How To Start Cleaning Business – A cleaning business can be very profitable and if done right can earn you a lot of money. This post will tell you what to do to start a residential/commercial cleaning service.
Cleaning is a challenging task in most households. From making the bed to tidying the carpet it becomes exhausting and tedious. The problem is especially with people who work and are too tired to clean at the end of the day.
How To Start Cleaning Business
Most of us would entrust the cleaning task to a professional cleaner if given the chance.
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This huge demand for skilled cleaning services has led to a meteoric rise in the number of cleaning businesses. As a result, the chances of success in this vertical are much higher if you set one up correctly.
Starting a small-scale cleaning business does not require any degree; Knowledge will come naturally as you spend more time running a cleaning service.
The budget will vary depending on the scale you want to start a cleaning business: residential or commercial. Most companies start at the residential level and then move to the commercial level after fully understanding the systems, employees and proper cleaning procedures. Companies offering large-scale commercial cleaning services generate millions of dollars in revenue each year.
In the area of residence, you are looking at some basic permits and licensing depending on the state and entity where you want to start your cleaning service. It can be anywhere from $50-$200 to go. Basic insurance needs range from $500 to $3500/year if you are just starting out. It depends on how many employees you have in your company.
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Basic cleaning materials in products can range from around $200-$600 depending on how inclusive you want to be and how much immediate coverage you want. Basic advertising costs range from about $300-$200 for a basic starter. This includes marketing materials such as business cards and flyers.
The entry barrier on the residential side of cleaning services is very low. Depending on how intensive you want to be, you could be looking at a few thousand dollars.
If you have the cash for add-ons, you can have a customized vehicle (instead of a plain, old van) and what not. Just like any other business, you generate revenue, grow your business, invest in upgrades and iterate.
The next step is choosing the right structure for your cleaning business. The two basic business structures commonly used for a cleaning business are the sole proprietorship and the LLC. With ownership, it’s cheap and easy to get going. It is less complicated when it has to do with taxes. Your income and liabilities are directly tied to your venture.
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So if something happens to the company or its funds, you have to bear the consequences. If you go the LLC route, there is a shield around the corporate entity that separates you from the entity. THEREFORE, THE COMPANY’S LIABILITY TO YOU IS LIMITED. The business has a separate bank account and separate income.
Understand how taxes work. The process of filing taxes is different for an LLC and a sole proprietorship. In an LLC, it gets a little more complicated at the end of the year. You can do your own accounting or hire a professional accountant to take care of the books.
However, if you run a business, having an accountant review your books and the year-end process can save you the headache. If you have a good CPA (Certified Public Accountant) to help you with the financials of your cleaning business, there is no such thing.
Owning a business with unique names and tag lines is bigger than they are. This will help a lot in the long run. To find a good name for your business, think of possible names that reflect the mission of your cleaning services. Search the internet if you don’t have anything to start with.
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Come up with an initial list of possible business names. After a while, look back at your list and cross out the poor ones. Ask friends and acquaintances to review the remaining names, get some feedback, and then finalize a name that resonates with the goals of your cleaning business.
You must have a business bank account. To get a business account while operating an LLC, you need to register for an EIN on a government website. You will also need your Articles of Incorporation, which you get after setting up the LLC.
If you have a bank account through sole proprietorship, it is in your name like any other bank account. However, it is important to separate your personal bank account from the business one. This way, it becomes easier for you to track expenses, analyze income and understand how the business is performing.
Getting a business credit card is important; That way you can get cash prizes. The next thing is the credit card processor. The easiest to set up and use is “Square” and takes 15 minutes to set up.
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You don’t need a big insurance plan if you are setting up a cleaning business on a residential scale. But getting a bond and basic general liability insurance is essential. A bond is useful if someone pays for a service and does not receive that service.
A bond is like an assurance to consumers. Some customers like to see the cleaning business they use provide a bond. It is not required in every state. A bond is recommended because it helps in landing high-paying and picky clients.
The sky is the limit when it comes to purchasing supplies for your cleaning business. If you have the cash to buy high-end, high-quality materials, go ahead. If you can’t, no problems! Buy some supplies when you’re starting out, but don’t compromise on quality. After all, you use these supplies day in and day out. It’s not like your household broom that you use once a day or once a week.
Here is a list of (minimum) items you will need to start your cleaning business. The list may change depending on the type of cleaning services you offer:
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For residential cleaning services, companies charge hourly or flat rates depending on the size of the home. Hourly rates are very simple. With an hourly rate, customers aren’t screwed over the price. Hourly rates for residential cleaning range from $40-$100. If you’re looking at flat rates, this can turn out to be extreme.
The range depends on the frequency, the type of cleaning required and the size of the home. If it is a one-time cleaning, increase the flat rate price by around 35%. If it’s an intensive clean, increase the cost by about 80% because of the effort.
Successful companies take assignments at both residential and commercial level. In the case of commercial cleaning, you charge on an hourly rate or by square footage. Hourly rates fall anywhere between $40-$100 per hour for basic cleaning services. If you do deep-clean services, special cleaning, or anything with hazardous materials, you could see anywhere from 50 percent to 100 percent more, depending on the situation.
To reach the top, you need to provide the best cleaning services. And that means offering the best in value cleaning options, variety of packages, exceptional customer service and so on to help clients with any queries before and after the cleaning assignment.
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There is an opportunity to master the art of customer retention. So if you do something as small as leaving a couple of chocolates on the bed, a thank you note on the countertop, these customer service gems can help keep new clients and act as free advertising at the same time.
A popular one is offline marketing. Many people are spending their money on online advertising and ignoring offline strategies. However, the power of offline marketing is surprising. And how do you implement offline marketing strategies? By completing cleaning assignments on time with excellent results. Happy clients play their part through word of mouth publicity.
Small service gems give them a reason to talk about your cleaning business. And that is the goal of a successful offline marketing campaign. It’s very cheap when you compare it to what a click costs on Google, Yelp or Facebook.
Another form of offline marketing is flyering. Getting a creative business card and door-to-door distribution in good neighborhoods is essential in finding new clients.
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To increase your offline marketing reach, you should contact real estate agents as they can inform you of people who are swapping houses. A move to a new location means a potential cleaning assignment. Apart from this, target neighborhoods with a significant number of residents. More houses, more chance of getting a cleaning job.
There are a few ways to do this. Some are time consuming but more effective.
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