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.
There are numerous reasons for this. For example, some cleaning companies are generalists and provide cleaning services in homes, offices, and even government buildings. As generalists, these types of cleaning companies enjoy growth as our economy grows. As a result, for the most part, cleaning companies, especially generalist cleaning companies, tend to need business plans because of the continued and sustained growth in the industry. Further, our cleaning company business plan writer has also found that innovations in the industry, such as Covid-19 disinfection, have spurred growth for niche specialists.
Regardless of why or how the cleaning industry growth is impacted, a common need for industry competitors is to have a well-prepared and documented business plan. From this, our cleaning company business plan writer has come up with some tips and tricks for business owners to use when writing their own cleaning company business plan, business plan template, or pro forma financial projections (3/22).
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 what 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.
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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, and vehicles, and 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