How to Start Your Home-Based Cleaning Business

Tuesday, April 30, 2013

How to Start Your Home-Based Cleaning Business

Housework is not something that many people enjoy. As a matter of fact, many busy professionals choose to hire out most of the house cleaning duties. If you enjoy cleaning houses, you may be able to turn it into a lucrative home-based business. House cleaning is an attractive start-up business, as there is little overhead and the insurance and license requirements are minimal.

Step 1

Decide on a business structure. Consider a sole proprietorship if you are operating the business alone. This is the easiest business type to start; however, the drawback is that you are personally liable for all expenses, lawsuits and any other business liabilities. If you decide to take on a partner, you can set up a partnership structure, where both parties accept equal responsibility for liabilities. A limited liability company, or LLC, is a common small business organization. An LLC removes some of the personal liability factor without subjecting the business to the double-taxation structure of a traditional corporation.

Step 2

Apply for a business license. Most municipalities allow a new business to register with the city or county of operation. Pay a nominal fee for a license to do business and pay taxes within that municipality. This does not mean that your business is limited to that location. This registration does mean that the municipality serves as the business's base of operation for tax purposes.

Step 3

Apply for insurance. Carry liability insurance to protect yourself against claims. Insurance limits vary from state to state. A licensed professional insurance agent can advise you on the best policy for your situation. Do not skimp on insurance, as the policy protects your interests in the event of damage or loss.

Step 4

Purchase marketing materials. Marketing materials include business cards, telephone book ads, websites and newspapers. Word of mouth also helps you find new jobs, so ask your friends and family to refer your name to others.

Step 5

Purchase cleaning supplies. Purchase the cleaning supplies and equipment you need to properly clean a house. Examples include window cleaner, bathroom (tub and tile) cleaner, kitchen disinfectant, steel wool pads, broom and mop, etc. Ensure that you have all necessary supplies, and are ready for your first cleaning job.

Step 6

Purchase a scheduling book. The easiest way to lose business is to fail to show up for a scheduled job. This can occur if you accidentally double-book a time slot. Organize your schedule to increase your odds of successful operation.

Things Needed

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Tuesday, April 30, 2013