Writen by Walt Gibson
Although challenging, it is possible to start a cleaning business in two weeks for under $1,000. Be aware that you may need another source of income while your business is growing. If you have customers already waiting for your services you can get started cleaning in a few days, then word of mouth might increase your customer base. Keep in mind that obtaining new customers can be time consuming and costly. In addition, your costs will rise considerably if you purchase liability and worker's compensation insurance. Realistically, you should expect to invest more than $1,000 to keep your business growing once you have obtained the minimal basics. If your goal is to earn a substantial living solely from your house cleaning business, then you must reinvest earnings into the business in order to increase customers and income.
How to start a cleaning business with minimal investment and maximum return.
Read all of the articles at MaidDocs.com to prepare for the adventure. You will find the article "Are You Ready" of particular importance, telling you what to expect during your first year of running your own cleaning business. When you are certain that you want to start your own house cleaning business, then visit all of the websites listed at the end of this article to learn about government regulations, taxes and licensing. You will also find information about how to establish ownership of your cleaning business (corporation, LLC, or sole proprietor.)
Decide on the fee you will charge for your cleaning services. Research the local market to determine what your competitors charge. You must remain within the local standards, and you can undercut your competition slightly; however, if you charge significantly less than the competition you may end up with low profits and a heavy workload -- defeating your business goals. Keep your prices within local standards so that as you add employees you will not need to raise prices and thereby lose customers. If you want to offer significantly lower cleaning fees than your competitors you should advertise time-sensitive discounts (i.e. $50 off a deep cleaning until the end of next month.)
The name and logo for your cleaning business require thought. Your cleaning service business should have a polished and professional image to compete in the marketplace. A professionally designed logo will help to brand your company in the public's mind. Your logo will be printed on business cards, marketing pieces, letterhead, car signs, etc., so carefully consider the image you want to present, and then choose a name and artwork which will best reflect that image. Be certain that the business name you've chosen is not already in use. Visit LogoYes.com to create a logo online for only $99.
Before you start your own cleaning business be prepared with customized, professionally written business forms and letters. You should have: a sales script memorized to perfection whether you do in-home estimates or estimates by phone; cleaning fee estimate calculator; fee estimate letters; follow-up letters for quotes not booked; new customer letters stating hourly fees for cleaning services and payment policies; a customer database and accounting system; information sheets listing vital details for each customer; cleaning service checklist form to leave with customers after each service; and customer survey forms for every new customer to complete and return. At http://www.maiddocs.com/shop you can purchase a cleaning business start up package for $75, or a complete cleaning business system for $1250.
To obtain your first customers you can advertise under "services" in the classified section of your local newspapers. Keep it short and ad your logo if you can afford to. Your ad might read "Quality housecleaning with integrity. Call ###-#### for a free estimate." $25 - $100 should cover running your ad for 2 weeks depending upon your location and size of the ad.
It is of utmost importance that you have a voice-mail system with a professional message which reflects your business image. Also, your phone system should capture incoming numbers as callers may not leave a message, or may forget to leave their phone number. Be certain to return calls within 2 to 3 business hours. Because most people have sufficient home or mobile phone systems the cost of this will not be included in our general start-up estimate.
Marketing pieces may be hand delivered or mailed. Your choices are door hangers, brochures or postcards. We prefer brochures or postcards rather than door hangers because they can be used as handouts and as mailing pieces. You can develop your own brochure or postcard using Microsoft Publisher software, or you can purchase a pre-designed template. The pieces can be printed in-house if you have a high quality printer, or printed at a local print shop or copy center. PIP, Staples and Office Depot all have high speed copiers that will produce professional quality marketing pieces at very reasonable prices. Insist on seeing a sample from the copier before you have the job completed. You MUST deliver high quality marketing pieces in order to make the best impression on your prospects. Flimsy paper with lopsided print, ink rubbing off and jagged edges is not the professional image that will make your prospects eager to call. $100 should cover your costs for 100 brochures, 200 postcards, or 250 door hangers.
Magnetic car signs are a great advertising tool which can be made by a local sign maker for $25 to $50 a set, plus an initial set-up fee of approximately $60. Be certain that your signs fit on both compact and full size cars and that you use no more than three colors. When designing your signs keep in mind that bold lettering and brief wording works best. Remember to include your logo for name branding.
For around $100 you can purchase cleaning supplies at your local discount center, grocery and dollar stores. Either store or brand name household cleaning products will work, however, compare the percentage of active cleaning ingredients. Avoid products containing bleach as it can cause damage to carpets and counters. Our preferred products are: Murphy's Oil Soap; Pine-Sol; Soft Scrub (lemon or orange); Scrub-Free mildew remover; all purpose cleaner; furniture polish; toilet disinfectant/germicide; glass cleaner. Purchase mops with machine washable heads; both large and medium size sturdy buckets with handles; a large sturdy caddy; 40 white cotton washcloths for cleaning; medium and large scrub brushes (use old tooth brushes for detailing around sinks and in grout); toilet brush; teflon scrub pads; lambs wool dusters; extension wand; 13 gallon kitchen trash bags; and a 3-step ladder.
Commercial grade vacuums start at around $250 and are well worth the investment. We have found that Royal brand commercial vacuums, crafted with die-cast aluminum, are the longest lasting and they out clean the competition. Available in several models, Royal commercial vacuums are available through VacLand. Visit VacLand.com for the best prices, reputable salespeople and 2 - 5 day nationwide shipping.
When you're ready to hire employees for your cleaning business be certain to have your employment application, employee policies handbook, cleaning procedures manual, warning certificates and all of the appropriate human resources paperwork. With strict policies and procedures to follow, your employees will know that they are working for a professionally run company, and therefore will be less likely to take advantage of you. Also, you will need to keep employee files containing tax paperwork and employment history including a record of verbal and written warnings. To obtain the appropriate tax documents for employees contact your accountant or local state employment office.
Start-up Costs
$100 - Bonding insurance
50 - Business license
75 - Business start-up package
50 - Classified ad
100 - Logo
110 - Car signs
250 - Commercial grade vacuum
100 - Marketing pieces
100 - Cleaning supplies
$935 - Minimum estimated costs*
*Minimum estimated costs exclude liability insurance, phone expense and marketing piece distribution as these costs are undetermined. Also, costs may vary slightly depending upon location.
Before You Start a Cleaning Business:
Obtain your local & state business licenses; bonding insurance, and liability insurance if needed. Prospective customers will ask if you are licensed and bonded. Bonding insurance can be obtained for about $100 which will cover $1,000 - $3,000 of anti-theft coverage. You business license is an annual expense and will cost approximately $50 - $150 depending upon your location and annual revenue. (When you hire employees you may also need worker's compensation insurance.) The Small Business Administration is a great source of information, start up paperwork, free business plan templates and links to other informative websites. http://sba.gov/starting_business/startup/guide.html
The Internal Revenue Service website offers a wealth of information for small businesses. You'll find start-up guides, information on tax credits and business deductions, advice on record keeping and choosing an accounting method, employee tax issues, and more. The most up-to-date tax information is available through the site, as well as forms, publications and instructions for filing taxes. http://www.irs.gov/businesses/small/index.html
State tax information can be found at http://www.taxadmin.org/fta/link/forms.html which provides links to the Department of Revenue for every state.
Other Websites You Should Visit:
Cleaning Business Forms and More: http://www.MaidDocs.com/shop - provides free information for cleaning service businesses, both start-up and established. You can purchase a complete cleaning business system, or an economical start up package which includes a cleaning fee estimate calculator; lists of resources; a full color tri-fold customizable brochure, and over a dozen customizable forms and customer letters. There is also a guide to hiring and managing cleaning business employees, an employee handbook and cleaning procedures manual; performance reviews and warnings; and a payroll template.
Business Law: http://www.businesslaw.gov - Complying with business laws and regulations can be a burden. To help small businesses overcome this, the Small Business Administration (sba.gov) in cooperation with multiple Federal agencies developed BusinessLaw.gov, an online resource designed to provide legal and regulatory information. Topics covered on this site range from choosing a business structure to hiring an attorney. The site also provides links to federal, state and local agencies.
Employment Law: http://www.dol.gov/asp/programs/EmpLawGuide - This guide describes the statutes and regulations administered by the Department of Labor (DOL) that affect businesses and workers. The guide is designed mainly for those needing "hands-on" information to develop wage, benefit, safety and health, and nondiscrimination policies for businesses in general industry.
Compliance Laws: http://www.dol.gov/esa/regs/compliance - Statutes and regulations administered by the Department of Labor (DOL) that affect businesses and workers.
Copyright © 2004 MaidDocs® ~ All rights reserved.
Walter L. Gibson, Jr. and Gwynneth Sawyer-Berkeley are co-owners of MaidDocs.com and they run a successful cleaning business, Maid in North Carolina, Inc. MaidDocs offers a very affordable, non-franchised, house cleaning business system and a-la-carte documents for residential cleaning businesses. Maid in North Carolina, Inc was established by Walter L. Gibson in 1989. With MaidDocs you can start a house cleaning business and keep it growing. Visit http://www.MaidDocs.com/shop or call 1-877-779-6955 for complete information. |
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