Providing cleaning services to homes and businesses is a relatively low-cost enterprise for an aspiring entrepreneur. The competition in this space can be fierce, with many larger companies providing a variety of pricing options and features, including environmentally safe and pet-friendly practices. An independent provider can find niches and value propositions that enable them to compete. Cleaners often operate of their home and only use a small portion of their house, like a closet, to store supplies. The biggest cost will be the supplies regularly used for cleaning.
Aside from the business licensing handled at tax time, there are no special licenses or certifications required to provide cleaning services. Successful cleaning services, however, are bonded and insured, protecting both the customer and vendor from loss and damages. Effective cleaners need to establish policies and procedures for access to customer residences and businesses, and for handling any damage done to property while providing service. Please visit the Department of Labor, Licensing and Regulation at http://www.dllr.state.md.us/ for requirements for your business.
The tables below depict the common issues and costs associated with operating a cleaning business.
Political | Labor laws – ensuring that staff is eligible to work in the US. Maintaining a safe work environment and compensating legally | |
Economic | Customers need discretionary income to pay for services | |
Social | Cleaning services can be seen as a status symbol for customers | |
Technological | Cleaning equipment – vacuum | |
Advertising online and using social media | ||
Record keeping – software and hardware | ||
Handling money and processing payments | ||
Environmental | Storage and disposal of cleaning supplies | |
Legal | Bonding and insurance | |
Critical Success Factor | Bonding and insurance is strongly advised to compete in the market | |
Major Activities | Associated Costs | Cost Driver |
Cleaning – dusting, sweeping, mopping | Wages for labor | Number of cleaners |
Purchasing cleaning supplies | Cost of supplies | Number of living spaces to clean (square footage is a useful number) |
Projected Expenses | |
Employee Costs including benefits | Year One Cost per month |
Owner | $ 3,500 |
Book Keeper – Outsourced | $ 800 |
Legal – Outsourced | $ 800 |
Wages Subtotal | $ 5,100 |
Taxes, Fees | $ 765 |
Subtotal | $ 5,865 |
Supplies/Stock | |
Cleaning Supplies | $ 500 |
Equipment and Maintenance | $ 100 |
Subtotal | $ 600 |
Office/Facility | |
Facility Expense (deductible part of home) | $ 250 |
Internet/Telephone | $ 100 |
Office supplies | $ 50 |
Computers and Hardware | $ 250 |
Subtotal | $ 650 |
Marketing Costs | |
Web site hosting and advertising | $ 200 |
Web site updates | $ 100 |
Business Cards, Pens, Swag | $ 50 |
Subtotal | $ 350 |
Licenses and Permits | |
Bonding and Insurance | $ 300 |
Subtotal | $ 300 |
Projected Monthly Costs | $ 7,765 |