The Steps on Starting Your Commercial Cleaning Business

Today, many people are opting to start their own businesses. In doing so, they have many choices. One of the best opportunities available is the commercial cleaning business. This industry is in very high demand, as there is a great need for this service. There are a number of advantages to starting a commercial cleaning company - starting with the fact that it requires very little capital to get established. In addition, the business requires no specialized training or background - and, it can be started on a part-time basis, so you can stay with your present job while you get established and build up a nice list of clientele. Another nice feature about the commercial cleaning business is that it can provide very high profit margins. Typical contracts can range from between $ 1,000 and $ 3,000 per month. Therefore, if you are able to negotiate just a few good solid commercial cleaning contracts, you can soon have a profitable business. In addition, this type of business is in many ways recession proof. As long as there are people using offices, medical buildings, and retail shops, there will be need to clean those spaces. Therefore, there will likely always be a need for these types of services. Prior to moving forward, however, it is important to know how to start a cleaning company from the ground up. That way, you will have a thorough understanding of all the ins and outs of what is needed from both a service and a business aspect. Steps You Should Take When Starting a Company Cleaning House Starting a janitorial business requires a number of important steps. Therefore, prior to getting started, you should have completed the following items: Business Plan Just like any other type of company, you will need to have a good solid business plan completed. This plan should include at the very least an overview of your company and the services you plan to offer, the strategies you plan to use in order to obtain customers, financial information such as a cash flow and income statements, and an action plan for how your company plans to achieve its profitability goals. Your business plan should be considered your blueprint for success, and you should refer to it often in terms of taking action and getting things accomplished. You will also need to make your business plan available to banks or other lenders for review in case you apply for a business loan. Business Name When starting your business, you will also want to decide on a name for it. While many people start out as sole proprietors, meaning that they simply work as a one-person operation, others start a business entity such as a corporation or an LLC (Limited Liability Company). In doing so, there can be some real tax and legal benefits, so you may want to consider going this route - especially as your company grows. When deciding on a name for your company, be sure to come up with something that lets customers know what type of services you offer, such as "Bob's Office Cleaning." That way, potential customers aren't left guessing as to what it is that your company does. When deciding on a name, make sure it is a name that is not already being used by another company in your area. Target Market Even though you are starting a commercial cleaning company, you will still want to decide on and pare down your target customer. For instance, will you focus on working with large office complexes or smaller retail locations? By focusing on a particular target or niche, you will be better able to focus your marketing and advertising as well. Rates Another big area in setting up your new commercial cleaning business is the establishment of rates. There are several factors that go into determining the amount that you should charge. These include your expenses and your time. Your expenses should include your supplies, maintenance, and gas, as well as the partial cost of your licenses, insurance, and other overall costs of running your business. Most commercial cleaning companies will charge their customers an hourly rate. When determining your rates, you may want to make calls to other commercial cleaning companies in your area to find out what they are charging. When you do, you will likely find that they all charge similar rates. In this case, you may want to keep your rates in the same range so as not to overcharge your customers, or to undercut yourself. A large part of your learning curve will be to estimate how many hours it will take you to complete certain jobs. For bigger jobs, you may charge by the month. Therefore, you will need to multiply the number of hours per visit it will take you to clean the location by the number of times per month that you go there. This will be your monthly rate for that particular client. Each location is likely to be different, as the price and time it takes to clean will vary based on the type of floors in the building, how many rooms there are in total, how many bathrooms there are, and even how many employees the building holds. Bank Account You will also need to open a business bank account. Even if your business remains small, it is essential that you keep your personal funds and your business funds separate. Therefore, you must set up a separate bank account for your business. There are many banks and credit unions that offer special types of checking accounts for small businesses. Usually these accounts provide you with a certain number of checks and a debit card. Some also include a business credit card as well. Licenses & Permits If you need to obtain any type of business licenses and / or permits, now is the time to take care of this, if you do not want to find out later that you are operating your business illegally. Different jurisdictions have varying requirements, so be sure you have a good understanding of what types of licensing you need in order to operate a business in your area. Insurance You may also need to obtain insurance. With a commercial cleaning business, you - and your employees, if applicable - will be entering offices and other types of commercial establishments. Therefore, you should have insurance coverage in the event that someone gets injured or something breaks. In this case, discuss your business insurance needs with a local insurance agent in order to ensure that you have covered all of your bases. Otherwise, you could end up being liable for a costly accident or injury. If you want to hire any employees, you should also inquire about obtaining worker's compensation insurance coverage. You will also need to become bonded. This is because many companies will entrust you with the keys to their offices or establishments. Being bonded will also help to protect you against employee theft. Your local liability insurance agent can assist you in obtaining a bond. TaxesWhen you open a business and the company starts to earn revenue, you will need to file business taxes. Therefore, you may need to work with an accountant or a CPA (Certified Public Accountant) in completing your business tax returns going forward. It is also a good idea to have a tax professional that you can contact with any questions or concerns you may have regarding business expenses, tax deductible write offs, and other similar items. In addition, as your business grows, you may need help making other types of financial related decisions such as purchasing additional pieces of equipment, whether to purchase or lease office space, and/or whether to start a retirement plan. These are all decisions that an accountant or CPA can assist you with as well.