What is a cleaning business
Who is the target audience of a professional cleaning
How to open a cleaning business: registration & documents
Cleaning business investment size
Preparing an inventory
Marketing & promo campaign
The financial side of the company: ROI
#1 What is a cleaning business
The modern world has come out with current solutions. There are many services you can get to make your daily life much easier. Cleaning services are among the latest trends because they help individuals and organizations with cleaning premises.
Cleaning companies offer different services. They usually vary depending on their level of complexity. The average cleaning company provides the following services:
Cleaning of all the surfaces.
Cleaning of external parts of buildings: facades, terraces, windows on high floors.
Cleaning furniture, plumbing fixtures, household appliances from stains, plaque, rust, carbon deposits, and grease.
Thorough cleaning after a major renovation.
Disinsection, elimination of the mold.
Cleaning services are in demand among the big companies. Executives and HR departments note that keeping the work environment clean allows creating better conditions for staff and clients.
The cleaning business has been popular for years. Firstly, people got used to it. Then they couldn't even imagine their lives without professional cleaning. Cleaning services and their types vary. We have already mentioned the most popular ones. Now, let's take a look at some other types of cleaning:
Cleaning of the areas that often get dirty: bathrooms, halls.
Daily cleaning of the premises to maintain perfect cleanliness.
Cleaning after renovation.
Professional cleaners do all the cleaning types we've mentioned today. They have a set of the needed equipment, so a company that hires them will not be required to purchase inventory and consumables. Another benefit is that there is no need to hire a cleaner when you get a professional cleaning. Cleaning services are usually cheaper. It works like this because the workers come and leave. They aren't with you 24/7. For some companies, it is a considerable advantage. For others, a significant disadvantage. Now you better decide what your company needs.
Of course! People tend to spend more to do less. That's why they delegate housework and cleaning to professionals. And, it is a good choice. Qualified cleaners usually do the work better and do not charge you too high.
Yes! The cleaning business can be super profitable. Aspiring entrepreneurs should consider starting a cleaning business as it is pretty popular and makes good money. But, yes, some businessmen couldn't cope with maintaining a good cleaning business. Usually, this type of startup fails because of a poorly written business plan.
The profit is dependent on several factors. Usually, it is location, reputation, and quantity of clients. In general, a cleaning company makes $55 000-100 000 annually. Sure, there are also some risks so that you may earn less. But if you plan the cleaning company well, there is no need to worry about any problems.
The best idea is to agree with a reliable supplier. Then you will get quality products for a better price. We don't recommend cutting expenses, purchasing low-quality materials, etc., because you will prolong the cleaning time.
Another way of minimizing regular expenses is hiring fewer people, but they have to be professionals. Sometimes, business owners hire a few cleaners and then more staff. It is a good idea for those who would like to try cleaning business. If you are still unsure whether it will work out, hire 1-2 cleaners and then escalate a business.
#2 Who is the target audience of a professional cleaning
Cleaning is in demand among office owners and the following businesses:
Cleaning can be ordered by:
Cafés, restaurants, canteens.
Photo studios, gyms.
Educational, financial, and government institutions.
Cleaning services are popular not only among companies. Individuals can also order them to clean:
Apartments and rooms.
Houses, villas, summer cottages.
Public places such as entrances.
Adjacent territories, courtyards.
Cleaning services are popular among various audiences. The main rule is to write down a well-thought-out business plan, understand your audience, and rely on the budget.
#3 How to open a cleaning business: registration & documents
Cleaning services are among the ones that escalate very fast. So, naturally, a lot of businesspeople dream of opening a cleaning business. But is it that easy? It's not easy at all. On the one hand, you may think that a cleaning business is a perfect idea for beginners. Go and register it to clean legally. But on the other hand, without intelligent planning, the startup will fail at once. We don't want it.
The first thing you have to write down is a good business plan. Thoughtful planning is the soul of your future prosperous business. Mention there all the risks, advantages, and disadvantages of your cleaning service.
A good business plan is 50% of success.
Registration & documents
To start a business, you will need to register it. The best idea for cleaning services is a sole proprietorship or individual entrepreneur. It will work out if you work alone. However, if you open a business with a colleague, think about registering an LCC.
We advise you to ask for help from a professional lawyer. Every state has particular laws, which can vary. That is why only a skillful lawyer can guarantee that you open a startup and don't skip any legal requirements.
After the business is registered officially, you have to continue with preparation. For example, to be ready for opening a cleaning company, you will have to cope with the following list.
To-do list before starting a cleaning business:
Conclude an office lease agreement.
Cope with obtaining all the licenses and permits.
Conclude a contract with a household chemicals supplier.
Open a business bank account.
Hire professional cleaners.
Obtain medical certificates.
Make a contract for the export of solid waste.
A cleaning business is a startup that does not require any special licenses. All the papers you are obligated to obtain are DBA and vendor's licenses.
#4 Cleaning business investment size
First, understand the initial expenses. We have calculated how much money you'll need to start a small cleaning company and hire 5 – 6 employees.
Expenses for starting a cleaning business:
Preparing documents: $200-500.
Purchasing inventory: $5000-10000.
Buying consumables: $500-1000.
Renting premises: $1500-2000.
Office furniture: $5000-1000.
Salary for staff: $7000-10000.
Advertising and marketing: $1500-2500.
Other expenses: $500-1000.
So, to start a small cleaning company, you will need about $20 000-25 000. Sure, you can minimize the investments. If you are a low-budget company, consider purchasing second-hand equipment, affordable chemicals, hiring fewer people, or teaching young and aspiring cleaners.
Once you've coped with initial investments, think about calculating regular expenses. Start the calculation from the 2nd month of your company's performance.
Regular expenses of a cleaning business:
Consumables and cleaning products: $200-500.
Rent and utilities: $2000-3500.
Depreciation of equipment: $500-1000.
Staff commission: $7000-10000.
Taxes and insurance: $2500-3500.
Other minor expenses: $300-500.
To maintain a cleaning business with 5-6 employees, be ready to invest $10 000 monthly.
#5 Preparing an inventory
The inventory can be:
Cleaning commercial equipment.
Auxiliary cleaning materials.
We can supplement the list with additional equipment for particular areas, for example, oversized windows, office buildings, etc.
Cleaning commercial equipment includes:
Industrial vacuum cleaner for solids/dust: $800-1000.
Washing machine: $600-1000.
Professional steam generator: $700-1000.
Blower for carpets: $300-700.
Floor cleaning sweeper machine: $300-500.
Floor sweeper: $800-1000.
Auxiliary cleaning materials include:
Cleaning trolleys: $80-90 for one.
Rubber broom floor sweeper mops: $35-50 for one.
Cleaning trolleys: $90-100 for one.
Multipurpose scrappers: $5-10 for one.
Window cleaning tools: $45-55 for one.
Other cleaning material: up to $200.
In general, you will have to spend about $500-800 on all the additional equipment.
Then consumables. Usually, they aren't too expensive. Rags, sponges, gloves, masks, garbage bags will cost you up to $200. Then your company will work with chemicals. Finally, you must purchase universal cleaners, stain removers, carpet cleaners, air fresheners, bathrooms, mirrors, glass, parquet, and wood cleaning products. Their cost will be about $1000 per month.
#6 Hiring staff
Your team is the primary key to the success of your business. How staff cleans, communicates with clients, solves conflicts influence how well you'll start.
Selecting the right people is a challenging task. Sure, you have to check their experience, medical cards, and communicative skills. After that, you better pay attention to whether the person is responsible and can learn well. It is essential as those people will work with chemicals. They have to be extra careful while performing their works.
The initial number of employees may include:
Cleaners: $10-15 per hour.
Administrator: $1000-1200 per month.
Accountant (outsourcing): $300-500 per month.
Cleaning software is a perfect tool to optimize all the cleaning business routines. The main benefit of connecting the software is 24/7 online appointments. Get new clients, even out of your work hours.
Good cleaning software will automate routines, optimizing performance. So, you will work better without any effort!
Then, when your business grows, you can also hire a driver and an account manager.
#7 Marketing & promo campaign
Searching for clients may be tiring. Let's cope with it as effectively as possible. To attract clients' attention, you can use the following channels:
Billboards and posters.
Ads in magazines.
Contextual and targeted advertising.
Creating a website and maintaining social media profiles.
A personal website is a must-have for those who would like to escalate business quickly. This way, you will be able to offer your services to many clients at once. Would you like to get a website for free?
Then connect EasyWeek! Our developers generate a landing using the data you enter while signing up. The website is minimalistic, functional, and easy to use. And most importantly, it costs nothing for you! Website creation is a free option in every EasyWeek tariff.
A cleaning service gets more clients, CRM automates all the cleaning business routine, and you get a free mini-website. Sounds good, right?
If you want to simplify the process, get a cleaning franchise. Then there is no need to write a business plan, worry about a client base or promotion. The managing company will help to start step by step. Then sure, such a business will never be unique. Think about what you prefer.
#8 The financial side of the company: ROI
A well-thought-out cleaning business will make you rich. Some companies get more than a 1 million dollars annual profit. Would you like to join them? Sure, you would. Everyone wants to work less and get more.
In the case of a cleaning business, the organization is essential. The average annual income of a small 1-person cleaning company is $55 000-60 000.
Depending on the level of cleaning, its type, and size, the income will differ. Your profit also depends on the area you perform. In general, the ROI is pretty fast. You will be able to return the investment in 5-6 months. Then, sure, the more you work, the more you have.
The cleaning business is a profitable niche. So the startup has to be well-thought-out, and then it will work out.
A good business plan + patience = Success.
Cleaning software is also a friendly tool to increase your income. EasyWeek will be glad to optimize your cleaning company routines while working upon the more critical challenges. Test the service for free to check how well your business can do!