally, there are two core options for business licensing:
- Limited Liability Corporation (LLC): Minimizes the amount of liability the individual possesses
- Sole Proprietorship: It is cheap to establish, and you can easily control your business with ease by being the sole proprietor.
You have to apply for an employer identification number through the IRS if you plan to operate a partnership or corporation.
The number is free, and I highly recommend you apply for it online.
Once you receive the number, open an account with the IRS, into which you can pay the income taxes that get deducted from your worker’s paychecks.
You will need a tax number from your state so that you can pay state taxes. Visit your state’s Department of Revenue to register for an account number. Generally, you will be responsible for paying the following taxes:
- corporate taxes
- employment taxes
- personal income taxes
- sales, property, and use taxes
In the U.S, you need to register your business with a state agency. You can find your state’s agency by visiting the Small Business Association’s website, which has a list of states. Click on your state.
- The SBA website allows you to apply for the license.
- Contact the agency to find out what permits or licenses you need to run your house cleaning business. Get it before opening your business.
- You may need a regular business license, or a special cleaning business license.
The business owner needs to file a DBA – Doing Business As – license for operating your business legitimately. Moreover, they need to determine whether the local laws want you to have appropriate liability insurance, business insurance, and other protections before issuing the business license.
Start Marketing For Your Cleaning Company
Once the business registration completes, it’s high time for company leaders to build a customer list. To achieve customers using marketing forms is as simple as word of mouth or even complex as advertising in a newspaper or online format.
There are various ways through which you can do marketing for your company:
- Print and share fliers to local clients to advertise your commercial cleaning service
- Develop a website and mobile apps with an attractive company logo to target market
- Invest more in digital marketing and social media
- Ask for referrals to your existing customers
- Create discount coupons to enhance user attraction
- Create Facebook and Instagram business accounts. Social media is a great marketing channel to show before and after cleaning images.
- Get in touch with your client Discuss job details (size of space, type of cleaning, frequency of cleaning)
Apart from such tips for startups, you can start the marketing strategy by hiring resources or workers to visit clients’ locations to share the details.
Organize Staff Hiring Process To Enhance Business Strength
At an initial level, it’s a good practice to hire at least one cleaner to perform the essential cleaning services. But how do you manage your business if it grows? There will be more roles and responsibilities to handle, and you might need more employees in your business.
It becomes apparent that you need to complete an employee hiring process to increase your staff. So, you need to hire employees that possess basic cleaning skills. However, to become a part of effective cleaning teams, individuals must be addicted to doing clients’ commercial cleaning jobs with perfection.
By having appropriate and perfect staff, you can quickly grab more clients by having effective communication skills, leading to more revenue and business success.
The staff must possess robust ideas to deal with cleaning tools and platforms to represent the brand in the marketplace well.
Ensure that you have the proper general liability insurance amounts for your business. Also, most homeowners or office owners will expect it and sometimes even ask you to provide proof of your liability insurance before they hire you. This insurance will cover bodily damage and property damage.
Use Cleaning Business Management Software
Business management software plays a vital role in enhancing your company’s productivity.
You can manage everything related to the company like employee scheduling, manage customer lists, notes, and generating an invoice smoothly.
With the help of cleaning software, you can perform the following activities:
- Schedule the tasks and activities for the workers
- Perform marketing strategies to enhance revenue and productivity
- Perform customer surveys to increase customer experience through social media
The most exciting part about this professional cleaning software is that you can smoothly perform a payment transaction using credit card payments. In addition, the software comes up with an attractive pricing structure in the market.
The Pros and Cons of Starting a Cleaning Business
- Minimal startup costs: The cleaning business requires few types of equipment, cleaning supplies, and materials to start on an initial level. You can even opt for renting a few types of equipment if high-cost equipment is included in your company to save your money and gain profit.
- Excellent income potential: Nowadays, cleaning services are in great demand as there are multiple project management tools available for cleaners.However, your earning potential is strictly limited only by your restrictions of using interactive platforms for cleaning organizations and effectively running the company directly from any location.
- No experience required: Wow! No education, no qualification necessary for performing cleaning services. Just you need to have strong motivation, determination, and hard work to start booking your first clients.
- Work from home: The service provider just sits and relaxes to provide the best services to their clients or customers. Everything is managed with ease, and one can smoothly run the cleaning company directly from the home location.
- Flexibility: You are self-employed and the boss of your cleaning company to work for yourself, schedule meetings, set your hours, and in a nutshell, have total control of your cleaning business.
- A few additional expenses – You do not need to rent or buy premises, buy a company vehicle, cost of wages, or pay utility bills. Of course, these can all be standard tasks at a later point — but for starters, you can start with minimal monetary concerns.
- It requires challenging physical work — Cleaning is a physical job that requires a lot of time to make it suitable, do repetitive movements on your own, and carry heavy supplies. But, it’s only the case if you are not hiring an experienced cleaning crew from the start.
- Less income at the initial level: During the initial stage, your cleaning company has a low income as per the expectation. However, if you can manage your company correctly and figure out how to find clients, you are all set up and ready to go.
- It is competitive — In this competitive world, you will find several cleaning service industries globally. At an initial level, it is pretty complex to stand out from the competition. But, if you have unique skills to perform sales, you can top the market.
- Stressful team management: Your cleaning crew should be your main focus when running a successful cleaning business. Sometimes, there may be ups and downs — and you may not be available to track them or see how they do their jobs. So, you must be ready with the best available marketing team.
Essential Equipment You Need To Start a Cleaning Business
Generally, a business owner needs a license, supplies, and a clientele to start a cleaning business. Apart from these, there is some essential cleaning equipment that you need are discussed below:
Residential Cleaning Equipments:
- Safety purpose: Cleaning uniform or apron, disposable gloves, knee pads, shoe covers, comfortable sneakers
- Living room and bedroom: Short duster, long duster, dusting mitt, wood furniture cleaner, microfiber glass cloths, Furniture vacuum attachments or a handheld vacuum, Leather cleaner
- Kitchens and Bathrooms: All-purpose cleaner, disinfectant cleaner, scrub pads, toothbrushes, grout brush, soap scum remover, sponges or microfiber cloths, bathroom cleaning powder, toilet bowl brush
- Floors: Vacuum cleaner for carpets, Vacuum cleaner for hard floors, mop and pads, floor cleaning solution, dustpan and brush, broom
- Windows: microfiber glass cloths, window cleaning solution, paper towels
- Organization: Cleaning bucket, Caddy with dividers for products, Garbage bags (for small trash cans and large kitchen cans), Spray bottles for solutions and water
Commercial Cleaning Equipments:
- disinfectant sprays
- a floor waxing machine
- floor washer
- commercial brooms
- commercial buckets
- cleaning cloths and mitts
- dusting tools
- high-performance commercial vacuums
- large garbage bags for bathrooms and kitchen areas
- professional cleaning uniform branded with your logo
Is Starting a Cleaning Business Worth?
If you have planned to start your cleaning organization, you can enhance your business by spending less and grabbing more profit. Following are the possible reason why it is worth starting a cleaning business:
- Lower initial capital need
- Deal with stable janitorial industry
- To spend a bit of cash every week
- Purchasing equipment in advance
- Fewer labor costs
- No previous experience or education required
- Searching for the best and reliable cleaning crew members
- Scheduling a training session to get more awareness about the cleaning work
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The costing factor typically depends on various business perspectives like initial investment, the number of employees to include in your business, purchasing license and business policies, labor, and considering the marketing strategies.
To get commercial cleaning contracts, you need to follow the points mentioned below:
- Develop a responsive website mentioning your business information
- Do a strong partnership with your local organizations. Share your business cards with them.
- Provide exceptional residential house cleaning service throughout the bidding process.
- Establish a referral program
Cleaning typically involves using small equipment or tools to provide services to the clients with a reasonably large amount. So, yes, it’s a profitable business as you need to spend less and have more chances of earning more.
Here are seven simple ways to get leads for your residential cleaning services:
- Use a quote form popup to generate more leads for residential cleaning services
- Develop a lead magnet related to cleaning a home
- Use blogging as a method to generate leads
- Run Facebook ads
- Use Google My Business to get local cleaning leads
- Use pictures of your employees on your website and in your advertisement
- Determine a niche market you can tap into to expand your options for cleaning clients
So, are you ready to start your company?
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