The business of cleaning is more important than ever — especially in the corporate world. Here’s how to establish your own cleaning business for success.
For some people, cleaning is one of life’s greatest pleasures. If you’re one of them, why not start a cleaning business? This way, you can make money doing something you actually love.
Just like any other business, starting a cleaning business isn’t easy. However, with proper planning, hard work, commitment, and the right cleaning tips, you can get your cleaning business off on the right foot. The cleaning business requires minimal startup capital but can rake in big profits once it’s well established.
The cleaning industry in the US brings in about $46 billion every year. If you’re eager to get a piece of the pie, read on to find out how you can start a successful cleaning business without spending a fortune.
Starting a Profitable Cleaning Business the Right Way
The narrative that cleaning services are only for the rich has, in recent years, been debunked. More and more households are hiring cleaning companies for their spring cleaning. Furthermore, most companies see no need to hire full-time cleaners when they can get better and more cost-effective cleaning services from cleaning companies.
So market demand is something you don’t have to worry about when starting your cleaning company. With that out of the way, here are seven steps to establishing a thriving cleaning business.
1. Start With a Budget
The budget forms the basis for your business. After all, every business needs starting capital to get it off the ground and working capital to keep it operational. So the first step to starting your cleaning business is having a realistic budget.
Even though start-up costs for cleaning businesses are minimal, you still have to spend a considerable amount to start your cleaning business. You mostly have to spend on cleaning supplies and equipment, rent if applicable, licenses and permits, and payrolls.
Expect to spend about $5,000 to $10,000 to start the business, with the highest percentage of this money going to cleaning supplies and equipment. Always do your best to have a little extra for emergencies, and in case business doesn’t do too well initially.
2. Clamp Down on Your Market
Once you have a realistic budget in place, you can now find your target market. Your target market is the clientele in need of your services.
It will be futile to establish a cleaning business without the demand for your particular services. Scout your locality for any company or institution in need of commercial cleaning services. Always keep in mind transport logistics whenever you’re scouting for clientele.
Also, it’s much easier to find clients for residential cleaning than for commercial cleaning. That’s because of the highly competitive nature of commercial cleaning services. You have to compete with well-established industries that have lots of resources at their disposal.
3. Find a Niche
When you start your cleaning business, it’s normal to want to do everything. However, wanting to do everything could be detrimental to your start-up business. A more promising approach would be to find a specialty that you’ll stick to until you have the resources to take on multiple niches.
You can specialize in cleaning carpets and furniture for starters. Alternatively, you can solely focus on residential cleanings like tile and grout cleaning. Try to specialize in a non-common area to reduce market competition.
Specializing in a niche can allow you to purchase specialized equipment for that particular niche. For instance, you can get wholesale hand sanitizer if you specialize in restroom cleaning. That way, you can narrow down your target market and sideline your business rivals.
4. Structure Your Business
There are many types of business structures you can adopt for your cleaning business. If you’re starting small, finding the right business structure won’t be so difficult. Most small cleaning companies are sole proprietorships, meaning you are the sole owner of the entire cleaning business.
Once your business grows, you can consider changing your organizational structure to a partnership to bolster its growth. LLCs are also a viable option because, unlike sole proprietorships, they separate your personal assets from the business. This safeguards your personal property should the business encounter any financial or legal issues in the future.
Partnerships are much more flexible and typically have lesser paperwork than LLCs. However, remember to only enter partnerships with reliable and trustworthy individuals. Also, enter partnerships that you actually gain from; don’t enter just for the sake of having a partnership.
5. Find a Name for Your Cleaning Business
Finding a name for your business could be simple and difficult at the same time. The company’s name is the first impression your clients get from the company. You don’t want something banal or corny for your cleaning company.
When it comes to naming your company, take as much time as you can. Be open to suggestions, but only the good ones. Make sure the name reflects your company’s image and culture, and it’s something you won’t cringe when you hear it said out loud.
6. How Taxes Work and Register Your Company
You don’t want to be at loggerheads with the taxman. So before you get your business off the ground, make sure you have all taxes in order. Your taxes depend on your business structure, and taxes under LLCs are more complicated than sole proprietorships.
You can get an accountant to help you with your tax situations. However, since you’re just starting out, a simple consultation will suffice.
Once you understand your taxes, register your company with the state. A lawyer will be invaluable in this step. Once you complete the registration, you can proceed to the fun part.
7. Find Clients, Purchase Equipment, and Start Cleaning
After registration, in practice, you have your cleaning business in place. Now all you have to do is purchase cleaning equipment for your company. Then you can come up with a marketing plan to attract more clients.
Remember to always do an exceptional job. Satisfied clients are great referrals to get you more clients.
Commitment and Hard Work Are Imperative to Success
Hopefully, you now know how to start a successful cleaning business the proper way. Remember, all these tips are useless without hard work, commitment, and the right attitude. Once your cleaning business expands, you can consider hiring employees to help you with your workload.
Remember to check out our other articles on the site for more insightful reads.