When it comes to the cost of starting a cleaning business, one of the most important details has to do with the scale of operation. Cleaning business startup costs may determine whether your venture will turn out successful or not.
As such, you’ll need to pay close attention to how much cost you incur as an entrepreneur. Luckily, we are here to show you the average financials involved in opening a cleaning company.
We will discuss all cost implications, as they have to do with the provision of certain types of cleaning services.
Also, we will be looking into how much it will cost you to obtain insurance and licensing for your cleaning business.
Above all, financing is most crucial to cover all costs involved. Being able to meet up with financial obligations for your cleaning business will be great!
Most funding options can only be accessed if you can understand these costs and what affects them.
Separation of Personal and Business Finances
This is a key area every entrepreneur must know. The concept of the separation of finances is important to having a conflict-free business. By conflict-free, we simply mean being able to manage your finances better without undue confusion.
Failure to separate personal and business finances can lead to chaos. This is something you should avoid, as it’s only a matter of time before such an enterprise fails.
Cleaning Business Registration Costs
One of the requirements for all cleaning businesses is registration. As an entrepreneur, you’ll need to fulfill all the guidelines that come with it. Before you register, you’ll need to choose your business structure.
That is, choosing one of either sole proprietorship, partnership, LLC or corporate structures.
These come with their varying costs. Registering a cleaning business also comes with licensing and permits. Therefore, a sole proprietorship will range between $30 to $60. The cost of registering a limited liability company (LLC) on the other hand will range between $100 to $500.
The cost of registering your cleaning business isn’t uniform across all states. This will depend on your state’s depart of business. Nevertheless, registration costs shouldn’t be significantly different from the range given above.
Find out what applies to your location.
Cleaning Business Insurance Cost
Every serious cleaning business must be insured. That way, clients take your business much seriously. You also protect yourself and business from many risks. Obtaining insurance is also a part of the registration process. The cost of insurance will depend on the type you need.
In addition to that, the number of employees will impact on cost.
If you’re starting small with just yourself as the sole employee, insurance cost should be minimal. The reverse is the case when you require a much larger workforce. The cost incurred from insurance is recurring. This is paid annually, monthly or both.
The cost ranges between $500 to as high as $3,500 or more.
Cost of Cleaning Equipment and Supplies
Cleaning supplies and equipment make up a substantial part of your expenses. Your scale of operation as a new cleaning business will determine how much cost you incur.
What more? The efficiency that comes with the use of the right type of equipment can add up significantly to your productivity. So, while looking at the cost, you should also consider the value derived.
These tools are an essential part of the successful operation of every cleaning business. Therefore, there’s no way you can avoid them.
i. Cleaning Machine
For example, a machine having the capacity to clean an area of 9,700 square feet per hour will cost around $4,000 to $7,000. This walk-behind cleaning machine will also need to be maintained. As such, you’ll need to add up the annual maintenance cost of $900.
Previously owned or used cleaning machines will cost less than new ones. However, these may require more maintenance which can add up to overall costs significantly.
ii. Automatic Scrubber
Scrubbers are among the must-have equipment to purchase. The cost of these depends on the type. So, for example, the cost of a 32-inch walk-behind automatic scrubber will range between $12,000 to $14,000. There are also annual maintenance costs to be incurred. Maintaining one may require a budget of around $1,400.
The benefits derived are enormous. A walk-behind automatic scrubber such as the 32-inch type can clean up about 15,000 square feet an hour! The cost of such a machine also depends on the brand purchased. Previously used automatic scrubbers will cost less to purchase but more to maintain depending on the condition.
iii. 20 And 27 Inch Scrubbers
These walk-behind scrubber variants aren’t automatic. Nevertheless, they still get the job done. A 20-inch scrubber, for example, will clean an area about the size of 9,700 square feet an hour. Getting this piece of equipment will cost between $4,000 to $7,000. The annual cost of maintenance $800.
A 27-inch walk-behind scrubber, on the other hand, is larger and covers more area per hour. That is about 12,000 square feet. To get this, you’ll need to set aside a budget within the $10,000 to $13,000 range. Annual maintenance costs should start at $1,100.
iv. Bucket Attached 16 Inch Microfiber Flat Mop
This piece of cleaning equipment is among the cheapest you’ll get. A microfiber flat mop costs about $34. While this may seem a lot cheaper when compared to the others, its annual laundry cost is around $250. There are other costs such as labor and time spent.
v. Electric And Battery Powered Autovacs
There are 2 types of auto vac systems. That is, the electric corded and battery-powered variants. Each of these can be used in different conditions. The electric corded auto vac will cost about $700. However, this will require a maintenance cost of around $300 to maintain annually. Electric auto vacs can clean up 16,000 square feet an hour.
Battery-powered auto vacs, on the other hand, cost more at $2,000. Annual maintenance costs are also higher at approximately $600 than those for electric auto vacs. That is understandable as it clears up a larger area. About 20,000 square feet.
vi. Other Cleaning Supplies
There is a long list of other cleaning supplies you need to start your cleaning business. These include long and short dusters, brooms, dustpans, protective cloves, color-coded microfiber cloths, and cleaning brushes. Others include laundry bags, shoe covers, paper towels, and buckets, etc.
The cost for these supplies isn’t so significant, hence won’t take a lot of your startup costs. Getting all these should cost between $800 to $2,000.
Cost of Cleaning Products
When it comes to cleaning products, there are so many to choose from. Your cleaning business needs to factor in cost as well as how effective such products are. Talking about being effective, lots of these products come with bogus claims. While some are true, others aren’t quite truthful.
You will need to know these and how much they cost. Luckily you don’t need to sweat it out as we’ll consider a few of the most popular cleaning products. This should give you a basic idea of how much such cleaning consumables should take up.
Popular cleaning products include Lysol, Clorox, Bissel 78H63 Deep Clean Pro, Safelite Glass Cleaner and Simple Green. Others include Purell, Stanley Home Products Degreaser, Zep Commercial Toilet Bowl Cleaner, Nu Calgon Ice Machine Cleaner, Cavicide Surface Disinfectant, Bio-Clean Hard Water Stain Remover and Finish among a long list of cleaning products.
The cost of these cleaning products is a lot lower compared to cleaning tools or equipment. These range from $2 to $400.
Cost of Building a Website
Your clients will need to reach your business conveniently. Your online marketing efforts will need to be channeled through your cleaning service website. Hence the need to build one for your cleaning business.
If you can build one yourself, it will significantly drop your costs.
However, getting a professional to build and host one for you should cost anywhere between $100 to $500 depending on how customized you need it to be.
Promotion is a necessary part of doing business. Without marketing, little will be known for your cleaning business.
Promotional costs are determined by its scale or reach, and the platforms to be used. As such, the cost will vary depending on these factors and more.
You should see your budget having a low and high of $1,500 and $15,000 annually respectively.
Your cleaning business needs a facility to operate from. The easiest way out will be to operate from your home. This will come at no additional cost. On the other hand, hiring a facility for your cleaning business will cost you money.
Facility costs will depend on location and the size of such a facility. This should range from $3,000 to $10,000 per month.
Set Cleaning Rates
This is an essential part of doing business. You’ll need to determine your cleaning rates based on your running costs, cost of equipment and maintenance, labor costs and other factors.
Cleaning rates are usually charged at $50 to $100 an hour. However, this could be charged at a flat rate of $120 to $150 based on certain factors.
Such factors include the type of client, distance, location, and size of the property you need to clean.
Putting together a team of professional cleaners will add up to your running costs. Also, the more your workforce, the higher your insurance costs. You will need to decide how much you’ll pay per hour.
This can be anywhere from $25 to $60 depending on the job.
Streamline Your Services
One of the ways to drop your operational costs is by streamlining your cleaning services. You will have to cut down on less productive areas and focus more on those which will yield more results.
For example, purchasing cleaning supplies can result in wastefulness.
This happens when different products having similar functions are purchased. The best solution is to analyze their uses and only purchase those which are necessary. Productivity also counts. This can be maximized by consolidating roles that can be performed by a lesser number of employees.
The cost of starting a cleaning business rests on so many factors. We have considered some of these above. A smaller business will require or take up fewer resources to set up as compared to a much bigger business.
You’ll need to first work out your available finances to know how to navigate through the process much easier.
These are the cost implications of setting up a cleaning company. We have discussed some of the most significant areas likely to incur higher costs. These provide you with the information you need to make informed choices.