How much does it cost to start a cleaning business? Here are all the facts you need to know. The cleaning business can be very profitable if the right strategies are used to keep it running smoothly.
Startup cost is one such factor and is critical to the survival of any business venture. So, what’s the start-up cost? Well, there is no specific answer to this question.
We highlight different aspects of the cleaning business to give you a clear picture on exactly where the costs apply.
What You Need to Start a Cleaning Business
Do you rent office space?
Choosing an office space is one of the first things to do. Renting a point of sale will affect costs. In addition, rental costs are recurring costs and increase operating costs.
On the other hand, you have the option of running a cleaning business from the stronghold of your home. You can turn your garage or any available space into a cleaning service base.
Housekeeping reduces additional rental costs. It’s ideal for small startups on a tight budget. You can start this journey using your home as a temporary base. As your business grows, you will need to rent office space or build one from scratch, depending on your growth needs.
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Average start-up cleaning costs by scale
To start your own cleaning business, you need to decide on what scale you plan to work with such a service. Most cleaning services started out as small businesses. They then developed into large departments dealing with large commercial cleaning contracts.
The cleaning industry needs to grow organically, not on a large scale. The larger the scale at which you are going to operate, the more likely your startup costs are to increase. It’s up to you to answer.
To find a straightforward answer to the cost question, think about how much you have set aside for this business. Cut down on the equipment and other cleaning tools and supplies you need. We will talk about this and much more in the near future.
Cost of cleaning equipment
Every business needs the right equipment to function optimally. When planning to start a cleaning business, there are several options related to the hardware. You can rent the equipment or buy it right away. New and fairly used equipment is also available for purchase.
Again, cleaners on a tight budget can get this used equipment on loan until they can buy a new one. Household equipment also varies in type and size. We recommend switching to cleaning equipment. They are more expensive and will face harsh working conditions. The type of harvesting equipment you choose will depend on the scale you want to work at. So, what is this material? Let’s start by listing some of these machines and their prices.
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A large and more powerful cleaning machine will cost from $ 2 000 to $ 7,000. This kind of equipment will clean an area of approximately 9,700 square feet per hour. These machines will need to be maintained and an annual service bill will cost around $ 800.
A 32 inch walk behind scrubber-dryer can be quite expensive for small businesses. The cost of this equipment can go up to $ 14 000. This will clear an area of approximately 15,000 square feet per hour. The 32-inch scrubber has an annual maintenance fee of about $ 1,300.
A 32 inch walk behind scrubber-dryer. Photo credit – Fmlink
Another piece of cleaning equipment that you might need is a 27 inch scrubber. It will cost 3000 USD on the minimum. It cleans an area of approximately 12,500 square feet per hour. You will need to set aside an annual service bill of around $ 1100.
Can I get cheaper cleaning supplies?
Of course, you can! Business can be conducted at any scale. You can start your cleaning services with a starting cost of around $ 2000. However, this means that you won’t be using any specialized cleaning equipment, but will only use the simplest, such as brooms, scrubs, and mops.
The higher the costs, the more likely your hardware will be worth. There are cleaning equipment that you can get for a fraction of the cost compared to the cleaning equipment mentioned earlier. Additionally, some cleaning equipment vendors offer financing options where you can pay in increments.
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Insurance cost
If you are planning to start a cleaning business, you should insure your business. It doesn’t matter whether you serve a small housekeeping service in residential buildings or use a commercial service.
The insurance policy you choose will depend on your risks and the size of your business. Getting an insurance plan for your cleaning company will cost $ 375 on the minimum and it can rise up to $ 4000.
When it comes to cleaning, there are different types of insurance plans. These range from general liability insurance, umbrella insurance to employee pension insurance. Others include property insurance, auto insurance, and inland water insurance. These plans may vary from one region or country to another.
Liability insurance provides protection against accidents related to customer slips on wet floors, defamation complaints from plaintiffs and accidental breakage of expensive household items. In the event of employee bad faith or loss of keys, property insurance is activated.
Cost of licenses and permits
Cleaning companies must obtain licenses and permits. The cost of the license and permits will depend on the type of business entity you choose. Sole proprietors, for example, can attract license and permit that cost from $ 30 to $ 60. Also, it might cost a limited partner between $ 100 and $ 500 per license.
Operating costs
Depending on the size of your business and workforce, your cleaning service might require an operating fee of $ 1 000 on the minimum. Running expenses will cover cleaning costs, payroll bills, equipment maintenance, and fuel costs for your vehicle.
Conclusion
These are the financial implications of starting a cleaning business. The cost you incur will depend on your choice. While some contractors may decide to buy used equipment, others may buy new. It all comes down to affordable startup costs. There is also the problem of the scale of work.
Large-scale cleaning companies need more funding. Overall, the amount of money you need to start a cleaning business is not dependent on one factor. The cost of equipment, your location, size of your workforce, and operating costs largely influence cleaning business costs.
