How to Startup a Cleaning Business

There is a business boom in commercial cleaning.

Owning your own successful business is rewarding as well as freeing. Patsy Gutierrez, owner of Patsy's Cleaning Service says being her own boss for 16 years has given her a freedom she couldn't experience working for someone else. Starting a cleaning business is a matter of taking steps to make sure you'll have a successful one.

Instructions

Consider Commercial Cleaning

1. 

   Janitorial services--a top growing industry

   Establish the needs in your area. Maid services make up 66 percent, or $30 billion annually of the cleaning industry as of 2009, estimates the U.S. Bureau of Labor Statistics. While most startups concentrate on residential cleaning, the Bureau of Labor also estimates "janitors and cleaners" will be one of the top two growing areas of employment for the next decade.

   Building a profitable commercial cleaning business is similar to starting a residential one, only you'll be catering to businesses. Residential clients move and their needs change as their families grow, says Gutierrez. "I started taking on commercial clients about four years ago. The money is much more stable."

2. 

   Determine your costs and what to charge clients.

   Find out what it costs to start your business and what to charge clients. Call janitorial suppliers and janitorial services to get an idea of what to charge to clean a small office building. Competing businesses are sometimes reluctant to share information; as a rule of thumb, a service business usually charges 2.5 to 3 times its costs, according to Dave Wohlert, owner of Brothers Commercial Cleaning in New Mexico. Wohlert says a small janitorial service can be started for as little as $500. "When you start out, find a small commercial building contract, not a high rise that takes six or seven employees. Start small--do an outstanding job--and use your profit to hire on workers as you add contracts," advises Wohlert.

3. 

   Learn all you can about contract bidding.

   Familiarize yourself with contract bidding. The best way to profitably grow your cleaning business is to bid on government or commercial contracts, advises Wohlert, who's been bidding on commercial contracts for over 12 years. "A friend who started out the same time I did underbid on projects, which eventually forced him to lose business. Learn to correctly estimate the time and number of workers each job takes. You need to bid enough to realize a profit."

4. 

   Skipping liability insurance can cost you big.

   Purchase liability insurance. Wohlert warns startups not to make the mistake of skipping the step of purchasing liability insurance. "You need to have $1,000,000 in liability insurance," he says. "To start on a shoestring, you'll probably start as a sole proprietor. That means that if something goes wrong--clients can come after your personal holdings. If you get sued, and don't have liability insurance--you can literally lose your house."

5. 

   Run your business like a business.

   "Run your business from your accounting books not your pocket," advises Wohlert. Use accounting software, pay bills on time, and stay on top of gross receipt tax payments and business taxes. "If you want to be successful, run your business like a business."

References

• Patsy Gutierrez; Patsy's Cleaning; New Mexico
• All Business: Time Constraints Fueling Growth in Cleaning Industry
• Bonus Building Care: Franchise Information
• Dave Wohlert; Brothers Commercial Cleaning; New Mexico

Resources

• Clean Bid: Janitorial Software
• Thoughtful Systems: Janitorial Accounting Software