The cleaning services market is booming due to a consistent demand for clean and organized spaces. Experts project that in the U.S., the market will grow at a CAGR of 6% to surpass $100 billion by 2026.
If you are a self-starter with a knack for organization, starting a cleaning company might be the perfect business venture. But it’s not as easy as just putting up a sign and waiting for the customers to come rushing in. You need to know everything about how to start a cleaning company.
The knowledge is vital because a lot of work goes into getting a business off the ground. And if you’re not prepared for it, you’ll likely fail.
This guide will walk you through everything you need to know to get your cleaning company up and running. So read on if you’re ready to start your cleaning empire.
Decide on the Type of Cleaning Company You Want to Start
The first step in starting a cleaning company is deciding which type of business you want to run. There are three main types of cleaning companies:
- Residential cleaning companies provide services to homeowners
- Commercial cleaning companies serve businesses such as office buildings, retail stores, and restaurants
- Industrial cleaning companies work in factories, power plants, and other industrial settings
Each type of cleaning company has its own set of unique challenges. For example, starting a residential cleaning company requires less initial investment than starting a commercial or industrial cleaning company. But it also comes with a lower earning potential.
On the other hand, starting a commercial or industrial cleaning company requires more investment and effort. But if you can get your business off the ground, you’ll be able to charge higher rates and earn more profits.
To decide which type of cleaning company is right for you, consider your skillset, budget, and goals. You should consider the areas that your competitors are missing.
If you’re unsure of which type of cleaning company to start, we recommend starting a residential cleaning company. You won’t be competing with more established janitorial companies, which will have more resources than you.
When you choose residential cleaning, you can narrow down your services further. For example, you can specialize in cleaning single-family homes, apartments, or carpets.
Choose a Business Name and Register Your Business
After you’ve decided on the type of cleaning company you want to start, it’s time to choose a name for your business.
Your business name should be reflective of the services you offer. For example, if you’re starting a residential cleaning company specializing in carpets, you might want to include the word “carpets” in your business name.
Once you’ve chosen a name for your cleaning company, you need to register your business with the government. You’ll need to obtain a business license from your city or county. You may also need to get a federal tax ID number if you plan on hiring employees.
After registering your business, you’ll need to open a business bank account. The account will help you keep your personal and business finances separate.
Create a Business Plan
You’ll need to create a business plan for your cleaning company. This document will outline your business goals, strategies, and marketing plans.
Creating a business plan will help you:
- Define your target market
- Set realistic financial goals
- Choose the right marketing strategies
A business plan is also a valuable tool for seeking funding from investors or lenders. They’ll use your business plan to decide whether or not to invest in your cleaning company.
If you need help creating a business plan, plenty of resources are available, such as books, software, and templates. You can also hire a professional business consultant to help you with this task.
Choose a Business Structure
The next step is to choose a business structure for your cleaning company. The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations. Each type of business structure has its advantages and disadvantages.
For example, sole proprietorships are the simplest and most common type of business structure. They’re easy to set up and require the least amount of paperwork. But they also offer the least amount of legal protection.
On the other hand, LLCs offer more legal protection than sole proprietorships. But they also come with more complicated paperwork and requirements.
You might consider working with a business attorney to help you choose the right business structure for your company. The attorney will understand the structure that will help you save money on taxes and offer the most legal protection.
Get Funding for Your Business
When starting a business, you’ll need to find a way to finance your operations. The amount you need will depend on the type of business you’re starting and the scale of your operations.
You can finance your business in several ways, such as:
- Personal savings
- Loans from a bank or other financial institutions
- Borrowing from family and friends
- Credit cards
- Government grants
The best practice is to start small to avoid huge debts. You can scale your cleaning business later when you start generating more revenue.
When starting a cleaning company, you’ll generally need money for cleaning supplies and equipment. You’ll need funds for marketing, licenses and permits, and business insurance.
You should also factor in the cost of living in your area when budgeting for your cleaning company. This includes the cost of housing, transportation, and food.
You can save money on some of these expenses by doing things yourself or bartering with other businesses. For example, you can design your marketing materials instead of hiring a professional. You can also buy supplies directly from manufacturers instead of going through a middleman.
Determine Your Pricing Structure
The next step is to determine your pricing structure. There are a few different pricing models you can use, such as:
- Hourly rate: You charge customers an hourly rate for your cleaning services
- Flat rate: You charge customers a flat rate for specific services, such as cleaning a home or office
- Project rate: You charge customers a set rate for a specific project, such as cleaning all the carpets in a home
When setting your rates, you should consider the cost of living in your area and the going rate for similar services. You should also factor in your overhead costs, such as supplies and equipment.
Once you’ve determined your pricing structure, you should create a price list for your cleaning services. The list will help you stay organized and ensure that you’re charging customers the right amount.
Choose a Business Location
You’ll need to choose a suitable location for your cleaning company. The best location will depend on the type of business you’re starting and your target market.
For example, if you’re starting a residential cleaning company, you’ll want to choose a location close to residential property owners. This will make it easier for you and your employees to get to and from clients’ homes.
But if you’re starting a commercial cleaning company, you may want to choose a location closer to businesses. That way, you can save on transportation costs and get to your clients more quickly.
Once you’ve chosen a location, you’ll need to find a place to set up your business. This can be an office, a store, or an industrial space. You may be able to find a suitable location for your business by searching online listings or contacting a real estate agent.
Build Your Team
If you’re starting a small cleaning company, you may be able to do all the work yourself. But as your business grows, you’ll need to hire employees to help you with the workload.
When hiring employees, it’s crucial to find people with the right skills and personalities. After all, they’ll represent your company when they’re out in the field.
You can find potential employees by posting job ads online or in newspapers. You can also ask people you know if they’re interested in working for your company.
Once you’ve found some candidates, the next step is to conduct interviews. Interviews will allow you to get to know the candidates and see if they’re a good fit for your company.
You should ask about the candidates’ availability. Many commercial and industrial cleaning companies operate 24 hours a day. So you’ll need to find employees who are willing to work odd hours.
After finding the right employees, train them on using the equipment and supplies. You should also create a cleaning schedule and protocols for your business.
Get the Right Insurance
Another essential step in starting a cleaning company is getting the right insurance. The insurance will protect your business from liability if someone is injured or property is damaged while you’re working.
The type of insurance you need will depend on the type of cleaning company you’re starting. For example, if you’re starting a residential cleaning company, you’ll need general liability insurance. This will cover you if someone is injured while you’re working in their home.
If you’re starting a commercial or industrial cleaning company, you’ll need specialized insurance, such as workers’ compensation insurance. The policy will cover your employees if they’re injured while working.
You may also need to get bonding insurance to protect your clients if you damage their property while you’re working. Property insurance will protect your business if someone steals or damages your equipment.
Contact an insurance agent or broker to get insurance for your cleaning company. They’ll be able to help you find the right policy for your business.
Get the Right Equipment
The best cleaning business will have all the equipment, tools, and supplies necessary for a perfect job. Your cleaning supplies and equipment will vary depending on the cleaning company you’re starting.
For example, if you’re starting a residential cleaning company, you’ll need basic equipment, such as vacuum cleaners, mops, and buckets. You may also need to purchase supplies, such as cleaning solutions and sponges.
You’ll need more specialized equipment for a commercial cleaning company, such as floor buffers and power washers. You may also need to purchase special supplies, such as commercial-grade cleaning solutions.
You’ll also need technology solutions to help you run your business. For example, you may want to invest in software that will help you manage your appointments and schedule employees.
You can check out this maid service software to learn how it can help you get more online bookings.
Promote Your Business
The final step in starting a cleaning company is to promote your business. Marketing will help you attract customers and grow your business.
There are several ways to promote your cleaning company. For example, you can create a website for your business and list your services online. You can also distribute flyers and brochures to local businesses.
In an era where social media plays a significant role in our lives, you should also promote your business on platforms like Facebook and Twitter. You can create a page for your business and share updates about your company.
You can also promote your business by participating in trade shows and local events. These events will help you meet potential customers and generate interest in your business.
You can also promote your business by word of mouth. Tell your friends, family, and neighbors about your business. You can also offer discounts to customers who refer new clients to your business.
Consider offering discounts or coupons to attract customers. For example, you can offer a discount to customers who sign up for weekly or monthly cleaning services.
Learn How to Start a Cleaning Company
Learning how to start a cleaning company is a great way to become your own boss. Cleaning is a business that you can start with little money and grow over time. To get started, you’ll need to follow the above steps, and within no time, you’ll be running a successful cleaning business.
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