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Cleaning Business

Cleaning business belongs to highly profitable industry. The average payback period for any cleaning company is nine months. Meanwhile, its profitability depends on the type of cleaning services. The profit margin of daily housekeeping is around 10 - 15%; the profitability of special cleaning services – 25 - 40%. The amount of initial expenses is determined based on the total harvesting area the firm has to work on. 30 years ago simple home-based cleaning business made about $50,000 annually. 

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Other $1,000
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In Europe and USA, cleaning business is a developed industry with large circulating. It can be set with a small start-up investment amount. The main cleaning services can be divided into the next types:

To start a cleaning business, two ways exist:

One of the hottest business trends today is to run home-based start-ups, and cleaning services are excellent candidates for this type of setup. After all, your customers will likely never come to your facility since all of the work is done on their area.

The target audience consists of the large commercial structures, middle-level entities, and individuals with high income. The most effective ways to attract customers are existing communication channels and advertising on the Internet. It’s better to look for a daily housekeeping since the revenues from single orders are unstable.

The official cleaning services, according to current legislation, include:

A2 - washing the floor with one solution; 
A4 – polishing the floor; 
B2 – extraction of the carpet with hot water; 
B4 - cleaning the carpets with regular shampoo; 
C2 - washing the walls; 
NW - window washing; 
D1 - dusting, damp wiping, washing and application of polishes for different surfaces; 
D2 - cleaning upholstery; 
E1 - removing stains; 
EZ – PC and related devices cleaning.

Expanding this type of business can be done in several ways. 
First, you can try supplying and selling the equipment. Secondly, you can open the training center to coach and certify potential personnel.

To maintain the company's image and for the customer’s convenience, the owner has to create a website. You can either place a site on a free server or pay $300 annually per own domain name and hosting. The site’s development (design and programming) will cost you at least $800 - 1000.

To sum up, there are the pros for launching private cleaning business as soon as possible:

You will need a professional cleaning equipment, kit, pack of raw materials, trained personnel, and ability to focus on the high-tech cleaning processes.

You should purchase a minimum set of professional equipment:

a set for window washing and cleaning equipment - $200;

disc machine for deep cleaning of the carpets - $2,500;

vacuum cleaner - up to $500.

The cost of vehicles along with the driver will result into $600 per month.

The choice of equipment depends heavily on the services you’re going to offer. E.g., for the carpet cleaning services, you will want a truck or van, either new or used, for each serving person and his or her equipment. A good used truck will cost about $10,000 while a new one will be around $18,000 and up. The type of vehicles you'll need for your janitorial services depends on the size of equipment you’ll use as well as the crew’s number.

Take a look at the list of equipment you will need for sure:

-        A flat mop (a modern equivalent of an ordinary broom);

-        A trolley with wringer, well-equipped with a garbage bag and mesh packaging solutions;

-        A scraper to remove adhering dirt;

-        A set of napkins to wipe the dust;

-        A vacuum cleaner;

-        A kit for windows washing.

To cope with the cleaning of large areas, it is recommended to buy a floor scrubber. The premise must be also equipped with cabins for staff’s clothing, storage of chemicals and smaller equipment.

To open a company of this type, it is enough to register and purchase a set of equipment estimated up to $10,000.

You will have to supply cleaning uniforms: overalls, t-shirts, baseball caps, gloves, and rubbers.The price of one suit can be from 15 to 40USD. Other materials like mops, cloths, etc. will cost you £500-£1,500.

On the whole, you may save a lot of money on raw materials by purchasing only special offers sets (or by using high discounts provided by the wholesalers).

What’s in demand for your cleaning start-up?

-        House cleaning package – around $45;

-        Caustic soda - $350 per ton;

-        Different washing liquids – up to $2,000 per metric ton;

-        Cleaning powders - $1,800 per ton (average);

-        Non-woven materials - $0.05 per piece;

-        Carbomer - $10 per kilo (average);

-        Other cleaning chemicals - around $1,900 per ton;

-        Cleaning uniforms – up to $30 per unit. 

The space of the office cleaning company should be 15 - 20 square meters. A tiny private cleaning company does not require an office at all: negotiations with customers and partners are held on their territory as well as the services provision. You have to take care of storage space for the cleaning equipment. This utility room has to be equipped with a special washing the machine for all the cleaning materials and uniforms.

Before you arrange cleaning company, you need to register a legal entity. As always, to launch any businesses you need to register a company. This procedure is standard: be ready to postpone $200 - $300.

The office rent, actually, is the minimal expenditure. It will be more than enough to rent 20 - 30 meters on the outskirts of your city at the lowest price.

Professional cleaning companies provide high-tech cleaning services for 80 - 90% of non-residential premises.

Visit the IRS Small Business Tax Center to familiarize yourself with tax obligations as a sole proprietor or small business owner. 

Here you can discover the types of contracts to purchase:

You may be able to start with no employees--or just one or two part-timers. If you have the capital available and the business lined up, you may need to hire more.

1)        A private “call-center” operator (or on-the-phone manager) is the one you certainly will need.

2)        A manager (who is usually the owner).

3)        HR-manager (you can handle it as well).

4)        Quality-control manager to supervise the cleaners and manage expenses. The number of such managers depends on the number of objects and their size. As a rule, the quality-control manager is responsible for an area of 9 thousand square meters (a single object) or multiple objects, total area of which amounts to 5 - 6 thousand square meters.

5)        The number of cleaners depends on the area of the object. On the average, one person can handle up to 800 square meters per 8-hour day. Speaking about office premises, one cleaner serves the area of 550 square meters. As for the shopping malls - 900 square meters.

6)        If you wish, the accounting department can be outsourced to the corresponding firm.

Your cleaners must attend regular trainings that focus on the principles of equipment selection, chemical agents, types of contaminants and cleaning technologies.

It takes a plenty of time and efforts to prepare each cleaner whose salary is $100 - 300.

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