How to start a cleaning business from scratch
But the path to the prosperity of such a company is not so simple as it might seem at first glance. It takes a lot of effort to make the business justify the resources invested in it and make a profit.
Individuals with an average income can contact the company for cleaning furniture or cleaning carpets.
Legal entities can apply for cleaning of enterprises, offices, restaurants, shopping and entertainment centers, etc.
Market analysis and competition
Competition is mainly manifested in cities with a population of over 1 million. On the one hand, it may seem that such cities have all the conditions for business: a large number of restaurants, cafes, entertainment centers, offices. But there are also many companies that want to provide cleaning services. Therefore, it is worthwhile to carefully study and analyze the market before starting a company.
Personnel must be responsible and clearly perform their duties. The equipment must be modern and in good technical condition.
Based on the above, we can conclude that the profitability of a cleaning company will be higher in a small town with a population of up to 300-500 thousand people.
After you have analyzed the services market, you can start drawing up a financial plan. Let's take, for example, the rates at which cleaning one square meter will cost from 40 to 100 rubles per month.
For example, you have entered into a contract with an enterprise for cleaning a room with a total area of about 5 thousand square meters at a price of 40 rubles per month. Thus, the monthly revenue will be 200,000 rubles.
Cleaning is one of the most highly profitable types of business. At the same time, it is quite easy to open a company in this area, and the demand for cleaning services in our country has been constantly growing over the past decade. At the same time, if in big cities the level of competition is high enough, in small cities this niche is practically free.
Organization of a cleaning company: where to start a business?
Organization of any type of business begins with registration and execution of the necessary documents. First of all, you need to understand which legal form is better to choose.
There are 2 main options:
- Individual entrepreneur.
- Limited Liability Company.
In the first case, significant advantages are a simplified and not costly registration procedure, the ability not to keep some types of reporting and work under preferential taxation systems, as well as the fact that any profit is the property of the entrepreneur directly (unlike LLC , where the owner of these funds is the company). However, an individual entrepreneur is obliged to pay a high level of insurance premiums and be responsible for debts with his own property. Also, he has no opportunity to sell the business.
An important advantage of such a legal form as LLC is the fact that liability for obligations is strictly limited to the amount of the contribution made. In addition, the amount of insurance premiums depends on the profit received (as opposed to individual entrepreneurs), and the company can be bought or sold. Also, in the case of successful development of the cleaning business, the entrepreneur will be able to open branches or sell a franchise.
The choice of the legal form will depend on the services in which segment the entrepreneur is going to provide.
If cleaning services will be provided to organizations, it is better to give preference to LLC (subject to the usual or simplified taxation system). If an entrepreneur plans to clean private houses or apartments, the option of registering as an individual entrepreneur is suitable (subject to the choice of the UTII taxation system). However, in general, a limited liability company has more opportunities than an individual entrepreneur.
Previously, to register a cleaning company from scratch, it was necessary to obtain a specialized permit to provide services in this area. Now this law has been canceled, and the registration procedure has been significantly simplified. However, the set of documents will differ for different legal forms.
Financial model of a cleaning company
Brief Investment Memorandum
Cleaning is a professional service for cleaning various premises and maintaining cleanliness.
Even in Europe and the United States with their established cleaning services market (about 80% of all commercial real estate is serviced by cleaning companies), this area is characterized by rapid development. The top 500 franchises by the American business publication Entrepreneur include 17 cleaning companies - all of which are growing rapidly.
In Russia, only a fifth of all commercial real estate is serviced by professional cleaners. But if in the market for cleaning non-residential premises in Russia there are large players working with large shopping centers, business centers, government agencies, then the market for cleaning residential premises is not consolidated. It is represented by small local companies operating within one city, as well as individual cleaners constantly working for several clients. Therefore, the threshold for entering this market is not so high.
The goal of this project is to create a cleaning company specializing in cleaning residential premises (apartments, houses, cottages) in a million-plus city.
The main success factors for this business:
- Low competition. Even in big cities, there are no big players in this market; it is occupied by small businesses or "private traders" with whom one can successfully compete. In cities with a population of less than 500 thousand people, it is quite possible that the market will be free.
- Demand. In any city there is a solvent audience who is unwilling or unable to clean their homes on their own. Even those who clean their homes on their own order additional services such as dry cleaning of mattresses and carpets.
- High MRR (monthly recurring revenue). A person needs cleaning all the time, once every 1-2 weeks. If you provide high-quality services, the client will order it again and again, which, coupled with a high average check, will lead to an increase in MRR. A high MRR is not only a stable monthly income, but also the ability to predict and track the profitability of an enterprise in advance.
Initial investment amount - 325,000 rubles.
Break-even point for 4 months.
Payback period - 9 months.
Average monthly profit - 118,790 rubles.
Description of business, product or service
SUMMARY OF THE PROJECT
The goal of the project is to open a cleaning company in Rostov-on-Don. The main source of income for the institution is payment for professional cleaning services. The cleaning company offers a wide range of professional cleaning services for commercial and private premises.
Target audience - corporate segment represented by shopping and entertainment centers, offices, restaurants, cinemas; private segment.
The advantages of a cleaning company include:
- demand for this type of service;
- relatively low level of competition, low threshold for entering the market;
- the dominance of the corporate segment allows concluding long-term service agreements, which guarantees a stable income.
Investment costs in the amount of 1,578,400 were directed to the purchase of specialized equipment, the purchase of a car, the arrangement of the sales office and the formation of a working capital fund. The payback period of the project is 11 months. The profitability of the business in the first year of operation will be 12%.
INDUSTRY AND COMPANY DESCRIPTION
The market of cleaning services in Russia appeared relatively recently - about 25 years ago, thanks to the arrival of large foreign companies. The introduction of cleaning services began in Moscow and St. Petersburg - these local markets still remain the leaders of the domestic cleaning services market and occupy almost 60% of the total volume.
Opening a cleaning company is one of the promising areas of business that is in demand among consumers, but there are still not enough offers in the market. To start a cleaning business from scratch, you need to know certain aspects and features of this area.
Business specifics and target audience
The activities of cleaning companies are related to the provision of a set of measures aimed at ensuring cleanliness in the premises. In European countries, such services have been provided for a very long time and are very popular. In Russia, this area of activity is just beginning to develop actively.
Cleaning services for premises, offices, houses and apartments are in demand by both private clients and commercial organizations. Many companies have completely abandoned their cleaning staff. For individuals, the service is in demand after repairs, moving.
There are several reasons why it is profitable to start a cleaning business from scratch:
- Due to the active growth of construction, the volume of commercial space is increasing. Many firms save money and do not hire cleaners on an ongoing basis, but use one-time services of cleaning companies. This can bring up to 20% savings on wages.
- The tense rhythm of life leads to the fact that many working citizens do not have time to keep order in their houses or apartments. In this regard, they turn to specialized firms.
Pay attention! There are still very few offers of cleaning services on the market. A low level of competition will help build a solid customer base.
Drawing up a business plan for a cleaning company from scratch
When thinking of cleaning as a business, where to start every entrepreneur should know in order to draw up a detailed business plan. The algorithm for opening a cleaning company consists of the following stages:
- Collection of documents and business registration.
- Room selection.
- Purchase of equipment, all consumables necessary for operation
- Determination of the types of services.
Each stage must be thought out in detail, all possible risks must be assessed.
Registration and services
At the initial stage, you need to register your business. The optimal form for the implementation of the idea will be LLC. The taxation system is best chosen by the STS at a rate of 6%. You do not need to issue a license for this type of activity.