Starting a cleaning business

Starting A Cleaning Business

Starting A Cleaning Business

 

Starting a cleaning business could be a low risk and low investment opportunity. There is steady demand for cleaning services from governments and businesses that need their premises regularly cleaned, as well as other institutions and large businesses.

Business services in general appear to have high growth rates. Cleaning service business operators provide a wide range of domestic and commercial cleaning services. New forms of cost cutting and optimization will help to set up a successful business.

However, it’s important to remember that this kind of service as a business involve low profit margins. So, it’s key to take this into consideration before starting a cleaning business.

The revenues of this business have a growth rate of about 15% to 17% per year. A company that provides cleaning service activities for the customers can be sure to have a high demand and a strong competitive advantage.

In this particular line of business sound cost management is of critical importance for a solid stream of revenues.

The operation of a cleaning service company could offer for instance: office and building cleaning and maintenance, industrial cleaning, and cleaning services for private customers. Targeting commercial cleaning customers from large companies from the beginning could probably be a key success factor.

The required investment when starting a cleaning business is moderate compared to other companies in the industry. Leasing and employment costs are expected to be the main fixed cost driver, whereas no other substantial investment in fixed assets is required.

There are some key factors that will contribute to the success in the cleaning service business:

First it’s important to provide fast and efficient services.

Low prices as possible at about eight percent profit margin.

Efficient personel utilization and management is critical for the long-term as changes in demand could force lower pricing and therefore personnel reduction.

Better service and products quality at lower costs increases customer satisfaction and loyalty.

Effective cost management is a key success factor for service businesses where margins are low.

Additionally there’s the opportunity to create other sources of revenues like the sale of customized service offers. This can range from the maintenance, pest control, and cleaning of industry buildings to the development of a hotel quality service.

Cross selling is planned to be one of the prime strategies in this business, since all products are targeted to serve a similar need and can easily be combined. Synergy in selling product across business segments will help boost earnings.

If you have a local business or are going to have one, having an online presence could help you leverage your local business. You could sell cleaning products online as well, or set a booking system for clients to schedule services.

Create a newsletter with news about the industry, about the great products you’re introducing. You could also place advertising on your site or sell sponsorships from cleaning products or even equipment vendors, as well as become an affiliate from your suppliers.

Just think about the cost of a yellow pages add, and how much can you accomplish with it? Having a website to build relationships with your current and future clients will open doors to many new opportunities never available before.

Having a web presence for your local business will also help you reach new markets, build better relationships with local visitors, offer promotions available only on your site, and grow your business. You would be ahead than your local competitors.

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