Do You Need a Business Plan to Start a Cleaning Business?
We recently had a new member ask the following questions:
Do you think that a small newly started cleaning company needs a business plan or should have one? If so, why? Do you have a business plan? If so, how has it helped your business?
We asked our members to share their thoughts and we're publishing them here because we have varying views on the topic. Since everyone is different, you will need to choose what is right for you. But before you decide whether or not you should write a business plan, consider the following feedback from cleaning business owners:
Response #1:
We do hear from business professionals that it is very important to have one in place, especially if you are trying to get loans, but we have not done one as of yet. We made a list of goals and the direction we want the business to go towards. I think for the most part the reason for the delay on my part is I am not numbers smart. And so making up a business plan scares me, so we know we will need help with that one. We are hoping that once the new year comes around and we are closing our books for the year we will be looking at building our business plan.
Response #2:
Doing a business plan for a loan can be pretty intimidating, but most people I know have not done a business plan for the bank but they've done one for themselves.
Most people can work through the most of the business plan but get stuck on the financial section. I agree that it's not easy, but it also doesn't have to be that hard and complicated. Take a look at the form we have called Guide to Creating a Business Plan. If you can go through and just answer the questions, then you've created a business plan! It basically forces you to look at all facets of your business from your target market to management to marketing. Even if you don't do the financials, I believe that working through the other stuff will give you clarity on what you want your business to look like. Something else you can do is create a "one page" business plan. Here is a Sample One Page Business Plan in PDF format. This simplifies it a lot!
Response #3:
I think writing a business plan is important even if it is done informally. It helps you to set goals for your company and a "plan" to achieve those goals. Once the plan is written then you are focused and can set out to accomplish said goals rather than getting caught up in day to day issues. At LEAST every 6 months, if not more that plan should be revisited to be sure you are still on track, see what you have accomplished and what needs more attention.
Response #4:
Member wrote: "Do you think that a small newly started cleaning company needs a business plan or should have one? If so, why?"
The one thing inherently wrong with this statement is the fact that the word "started" is in the past tense! In order to get started, it is really important to have a plan in place FIRST! Otherwise, how can you decide what needs to be done NEXT? Everyone is so anxious to have their own business, but with no planning or preparation, how can they hope to succeed? In fact, how will they even be able to determine if they have succeeded if they have no written goals or plans in place?
Member wrote: "Do you have a business plan? If so, how has it helped your business?
We wrote our business plan before we purchased our first mop. We are organized and particular, so perhaps that is how we approach everything, but we spent a lot of time even deciding if a cleaning business was what we wanted to do... by putting it all in writing with specific time frames in mind, we were able to "look at" our business and plan our strategy. We have made several adjustments through the years as circumstances have changed, but we refer to it often as a frame of reference.
While the economy is struggling, we have lost a few key clients (we made the mistake of having too many eggs in one basket). We have made changes to our plan that included spending more time and money on marketing than we had originally allocated.
There's only so much time and money available for day-to-day operations, so in order to re-distribute funds to much-needed marketing (our survival depended on it!) we had to make changes in the plan and shift funds in order to accommodate our changing needs. By having it in writing, we were able to rationally look at the plan, make the changes we needed and go forward with new goals, confident that we wouldn't be flying by the "seat of our pants"... a lot of people tend to "rob Peter to pay Paul" (take money from one bill to pay another). By using our Business Plan to make those arrangements, we were still able to continue our operations while keeping all the other "bills" in order... Think about it: If you had a major crisis (lost your biggest customers), how would you handle it?
Because we have found a great group of supportive friends here at The Janitorial Store and because we were able to rationally and calmly approach the situation, we have been able to succeed...
So, to sum it up: YES, a business plan is CRITICAL to a business and should be in place LONG before the first customer is serviced!
Response #5:
I think that a business plan is important in all business but the question is at what point? I don't think it is necessary on the first day that a person decide, "hey a need extra cash and to get it I will clean some office /house. " Now, if their need to get some extra cash has become something serious, has been successful and accounts have been coming in… then the person need to decide, "do I want to take this to a high level or not? Am I ready to do so? Do I want to sacrifice something (we always do)?"
My answer is no. Get the business out there first to see if it is something that you want to take in with all your heart. Then...make your decision and take the steps to make it successful.
Response #6:
I agree about not needing a business plan in the very beginning. If you wait to get started until you have written a business plan, you probably won't ever start!
My partner and I have been successfully functioning for eight years without a business plan. I'm sure that if we had one, we could have side stepped some pitfalls, but who knows. We have attempted to write one a few times, but until you have the experience in running your business, you can't answer all the questions. At this point in our business, we finally feel ready to write it and are working on it.
It is important to set goals, whether realistic or not. Just set some short term and long term. If you see that you have set your goals to high, that's some great information. You then can adjust. Don't let writing a business plan keep you from doing what you need to do.
Response #7:
Please do a business plan! It's the most sensible thing to do. Always ! Always! Make a plan and stick to it, follow it. Map it out! Look back on it later to see if you pressed forward and most of all, you will need this for loans etc. You can never go wrong by having something you do not need than needing something you do not have. I believe a new cleaning company as well as all of them should have all the necessities from insurances to the right equipment, to payroll. Start a back alley business and it will fall in the gutter quick. Always be professional, go the extra mile!
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Steve Hanson helps owners of small cleaning companies build a more profitable and successful cleaning business through his online community at TheJanitorialStore.com. Read inspirational cleaning success stories at http://www.cleaning-success.com,
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