How to Start an Office Cleaning Business with No Money
Although starting an office cleaning business costs more than starting a residential cleaning business, you can establish either type of company with relatively little money. Ideally, an office cleaning business would consist of a team (or several teams-- let's think big!) of perfectly uniformed and fully trained and certified employees, multiple high-end cleaning supplies, and all of the cutting-edge equipment you can imagine.
Wouldn't you love unlimited access to your own industrial-strength vacuum cleaners, backpack vacuums, pressure washers, commercial floor buffers, water-fed poles and filtration systems for windows, and more? You can get a state-of-the-art ride-on floor scrubber for only $14,468! Okay, that's probably not possible at this stage of your business dream -- maybe further on down the line. But it is possible to start your own business inexpensively and grow from there. Here are some tips for starting your office cleaning business with a low initial outlay.
Labor
- Someone to actually do the cleaning, although you may be a one-man or one-woman show in the beginning
- If you are paying an employee, budget approximately $15 per hour.
- An inexpensive uniform to begin with, such as black cargo pants and a black polo shirt: $70
Supplies and Equipment
- Cleaning supply cart: approximately $160
- Mop, bucket, rubber gloves: $50
- Vacuum cleaner: budget $400-$600
- Broom, dustpan and brush: $40
- Squeegee, microfiber dusting cloths, towels, scrubbing pads (like Brillo): $60
- Trashbags: $18
- Cleaning solution, bleach, glass cleaner, wood polish, mold and mildew cleaner, soft scrub, disinfectant: $100 -$130
Legal Necessities
- Business license: The cost of this varies widely and depends on your state, and sometimes on your city or county. For example, a business license in Ohio costs about $99, in Washington State costs $90, and in Alabama costs nothing because the state doesn't require a business license for janitorial or house cleaning businesses.
- Budget $100-$500 to register as a limited liability company (LLC). Research your state's requirements thoroughly, as you can face hefty fines for operating a business without a license. Also, cleaning supply companies will require proof of a business license to offer you wholesale prices.
- Liability insurance: premiums can range from $350 to $8,000 per year, so shop around. If you are starting small (without employees), your cost will be on the low end. You can find more details in our article, Protect Your Cleaning Business with the Proper Insurance.
- Later on, when you have employees, you will need to shop for workers' compensation and health insurance.
Advertising
- At the very least, you will want to have a presence on Google My Business and Facebook. These will not cost you money.
- When you are ready to expand and search for new clients, you can invest in flyers, business cards, and a premium LinkedIn membership.
- The Janitorial Store offers a wealth of free articles as well as sales and marketing training videos for premium members to help you market your business.
Show me the money!
So far, we have a conservative startup cost of approximately $1,300. Full disclosure: this doesn't fit the strict definition of “no money,” but it is a great deal when compared to the startup costs of other types of businesses.
- Use some of your personal funds, but only after you have transferred them into a business checking account at the bank.
- Use your credit cards, but ONLY if you know that you will be able to pay off the bills at the end of the month. As of November 2021, the average credit card interest rate in the United States is 13%, however, some cards have 0% introductory offers if you have good credit.
- Obtain a home equity loan. This is a risk because your house is tied to it. However, because you have actual collateral, the interest rate will be low, especially compared to credit card interest rates. As of November 2021, the average interest rate on home equity loans is 94%.
- Try crowdfunding. This is a way for friends and family members as well as total strangers across the world (angel investors) to help fund your new business. In 2021, the most popular platforms for starting a business, according to Investopedia, are Indiegogo and SeedInvest Technology. With Indiegogo, you can set up a campaign for up to 60 days, which will cost a 5% platform fee and a 3%-5% third-party processing fee. SeedInvest has a rigorous vetting process, but you don't have to pay any fees unless your business is successful. If it is, you pay a 7.5% placement fee and a 5% equity fee.
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- You can borrow from friends or family members but put everything in writing to protect both parties.
- Banks tend to be stingy with personal loans and the interest rates are not great because they are not secured to collateral.
- The Small Business Administration (SBA) does work with lenders to provide loans to small businesses. For example, you may be eligible for a microloan of up to $50,000 (the average amount is $13,000). The interest rate is generally between 8%-13%.
- Start your business with a partner who can invest money in it.
How do I cut down on costs?
Don't hire employees:
- If you are operating on a bare-bones budget and just trying to get off the ground, do the cleaning yourself. Later on, when there is too much work for one person to handle alone, you can hire others to help you -- and maybe even stop cleaning yourself. But right now, it's just you.
- The disadvantage to this is that you can't overextend yourself; there are only so many hours in the day. This means that you can't go after huge jobs, like an entire school or school district or a full office complex.
- The advantage is that you can schedule hours that are convenient to you. Do keep in mind the fact that many offices expect cleaners to do their work at night when the building is otherwise unoccupied. You also won't need duplicates of cleaning supplies in the beginning when money is tight because you will be the only person using them.
Cleaning products:
- Buy only slightly more than you need at first. When you generate revenue, you will be able to buy in bulk, but keep it small at first.
- Ask cleaning supply companies for free samples. You are a legitimate business and you are deciding what you will eventually be buying in bulk, so there's no subterfuge necessary.
- Consider buying cleaning products that can be used for a variety of purposes. You may dilute as needed, but don't dilute too much. False economies like these will end up costing you money because products need to be the right strength in order to work as intended.
- When you have a little money to put into your business, invest in dilution control systems.
Do You Need Help with Growing and Running Your Cleaning Business?
The Janitorial Store is a private, members-only resource for those serious about starting, improving and growing a profitable cleaning business.
As 30 year veterans of the cleaning industry, we know that the business of cleaning can be incredibly challenging. The competition is fierce and the margins are low. It's a demanding business and it's tough to grow it and make it successful. Within the private members-only area, you'll find a huge selection of in-depth information that you won't find anywhere else on the Internet.
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