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A cleaning company may provide a wide range of services, such as disinfecting, vacuuming, dusting, tidying up, sweeping floors, and waxing. Cleaning businesses are now able to kill the COVID-19 virus with CDC-recommended procedures that have become more widely available. In this guide, we explain how to start and run a cleaning business on a budget by using low-cost strategies. There are seven steps to follow to get your cleaning business up and running.
1. Identify Your Company’s Niche
Choosing whether you want to offer commercial or residential cleaning is the first step in starting your own cleaning business. Once you have decided what kind of cleaning you’d like to provide, you can begin looking for financing, purchasing equipment, and marketing your business.
Because cleaning companies must use different equipment and services for residential and commercial clients, they do not serve both at the same time. Moreover, you need to decide if you want to open your own cleaning business or acquire a cleaning franchise.
Commercial vs Residential Cleaning
Commercial cleaners work in businesses, while residential cleaners work in homes. As a result of add-on services like floor waxing, window cleaning, and deep cleaning, commercial cleaning is usually more profitable than residential cleaning. Commercial cleaning can be very profitable, but starting a residential cleaning business is usually cheaper.
In addition, residential work is primarily performed during the day, whereas commercial work is performed mainly at night. A residential cleaning job requires a lot more attention to detail due to homeowners inspecting their work and being particular about placing pillows and blankets. You will have to work faster and be less detail-oriented because commercial properties are more significant.
2. Write a Quick Business Plan
Next, prepare a business plan for your cleaning business that includes financial projections. Financial projections are important parts of your research because they help you put your thoughts into writing.
You will need a business plan to obtain a large amount of funding from a bank or investor. Business plans are collections of financial projections that are usually created with the aid of business plan software. You’ll need software for income statements, balance sheets, and break-even points. You can download a Cleaning Services Business Plan Template for more information about the business
Plan a Budget.
In addition to your business plan, you should estimate your startup costs as well as your expected expenses and income for the first few years of your enterprise.
The following expenses are likely to be incurred by a low-cost cleaning business:
- Limited liability companies can be registered for $100 to $500.
- Depending on the number of employees, annual insurance costs range from $500 to $3,500. Monthly expenses should average $100 to $300.
- Depending on the type of tools, cleaning equipment, and products can cost anywhere from $300 to $600, which includes: an expensive vacuum cleaner that costs $200 to $300, multiple large cleaning products that can cost $10, a broom that costs $10, a mop that costs $20, and dusting supplies that can cost $20.
- Between $100 and $200 is the cost of online and print advertising.
- An employee’s hourly wage is approximately $12.
Your monthly income and expenses should be determined after you determine your expenses.
Choose Your Cleaning Rates
In addition to the location of your business, your competition, clientele, and the condition of your interior, you may also have the opportunity to generate additional revenue through upgrades like window or appliance cleaning.
Consider the following options when determining rates:
- In most cases, you will be billed by the hour. You can estimate your hourly rate by asking your competitors about their services.
- You may find it more convenient to charge this rate because you know exactly how much you are going to pay each month. It is necessary to estimate the time it will take to clean one’s home in order to arrive at this figure.
- There are a variety of ways to charge per square foot when you are in the commercial cleaning business. In most offices, fees range from $.05 to $.20 per square foot.
3. Prepare Legal Documents
A business bank account, an employer identification number, and registration of the legal entity, as well as business registration, should all be in order as soon as you have the money to start your cleaning business.
Get a Social Security Number
An EIN is a number used to identify a company for purposes such as loans, bank accounts, and taxes. The IRS offers EINs for free. The process takes around 15 minutes.
Create a Legal Entity
It is essential that cleaning business owners register their companies in order to be allowed to operate legally. Registering as a legal entity would protect personal assets if a lawsuit were to ever be filed against your business. Registration can cost from $40 to $500, depending on your state.
- Entrepreneurship:
- C corporation:
- S corporation:
- Limited Liability Company (LLC):
Getting a Business Bank Account
In order to keep your personal and business finances separate as a business owner, you’ll need a business bank account before incurring any expenses or taking on any new clients.
Business expenses and income should be tracked separately. If ever audited by the IRS, you will find that using separate accounts will simplify the process.
4. Equipment for Cleaning
Getting started with a cleaning business requires buying the necessary equipment. Here’s a list of cheap items you’ll need to get started.
Don’t overspend or take on too much debt if you’re starting with a budget by picking a few cleaning supplies you like and brands you trust.
Conclusion
There have been several low-cost ways to start your cleaning business. The best marketing for your business is a clean house or office after you get your first customer. Starting a low-cost franchise will provide you with the training and support you need if you are a first-time business owner.
What will you do to set up your cleaning business today? We’ve placed the mop in the bucket: What will you do with it?
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