3 Expert Tips for How to Start a Cleaning Business
House cleaning is always in demand, and has a relatively low barrier to entry. So you might be wondering if this is a good option for you to go into business. As an entrepreneur who ran a successful house cleaning business for 20 years, I offer these 3 expert tips for how to start a cleaning business. So read on to learn more about how to start and run your own cleaning business.
Pros and Cons of Owning a House Cleaning Business
Nothing is perfect. Not in life, and certainly not in business. There are pros and cons to every industry, sector, and business model. What matters is that you understand them so you can make the choice that is right for you. Building a business is always hard work, takes time, and requires risk. So pick a business that is the best fit for your lifestyle and income goals.
Advantages of Owning a House Cleaning Business
Passive Income
Building a strong management team means you can own a cleaning business and, well, not be cleaning. Not only that, but you can be doing other things, like running another business. Or travelling. For example, I once enjoyed an amazing trip to Israel while my team managed the day to day of the business.
Unlimited Potential
Starting a cleaning business means there is endless potential to grow. You can expand your service area, or even open new locations in other cities. Add on services to bring in new revenue streams. Carpet cleaning, window washing, chimney cleaning, eavestrough cleaning, power washing - so many opportunities to offer your customers more cleaning services for their home!
Disadvantages of Owning a House Cleaning Business
Staffing Headaches
A cleaning business needs people to perform the services. Though technology is valuable for automating communication and information sharing, there is no app that can do the work. Staffing is the biggest headache in any service business, and this is a disadvantage of having a cleaning business. It can be tough to find and keep great staff. And even the best employees are not 100% reliable. They need vacation time, get sick, or just have a bad day and make mistakes.
Customer Turnover
Even when you work hard to provide a 100% customer satisfaction rate, customers will leave. Because there are so many things outside of your control. Life events like new babies, divorces, job loss, and moving may mean that a loyal customer stops doing business with you. Therefore, never stop marketing, so you can replace customers that leave and not see a drop in revenue.
Expert Tips for How to Start a Cleaning Business
#1 | Differentiate
House cleaning is big business. The sector generates $18.9B annually in the United States alone. So there is lots of competition, including many high-profile and well known brands. Though I was competing against internationally established companies, I built my business into a 7-figure brand with franchised locations. And a key reason for this was differentiation.
How do you differentiate? For example, my business offered home checks, pet sitting, carpet cleaning, and window washing. It was a one-stop-shop concept which stood out against the maid services in my region.
So take the time to understand what competitors are doing, and find a way to differentiate. It will make you stand out. But more importantly, if you are offering a service or experience that others are not, you will land more customers.
#2 | Don’t Make Assumptions
Communication is everything. Especially in a service business. Both communication with your customers, and with your employees. So an expert tip for how to start a cleaning business is to not make assumptions. Right at the beginning, set up processes and communication channels to be sure that everything is clearly understood.
For example, “deep clean” can mean many different things. Imagine that you launch your house cleaning business by promoting a deep cleaning service. But you are not very specific about what that includes. 10 new customers book the service. Though 6 of them were satisfied, you have 4 very unhappy customers. Because 2 of them assumed they would get the inside of their fridge and oven cleaned. Another asked why their garage wasn’t cleaned. And the last asks why their carpets were not cleaned.
As you can see, don’t make assumptions. Clearly communicate to manage expectations and ensure customer satisfaction.
#3 | Expect Risks
House cleaning doesn’t seem edgy or sexy. So it may surprise you to learn that this is actually a high-risk business. There are many opportunities for costly complaints, damage, and injury.
For example, one of my franchisees had to pay for a new kitchen counter for a customer. Why? The customer wanted their own products used, and they left them out on the counter for our staff. Then one cleaning day, the customer came home to find a blue stain on their countertop. During the hours since the cleaner left the house, a small drop from the lid of the bottle of toilet cleaner had dripped down to pool on the counter. That stuff stains. And there is no cleaning it off. So the options were to lose the customer and risk bad reviews, or step up and do the right thing. Because the bottom line was, the damage was our fault.
So expect risk when starting a cleaning business, and take steps to minimize it. In the example above, a strategy is to make it a policy that cleaning products are never placed on surfaces that can stain. Countertops, carpets, marble floors. If the employee had left the toilet cleaner in a bucket under the kitchen sink, it would have saved the business hundreds of dollars.
6 Tips to Manage Risk in a Cleaning Business
- Get a really good insurance broker and policy
- Clearly set expectations with customers
- Keep a separation between business and personal relationships
- Cross-check and verify all work by managers and supervisors
- Protect sensitive information like building alarm codes and payment details
- Underpromise and overdeliver – manage expectations with clients to minimise complaints and bad reviews
More Expert Tips for How to Start a Cleaning Business
Here are a few more expert tips. First, develop your skills in communication and conflict resolution. This is a business that requires you to deal with diverse personalities. It’s a fact that when people are stressed, they are easily triggered. So a customer comes home and sees a dusting cloth was left behind. It’s a small thing, but after a tough day at work, it may set them off. After all, it’s easier to call up the cleaning service and vent frustration than it is to tell their boss what they really think. So be prepared to listen to your customers. Don’t get defensive, or go on the attack. Be polite and professional. Protect your boundaries. Have your policies and procedures well documented.
Next, do careful market research. Don’t be discouraged if there are already lots of companies operating in your area. Remember that competition is CONFIRMATION that there is market demand. Learn what everyone does well, and analyze for opportunities to innovate and differentiate.
Last, be sure you are aware of all labour laws and your responsibilities as an employer. Protect yourself by getting good legal advice when preparing employment contracts or subcontracting agreements.
Overall, a starting a cleaning business can be a rewarding and profitable experience. Good luck!
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