Lets talk about how to start a cleaning business with a few simple steps and considerations. There’s plenty of opportunity in this sector, and the startup costs are relatively low.
1. Create a business plan for your cleaning company
Before shopping for cleaning products or scheduling your first clients, you need to consider how your cleaning company will operate, grow, and present itself. Your business plan is an opportunity to dream about where you see your business in the future and set plans for how to get there.
Your cleaning company business plan should answer the following questions:
What kind of work do you do?
One of the biggest decisions you’ll face is choosing between commercial and residential cleaning services. Each side of the industry will require different skills and focus areas from your company.You can also check and hire Cleaning Service in North London for domestic cleaning.
But even then, you have several different specialties to choose from. Consider these options, along with many others:
- Carpet cleaning
- Home cleaning
- Janitorial services
- Pool cleaning
- Pressure washing
- Window cleaning
- Septic cleaning
Who are your target clients?
Within both commercial and house cleaning, you’ll find many different types of people or businesses you could work with. If you choose the commercial route for your cleaning business, will you focus on large office buildings? Schools? Or small businesses? On the residential side, will you market yourself toward Airbnb hosts? Landlords? Owner-occupants?
People trust experts. The more you focus on one specific type of client, the easier it will be to both understand their needs and complete the work efficiently. Having a niche for your cleaning business will help you build trust and win business over some of your more generalized competitors.
Who will do the work?
Will you keep your business lean and do all the work yourself? Or will you hire a team to do the work while you handle company logistics, such as scheduling, marketing, and accounting? Consider these factors in your business plan:
- How many additional workers will you need to run your business successfully?
- How much will you pay your employees?
- What additional costs will you face — like workers’ comp insurance — when you hire employees?
- What do you need to charge and how many clients do you need to be profitable?
- What additional supplies and transportation will you need for your company to be successful?
2. Name your cleaning business
Choosing a company name could make or break your cleaning business — so it’s essential that you get it right! While you can always change your company name later, it’s best that you get it right the first time since you’ll be using it to build your reputation and brand recognition in your target market. These tips can help you pick the right name the first time:
- Keep it simple. Avoid long names or names that are tough to spell, difficult to remember, or are too similar to another existing business.
- Avoid puns. While a good pun may give you a chuckle, not everyone will understand the joke.
- Tailor it to your target market. A cute or endearing name may work well for a residential cleaning service but seem unprofessional to a corporate client. On the other hand, a name that would work well for a commercial cleaning company may come across as stuffy and unapproachable to residential clients.
- Make it stand out. Pick a name that’s not too generic to help you stand out from the competition. If you have a specialty that differentiates you from the competition, it may be helpful to include that in your name as well. For example, if your company uses only eco-friendly products, you could include the word “green” in your business name.
Above all, be creative and original. Don’t forget to do your research to make sure that the name you’ve chosen hasn’t already been taken. You can also check with your local county clerk’s office to ensure someone else isn’t already using that name.
3. Choose a business structure for your cleaning business
Once you’ve chosen a name, you’ll need to set up the legal structure under which you’ll operate. While it may be tempting to start scheduling cleaning jobs without giving your business structure too much thought, you’ll save yourself a lot of time, energy, and (potentially) money by planning your structure before you start buying supplies or charging clients.
Your cleaning business structure affects both your business taxes and exposure to risk and liability. Choosing the wrong business structure could lead to big problems and expenses if something were to go wrong.
According to this comprehensive GovDocFiling guide, once you’ve chosen a name, you’ll need to set up the legal structure under which you’ll operate.
What is the best business structure for a cleaning business?
The best business structure for your cleaning business will depend on your company size, risk tolerance, and local business regulations. Before settling on a specific structure, you should talk to a small business lawyer, tax professional, and your local small business administration.
They’ll look at your business plan and recommend the best course of action to keep your business legal and protected. You’ll choose the best business structure for your cleaning business from four options:
Partnership
A partnership is similar to a sole proprietorship in that you are personally liable for your business. However, in a partnership, you share that responsibility with multiple partners. Each partner agrees to share the profits, losses, and financial and legal liability for the company.
Corporation
A corporation is a separate legal entity that you’d create for your cleaning business. Forming a corporation separates you (and your personal assets!) from the day-to-day operations and liabilities of your cleaning company. Most cleaning companies who choose to form a corporation become an S corp.
Forming a corporation is more expensive than remaining a sole proprietor. You’ll also need to follow more stringent accounting and bookkeeping rules for tax purposes.