Starting a cleaning service business can help you make a quick profit. The cleaning service business is also flexible. This business can be run on a part time or full time basis and can even be headquartered in your own home. If you decide to start a cleaning service business, there are a few things you should know to increase your chances of success.
Step
Part 1 of 3: Defining Your Business
Step 1. Define your target market
Cleaning service businesses typically target one or two markets: commercial or consumer. Commercial services target businesses, while consumer-based services target households. You have to decide which market to focus on.
- Cleaning services targeted at consumers usually include window cleaners or maids in charge of cleaning privately owned homes.
- Cleaning services with a commercial objective usually include office or building cleaning services (janitorial). Sometimes they also offer more services than a regular maid, such as carpet cleaning.
- Some cleaning services businesses market themselves to specific clients in specific target markets. You have to carefully define what kind of customers you are looking for. For example, a commercial cleaning service must decide whether to serve a small business or a large corporation.
- Depending on the availability of funds, it may be a good idea to start small. Do your own cleaning service, slowly taking on bigger projects as you can afford, while continuing to add employees.
Step 2. Decide whether to move on to franchising or franchising
You have to choose whether you want to run your business independently or become part of a franchise. There are advantages and disadvantages to each choice.
- The franchise will provide marketing support in the form of a guide on how to start a business, so it can be very helpful if you have never done business before. Guidance and support are provided so you don't have to bother researching the market. At this point you have a proven trademark..
- But over time, you will invest more money in the franchise. If you are an independent business, you can choose your own service, name and formula.
Step 3. Get the correct license and permissions
You must obtain a regional trade license if so required. You'll also need to hold other permits, depending on the community in which your business is located.
- Contact the regional business office in the area where your company is headquartered to determine what permits and/or licenses are required.
- You should also contact the business office in your city, village or local town hall to inquire about what permits are needed, as well as to ensure that they comply with all regional regulations. You may also need a special permit to install a business sign or signage.
Step 4. Comply with all tax rules
You will need to submit a number of documents to start a business with your local tax office.
- Register to get a Business Owner's Taxpayer Identification Number from the Ministry of Finance's Tax Office. You can also do this online. This is a special number to identify your business.
- Decide on the structure of the business entity you want to create. For example, will your business be a sole proprietorship or a corporation? A sole proprietorship is a business that is purely run by yourself. It may be a good idea to consult a tax attorney for advice on different types of business structures.
- Ensure that all employees have filled out the correct tax forms.
Step 5. Decide on your business name
One of the most important things in business is choosing the right name. This way customers will get to know your trademark.
- It would be smarter to choose a very literal name, like "Professional Cleaning Service" with your last name, or something similar. Choosing a vague or cute name will piss off professional customers.
- Make sure your business name is not too similar to other cleaning services in your area.
Step 6. Decide whether you want to run a business from your private home
This is possible and doable, because--unlike other businesses--in the cleaning service business, customers don't have to come to your place. You go to their place (or their place of business).
- Check the city ordinances or city hall to make sure that you are allowed to do commercial activities at home. Doing business at home may be prohibited by local regulations, or there may be certain restrictions on traffic and billboards or signage.
- If you choose a commercial location, it can certainly help to define your trademark with the right billboards. However, it would be ridiculous to pay for a prime location for a business whose customers don't come to the business location itself. So focus on getting workspace to repair equipment.
Part 2 of 3: Preparing Your Finances
Step 1. Make a budget
You will need money up front to start a cleaning service company. To buy equipment, for example.
- You may be able to get traditional funding to start a business. Lenders will want to see a formal business plan that demonstrates your ability to integrate various aspects of the proposed business, from funding and costs, to your name, marketing plan, and customer base.
- Include all costs, such as insurance, taxes, transportation costs, cleaning equipment and so on, when setting a budget or funding proposal.
- Develop your own training system. Will you work on credit? This is commonly done when conducting business activities. Specify when a bill is past due and any late payments. Use spreadsheets and accounting software to manage budgets. Also consider if there are investors who want to contribute to finance business finances.
- Check whether you qualify for government programs that provide loans to small businesses, especially those run by minorities, women, and veterans.
- Create a business-specific savings account. Contact an accountant and decide whether you want to create a PT or a corporation to do business with.
Step 2. Determine the price
Do your research before setting a price. To be sure at what price you will charge your customer, you need to know the cost of production.
- Estimate how much you pay for labor and materials. Convert this work fee to an hourly bill.
- The average price set by cleaning service companies to customers varies between Rp1,012,125, - for rural areas and a maximum of Rp2,024,250, - for urban areas. However, this is highly dependent on competitors' prices as well. So be sure to research the prices of other cleaning services in your area.
- Decide whether you will charge pro-rated or hourly rates. Usually the cleaning service charges a pro rata price. Also consider the size of the house, how many times you have to clean the place and how many hours it will take.
- Sometimes cleaning services will charge different prices for special projects or by room. It costs more to clean the kitchen than the bedroom, for example. But this can grow to be very complex. For very large houses, some companies charge per square meter.
- Determine how much you have to spend on fixed costs or overhead. For example, what are the non-labor costs in your business? An example of a fixed cost is the cost of gasoline for a van or cleaning equipment and supplies. Make sure how much profit you want to grow.
Step 3. Get liability insurance
This is generally a must for all cleaning service businesses. Get this insurance through an insurance agent in your area.
- Experts say that IDR 6,717.5 million, - is good enough to get from liability insurance, but ask for exact advice from professionals who can calculate your specific business needs. The average cost of liability insurance for this kind of business is around IDR 6,712,500, - per year.
- Liability insurance is important to have in case of an accident or damage that occurs during the cleaning process.
- It's also worth considering financial guarantee insurance, which will protect against problems caused by employees, such as theft or failure to perform tasks properly.
Step 4. Purchase equipment
Cleaning service companies need start-up equipment. The good news is that these costs are usually low compared to other businesses.
- It is obvious that you will also have to purchase supplies of cleaning supplies such as mops, rags, vacuum cleaners, and the like.
- You will also need a vehicle for the cleaning crew. Display the company name on the side of the car to help spread the company trademark. You may need a truck or van if you come with a janitorial service.
Step 5. Assign employee levels
You can start from yourself or advertise to find helpers or janitors.
- Try to save money wherever possible. For example, buy equipment that can be reused across multiple projects, such as a steam cleaner that doubles as a dry vacuum.
- You can advertise traditionally in newspapers or online looking for employees, or use an online site where employees usually look for cleaning jobs.
Part 3 of 3: Acquiring Customers
Step 1. Use word of mouth
Specify the geographic area to be served first. Then find avenues for accessing local networks, where people share information about your company in a positive way. This will help attract customers.
- The cleaning service business relies heavily on word of mouth. So share it through your network of friends.
- Offer special discounts to new clients, as well as promotions. For example, offer holiday-based discounts.
- Give clients a business card, as well as a card magnet that they usually stick on the fridge, so they can recommend your company to their friends.
Step 2. Try an advertising service
Consider using traditional newspaper advertising services, but don't forget more modern forms of advertising such as social media channels and Internet sites like Craig's List.
- Take advantage of free local advertising methods, such as sticking flyers on news boards at grocery stores.
- If you are looking for professional clients, post flyers in business parks. Get involved in local business groups and Chambers of Commerce, and be active in the business community.
- Create professional social media pages for your company, on Facebook and Twitter. You can create relatively inexpensive Facebook ads and target them to the right demographics and geographic areas.
Step 3. Create a website
Having a website will make your company look more professional, as well as easy to attract customers.
- Better make it professional. Ask your local university if they have student interns who can really help you do this.
- Include personal testimonials from customers, on your website.
Step 4. Do research to capture potential customers
After successfully narrowing the geographic area, make a list of businesses in the area that can attract potential customers.
- Feel free to contact anyone. Contact the office manager of any local business and offer your services.
- Be prepared to present a detailed presentation, as well as a complete list of services provided, if any company is interested in using your services.
Tips
- You may be able to do business while keeping another job, at least in the early stages.
- Many cleaning products are highly toxic, so read carefully the warnings and safe use instructions on the product box.
- The cleaning service business demands total honesty because people will bring you and your employees into the house.
- It might be a good idea to work some time at another cleaning service company first, so that you have some experience to write about on your resume. Make sure you don't steal trade secrets.
