How to start a cleaning business?
You have an entrepreneurial spirit and love a job well done. You are seriously thinking about starting your own cleaning business, and you can be proud of it. It is a buoyant sector, and the opportunities are numerous, provided, of course, that you take care of your action plan to launch your project.
1. Conduct cleaning business market research
Regardless of the nature of the project on which you wish to embark, it is essential to start by carrying out a market study.
The Three Purposes of Cleaning Company Market Research
A market investigation with three goals. Market study with three objectives. First, it is a question of making sure that there is indeed a business opportunity in the area where you plan to establish yourself.
In a second step, this market study must make it possible to identify your commercial positioning: it must be promising and allow you to differentiate yourself from the competition.
Finally, this work on the study of your market will allow you to collect essential information to estimate the potential turnover of your future cleaning company.
The three steps to carry out the market study of a cleaning company
To carry out the market study of your cleaning company, you will need to proceed step by step. First, start by analyzing industry trends. This should allow you to determine if it is growing and identify major trends.
In the cleaning sector, distinguish between the needs of private companies (which occupy the offices), manufacturers, traders, public establishments, and, of course, individuals.
Then, you will have to study the expectations of your future customers. Again, depending on the customer segment(s) you are targeting.
This good knowledge of your customers’ needs will allow you to define an estimate of the average budget they are likely to grant to their maintenance and cleaning needs for their premises and the criteria that are taken into account when choosing a service provider.
Finally, you will need to conduct a detailed study of the competition. In addition to a list of your direct competitors, you will need to look at the services they offer, their prices, and the number of their employees.
You will also have to try to perceive whether their activity is flourishing or not to be inspired by their successes and avoid their pitfalls.
The cleaning market in France: some key information
It appears that the cleaning market is expanding: according to The World of Cleanliness, the sector has seen its overall turnover double in 15 years, to reach, in 2020, 16 billion euros. In total, the industry employed 541,136 people.
In terms of the distribution of activity, it should be noted that almost 36% of the turnover of companies in the sector came from the maintenance of offices, followed by that of buildings (21%), industry (12%), and shops (9%). It should be noted that the private sector represents 82% of the market, against 19% of the public.
On the trend side, there is a diversification of business activities, with, for example, the preparation of meeting rooms for the reception of customers.
Of course, like the rest of society, cleaning companies are faced with new challenges and must demonstrate greater social responsibility by supplying products and implementing eco-responsible practices.
2. Consider starting a franchise cleaning business
This part of your business creation will flow naturally from your market research.
Would you like to join a group by creating a franchise company? The possibilities in this area are numerous, as observed by Toutlafranchise.com or Franchisedirecte.fr: Gestipro, All4home, SNEG, or even Hygis… In addition, there are many maintenance companies for commercial, industrial, or office premises looking for franchisees.
Of course, if you join a network, you will be less free in your management and your working methods, and you will have to pay entry fees and an annual fee. But you can, in return, rely on communication tools, training, and a reputation already acquired.
3. Define the human and material needs of a cleaning company
The human needs for creating your cleaning business will be proportional to your ambitions and your concept choice.
If you want to create a micro-enterprise to meet the needs of individuals or small traders, for example, you will be alone in charge and at work.
If you hope to invest in the office or factory cleaning market, for example, immediately, you will need a trained team and recruit qualified personnel.
On the equipment side, the same observation: the initial investment is not necessarily very important, but it is necessary to consider the fact that a cleaning company must be equipped with efficient equipment.
Don’t skimp on quality so that you don’t see your efficiency suffer – or quickly have to reinvest because of equipment that quickly becomes obsolete or fails.
It is up to you to precisely identify the list of equipment you will need and quantify the amount of the investment to show it in your financial forecast.
Additional services to start a cleaning business.
Beyond the possible staff and the equipment necessary for the exercise of your profession, you will need to subscribe to several essential services.
We are thinking, in particular, of professional insurance (to cover you in the event of injury or if you damage something at your customers’), a professional bank account, or even a telephone and Internet subscription.
But also your marketing needs a website, flyers, and newspaper ads. Depending on your target activity, you will have to deploy an arsenal of communication tools, more or less expensive.
Finally, you may want or need to use the services of a chartered accountant to help you with the administrative part.
4. Realize the business plan of your cleaning company
The realization of the business plan has a fundamental objective: to verify that, on paper, at least, your company will be profitable. This cleaning company business plan will also allow you to study each aspect of your project in detail and quantify the need for initial financing.
Not only will you be able to estimate the amount needed to launch your cleaning business, but you will also be able to quantify the needs for its first years of operation.
Do not neglect this work, especially if you have to seek financing: the business plan will serve as a reference document to convince banks, business angels, and other potential sources of funding to follow you in the adventure.
Content of the business plan for a cleaning company
In a simplified way, the business plan of your future cleaning company will contain two essential parts:
- A financial plan which must highlight the need for initial financing (for the launch of your activity) as well as the potential for profitability of the company
- A written part that will present the project in detail: will serve you both to have a clear vision of it but also convince your potential financial partners of its advantages
This business plan will look very different if you plan to set up a business cleaning offices and industrial premises employing several employees or if you start the business as a micro-entrepreneur intervening mainly with individuals in your city or town.
Using specialized software to create a business plan for your cleaning company has several advantages:
- The software takes care of the calculations and makes the projected financial statements for you (income statement, balance sheet, cash flow statement, calculation of the break-even point, etc.)
- You have guided me in the drafting thanks to instructions for each part, and business plan templates already written
- You get a professional document, formatted and ready to be sent to your banker
5. Finding financing for your cleaning business
The initial investment needed to start your cleaning business will again depend on the size of the company you plan to start.
Several solutions are available to you to find the resources necessary to launch your project: crowdfunding or even recourse to business creation aid from Pôle Emploi or public institutions.
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