The cleaning services business sector obtained 4, 17 billion US dollars in 2015. The great potential of profit from this business and the low costs to start up is the magnet for business starter to begin to turn into this kind of business.
People are starting to find ways of how to start a cleaning business from home. Others are trying to apply the tips on how to start a small cleaning business. Basically, because this kind of business only needs a little amount of capital for the beginning, all you need is the spirit of the entrepreneurship and some basic equipment.
Below are some simple steps or ways of how to start a cleaning business
How to Start a Cleaning Business in Simple ways
Make your budget
Many experts said that this business is a kind of business with low capital. Even, you may find some tutorials easily on how to start a cleaning business with no money. Still, you have to consider some aspects below before you start your cleaning business:
- License and permits—prepare your budget to get license and permit to start your company
- Insurance—allocate some funds for this part, this is the facility for the employee in the company
- Cleaning Equipment and products—set some money for this. It is important tools to run the business
- Advertising—you may need printed and online marketing as well
With these numbers, you can count how much do you need to set up a new cleaning business, or is it possible to start it without money?
Select a business structure
Before you open your cleaning business, you must have it registered. It is an important stage of how to start a cleaning business.
A lot of business starters choose to register the company as their own. If you choose this way, it means that you have absolute control of your own company. But, you will be held liable if your company goes bankrupt and you are under the debt.
Others may register the company as LLC (limited liability Company) where the whole income are required to make self-employment tax payments.
The taxes charged depends on the business you register. If you registered your company as your own, you won’t have to make the tax report for company profit and loss.
But if you registered your company as LLC, the taxes would be more complicated. The company can be charged as a sole proprietor, partnership, S Corp, or C Corp. And of course, there are pros and cons for each tax process.
License and Insurance your business
The other important thing to do in how to start a cleaning business is to register your company for license and insurance
Licensing requirements can be different from one city to another, or from one country to another. The process may not be easy, especially for the first-time entrepreneurs. However, it is an important thing to do t star your cleaning business
Accidents do happen in any kind of business, including the cleaning business. The insurance will protect you and the employee, the company as well from such unfortunate incidents.
A bond is a kind of insurance that functions as financial guarantee based on the terms of the bond. For example, when one of your employees is accused of stealing, your business will still be held accountable by the clients for the losses due to the theft.
The next step of how to start a cleaning business is to prepare the equipment. Some clients may provide their own cleaning tools and products, but you still have to prepare your employees with the equipment. You may buy vacuum cleaner, broom, and mop that you can use them in the beginning of your business. You can use them at the start, but remember that those tools are to wear and tear. Other things you have to prepare are:
- The uniform for the employee, or an apron with some pockets to keep important things needed when working
- The window cleaner
- Towels, cloth or paper
- Scrubbing brushes
You can get them from the local groceries as you launch the business for the first time. As you grow, later, you may build a new relationship with your local janitor supplier so you can have the stuffs in a bulk with low prices.
Set your rates and your own pattern
It is another important part to think about in how to start a cleaning business. To set the rates you have to consider some factors, like, location, the competition among the business, the clients, the size or the conditions of the house or office to be cleaned, and or any additional duty for the employee will affect the rates you set up.
Now, try to see the following pricing pattern:
- Hourly rate
This is the most common method used by the company to charge the client for the services.
The easiest way to set up is to investigate the competitor rates, then make it into your considerations to set up your own.
- Flat rates
This pattern is usually popular among the clients. They just need to pay certain amount of money without worrying about extra charges if the work needs more time to be done. But as the business owner, you have to be careful in doing the count of the rates. Otherwise, you may end up losing the money. But, that’s the risk, right?
- Square foot rate
Many companies often set high rates for this pattern for it is usually employed by people who have large houses, mansions, or even villas which are rarely lived by. The work here needs extra-power and deep clean. That’s why high rates are perfect for this pattern.
Sell your cleaning business
Now, when everything is ready, the final but not less important in how to start a cleaning business is market your business. Allow the world know that you have a business and let them be your clients. You can use both offline marketing and online marketing to do it.