You think starting a cleaning business requires a lot of capital to start. You ask yourself; how much does a cleaning business cost? The answer is it depends on your budget.
Starting a small but active cleaning business does not need much capital. It is affordable. There is no obligation for you to get all the cleaning tools; you can start with the ones your budget can afford. The cost of starting up a cleaning business is flexible. It is possible to start small and then scale the business later to attract more clients and workload.
Cost of a Small Cleaning Business Startup
The cost of starting a cleaning business is in the range of $1000-$2000 CAD. This cost estimation is a reflection of a single person cleaning startup. You plan to carry out the jobs yourself or with the help of a few, but no defined employee payroll. The advantage is no need to worry about the burden of paying salaries.
The biggest challenge of starting a small cleaning business is building a client base. To get your first clients, you will have to reach out to family and friends, and local small businesses for jobs.
Hard work and perseverance are vital to succeeding in the cleaning business. If you do not have the capital to start, you can always request a favourable loan for small businesses.
The Cost of Registering your Cleaning Business
The cost of registration depends on the cleaning business you want to start up and your location. Different locations have different registration costs. Check with the local business registration office for a quote.
The Sole Proprietorship is the cheapest business type you can register. You can register a sole proprietorship business at the local County Clerks Office. It costs between CAD 30 to CAD 60.
The other business type you can register is the Limited Liability Company (LLC). This business type is more expensive than the sole proprietorship. It costs between CAD 100 to CAD 500 to register.
The Cost of Opening a Bank Account
After registering your business name, the next step is to open a business checking account. Registering a checking account for your business is easy. You can register over the internet; there is no need to visit the bank. Banks have almost the same requirements for opening a business checking account. The minimum deposit your bank of choice will require is CAD 100. It is not an expense because the money is still yours.
The Cost of Insurance
Insurance is the next step after opening a checking account. It is very crucial for your business. Insurance protects you from liability you can incur in the course of doing business.
Liability insurance for your cleaning business will cost you between CAD 500 to CAD 2000 per annum. Different variables determine the cost of insurance such as the state you live in, the insurance company and the amount of coverage. If you find the yearly fee too costly to pay at once, you can pay it monthly. Some states and companies require you to have insurance cover before you can operate.
If you want to employ staff as the business grows, you may need to get insurance coverage for your team. Also, insurance cover for your business vehicle is a smart move. Insurance is profitable for businesses.
If unforeseen calamities occur such as fire and windstorm, your insurance coverage will pay for the damages to your working tools. Depending on your insurance type, it can cover medical bills and damages to clients properties in the course of doing business.
The Cost of Purchasing Cleaning Tools and Products
If you are running a small cleaning business targeted at households, the cost of purchase may be at a low end. Why? Some cleaning items you need to run business, you can easily get from your home. You can buy other supplement tools that you do not have at the local supermarket.
The number of cleaning supplies you need depends on the type of cleaning you want to do. Office cleaning generally needs more cleaning supplies than household cleaning. Therefore the cost varies depending on the cleaning needs.
Generally, the cost of tools and products will only contribute a small percentage of your total cost at startup. CAD 300 to CAD 500 should be enough to get you all the necessary tools for your office cleaning business.
The essential cleaning tools and supplies you will need include sponge, disinfectant, paper towels, and mops. You can also add a vacuum cleaner but note that it is more expensive than other cleaning supplies and tools.
You don’t have to buy all the cleaning supplies and tools before you attract clients. You only need some to start and can pay the rest in real-time. The only demerit is that you will end up paying more buying in pieces. Buying in bulk makes it cheaper, and you can get some discounts for bulk supplies.
The Cost of Developing Business and Promotional Materials
As a startup, you need to develop business and promotional materials to boost your client base. There is no reason why you should not promote your business; established businesses are doing so.
The cost of developing business and promotional materials are in two phases – the cost of design and the cost of printing and advertising.
You can get a graphic designer from Upwork or Fiverr to create designs for you for as low as CAD 5 – CAD 10.
The cost of printing business cards is also relatively cheap. For CAD 40, you can get over a thousand copies!
Also, you may want to get your customized work wears with your business logo and name on it. It will cost you around CAD 100 – CAD 200 to accomplish.
Starting a cleaning business is relatively cheap to set up. However, you may have to wait for up to 6 months before you enjoy profits. The secret to succeeding in the cleaning business is hard work, perseverance and attracting clients. It is wise and profitable business. As long as people need to clean their homes and offices, there will always be jobs for you.