If you’re an entrepreneur researching potentially lucrative investments, this blog has a lot of great information about how to start a commercial cleaning business. Read all the way through to gain valuable insight about avoiding pitfalls when starting a business. What you’ll find is that you may want to think twice about starting a business from scratch and instead consider a franchising partnership to find the potential for success that you’re looking for.
It's basic Business 101: find a productive industry that will always be in demand and is financially recession-resistant. The commercial cleaning industry definitely checks those boxes. But before you look at how to start a commercial cleaning business, look at the why.
Here’s Your Why
In recent years, there has been an increased emphasis on terms like clean, disinfect, and sanitize — particularly in commercial spaces such as offices, healthcare facilities, schools, and retail establishments. The COVID-19 pandemic further highlighted the importance of maintaining clean and sanitized environments. Businesses recognize the need to provide a safe and healthy space for employees, customers, and visitors, leading to a higher demand for commercial cleaning services.
Many businesses prefer to outsource cleaning tasks to professional cleaning companies because they lack the time, resources, or expertise to handle it themselves. Hiring a commercial cleaning service allows businesses to focus on their core operations while ensuring that the cleaning needs are met by experienced professionals.
Commercial cleaning companies bring expertise, specialized knowledge, and industry-specific cleaning practices to the table. They are equipped with the necessary tools, equipment, and cleaning agents to handle different types of surfaces, materials, and environments.
Many industries, such as healthcare, food services, and hospitality, have specific cleanliness and sanitation regulations that businesses must adhere to. Commercial cleaning companies are well-versed in these regulations and can ensure that businesses meet the required standards.
How to Start a Commercial Cleaning Business That’s Profitable
There are many factors that contribute to the success of an individual commercial cleaning business, which makes it impossible to determine how much money you can make on your business. It depends on variables like staff salaries, equipment costs, contracts, and other overhead. What we can tell you is that due to high demand in this industry, the U.S. Bureau of Labor estimates about 236,500 new janitorial jobs will be created this year alone. And according to IBISWorld, the janitorial services industry is valued at $90 billion.
Licensing Regulations
Whether you’re determining how to start an office cleaning business or a commercial cleaning business catering to any and all public spaces, it’s critical to follow the laws of your state, county and city. No matter what state you’re operating in, obtain a business license. You can apply for this in most states through the Secretary of State’s office. Most states also require a vendor’s license. It’s best to check with your individual state to confirm requirements, as they vary.
It’s advisable to seek guidance from both a business attorney and an accountant to ensure you’ve complied with appropriate laws and have completed all the necessary paperwork. Remember, in addition to licenses, you’ll also need to obtain necessary insurance like workers compensation, unemployment insurance and general liability.
7 Common Pitfalls to Avoid
As you learn how to start a commercial cleaning business, you’ll want to be aware of some of the inherent challenges:
- The commercial cleaning industry can be highly competitive, with numerous established cleaning companies and new entrants vying for clients. Standing out in a crowded market and winning contracts can be challenging, especially without a strong reputation or established client base.
- Setting appropriate pricing for your services can be tricky. Pricing too low may attract clients initially, but it can lead to inadequate profit margins and difficulty sustaining the business in the long term. On the other hand, pricing too high may make it difficult to win contracts, especially when competing against lower-priced competitors.
- Hiring and retaining reliable, skilled employees can be a challenge in the commercial cleaning industry. Finding individuals who take pride in their work, are trustworthy, and have attention to detail is crucial. High employee turnover can disrupt operations, lead to inconsistent service quality, and impact client satisfaction.
- Maintaining consistent service quality across different clients and sites can be challenging, especially as the business grows. Ensuring that your cleaning team consistently follows established procedures, meets client expectations, and delivers high-quality results is crucial for customer satisfaction and retention.
- The commercial cleaning business often involves delayed payments from clients, which can strain cash flow. Clients may have payment terms of 30, 60, or even 90 days, and managing expenses such as payroll, supplies, and equipment maintenance while waiting for payments can be challenging.
- Commercial cleaning demand may fluctuate seasonally, especially for industries like retail or hospitality that experience busy and slow periods. Managing staffing levels, workload distribution, and financial planning during slower seasons can be challenging.
- As your business grows, maintaining operational efficiency becomes crucial. Managing schedules, equipment maintenance, supply inventory, and client communication can become more complex.
A Few More Things
As a commercial cleaning business owner, it’s crucial to keep up with certifications and cleaning innovations that can better serve your customers. Another important aspect of keeping up with the latest trends is that many commercial cleaning companies are adding a special menu of services for clients to better serve their needs, like carpet cleaning or hardwood floor treatments. This versatility can help build your client base.
Simplify How to Start a Commercial Cleaning Business by Owning a Franchise
No doubt, starting a commercial cleaning business from scratch can be a daunting task, especially if you have no previous experience — you’re having to learn as you go, which can be a frustrating, expensive, and stressful venture. However, when you become a franchisee, with ServiceMaster Clean, these steps are taken care of, and you benefit from our turnkey business, complete with a proven model and system of operations.
The ServiceMaster Clean commercial cleaning franchise has been an industry leader for more than 65 years. We’ve earned our trusted name and reputation, giving you many advantages as a franchise owner.
If you’d like to hear more, let’s get started . Fill out our information form and we’ll be in touch.