How to Buy a Cleaning Business

Purchasing a cleaning business is a viable way to jump into the cleaning service industry. The customers are already lined up; equipment has been bought and employees are in place doing the work. However, Jacquelyn Lynn, author of "Start Your Own Cleaning Service," says due diligence is needed before purchasing a cleaning business. She recommends following a few steps before signing on the dotted line.

Instructions

Purchasing a Cleaning Service Business

1. Ask why the current cleaning business is for sale. Reasons can vary from the owner simply wanting to try a new kind of business to dire reasons, such as pending litigation against the cleaning business.

2. Inspect at least the past three years of financial business records. Compare the business books to tax records for discrepancies.

3. Observe the cleaning crews in action. They will become your employees. Will they remain loyal to a new owner? Are they people you can get along with?

4. Visit with current customers. Find out what the customers like most about the current business and what they would like changed.

5. Hire a lawyer and / or a CPA (certified public accountant) to help with the negotiations of price and terms of the contract.

Tips & Warnings

• Keep in mind that you are under no obligation to purchase the business until the contract has been signed. Conduct a cost analysis of how much it would cost to start a cleaning service from scratch versus purchasing an established one. It may make more sense to start a new one.

References

• Book: Start Your Own Cleaning Service; Jacquelyn Lynn; 2006

Resources

• Advice on Starting a Cleaning Service
• How to Get Commercial Cleaning Jobs
• How to Run an Air-Duct Cleaning Company
• How to Get Bonded for House Cleaning