A checklist to start a commercial cleaning business

A checklist to start a commercial cleaning business

Boden Lam

There is no specific time to start a business that helps maintain cleanliness and hygiene in the office. If you have been chewing the cud over starting an office cleaning service, it is time to put it into practice. Bureau of Labor Statistics envisages a 10% growth in the cleaning business in the next four years. Most mid and large-sized organizations outsource their hygiene requirements to such cleaning services. The demand for trustworthy and credible cleaning services is only on the rise.

You will need to list down the multiple steps you need to verify before working on your plan.

Choice to make – Start new or buy a cleaning franchise
There are about 15 cleaning services which offer franchises. While initial investment on some franchises can be low as $3,500, some can go up high, up to $200,000, requiring advanced heavy-duty cleaning equipment, vehicles, and your own office. Decide on this based on your budget, income vs. expenses, and profit margins. Starting your own business will generally be cheaper than buying a franchise.

Prepare a business plan
For the next two years, estimate the investment, expenses, expected business, loan or investment requirement, etc. Based on these numbers, prepare a more detailed formal business plan for more clarity. You will need a formal plan if you are looking for investors or approaching your bank for a loan. The business plan should be attached with clear budgets, startup costs, estimated expenses, and income

Estimate expenses
Estimate the expenses for each major overhead expense, including licenses, insurance, equipment, products, salaries, advertising, online marketing, labor. If you are working from an office, you have to include rent, maintenance, and electricity.

Fix your rates
Understand the prevailing rates, type, and range of services you want to offer, factor in a USP you will offer, and fix the rates accordingly. You should prepare individual rates for cleaning, mopping, window cleaning, wall washing, carpet, and sofa cleaning. You can prepare hourly rates, flat rates, rates per square foot, or charge according to the service provided.

Estimate income
Once you have an idea about the expenses, write down the potential income and the approximate time you will need to break even.

Licenses required
To start any business, you would need to register. Select a good name for your business. Once the DBA registration is approved, you can get your vendor license. Operating your business without a vendor license is punishable and involves huge penalties. You will also have to apply for an Employment Identification number.

Arrange for funds
Once you have the business plans and financial projections, you have to start getting the required capital from your own money, personal or home equity loans, credit card loans, or investors. You will not be able to approach banks for a loan until your business has been in existence for three years.

Paperwork
If you complete the above steps, you can start with your business registration and license paperwork. Open a business bank account and apply for general liability insurance, worker’s compensation, and Janitorial Bond.

Buy equipment
Start buying all the required equipment and supplies listed under expenses in your business plan.

Hiring employees
You should start hiring full-time or part-time employees. Choose staff with enough experience to create a good impression despite being a new service.

Marketing
Friends and family are the first-line marketers. Ask for references so that you can start getting potential clients. Get referrals and reviews from them and use them to build your client base. Create an online presence. Use social media platforms that provide free or cost-effective marketing options. As your business grows, increase marketing budget and opt for other marketing tools like posters, handouts, billboards, among others.

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