Here is how to start a cleaning business from scratch, evaluating the prospects and challenges of this venture.
Cleaning on a commercial scale has become a major business enterprise that you should consider. There are major cleaning companies today which started small. This shows a clear potential for growth.
It’s safe to assume that by reading this, you are interested in starting one.
How to Start a Commercial Cleaning Business From Scratch
However, setting up such requires the right knowledge of what’s required. Hence we’ve written this with the sole purpose of helping you with the information you need.
Owning a Cleaning Business: Pros and Cons
Before starting a commercial cleaning business, entrepreneurs need to know how viable such a business is.
There are different opportunities in the cleaning industry and each one comes with its risks. Here are some popular examples:
Challenges also need to be identified. Well, there has been consistent growth in the industry over the years. As such, in setting up a cleaning business, some of the most identifiable traits of the business include;
This is an industry that has thrived in difficult times such as during periods of recession. This is because as long as buildings and offices are used, there’s a constant need for cleanup.
- Profit Potential
One of the first things to consider when starting a commercial cleaning business is to consider your earning potential. This determines the viability of such a business. Hence the more attractive the profit margin, the better your chances of success.
- No Specialized Training is Needed
In owning a cleaning business, no specialized training is needed. In addition to that, it can be started on a part-time basis. This is good news as you can keep your job until your business grows to the point where more of your attention is required. Due to this fact, anyone can start up a cleaning business as long as they have a passion for it.
- Minimal Startup Capital
Cleaning business startups require little capital depending on the niche. As such, it becomes easier for you to set up your own commercial cleaning business. The best part is in spite of the variation in startup cost, it is highly profitable.
This is certainly music to the ears of entrepreneurs.
- A Growing Demand
As the demand for cleaning services rises, huge opportunities are presented for entrepreneurs willing to take advantage of such. If you’ve contemplated
In spite of the prospects inherent in starting a commercial cleaning business, challenges aren’t absent either. This section will focus on some of the most common challenges you’re likely to face when running a cleaning business startup.
- Benefits and Wages
There has been a growing demand for raising the minimum wage. Although this is meant to enhance workers’ welfare, it also impacts on pricing as well as on income margin. This is a factor you’re likely to deal with.
- Getting a Consistent Flow of Cleaning Jobs and Contracts
During the process of development, you need a consistent flow of cleaning jobs. However, attaining such targets may be quite daunting. This is due in large part to the changing nature of marketing strategies. Most clients will rather search online for cleaning companies.
As such, this presents enormous income potential for any cleaning business. With an effective and vigorous online marketing campaign, you can attract a consistent flow of cleaning jobs.
Whether you like it or not, the competition will always exist. However, how well you handle it will determine how successful your cleaning business is. Thus, the best way to thrive is by identifying your unique selling points USPs.
This enables you to avoid the all too common mistake of joining the bandwagon of ineffective cleaning start-ups.
- Managing a Workforce
This is a common challenge most commercial cleaning businesses have to deal with. In managing a workforce, there needs to be a driver as well as reward systems or incentives that motivate.
In other words, workers are more effective when there’s a reason to perform above average. Hence if you’re able to utilize their strengths, the sky will be your limit.
Starting a Cleaning Business from Scratch
To realize your goal of starting a cleaning agency, you need to follow some laid down guidelines.
We have also prepared a list of steps you shouldn’t overlook during any form of cleaning.
Set up a Business Structure
This is a basic requirement for every business. By ‘structure,’ we simply mean taking care of the legal requirements. Such include;
i. Develop a Business Plan
Without a plan, your business is at best static. It’s therefore important that you give this step all the attention it deserves.
A cleaning business plan enables you to strategize for your venture.
ii. Form a Legal Entity
Knowing how to manage a cleaning business successfully involves this step. This has become a necessity to protect yourself from liability. It is common for cleaning businesses to get sued. As such, the form of legal entity you adopt will determine how your assets are distinguished from those of the business.
You can also go through this list of names that make your cleaning brand stand out.
iii. Tax Registration
Before you open your doors for business, it’s expected that you register your commercial cleaning business. This is done for purposes of taxation. However, you need to find out if you qualify for both federal and state taxes.
iv. Open an Account
For financial transactions to be possible, you need a business account. In addition to making this aspect of your operations possible, it also creates a positive impression on your clientele. In other words, it makes it more professional.
v. Keep a Detailed Record of Cashflow
Is this necessary at all? It is highly recommended. This is because finances play a critical role in determining how profitable your cleaning business is. Hence, you must keep track of all expenses as well as income.
vi. Apply for Licenses and Permits
If you wish to stay out of trouble, it’s necessary to apply for licenses and permits for your cleaning business. This is because your business may attract huge fines or may even be shut down outright. To avoid any of the above sanctions, you should do things properly.
vii. Apply for an Insurance
Clients feel more comfortable dealing with cleaning companies with an insurance policy. This is rightly so due to damages or accidents that may result. Without one, your business won’t be taken seriously.
viii. Online Presence
The webspace is where people go to look for any type of information. As such it will only be wise that you leverage in this area. By creating a user-friendly cleaning website, people can easily search and interact with your business online.
Leverage on your Resources
This may seem obvious but is highly critical to your success. It is assumed that you’ve had prior experience in the industry. As such to make your cleaning business more viable, it’s necessary to take advantage of contacts and resources available to you. The point is to use every information available to promote or enhance your competitiveness.
Be Receptive to New Information
Information is everything in the commercial cleaning industry. Because of this, you need to be highly receptive to new information and innovations. Such information may affect different aspects of your operations. The point here is to use such information to your advantage.
Systems are structures that promote the seamless functionality of your commercial cleaning business. This requires all departments in the business to function as a unit. With such an arrangement, your cleaning business will function at full capacity even in your absence. It helps to simplify the work process.
Before anyone patronizes your cleaning business, they need to know if your rates are pocket-friendly.
However, the prices of house cleaning companies are influenced by several factors. These include time, expenses on cleaning products and equipment, transport, etc.
As a result, you need to factor all of these when determining your rates. While doing so, you also need to consider the competitiveness of your rates.
How? By comparison with what’s obtainable in the industry.
Seek Legal Advice
Legal services are prerequisites for starting a cleaning business. This is because it guides you from making costly mistakes that may hurt the business in the future. Such relationships are continuous and necessary for smooth operations.
Have a Cleaning Marketing Plan
To promote your commercial cleaning business, a plan is required. Such a marketing plan should be carefully put together to ensure it has a real impact on your business.
To start on the right footing, it’s best to consult marketing experts. These would recommend the most effective strategies to adopt.
Identify your Target Market
When setting up your cleaning business, there’s usually a focus or target market you wish to woo. Therefore you need to identify this market and strategize on how best to attract customers to your cleaning company.
The first step is identifying the target market. Anything after that involves passing the right message across. Such may include hospitals, malls, households, schools, offices, etc.
Purchasing the Right Cleaning Equipment
This is a step you can’t escape from. The only exception is when you have such already. There is a wide range of supplies for a cleaning venture. These require working out or finding what such equipment is.
However, these all depend on the availability of funds. It’s expected that you’d have worked out the financial implications in your plan.
We have seen the basic steps on how to open your own cleaning business. This has led us to discuss several steps involved. We are sure you’ll find these very helpful. With the right actions, you will be able to realize your desires.