A commercial cleaning business offers an array of services including dusting, mopping, vacuuming, disinfecting, picking up, and more. Recently, these businesses are putting systems in place to kill COVID-19, as the pandemic continues across the nation. While these businesses are in higher demand than ever before, there is no question that starting any new business is challenging.
If you are interested in investing in commercial cleaning franchise companies, use the tips and information below to ensure your business has the best chance of success possible.
Today, cleaning franchises are quite popular. There are a myriad of companies that offer franchise opportunities. One of the things that makes this business so appealing is the low initial investment required. Some also provide the option to start the business at home or just operate it part-time.
Remember, though, not all cleaning franchises are that low-cost. Some require you to make an investment of up to or more than $200K. Usually, these franchises require you to invest in the location, vehicles, equipment, and more.
While this is true, there are several benefits of going with a franchise. For example, you receive training and instructions regarding how to build a successful business. This is usually much more beneficial than trying to figure out things on your own.
Create a Business Plan
When you decide to purchase a franchise or open a standalone cleaning company, having a business plan can be invaluable. You need to get all the ideas you have on paper. You also need to research the startup costs and forecast the amount of money the business will spend or earn for the next two years. This is called your financial projections.
If you need financing from an investor or bank you will be required to have a traditional business plan. Using business plan software will help you create this plan and ensure you get all the information, thoughts, and ideas on paper.
Determine Your Budget
While the business plan is a good first step, it isn’t the only documentation you need. You should also estimate the financials of the cleaning business you are starting. Determine three different figures, including the startup costs (this includes all initial costs), your projected monthly costs, and your estimated monthly income.
Some of the costs you need to figure into your budget include the permits and licenses that you need, insurance costs, the cost of the cleaning products and equipment, advertising for the business, and labor costs. Once you have estimated your expenses, you can figure out your rates and how much income you will be able to earn each month.
Set Your Cleaning Rates
Several factors may impact your cleaning rates. This includes things like your location, how much competition you have, the clientele you are targeting, and the interior condition of the property being cleaned. You can also earn more revenue by offering upgrades, such as wall washings, appliance cleanings, and window cleanings. You can choose to charge by the hour or a flat rate for specific tasks. It is up to you, but it is best to determine the right rates for your company and then stick to them. No one wants surprises when they receive the bill from your cleaning service.
If you are like most people, you won’t have the cash-on-hand to start your business. Because of this, it may be necessary for you to seek funding elsewhere. Now is the time to do this.
There are several options to consider when it comes to funding your commercial cleaning business. For example, you can choose crowdfunding, use credit cards, or take out a personal loan. You may also be able to get a loan for the business from your bank. It is a good idea to look into all the options to find the one that best suits your needs. Not all funding options are the same so be sure to carefully evaluate all the options.
Many people want to apply for an SBA loan, but this is not a possibility for new companies. You must have a minimum of three years of history of your expenses and income to be considered for this type of loan.
Starting Your Commercial Cleaning Business
If you are ready to open your own commercial cleaning company, there are a lot of things to consider. You need to take the right steps to ensure you achieve the results desired. By using the information above, you can give your business the best chance of success.