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"Commercial Cleaning Business": Tips to Get Started

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Commercial cleaning is a multi-billion dollar industry and is still growing with more offices and venues realizing the benefits of outsourcing more and more. If you have the knack of managerial and the attention to detail, this business might be suitable for you.

The entry barrier and the startup cost is not that high. However, the operating expense can get out of hand if not managed well. With that in mind, here are some pointers to get you started.

1. Startup Cost
A commercial cleaning service can be started with below $10,000, with most of your expenses spent in equipment, vehicles (provided you didn't have any), and cleaning solutions.

If you plan to open a commercial office, it will cost you more, but it will generate more credibility.

2. Prepare for Night Shifts
With your clients mostly being offices, in most cases your cleaning will be performed at nights, or on weekends. However, this also means you can charge a more premium price than residential cleaners.

3. Securing Clients
When you are just starting, most of your time should be spent in approaching potential clients. Visit local businesses, prepare a well-written business proposal if necessary.

An easier, time-saving way is to pay for an established franchise or buy cleaning contracts from bigger commercial cleaner businesses. However, this can cost more, with a cleaning contract can cost you up to five times the monthly value. For example, for a year-long $1,000/month contract, or $12,000 annually, you might need to pay $3,000 to $5,000 up front, securing the rest as profit.

If you have the capital, this might be a viable option for you.

4. Staffing
After you secure clients, it's time to decide whether you need more employees to do the job. It's good to design a proper uniform and to create a Standard Operation Procedure for your employees. You will want your worker to look clean and neat all the time.

5. Legal matters
Depending on your location, a permit or license might be needed, so consult your local authorities to save you from trouble in the future. However, the permits and licenses needed shouldn't be too complicated compared to other businesses.

6. Pricing
Charging your price can be a daunting task sometimes. When you charge too high, you won't get any business. Yet, when you charge too low, not only you can lose profit, but customers can also perceive you to be of low quality, and you also won't get the business.

For a standard to follow, the standard hourly price in the industry is around $20 to $30 per hour. For a long-term contract, you can offer discounts to make it more interesting for potential clients.

Earning Potential

With a $25 hourly pay as the industry average and 40 hours workweek, you can easily make a $52,000 annual revenue. This number can grow as your scale of operations grow, allowing multiple cleaning at the same time with more staffs.

However, whether you can get enough clients to make that amount will depend on your ability to secure more customers. To do this, you might need to offer discounts, ensuring your stability of a long term contract. As your business grow and you gain enough reputation, you can charge more per hour, or shift to contract based fixed payment.