How to Start a Cleaning Business - Part 1 (Free Article Series)
If you're wondering how to start a cleaning business, this article will get you on the right path. This is the first in a series of in-depth articles that will help you successfully start a cleaning business.
At this point, you have either decided to start a cleaning business or are contemplating the idea. The thought of being your own boss and having a strong financial future is enticing to say the least. You are excited and ready to hit the start button! And why wouldn't you be? This is a $50 billion a year industry with a future trending towards growth and expansion. But before you jump in with both feet, you will want to test the water first.
There's a lot for you to consider before opening the door to your new cleaning business. What types of building do you want to clean? Do you want to clean banks, offices, schools, dental, medical…..? Large or small? Are you going to operate your business part time or full time? Hire employees or run the business yourself? Work from a home office or buy/lease a commercial location? These are just a few questions that you will need to ask yourself before starting your new cleaning business.
Should I or Shouldn't I Start a Cleaning Business?
Have you been toying with the idea of starting your own cleaning business? If so, you're not alone. Thousands of new residential and commercial cleaning businesses start up every year. After all, homes and commercial buildings all over the world need to be cleaned, and why shouldn't you be one of the businesses who are paid to do it?
There is such a variety of cleaning services you can offer that you don't need to limit your thinking to just cleaning homes or just cleaning office buildings. Perhaps you're interested in cleaning car dealerships or dentist offices. Or maybe you'd like to learn how to care for carpet or ceramic tile flooring. The possibilities are almost endless.
The first things you need to do are stop and get a good picture of just what you're getting into. All business owners need to have a thick skin, but as a cleaning business owner, it may be even more important. After all, this isn't a very high tech business, and few “janitors” get a lot of respect. In fact, they're often the unseen business, thought of only when something doesn't get cleaned or the toilet paper runs out.
The flipside however, is that you can have a very profitable cleaning business that is as small or large as you'd like. Some prefer to keep the business small, performing all the cleaning themselves, while others will hire employees to do the work, as they spend their time growing the business. Cleaning businesses are much more flexible than most other businesses, since you can run it from your home, and you can operate your business on a part-time or full-time basis. You can also offer as many or as few services as you'd like.
This series of articles is designed to get you thinking about everything you need to consider when starting a new business. It's not easy and it's not for everyone. But if you get to the end and decide this is exactly what you want to do then we wholeheartedly encourage you to get started!
Is Entrepreneurship For You?
Are you ready to start a cleaning business? Before you even start thinking about your business, you need to decide if this is something that you'll be ABLE to do. There are a lot of risks with starting a business. There is a lot of planning and preparation that needs to happen. You need to start by evaluating your own strengths and weaknesses. As a potential business owner you want to consider some of the following questions:
- Are you a self-starter? It's going to be totally up to you to develop this business. You are not going to have a boss standing behind you telling you what you need to do. You have to be totally self-motivated and you have to be a self-starter.
- How well do you get along with different types of people? As a business owner, you are going to be dealing with many different personality types. You are going to have to deal with potential customers, with your employees, with vendors, with bankers, with your attorney, with an accountant. All of these people have different types of personalities. Are you going to be able to deal with this on a regular basis? Or do you get irritated easily? Again as a small business owner you need to keep yourself motivated and you need to be able to get along with other people.
- Are you good at making decisions and negotiating? Some people hem and haw over every little decision. You will be making a lot of decisions as a business owner. Most of the time you'll need to make those decisions fast. How are you going to handle certain situations? Also, will you be able to negotiate with vendors on pricing, negotiate customer and lease contracts, project rates, and the numerous other situations which will require your best negotiating skills? You will be required to have this skill in order to help your new company make and save money.
- Do you have the physical and emotional stamina to run a cleaning business? When you are a business owner it can be really exciting but it can be a lot of work. Some people have no idea how much work. You might be working 12 to 18 hour days and you might have to work 6-7 days a week. You are going to be worn out physically and emotionally. Do you have the stamina to handle it? Sometimes motivation and desire alone are not enough, so you need to take care of yourself both physically and emotionally.
- Are you organized? Are you a planner? You need to be able to plan your business. You need to be able to keep yourself organized because if YOU are unorganized your organization is going to be unorganized.
- Do you have enough drive and passion to run a business? Again, it can really wear you down emotionally. A lot of business owners burn out quickly because they are carrying all of this responsibility on their shoulders and sometimes motivation really will help carry you through.
- How is this business going to affect your family? Are they going to be behind you or are you in this by yourself? It's very difficult to run a successful business if you don't have your family behind you. Your family also has to realize that as a business owner you may not always be available like you would be if you were working a 9-5 job. You may not be home at 5 or 6 for dinner. You could make it a goal to be home as much as possible, but it may not always BE possible especially when you are first getting started. Again, your family has to be on board for this.
- Do you have the basic cleaning skills and knowledge of products and equipment? Your clients depend on you to provide the most effective products, equipment, and procedures needed to get their buildings spic-and-span. Are you willing to invest time and money to develop any skills you may be lacking? Do you need help with accounting, marketing or managerial skills? Local community colleges often offer workshops and short courses to help business owners gain confidence in these areas.
Honestly answering these questions will help you to judge if you are ready to take on the role of cleaning business owner. New business can take several years before it runs smoothly and is truly profitable. Take heart though, because once you are well-established, your hard work will begin to pay off many times over and the sacrifices will be well worth the effort you have made! But a great deal of time, effort, sweat and hard work is needed to get your cleaning business off the ground. Many small business owners work full-time jobs and start their business on a part-time basis -- starting slowly and building consistently over time. It can take several years before your cleaning business is successful enough to support you and your family. That's the bad news. But the good news is that once you have developed a good reputation, business will be easier to get and clients will come to you instead of you going to them. Patience and hard work will pay off as you see your cleaning business grow and become profitable!
20 Questions to Ask Yourself Before Starting a Cleaning Business
OK, you think you have what it takes to become a successful business owner/entrepreneur. Take a look at the following 20 questions, spend some time pondering your answers and write them down. This will help you to understand the significant business decisions that will play an important part in your business' successful outcome.
- What kind of cleaning company do I want?
- What will be my new company's brand and what do I want it to represent?
- Who is my ideal customer?
- What services will my cleaning company provide?
- Am I prepared to spend the time and money needed to get my company started?
- What sets my company's purpose and services apart from others in the industry?
- Where will I locate my cleaning company (lease, home office, etc.)?
- How many employees will I need?
- What types of vendors/suppliers do I need?
- How much money do I need to get started?
- How will I obtain financing?
- When will my company be up and running and when will my services be offered?
- How long will it take me to start making a profit?
- Who is my competition?
- How will I price my services compared to my competition?
- How will I set up the legal structure of my company?
- What taxes do I need to pay?
- What kind of insurance do I need?
- Who will I hire to help me operate my company?
- How will I market and promote my company?
Should I Buy a Cleaning Franchise? Pro's and Con's
One of the first questions that you must answer before starting your new cleaning service business is whether you want to become an independent small business owner or buy into a franchise. Each has its own advantages and disadvantages, and the type of business you choose depends on your unique set of circumstances. Before making your choice, research cleaning franchises, and then narrow down your choices. Then talk to current and former franchise owners. Then give some thought to the following:
- Why are you going into business? Is it because you want to be your own boss? If you want to have total control of your business then having a franchise is probably not something you want to pursue. A franchise will dictate many of the rules and guidelines that you have to follow. The policies set by a franchise may include: where you buy supplies, how you advertise, fees you can charge, and even hours of operation.
- Are you looking for guidance on getting your business up and running? A franchisor has taken time and effort to develop a successful business template. It is a proven system that has worked in locations across the country. The franchisor can provide you with startup information, training, and name recognition. Because people are familiar with the franchise name, it may take less time to establish a customer base than an independent business.
- Do you want to set your own rates for your services? A franchise may dictate what rates you set for your services and even what services you can offer. If you want to offer services outside their guidelines, a franchise might not be your best choice.
- Are you comfortable training employees and keeping the required employee documentation? Since a franchise has an existing business template, they will be able to provide you with training materials for your employees. The company may dictate what training employees must have along with what employee records you must keep in your files. A franchisor will most likely give you employee job descriptions and may give guidance on employee wages.
- Do you know where to buy your supplies at a discount? A franchise agreement may also dictate what supplies and equipment you will use in your business. As the franchisor buys supplies in large quantities you may be able to get the supplies and equipment you need for your business at a discounted rate. But also be aware you may be required to buy supplies and equipment only from authorized companies, which will not allow you to take advantage of discounts and promotional specials from other suppliers.
- Are you willing to pay a portion of your monthly revenues to someone else? Franchising agreements differ, but most will require you to pay start-up costs as well as a percentage of your revenue to the franchisor. In addition, many franchises have advertising funds that you must contribute to in order to fund national advertising campaigns. When talking with other franchise owners, be sure to ask them if they feel they're getting their money's worth from their ad-fund contributions.
- Do you have the marketing skills necessary to promote your business? Independent businesses are responsible for all of their marketing from developing business cards to phone book ads to websites. A franchise can provide templates for most marketing pieces. The home office may dictate what advertising you can and can't do.
- Is there a specific location where you want to set up shop? A franchise can dictate how many of their businesses are set up in a particular area. They may even give you a specific territory where you can offer your services.
Remember, a franchise is a ready-made template that you can jump into and have support so you can get your own business up and running without having to "reinvent the wheel". However, a franchise also has rules and procedures that you must follow and that will in some ways dictate what your business can and can't do. The way you want to run your business should guide you in your determination of being an independent business or a local branch of a national franchise.
Get Your Cleaning Business off to a Good Start by Avoiding These 10 Common Mistakes
As you get ready to start your own cleaning business there are literally hundreds of things you have to do - from buying supplies to figuring out your accounting system to finding customers. Your first year in business is full of excitement, but can also bring about a steep learning curve. You can be a step ahead of the game by avoiding these common business mistakes.
Mistake 1: Thinking all you need is energy and determination to succeed.
You often hear that entrepreneurs need a "fire in the belly" to get a business off and running. It's true, you'll be much happier if you're passionate about your business, but passion alone isn't going to pay your bills. You need much more than that - you need a plan. Thoroughly research your market and write a business plan and marketing plan. It doesn't have to be a huge, overwhelming project, but it forces you to take a good, hard look at your business and what you're trying to accomplish. Consider it a road map for your business success. Having a plan which outlines every detail will guide your business to the right path.
Mistake 2: Starting for the wrong reasons.
Starting a cleaning business because you want to be boss and have lots of money can lead to an unrewarding and thankless existence. Don't believe you will be jet setting the country simply because you are a business owner, and beware, this may cause you to look for ploys that will bring you success and fortune but may inevitably be your downfall. Instead, think about your own goals and what appeals to you personally. This type of thinking is more likely to help you overcome the many obstacles of being a business owner.
Mistake 3: Starting in a bad location.
Spend plenty of time researching your direct competition and how much competition your new business will have to compete with. Consider your target market and your customer's. Too many businesses fail because they don't thoroughly research their business location first. They simply open up in a shop thinking there are plenty of customers to go around and expecting business to fall in their laps.
Mistake 4: Underpricing your services.
Many start-up business owners believe they can undercut their competitors and "steal" customers away. Pricing your services below market value only costs you money and eats away at your profits. Eventually you'll resent the fact that you're working so hard for very little income. Carefully calculate how you need to price your cleaning services so you cover all of your costs and still make a profit. And price your services based on the value you offer your customers.
Mistake 5: No online presence.
We are living in an age of high-speed information and social media and you had best be prepared for it. You will want your business to be found by people using their computers, smart phones, and mobile devices. You will need a business website and become prevalent on social media sites such as Facebook, Twitter, LinkedIn, Google Plus and other platforms. Remember, this will cost you time and money.
Mistake 6: Living off adrenaline.
Entrepreneurs tend to live off the rush they get from sweating out the details of how to make a business work. That's not why you are starting your cleaning business. Your overall purpose is to make money. If you need a rush to get out of bed in the morning, make your coffee stronger.
Mistake 7: Not knowing anything about marketing.
Many new business owners fail to budget or make any plans to market their services. Some business owners even confuse marketing with sales. Sales are deals you close during the day. Marketing is doing everything you can to get the word out about your cleaning business.
Mistake 8: Being your employees' best friend instead of the boss.
At the start of a business, everyone involved is working several different jobs and perhaps even working seven days a week. Many problems are fixed on the fly. Eventually things settle down and you develop a system for assigning jobs and taking care of problems. You can avoid this common mistake by making sure that you have employment policies set up before opening the doors to your cleaning business. This will avoid legal problems and low employee morale. Remember, you are the boss and you set the pace. Have a company handbook and make sure your employees follow the rules. If you don't have any rules your business will suffer.
Mistake 9: Quickly spending your capital.
Most business owners will underestimate the amount of money they need to get their business up and running. Your cleaning business needs more than just cleaning equipment and supplies. You'll need office supplies, phone services, vehicles (or money for mileage expenses), uniforms, marketing materials (brochures, business cards, etc.), insurance, and professionals (lawyer, accountant) to get your business off on the right foot. As a cleaning business, you will most likely bill at the end of the month and on top of that, some customers may drag their feet when paying their invoice. That means that you'll be providing cleaning services well before you receive any payment so you need to have cash on hand to pay the bills. Develop a personal and business budget that can sustain your company and then add at least 50 percent to cover unforeseen expenses.
Mistake 10: Forgetting about your family.
A start up cleaning business can be very demanding. A new business owner might be working 60 hours or more a week. This can put a huge stress on your family. When you start a cleaning business, it is not only a commitment on your part, but also on your family and friends. Make sure that you find time in that hectic first year of business to show appreciation to your family and friends for the support they give you.
Congratulations on Your Decision to Start a Cleaning Business!
So you have given immense consideration to all of the previous questions and spent countless hours with your thinking cap on and have come to the conclusion that you have what it takes to start and run a new cleaning business. Congratulations! You are about to embark on an exciting journey that will take you to where you have been dreaming of, becoming a successful cleaning business owner.
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In Part 2 you'll learn how to set up your business legally.
- Legal structure
- Creating a business name
- Registering your business
How to Start a Cleaning Business - Part 2 - How to Set Up Your Business Legally
