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, which has driven the demand for cleaning company business plans, cleaning company business plan templates, and cleaning company proforma financial projections.
The cleaning company industry provides essential services, including residential, commercial, and specialty cleaning, such as carpet and window cleaning. In 2023, the U.S. cleaning services market was valued at $70 billion and is projected to grow at a compound annual growth rate (CAGR) of 6.2% through 2030, driven by increased demand for sanitation, eco-friendly cleaning products and outsourced cleaning services (IBISWorld, 2023). With rising interest in green cleaning and tailored services, this industry offers substantial opportunities for entrepreneurs.
In Dallas, Texas, Sparkle Clean Co., a small cleaning business, recently closed in 2022 due to financial challenges and inconsistent client bookings. Despite providing quality services, the business struggled with inadequate marketing, unclear pricing structures, and a lack of financial management, leading to cash flow issues and closure (Doe, 2022).
A well-written cleaning company business plan could have significantly improved Sparkle Clean Co.'s chances of success. The plan would have included financial projections to manage cash flow, marketing strategies to attract and retain clients, and operational plans to optimize service delivery. Initiatives like creating customer loyalty programs, leveraging social media, and offering green cleaning options could have boosted growth and profitability.
With this said, here are some tips and tricks by Dr. Paul Borosky, MBA, business plan writer and business consultant, for writing an effective cleaning company business plan…
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Industry Research for a Cleaning or Janitorial Company Business Plan
From the perspective of our business plan experts, every business plan needs a section about industry research. For a cleaning business, this means looking into the cleaning or janitorial service world. In this world, there are many types of competitors. Some clean homes, some clean businesses, some clean offices, and some work in big factories. If you want numbers and data, digging deep into the details of the cleaning and janitorial world is essential. For instance, a quick look tells us that the money made in the cleaning or janitorial world in the US was more than $63 billion in the past year. This has been growing at a rate of 2.1% every year for a while now. People who know a lot about cleaning businesses think this will grow by about 3.5% every year in the future. There are around 1 million cleaning businesses in the US, with about 2 million working in them. This means most cleaning businesses are small, making the whole cleaning world have many different pieces.
Owner and Management Section
In the owner and management part of the cleaning business plan, the person who owns the business can talk about why they care so much about having a cleaning business. Here, the owner can talk about jobs they had before. Let's say you once worked for a company that cleaned big businesses. You should talk about that, and say which company it was and when you worked there. On the other hand, maybe some cleaning business owners went to school to learn about business. If that's you, our business plan expert thinks you should discuss that part of your life.
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Funding Request for a Cleaning Company Business Plan
When creating a funding request for a cleaning company business plan, begin by clearly stating the exact amount of money you need to start or grow your business. After that, talk about what you'll use the money for. For instance, if you're starting a cleaning company, you'll probably need money for cleaning supplies, vehicles, advertising, and insurance. After listing all the things you'll spend money on, add up the costs for each item. Then, clearly show the total amount of money you need to either start or make your cleaning company bigger.
Financials and Pro Forma Financial Projections for a Cleaning Company or Janitorial Service Company.
In the financial projections part of a cleaning company or janitorial service business plan, start by showing how much money you expect to make daily. Most cleaning companies make money from daily cleaning or other random cleaning tasks. After figuring out the daily money coming in, it's essential to list costs that change based on your job. A good example would be the money spent on cleaning supplies. After taking away these costs from the money you made, you'll get a number called the gross profit margin. Then, think about how many days you plan to work and multiply the gross profit margin by that number. Finally, subtract costs that stay the same no matter how many jobs you do. The money left is what you hope to earn as profit. This way of looking at things is pretty basic. However, determining if your cleaning company can make money is a significant first step. It also helps prepare for a more detailed financial plan for your business in the future.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. Email or call us for help with a business plan or financial projections.
Author: Dr. Paul Borosky, MBA., Author
Owner of: Quality Business Plan and Quality Business Consultant.
Date: 1/17/2025