How To Start A Cleaning Business?
Starting your own business is a great way to earn a living. Using your skills, knowledge, and experience to become your own boss can be an absolute dream, but it’s not as simple as just turning on a light switch!
Creating your own commercial cleaning business in Australia is a great idea due to the growth of the industry. With cleaning becoming more important than it ever has been, it’s never been a better time to start planning your dream in the market.
We’ve devised a fantastic guide below for you to understand all the ins and outs of starting a cleaning business and some handy tips if you decide to go ahead.
Know Your Market
Before you start, you’ll need to assess what sort of cleaning business you want to kick off. Will that be commercial? Will it be domestic? Or maybe you want to specialize?
Whatever you decide to opt for, each one will have its own pros and cons and will massively change the vision for your business growth and how you’re going to approach it. Of course, it will first likely depend on your own experience.
If you’ve previously been a cleaner for a commercial cleaning company, you’re likely going to know much more about that market – and therefore it would make much more sense to breakthrough there. Even with your experience though, you’ll undoubtedly need to do some market research.
Ask yourself – what’s the size of the market in the area you want to target? Is there a scale for growth? If you’re looking to start a domestic cleaning business, you’ll need to know the legal requirements for things like insurance in domestic settings etc.
Either route you choose, you’ll need to research thoroughly before you go out there and start.
Start Your Own Or Purchase A Franchise?
This is a decision that you’ll certainly have to weigh up really early in proceedings. There are advantages and disadvantages for both starting your own business and purchasing a franchise. We’ve compiled them below:
- Already established and well known brand
- Established business model
- Support available for marketing and sales
- Initial investment can be between $5,000 and $100,000
- Often, there are monthly or annual fees
- Limited growth opportunities
- You’re tied to a name. If the brand name gets bad rep, so do you
Your Own Business
- You’re in control of it all
- Generally low initial cost
- You control profits
- No monthly fees
- You can sell the business in the future if you want to
- No support
- Brand is not established
- Success depends entirely on you
As you can see, there is a lot to think about when it comes to just deciding on a franchise or your own business. Think carefully before making a decision.
The Legal Stuff
With any business, you’ll need to ensure that the legal stuff has been registered and set up correctly, right from the start. Make sure you’ve got your business registered, the insurance, the tax, and licenses all sorted much in advance.
It might be a little daunting if you’re just starting out, but it is very important. Of course, the structure of your business will vary your approach here.
When registering a business, you’ll need to know what the structure will be and apply for an ABN (Australian Business Number).
The Choices Of Business Structure Include Things Like
Becoming a sole trader is by far the easiest and quickest way to start your business. When it comes to taxes, you can simply declare all earnings from both the cleaning business and elsewhere after your expenses, onto one tax return form. Therefore, you pay the same tax rate as the individual taxpayer.
Maybe you’re looking to start a business with your partner or friend – may be another like-minded business person? Partnerships will have an agreed percentage (normally 50/50 for 2 people starting) and you’re both responsible for profits and losses etc.
A company is a completely separate entity and the costs, tax rates, and other legal documentation will be wildly different. You’ll need to research what this entails if you’re planning to go down this route.
Australia doesn’t have a legal qualification requirement to be a cleaner in any setting, but you may need and want to get qualified and experienced before you start. Not only does it give you the best grounding for your work, but a good job means more opportunities for customers.
Additionally, you can boast a qualification when selling yourself to others!
The type of insurance you will go for will be different depending on what sort of cleaning business you’ve opted for. For example, domestic and commercial cleaners will certainly need public liability insurance and sometimes there is a minimum amount of cover required.
It’s a good idea to speak with a lawyer to ensure you’re getting the right insurance for your business.
After you’ve decided on what type of cleaning business you’re going to start, you’ll want to look at what equipment you’re going to need. Are you going to need a van? Are you going to specialize and require certain tools?
Depending on this, the costs might be much higher than you’d previously expected, so always consider your equipment into your costing before you start out. This will also include the cleaning products you’re buying.
Marketing And Finding Customers
After you’ve identified your market and competitors, you’ll want to market yourself better than the rivals. When you’re starting out, you won’t have the same customer base – so your marketing needs to be spot on.
Ensure you’re utilizing both online and offline marketing techniques such as flyers and knocking on doors. Maybe purchase some TV or radio time. Undoubtedly, you’ll be using social media and promoting your professional-looking website.
Remember, word of mouth and referrals will be the way forward when starting out – so make sure you’re doing the work at a top-quality level too. You want that repeat business!
Starting a cleaning business is not easy, but then again – no business is easy to start. It’s important though, that you get all the information and research you need before you start off and invest your hard-earned money.