Starting a commercial cleaning business can be a lucrative and rewarding venture. It provides a great opportunity for entrepreneurs to run their businesses. At the same time, it takes away the laborious task of cleaning from clients.
There are pros and cons of starting a cleaning business, and in this post, we’ll talk through what these are. Helping you to decide on whether to start your own cleaning service company.
Introduction to Commercial and Domestic Cleaning Businesses
Cleaning services have become increasingly popular in recent years. More homes and organisations seek to keep their premises, work environments, and products clean and safe.
Commercial and domestic cleaning services are great opportunities to set up a limited company or start as a sole trader. They offer the potential for high profits and a steady stream of income. They also provide an opportunity to help people stay healthy and safe. This is done by providing a clean environment for people to work and live in.
In commercial cleaning, you can expect the addition of more specialised services. This includes custodial services, carpet cleaning, window washing, floor polishing and more.
However, there are positives and challenges when you are looking to start your own company. We’re here to help you decide whether a cleaning business would be a good idea for you.
Pros and Cons of Starting a Cleaning Business
Before starting a cleaning business, it is important to consider the pros and cons of this type of venture.
Pros of opening a cleaning service business
Low start-up costs
First, starting a cleaning business is relatively easy to set up and will have low startup costs. It does not require a large initial investment and can be started with minimal equipment and supplies.
Increased demand
The growth rate of the cleaning industry is steadily increasing (even though Covid). Resulting in more opportunities for cleaning services to flourish and find more clients. Right now and for the foreseeable future, it seems like a great industry to invest in and create a business opportunity.
With increased hygiene routines in place as a result of the pandemic, new cleaning standards have been reached. As it turns out these standards seem to be here to stay! Further increasing the demand for cleaning services.
Low competition
Additionally, while cleaning businesses are in high demand they have a relatively low amount of competition. This makes it a great opportunity for entrepreneurs to start and grow their businesses.
Flexible working
Cleaning businesses also provide a great deal of flexibility. Business owners can choose their hours and days of operation. As well as the choice to focus on specific types of cleaning jobs. This flexibility is attractive to entrepreneurs who may have other commitments, such as a family or a full-time job.
Good cause
As a service, cleaning businesses are a great way to help people stay healthy and safe. They help to create a clean and safe environment for people to work, live, and play in.
Limited skills and experience needed
Unless you’re operating in a specialised area, the skills required to clean are relatively low and can be learnt rather quickly. Important consideration should be made to the individual needs of the client by carrying out the service to their expectations.
Quick profits
With such low start-up costs, you won’t be swamped with a huge loan that you’ll be paying off. Therefore, the potential for generating revenue and getting profitable quickly is straightforward.
Regular income stream
Cleaning residential and commercial properties allows you to generate a regular revenue stream. Most cleaning services require repeated cleaning services on a weekly, bi-weekly or even daily basis. It would be more uncommon to book singular cleaning jobs and not repeat the service at the same location.
Cons to opening a cleaning service business
However, there are also some potential drawbacks to starting a commercial cleaning business.
Competitive Pricing
First, the industry is highly competitive in pricing. It can be difficult to separate yourself from the competition and stand out in the market on price alone.
Tough physical work
To clean effectively and earn a decent living, you’ll be required to clean a lot each day. The physicalities of a cleaning service require you to be moving constantly. This can be physically exhausting when working long hours a day.
High Turnover
With little specialised skill needed, it is common for people to come and go out of cleaning roles.
Cleaning jobs usually have a high turnover. This can be due to cleaners feeling little to no personal progression in their careers. Resulting in them wanting new opportunities to grow and learn more skills. Cueing them to flee their cleaning roles in the search of something more fulfilling.
As an employer, your role is to keep your employees more satisfied. Providing them with opportunities to advance within their current role.
We will talk about how to improve employee retention for cleaning companies in a blog post soon.
Finally, certain legal and regulatory requirements must be fulfilled to start a commercial cleaning business. These requirements must be fully understood and practised.
These include things such as:
- Registering your business
- Different types of insurance coverage are needed. (link to an article on how to set up a business)
- COSHH regulations (cleaning chemical safety)
This is why the organisation of the documentation side of your business is extremely important. Without the right paperwork in place, you could land yourself in legal trouble.
Find out more about how to manage the documentation of your cleaning business properly here.
Using a Documentation Management Tool is an effective way to eliminate human error with documentation processes. It’s also effective to elevate your customer service in all areas of your business.
What to Consider Before Starting a Cleaning Business
Before starting a commercial cleaning business, there are several important considerations to keep in mind.
Type of cleaning service
First, it is important to consider the type of services you will offer. Commercial cleaning businesses offer a variety of services including custodial services, carpet cleaning, window washing, and floor polishing. It is important to determine which services you will offer and how you will differentiate yourself from other commercial cleaning businesses.
Target market
Second, it is important to consider the target market for your services. Will you be targeting businesses, organisations, or individuals? Knowing your target market will determine the types of services you should offer and the pricing structure you should use.
Equipment and supplies
Third, it is important to consider the equipment and supplies you will need to start and operate a commercial cleaning business. This includes cleaning supplies, vacuum cleaners, mops, and other cleaning equipment. It is important to have the necessary equipment and supplies to provide quality services.
Plus the training that will need to accompany the use of this equipment too.
Documentation and legality
Finally, it is important to consider the legal and regulatory requirements associated with starting a commercial cleaning business. This includes obtaining the necessary permits, licenses, and insurance. It is important to make sure that these requirements are met to legally operate a commercial cleaning business.
Pros and Cons of Domestic Cleaning (houses) or Commercial Cleaning
It is important to consider the pros and cons of setting up a domestic cleaner service versus commercial cleaning.
First, cleaning houses is easier to set up than commercial ones. It requires even less investment and can be started with minimal equipment and supplies.
House cleaning services are increasingly in demand as more families have both partners working.
As a result, they offer an even greater amount of flexibility. This is especially attractive if you have other commitments (like childcare) which mean you can only work at certain hours. Cleaning business owners can choose their hours and days of operation. They can choose to focus on specific types of cleaning jobs.
Another pro is that domestic cleaning tends to be more personal, creating long-lasting relationships with their clients. -Which in return creates steady and loyal customers.
A major downside to domestic cleaning is it will require a greater volume of customers. Presenting difficulty to maintain and service without scaling up operations. With commercial clients, many cleaning companies only require a handful of clients.
Conclusion
Starting a cleaning business can be a lucrative and rewarding venture. It provides a great opportunity for entrepreneurs to grow their businesses.
However, it is important to consider the pros and cons of starting a cleaning business.
One of the biggest decisions you will make is deciding on the type of customer you want. This changes the way you initially set up your company, as well as the operations of that business going forward.
By understanding the pros and cons of starting a commercial or domestic cleaning business, entrepreneurs can make informed decisions.
With the right knowledge and preparation, success will come more quickly.
If you’re set on setting up your cleaning business, improve your customer service with a professional-client onboarding process.
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