For entrepreneurs, the cleaning services industry provides an
enormous profit potential. The low cost for startup and nominal entry requirements for the industry are two of the main reasons business-minded individuals are getting involved in this flourishing market.
It has been suggested by business experts that for as little as $2000, an individual can start his or her own business in this industry. Additionally, because of the very low operating costs associated with a cleaning business, if the individual is willing to invest his or her time to carry out the cleaning work initially, there is great potential for the industry to bring in much revenue.
Similar to any other business, when starting a business in the cleaning service industry, your business will have to be named and the business structure will have to be determined to see what will work best for the new venture. Choosing the correct business entity for your particular purposes can prevent future trouble with the Tax Department in paying your taxes.
As an entrepreneur, a budget has to be established for the cleaning company. Account for expenses like the business permit and license fees, business insurance and business registration fees. You should also account for labor costs, cleaning equipment and products and marketing and advertising costs. Starting small with a few staff members and just essential service offerings may be a good idea. This could be offering a standard house cleaning service. Following this, you can work on providing additional services as your clientele grows and more revenue is generated that can be invested in expanding the business.
Highlighted below are details of the typical expenditures for low-cost cleaning businesses:
• Licenses and Permits
Cleaning businesses typically need licenses to legally operate. This type of protection can bring about peace of mind for the business and assist in securing clients. Regardless of the kind of cleaning jobs you undertake, certain regulations will have to be followed. Typically, it is required for you to get a general business license to legally operate. Additionally, a special license or bond may be required to comply with local laws or if you work with certain clients. It can cost between $100 and $500 for registration as a limited liability company.
• Business Insurance
Cleaning business insurance and associated costs of bonding are dependent on a number of factors, including the size of the business and its calculated risks. Typically, experts recommend a BOP or business owner’s policy instead of a standalone general liability policy. This is wise as the BOP combines commercial property insurance with general liability insurance to safeguard specialized cleaning equipment. This could cost between $500 and $3,500 per annum, depending on the number of employees the business has.
• Cleaning Products and Equipment
This could cost between $300 and $600 based on the types of products and equipment being used. Top-quality vacuums could cost between $200 and $300, $10 for a broom, $10 for some large all-purpose solutions, $20 for dusting supplies and $20 for a mop.
The cost of online and print marketing could run between $100 and $200.
This is approximately $12 per hour for each employee.
Once your expenses have been estimated, your rates should be determined as well as the amount of monthly income you will earn.
Starting a cleaning business takes hard work and dedication; however, with the right approach, your efforts can result in success. All that is required to start a cleaning business and enter into the $40 billion industry is nominal startup funding, basic pieces of equipment, willingness to work hard and a spirit of entrepreneurship.
Online tools are there to assist entrepreneurs in achieving success in the industry, including coordination of scheduling and payment. Additionally, there are options to charge a flat fee, charge by the hour or go for a scaled policy like a flat rate that goes up by square foot.