How to Write a Cleaning Company Business Plan
In the last several years, the cleaning industry, whether it be a home cleaning business, office cleaning business, or other commercial cleaning business, has been growing at an impressive pace.
There are numerous reasons for this. First, our cleaning company business plan writer has found that most organizations prefer to subcontract out cleaning responsibilities. This leads to the need for commercial cleaners. Further, as our society continues down the “I need it now” social trend, the services of home and office cleaners will continue to grow as well. Because of the past demand and expected future demand for professional cleaners, having a well-written business plan by a professional business plan writer is often an excellent idea. However, in the event that you wish to write your own business plan, here are some tips and tricks to assist in writing a well-structured cleaning company business plan.
Executive Summary for a Cleaning Company Business Plan.
The executive summary section of a cleaning company business plan should succinctly summarize the totality of your business plan. However, specifically for cleaning companies, business owners writing their own cleaning company business plan should make sure to include how the firm will differentiate from other competitors. As most cleaning company owners know, this industry is highly competitive. By explicitly stating in the executive summary how the firm will differentiate from competitors, this will help show the reader why the firm will be successful. For example, a popular differentiating factor for a cleaning company would be offering a 100% moneyback guarantee for all services provided. This will inevitably cost some money due to unscrupulous customers. But, this will also help show that the company is all about satisfying the consumer.
In the company information and location section for a cleaning company business plan, make sure to document the geographic area served by your organization. For example, housecleaning businesses may focus on a specific city or county. In contrast, commercial cleaning companies may have a wider geographic span, such as a metropolitan area or multiple counties serve. No matter what your geographic restrictions are, make sure to specifically state the information in the location section of the business plan.
Service Description and Competitive Advantages
As previously noted, identifying the competitive advantage for an organization such as a cleaning company is critical to differentiate from other competitors in a highly competitive industry. Some possible competitive advantages for a cleaning company could be niche opportunities, focused geographical area, or substantial discounts for contract work. An example of a niche opportunity would be commercial cleaning companies focused on restaurant services. In some instances, commercial cleaning companies may specialize in deep cleaning restaurants to ensure sanitary expectations are exceeded. Regardless of your niche, make sure to document it and discuss potential customers that may be solicited the fall within your niche market selected.
The target market for a cleaning company's business plan will depend on the specific services offered by the cleaning company. For example, if the cleaning company specializes in office cleaning, then the target market will be possibly dental offices, doctor offices, offices providing specialized services, such as mortgages, sales, etc. By documenting the characteristics of your target market will help the business owner stay focused on soliciting business from these entities. Further, discussions about your target market in your cleaning company business plan will also assist in helping readers better understand the types of customers served in your current or future business.
Industry research for a Cleaning or Janitorial Company Business Plan
In our business plan writers' most humble opinions, every business plan should have an industry research section. For a cleaning company, the industry in which it competes would be cleaning or janitorial services. This industry includes competitors such as residential cleaners, commercial cleaners, office cleaners, and industrial cleaners. As for specific statistics, make sure to do in-depth research in the cleaning and janitorial services segment. For example, based on real quick research, the cleaning or janitorial services industry in the US exceeded $63 billion in the last 12 months. This is a 2.1% annual growth rate for the last several years. Cleaning company and janitorial service experts anticipate annual growth rates into the future of about 3.5%. There are currently about 1 million businesses competing in this industry employing 2 million individuals. This shows that most cleaning companies are small businesses, which leads to a fragmented industry.
The owner and management section of the cleaning company business plan is where the business owner is able to show their passions and desires in relation to owning a cleaning company. In this section, the business owner should discuss previous work histories. For example, if you’ve worked for commercial cleaners in the past, make sure to discuss and document specific companies work for and when. In contrast, some cleaning company business owners support their work experience with educational endeavors such as business degrees. If this is the case, our cleaning company business plan writer strongly recommends discussing this aspect of your experience as well.
Funding Request for a Cleaning Company Business Plan
The funding request section for a cleaning company business plan starts with identifying explicitly how much money is needed to start or expand operations. Next, make sure to discuss where the funds will be spent. For example, startup cleaning companies usually need to buy cleaning supplies, vehicles, set aside money for advertising costs and insurance. Once each category is identified, then make sure to add up the budgeted amounts for each category and explicitly show the dollar amount needed to start or expand your cleaning company.
The financial projection section 4 cleaning company or janitorial service business plan should start with showing daily revenue projections. Typical revenues made by cleaning companies will include daily cleaning services or miscellaneous cleaning activities. Once the daily revenues are identified, make sure to identify variable costs aligned with each service. For example, cleaning supplies would be a variable cost for this type of industry. Once the variable costs are subtracted from the revenues, this leaves you with your gross profit margin. Now take this number and multiply it by the number of days you envision working and then subtract your fixed costs. The remaining funds are your projected net profits. This is a pretty rudimentary financial projection strategy. But for the most part, this is an excellent starting point to identify whether your cleaning company will be profitable and help set a solid foundation for creating a future financial model for your organization.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author