In the past 10 years, the cleaning industry has grown each year — a total of 6.6% each year, to be exact. That’s why starting a cleaning business will prove to be a profitable venture.
In addition, starting a cleaning business is more affordable than other types of businesses.
More people are working and aren’t spending enough time at home. People also get busy with kids, family, friends, pets, and other life priorities. In addition, businesses also need a reputable cleaning staff and many prefer to outsource.
Are you wondering how to start a cleaning business? Follow this guide and see your cleaning business come to life!
How to Start a Cleaning Business: The Ins and Outs to Know
If you love nothing more than the sparkle and shine of a clean home, you’ll benefit from starting a cleaning business. All you have to do is follow these steps!
Get the Proper Business Structure
First things first, you need to register your business. This helps identify your business with the state and with the IRS. You can’t receive many amenities without registering your business.
Some of these amenities include loans, a business bank account, and hiring employees.
To register your business, you need to have a name, a legal structure, a registered agent, and all other common information (your information, the owners, where you’re located, etc.).
All business registrations include a filing fee. This depends on your state and which business structure you’re applying for.
If you’re stuck on which registration to choose, choose a limited liability company (LLC). This gives you some protection from personal liability. For example, if anything financially happens to your business, your assets won’t be affected.
In addition, you’ll want to understand the tax process. The best thing to do is to outsource an accountant who can help you file your taxes.
Create a Budget and Have the Necessary Materials Ready
Fortunately, starting a cleaning business is more affordable compared to other types of businesses. But you should gather the necessary materials before you start promoting your business. You do this by creating a budget.
First, break down what you’ll need. Most cleaning companies will at least need:
- Cleaning solutions
- Dusting supplies
You’ll also need to set aside extra money for extra necessities such as business insurance, employee wages (when you start hiring), and any advertising costs.
Overall, you’ll need about $1,000 or $2,000 to start. Some of these expenses, such as advertising, can come after you start generating revenue.
Choose a Business Name
You should carefully consider choosing your business name. This is the name that your customers will know you as.
How do you choose a business name? Think of something you love or something that represents you. It can relate to cleaning or to another aspect of your life.
You can also look at your business as inspiration. Think of your ideals, your services, and any goals you have. Or, you can just choose your own name or a nickname.
Next, you need to register your business name. Make sure there’s not another business in your state with the same name.
If you want to patent your name and/or trademark your logo, you’ll have to search the databases of the United States Patent and Trademark Office.
Set Your Rates
From here, you can set your rates.
You should consider the different types of rates you can set and how much you can gain from them. This also depends on a couple of other different factors, such as if you specialize in either residential or commercial cleaning.
Here are the different types of rates.
Setting a flat rate is recommended for cleaning businesses that cater to a specific client or property size.
For example, if most of your clients live in medium-sized homes, you can set a flat rate because it takes about the same time to clean each home.
You can also set a flat rate by service. For example, you can set the first cleaning at a lower rate and then a deep cleaning at a higher rate.
This is beneficial to the customer because they immediately know how much they will pay.
This option is recommended if you have a wide customer base. One project can take hours longer than another one. An hourly rate will ensure you get your money’s worth.
This is why it’s the most common billing option for cleaning businesses.
How much should your hourly rate be? You don’t want to charge anything too drastic.
Customers are wary about hourly rates because they think you will clean slowly in order to make more money. Set your rates lower so customers feel more comfortable.
You can also see what your competitors are charging. This gives customers the peace of mind that you’re not overcharging them.
However, you shouldn’t ignore your own costs of doing businesses and factoring in your ROI on all of your expenses.
Square Foot Rate
Do you specialize in large homes or vacation homes? You’ll benefit from charging a rate based on the square footage. This is also convenient if you’re hired to deep clean a certain room, such as the basement.
There’s a good chance these homes and rooms will take longer to clean, so ask the client for their square footage instead of providing a flat or hourly rate.
Should You Opt for Franchising?
As your business grows, you might want to consider franchising.
You have the benefits of regional and even national customer acquisition and marketing. In addition, most franchising companies already have a set guideline and procedure to streamline this process.
When should you franchise? It’s best you start up your business independently first. You’ll lose some management roles when you franchise so it’s best you focus on building your business in the beginning.
Consider Us as Your Franchising Support
Now that you know how to start a cleaning business, you can start acquiring other necessary promotional factors such as a website, social media pages, marketing materials, contact information, and an office.
Do you want to franchise when your business takes off? We support cleaning businesses with materials, customers, and other necessities. Fill out a request and we’ll let you know how we can help.