Starting a cleaning business can be a lucrative opportunity, but it requires careful planning and execution. In this section, we will discuss the five essential steps to starting a cleaning business, including knowing your market, choosing your specialty, deciding whether to be a generalist or niche, setting your rates, and budgeting for transport, equipment, and more.
Step 1: Know Your Market
Before starting a cleaning business, it is essential to research the market and the services offered by other businesses in the area. This will help you determine the extra services you can offer and the incentives you can provide to encourage repeat customers. You can also read reviews on Yelp and Google to identify the main compliments and complaints of customers. This will help you fill gaps in the market and offer more flexible options.
Step 2: Choose Your Specialty
Based on your market research, you can determine whether to offer commercial or consumer cleaning services. Commercial cleaning services involve cleaning large spaces like offices, hospitals, schools, and retail storefronts. This requires specialized equipment and certifications, and your team must be well-trained and professional. Consumer cleaning services, on the other hand, involve cleaning people’s homes or residential spaces. Your team must be adaptable and respectful to the client’s home. Residential cleaners must be detail-focused and keep track of the ways that rooms are arranged. Rates might have to be higher to compensate for a lower business volume over the course of a day.
Step 3: Generalist or Niche?
After choosing between commercial or consumer cleaning, you can still specialize within that field. For example, as a commercial cleaner, you could specialize in cleaning schools or hospitals. For residential services, providing flexible, customer-chosen options can be a good niche service. Advertising your services to homes with young children is a good way to build up a client base because families need consistent services.
Step 4: Set Your Rates
There are three ways to set rates for a cleaning business: hourly, flat, or calculated by square footage. Hourly and flat rates work for either commercial or consumer cleaning. Rates calculated by square footage are very common for commercial cleaning businesses. It makes sense to calculate by how large the space is and how much labor you’ll have to devote to the space.
Step 5: Budget for Transport, Equipment and More
Budgeting in the beginning requires thinking through all of the stages the employees of your business will go through in the cleaning process. You’ll need specialized equipment, a large stock of cleaning materials, protective equipment for employees, and much more. It’s important to keep these well-stocked, especially during a busy week, in case of any supply chain shortages or other random occurrences. You may also need to provide transportation for your employees, and a transportation budget should be an early consideration.
Click here to read how a Former Banker Turned Janitor Makes $10 Million Annually
Here are some quick tips for starting a janitorial business:
- Come up with a business plan. Outline your startup costs, projected revenue, marketing strategy, etc. This will help you secure funding if needed.
- Choose a legal structure like sole proprietorship, LLC, or corporation. Register your business name with your state.
- Get any necessary licenses and permits, which vary by location. Common ones include a business license, tax IDs, and insurance.
- Develop service offerings like cleaning offices, homes, commercial spaces, post-construction cleanups, etc. Consider specialty services too.
- Create pricing packages for recurring cleaning (weekly, biweekly, monthly) vs one-time deep cleans. Research market rates.
- Purchase supplies and equipment like vacuums, mops, cleaning chemicals, gloves, uniforms. Consider leasing a vehicle too.
- Market your new business through flyers, business cards, social media, online directories. Ask current clients for referrals.
- Hire and train staff. Janitorial requires trustworthy people who pay attention to detail.
- Establish a process for onboarding and managing clients. Use a contract, schedule cleaning times, get payment info.
- Provide exceptional customer service. Address any issues promptly to retain clients long-term.
- Consider software to help schedule jobs, track invoices, employee hours and payroll.
- Continue marketing to grow your client base over time. Network in your local community.
- How To Teach To Make $10K a Month
- When Was The Birth of the Corporation?
- How to Start a Business with No Money
- Start a Cleaning Business and Tips for Success
- How to Find a Business to Start Aligned with Your Interests and Skills
Frequently Asked Questions
What Types of Cleaning Services Can You Offer in Your Business?
There are various types of cleaning services that you can offer in your business, depending on your target market and the resources available to you. Some of the most common cleaning services include residential cleaning, commercial cleaning, carpet cleaning, window cleaning, and specialized cleaning services such as post-construction cleaning and move-in/move-out cleaning.
What Equipment is Essential to Begin Offering Cleaning Services?
To begin offering cleaning services, you will need some essential equipment, including cleaning solutions, cleaning tools such as mops, brooms, and vacuum cleaners, and protective gear such as gloves and masks. Depending on the type of cleaning service you are offering, you may also need specialized equipment such as carpet cleaners, pressure washers, and window cleaning tools.
Is it Better to Start an Independent Cleaning Business or Buy into a Franchise?
Starting an independent cleaning business gives you more flexibility and control over your business, but it also requires more effort and resources to establish your brand and reputation. Buying into a franchise gives you the benefit of an established brand and business model, but it also comes with higher initial costs and ongoing franchise fees.
How Can You Start a Cleaning Business with Minimal Initial Investment?
Starting a cleaning business with minimal initial investment requires careful planning and strategic resource allocation. Some tips for starting a cleaning business on a budget include starting small, focusing on a niche market, using low-cost marketing strategies such as word-of-mouth and social media, and investing in essential equipment and supplies gradually.
What are the Necessary Steps to Legally Establish a Cleaning Business in Missouri?
To legally establish a cleaning business in Missouri, you will need to register your business with the Missouri Secretary of State, obtain any necessary business licenses and permits, and comply with state and federal tax regulations. You may also need to obtain liability insurance and workers’ compensation insurance depending on the size and scope of your business.
What are the Potential Earnings and Profitability of a Cleaning Service Business?
The potential earnings and profitability of a cleaning service business depend on various factors such as the size of your business, your target market, and your pricing strategy. According to industry data, the average hourly rate for a cleaning service is around $25-$35 per hour, and the average annual revenue for a small cleaning business is around $100,000-$500,000. However, it’s important to note that these figures are not guaranteed and may vary depending on various factors.
Retirement may seem far away, but it is never too early to start planning and saving for it. The earlier you start, the more time you have to build a substantial nest egg that can support you in your...
Reading should activate passive, active, and applied reading processes to maximize comprehension and retention. With passive reading you're simply acting as a collector of information. By itself it...