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 many reasons behind this. For instance, some cleaning businesses do a little bit of everything. They clean homes, offices, and even places like government buildings. These all-around cleaning businesses see more opportunities when the economy is doing well. So, in general, cleaning businesses, especially the ones that do all sorts of cleaning, often need business plans. This is because they keep growing along with the whole cleaning industry. On top of that, our cleaning company business plan writer noticed that new ways of doing things, like cleaning for COVID-19, have made some cleaning businesses even more popular.
No matter why the cleaning business world gets more significant or changes, one thing is clear: businesses in this field need a detailed business plan. Based on this, our cleaning company business plan writer has gathered some helpful hints for business owners. These can be used when writing their business plan, using a business plan template, or figuring out their future financial needs (10/23).
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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. Currently, there are around 1 million cleaning businesses in the US, with about 2 million working in them. This means most cleaning businesses are pretty 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 also talk about 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. If you need help with a business plan or financial projections, email or call us.
Author: Paul Borosky, Doctoral Candidate, MBA., Author
Owner of: Quality Business Plan and Quality Business Consultant.
Date: 10/17/2023