Very few people enjoy cleaning their home. No one wants to spend their evening doing chores, especially not after a long day at the office. And most people don’t want to spend their beloved weekends doing cleaning, either.
That’s why a cleaning service is one of the best businesses to get into. No matter what the state of the economy, it seems as if there are always residences in need of a professional cleaning.
Like opening any new business, starting a cleaning service is bound to have its share of challenges. But with the right foundation and business plan, you’re sure to have one of the hottest cleaning services on the market!
Know Federal and Local Laws
When you open any kind of new business, you’ll need to abide by the rules and regulations of both the federal government and state government that you’re operating in. Some of these laws require you to:
- Acquire an Employer Identification Number (EIN) from the IRS
- Place workplace posters in the office that inform employees about state and federal regulations
- Complete the Employment Eligibility Verification form (Form I-9)
- Register with your state’s New Hire Program
- Attain Worker’s Compensation Insurance
- Attain Disability Insurance
- Adhere to your state’s environmental policies
These are some, but not all of the rules and regulations you must follow. Not adhering to the law may result in financial penalties or severe legal entanglements.
Consult with an attorney.
One of the most overwhelming things about starting a new business is the sheer number of laws and documentation that are mandated. Make your life easier by hiring an attorney.
Attorneys are educated in both federal and state law, and they’ll make sure that you’re obeying all of the legal requirements and tax obligations required of new businesses. They won’t let any laws slip under the radar.
While an attorney might cost you more money up-front, you could save a ton of money in the long-run by avoiding penalties and lawsuits.
Develop a Business Plan
Before you launch your business, you’ll need to develop a business plan. A business plan will ensure that your business has a clear path to success. It charts goals for your business and how you intend to reach them. No business can succeed without a strong business plan.
Identify your target market and how to market to it.
If you’re opening a cleaning service, you’ll want to target an area that has plenty of homeowners in need of home cleaning. Answer these questions:
- What demographics are most interested in a cleaning service?
- Are these demographics more responsive to digital marketing, telemarketing, foot traffic, or door-to-door marketing?
When you’ve answered these questions, you’ll be able to plan the right marketing strategy for your target market.
Acquiring an office.
You may need to acquire an office if you have employees or if you’re going to capitalize on foot traffic. An office could be a great place to store cleaning supplies, keep business documents, and maintain an employee break room.
Your cleaning services will mostly be conducted at clients’ homes, so you shouldn’t spend too much money on a lavish office.
Taking your business online.
Many consumers use the Internet to find businesses. Your cleaning service might benefit from a strong digital presence.
Consider investing in a website and/or app where customers can find and book your services. You can streamline your online service by using maid service software. Customers enjoy the speed and convenience of a digital interface, and you could save money in the long-run.
Projecting expenses and revenue.
It’s time to make some calculations! Figure out what your business operating costs are going to be. Take into consideration:
- Initial legal and tax fees
- Supplies
- Gas money
- Office rent
- Website costs
- Employee payments, if any
Try and keep costs down. When you’re first getting started, consider doing all the cleaning yourself. Only hire new employees when demand for your business is so high that you can’t possibly do all the cleaning yourself. You’ll have to work hard, but you’ll save lots of money.
When you’ve figured out your monthly costs, project how much revenue you’ll need per month to cover the costs and turn a profit. Look at the market rates for cleaning services to determine where you should set your prices.
Set goals.
Don’t forget to set goals! That’s one of the most important aspects of any business plan. Good goals might be “increase revenue by 10% every month,” or “gain 5 new clients each month.”
Be realistic, though. Many new businesses siphon money their first month or two. That’s normal. Remember that slow and steady growth is the best way for your business to grow.
Gain Financing
You’ve completed your business plan! Your final task is to get financing. A solid business plan will help convince investors that your business has a clear path to making revenue.
To gain financing, you could take out a loan from the bank or acquire hard money from a lender. Bank loans typically have lower interest rates, but you pay them off over a longer period. Hard money loans typically have high interest rates, but you pay them off sooner—which may be good for your business if you’re expecting a quick turnaround on revenue, or bad for your business if not.
You may also turn to private investors for financing.
Word of Mouth
Word of mouth is critical to any new business! Even if you’re operating on few resources and little financial backing, good word of mouth could propel your business faster than an expensive marketing campaign.
So don’t forget to clean well! Provide your clients with the best possible cleaning service and they’ll recommend your business to friends and to the community.
