Chances are good that you have heard that starting a cleaning business can be lucrative. The rumor mill that speaks to opportunities in the janitorial business are quite accurate.
With some hard work and a solid plan, making great money in this field is possible.
What do I like about it? The business itself is virtually recession proof, and there is never a shortage of residential and commercial customers. Also, starting a cleaning business is relatively easy and does not require tons of cash.
Here are six steps to starting your cleaning company quickly.
Step 1: The Naming Process
The most obvious place to start is to figure out what to name your new venture. Seems simple enough, and it is, but it does require effort to get it right.
Why is that you ask? You want your name to be unique and memorable. Start by creating a list of names that come to mind first.
And don’t worry if the ideas do not come pouring out of your head. Check out the Shopify Name Generator for inspiration. Just insert in a root word like “cleaning” into the search bar, and voila tons of results.
- You want your new name to tell customers exactly what you do, or at least a hint. Although this is certainly not mandatory, it will help you with your marketing efforts. Keep it simple. The fewer letters in your name the better.
- Does your name roll off the tongue? If folks get tripped up with the spelling and the pronunciation, you should probably scrap that choice.
- Does your name have branding power? Will potential customers remember it if they saw it on the side of your van or truck? Can it stand on its own and grab attention? Better yet, will customers be proud to shout your name from their roof tops?
Things to consider as you are brainstorming for the perfect business name will include name length, pronunciation ease, and branding possibilities.
Another consideration in this process is the availability of the dot-com extension. The most popular domain extension is not mandatory, but it is highly preferred.
Next in the naming process is your social presence. Is the vanity name you’re considering available across multiple social media channels? In other words, can you secure facebook.com/best123cleaning, twitter.com/best123cleaning, Instagram.com/best123cleaning, etc.
As with the dot-com extension and name length choice, it is not required to obtain this vanity variation, but it will serve you best in building your brand and maximizing your marketing efforts.
Finally, you’ll want to do a name availability check with your state. Make certain that someone else has not already registered your name.
Hint: Keeping a dictionary and thesaurus handy will help you with even more possibilities.
Step 2: Incorporating Your New Cleaning Business
This is for informational purposes only and is not intended to be a substitute for the legal advice of an attorney or legal professional.
So, you’ve figured out the perfect name. Incorporating your janitorial business will make it official.
Companies like Rocket Lawyer make it super easy to incorporate so that you stay in compliance with city and state regulations.
Figuring out which legal structure is best for your business or the right legal document to use should not be left to chance.
Also, incorporation is usually required to secure business loans, and to open business checking accounts as well. It is one the best ways to separate your janitorial business (and any liabilities) from that of your own.
Step 3. Write A Compelling Business Plan
Starting a cleaning business is not that hard. And it is even easier with a solid plan.
Think of it in terms of short and long-term goals. For example, are you planning on running your business for a couple of years or the rest of your life? Will you build your business to offer for sale? How about the possibility of franchising it?
Some people get nervous or anxious when they hear the words business plan. You don’t need to.
A business plan is simply your outline for success. How will you advertise, get customers, provide service, hire/manage employees, manage debt/income, who will be on your management team and more.
There are lots of free templates available online that will get the job done. Great examples are available on the U.S. Small Business Administration (SBA) website here.
Step 4. File For Your Company EIN Number
Get right with the U.S. government from Day #1 and things will be less stressful for you in the future. Securing a federal tax ID number can be done within a matter of minutes, and gives you
In addition to helping you stay compliant regarding your taxes and other legal requirements, your company’s new tax ID number can help you establish credit, obtain loans, protect assets, and appear professional.
Step 5. Apply For Banking Accounts
Stop by your bank or better yet, go online and open a new business account. This account should be separate from any personal or other account you have with the bank.
Maintaining different accounts is crucial to your success. Personal and business assets and liabilities are not the same and should be set up from the beginning to reflect that. Never use your personal accounts for your business liabilities and vice versa. Referred to as commingling funds, it is a quick way to find yourself if hot water.
The good news is setting up a business bank account can be done in a matter of minutes—making accounting task vastly easier.
Step 6. Submit Your Small Business Loan Application
Some businesses—like a food franchise—can require tens of thousands of dollars in startup capital, or more! Luckily, you’ll need a mere fraction of that to start your janitorial business.
In fact, starting a cleaning business can be done for just a few hundred bucks if you do a few things on your checklist yourself.
Because starting a commercial cleaning business doesn’t require tons of initial cash, many look at their own finances to start. In addition to the sweat equity that you will be investing, putting up some of your own money shows how committed you are to running a successful business.
But when you start growing and you need additional equipment, vans, etc., expanded financing options are advantageous.
A logical first step can be your local bank. They know you, and you have a history of doing business with them. But don’t worry if they do not share your vision. Many business loan options are available to entrepreneurs like Lending Tree and Prosper that will.
Getting started with these six steps will have you well on your way to making money with your new janitorial business.