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If you want to start a new business with low costs, no typical operating costs and reliable demand, a cleaning business could be a good choice.
How To Open A Cleaning Service Business
Cleaning services tend to have lower upfront costs than other ventures, and this is one of the few businesses where you can get up and running quickly with little capital, provided you’re willing to work hard for modest profits and incremental gains.
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Apart from some specialized cleaning chemicals and equipment, most cleaning jobs will involve the same products as your household chores. No formal training or certification is required for typical home and office cleaning, but that doesn’t mean the job is easy. If it were easy, there wouldn’t be such a large market for homemade cleaners. Additionally, cleaning can be a lucrative and rewarding job for individuals with an excellent work ethic and customer service demeanor.
When you start thinking about how to start a cleaning business, make sure that your work is worth paying for. Start with close friends or family — you could offer to clean your house for free in exchange for honest feedback and cleaning supplies. Alternatively, if you know someone who works as a cleaner, you can ask to follow them on the job to make sure you have what is needed. It’s important to make sure your personal cleaning standards meet the expectations of paying customers – the best way to do this is to take on the job for someone else.
You will also need to decide what type of cleaning service you want to provide. Cleaning services range from one-person operations to national chains, and from the most basic light household cleaning to specialized services such as pressure washing and industrial carpet cleaning. If you have experience in window cleaning or another skilled service, it’s worth considering making your business focus on your skills and resources.
Individual cleaners work primarily in private residences, for a small number of clients — if you go this route for house cleaning, you’ll spend less. Some independent contractors hold weekly meetings with a fixed schedule of clients and jobs. Other individuals are available for short-term or one-off services by the day or hour.
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Finally, consider purchasing an existing cleaning franchise opportunity. This option has its pros and cons — it may require a larger upfront investment, but it’s also likely to offer a simpler process.
Cleaning businesses range from individual house cleaners to specialized industrial cleaning services. It’s important when you’re figuring out how to start a cleaning business to determine the focus of your service early on because the upfront investment you make depends on the size of your team, the cost of equipment, and competitive pricing in your local market. House cleaning businesses larger than a few individuals will need more structure than a stand-alone or sideline service.
Once you have established your target market, you can begin to work out the details of your business plan and arrange transportation and supplies. You’ll want to get the word out about your service as soon as you get going enough to start taking on clients. Depending on your personal network, you can start with friends or acquaintances and expand to a larger market with an online presence and marketing.
Financing a new venture can be the hardest part when it comes to starting a cleaning business from scratch. This often requires entrepreneurs to borrow money from friends or family, take out a business loan or spend on credit. Depending on the size of the business, the initial costs for a cleaning service can be relatively low. This means that you can keep debt to a minimum when you first plan a cleaning business from scratch and then expand operations and spending as you generate income.
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In general, costs associated with starting a cleaning business include the cost of cleaning supplies and products, advertising, cleaning business insurance, and business licenses and permits. Supplies can usually be purchased for less money from large retailers.
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The items you need will depend on the specialty of your business, but products most cleaners use include rags, window cleaners, latex gloves, paper towels, brushes, and the like. Once you’ve established your business, you may even be able to buy directly from manufacturers.
The clientele you seek and the services you offer should be based on local requirements, in addition to your personal abilities and access to transportation. For example, if you need to be able to walk to your cleaning jobs, determine the radius in which you feel comfortable commuting and focus your market research on that area. Individuals who have access to a car or public transportation have more flexibility and can start by searching online for existing businesses that offer similar services.
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Researching the competition is an essential part of planning any business, so when you’re wondering how to start a cleaning business, it’s worth taking the time to research cleaning businesses in your area. Look out for services that other businesses seem to be missing.
When you’re just starting out, it’s easier to get into residential cleaning than commercial cleaning. The commercial cleaning business is usually dominated by large cleaning houses and usually have more resources at their disposal. Within the residential cleaning sector, you can narrow your market even further — such as apartments or single-family homes.
Also, when choosing your market, keep in mind that you will more than likely be doing your own startup business. So this means being selective about the clients you choose to work with. You might not want to take on the job of cleaning a large mansion yourself, as it will probably take more time than it’s worth. Furthermore, doing things yourself will minimize costs and give you the flexibility to plan work around your schedule.
Success as a cleaner will come down to the quality of service you provide, whether that’s expertise in a specialized area — such as carpet or porcelain cleaning — or simply efficient and friendly service. Specialized equipment and services are only worth providing if you already have the experience or access to the necessary resources; otherwise, training, equipment, and other costs may exceed your cleaning income.
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When you get to the point where it makes sense to specialize, options you might want to consider include commercial kitchen cleaning, eco-friendly cleaning, and tile and grout cleaning.
Supplies and transportation are the two main costs of basic cleaning services. Depending on the services you offer, your cleaning costs will vary from very low for an individual cleaner, to significantly more for a job with a team of several people and a company vehicle. Once you have a transportation and backup plan in place, you can begin to assess the other costs of starting your business.
Transportation is essential to any mobile business, like a cleaning service, and one of the most important prerequisites—before you can start your business, you have to get there first.
Most cleaning services take responsibility for getting to and from cleaning jobs, so keep in mind that transportation arrangements and responsibilities will most likely fall on you.
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The cost and amount of supplies you need to operate depends entirely on the services you offer and how many clients you have. If you clean several private homes each week, you can buy supplies in bulk at retailers like Sam’s Club or Costco.
Some clients may prefer that you use their products. Wholesalers will likely require proof of the legitimacy of your business, but if you have a larger service, finding discounted prices from suppliers shouldn’t be a problem when you register your business.
Transportation and cleaning supplies are the main costs for basic cleaning services, but equipment and other leases will also be added. Unless you already own or have free access to the equipment, specialty machines and cleaners for carpets, floors, and exteriors can be expensive to rent.
If you already know how to use a certain type of equipment, it’s worth researching rental costs – you can always defer the extra costs until you’re more established.
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The legal parameters regarding domestic services such as house cleaning and babysitting are not always clear, especially when the service is for one person only and clients pay in cash. The amount of registration and income reporting you need to do depends on the size of your business (namely, your income).
Cleaning your aunt’s kitchen once a week for $20 isn’t really a business, so if you’re only providing services for immediate family, it’s probably safe to hold off on registering your business. If you earn more than a few hundred dollars a month, you must use formal channels to report your income to the IRS.
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