Do you want to start cleaning services business plan?

Are you thinking of starting a cleaning services business? Well, the business can be a great choice if you looking for an easy yet profitable startup. Starting a cleaning services business doesn’t require you to hold technical knowledge, a large amount, or a large team. You can start it at any scale and can expand or narrow down your offerings whenever you want.

Despite that the venture is relatively easier, it is still essential to follow a proper procedure of starting a business. First, you will have to make a business plan for cleaning services. To learn how to make a cleaning service business plan, you can take help from this sample. Here we’ve provided the detailed business plan developed for ‘Pro Cleaning Services’.

Executive Summary

2.1 The Business

Pro Cleaning Services will be a cleaning services startup owned by Jack Franklin. The business will aim at providing residential and commercial cleaning services to people throughout Manhattan. A wide range of services will be offered from small home one-time cleaning to large facilities’ maintenance.

2.2 Management of Cleaning Services Company

To make sure that all aspects of the business are well managed, you must prepare a startup cleaning service business plan. In your business plan for starting a cleaning service you should study the technical, financial, and human resources you possess. And then construct a way to utilize and manage these resources to the fullest.

In this business plan on how to write a cleaning service business plan we’re providing all the details of Pro Cleaning Services to help you in devising a plan for your startup.

2.3 Customers of Cleaning Services Company

Our customers will belong to almost all work domains as professional cleaning and maintenance are required by all. However, our potential and recurring customers are identified as follows:

  • Residential Community
  • Small/ Large Businesses
  • Educational Facilities
  • Manufacturing Units

2.4 Business Target

Our target is to become the most trustworthy and reliable choice for our target customers whenever they need temporary or permanent cleaning work.

Our financial targets to meet for the first three years of our launch are demonstrated below:

Immigration Consultant Business Plan
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Cleaning Service Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Jack Franklin will be the owner of Pro Cleaning Services. Jack has completed his MBA a few years back. After his academic career, he worked at a managerial post for two years in a famous resort. However, he left his job to fulfill his dream of running his own business.

3.2 Why the cleaning services company is being started

Jack noticed that the cleaning service businesses around him were using the traditional methods to serve their customers. He realized that he can bring innovation in existing modes through his intellect and management knowledge. Therefore, he decided to start his own cleaning business to fully implement the great ideas he possessed.

3.3 How the cleaning services company will be started

Step1: Plan Everything

The first step before starting a cleaning business is to write cleaning service business plan. To help you in creating a business plan we’re providing a cleaning service business plan example. Jack decided to offer both residential and commercial cleaning services. So if you are looking for commercial cleaning services business plan samples or a business plan for a start up residential cleaning service, you can have help from here.

Step2: Define the Brand

The next step is to get recognized by defining your business’ services and values. During this time you will have to develop and brand your policies so that your customers can identify your competitive advantages over others.

Step3: Establish Your Corporate Office

Jack decided to rent a building in Manhattan to establish his business office. He will procure the latest cleaning equipment and inventory to set his business.

Step4: Establish a Web Presence

These days, it has become a necessity to establish a strong online presence. Jack decided to make a mobile app, website, and social media page for his business to reach out to a wider audience. This online presence will also help him in staying in contact with his customers.

Step5: Promote and Market

The last step is to develop and execute a marketing plan to promote your services.

Cleaning Service Business Plan - Startup Cost

Start-up Expenses  
Legal $248,000
Consultants $0
Insurance $32,000
Rent $23,000
Research and Development $27,000
Expensed Equipment $55,000
Signs $4,000
TOTAL START-UP EXPENSES $389,000
Start-up Assets $319,000
Cash Required $330,000
Start-up Inventory $51,000
Other Current Assets $198,000
Long-term Assets $201,000
TOTAL ASSETS $1,099,000
Total Requirements $1,488,000
START-UP FUNDING
Start-up Expenses to Fund $389,000
Start-up Assets to Fund $1,099,000
TOTAL FUNDING REQUIRED $1,488,000
Assets
Non-cash Assets from Start-up $1,469,000
Cash Requirements from Start-up $351,000
Additional Cash Raised $56,000
Cash Balance on Starting Date $32,000
TOTAL ASSETS $1,908,000
Liabilities and Capital
Liabilities $30,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $42,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $72,000
Capital
Planned Investment $1,488,000
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1,488,000
Loss at Start-up (Start-up Expenses) $348,000
TOTAL CAPITAL $1,836,000
TOTAL CAPITAL AND LIABILITIES $1,908,000
Total Funding $1,488,000

Business Plan for Investors

Services

Before starting a cleaning business, you must decide the services you want to provide your customers. So that you can plan your business accordingly.

The commercial cleaning services business plan will be different than a residential one as a commercial cleaning business requires more resources and management.

Since Jack decided to offer a wide range of services, the business plan developed for his business can be used in any case. You can take help from this cleaning service business plan template free of cost if you’re starting commercial or residential cleaning business.

  • House Cleaning Service

We will provide all the basic house cleaning services listed below. Our customers will be able to book a cleaner for their home cleaning service through our mobile app or website.

  • Sweeping
  • Dusting
  • Vacuuming
  • Laundry
  • Sweeping Kitchen
  • Cleaning Rooms and Bathrooms
  • Specialized Cleaning Program

In our specialized cleaning program, we’ll clean all the things and areas that remain ignored in day-to-day cleaning. By availing of this service after a few months’ gaps, our customers will be able to renew the look of their properties.

Our offerings in this domain will include:

  • Ceiling & Wall Cleaning
  • Window Cleaning
  • Polishing Woodwork
  • Blind Cleaning
  • Curtain Cleaning
  • Carpet Cleaning
  • Deck and Patio Cleaning
  • Swimming Pool Cleaning
  • Office Cleaning

We’ll also provide professional office cleaning service. Since offices possess large equipment in congested space, we’ll use special tools to do the cleaning work efficiently and swiftly.

  • Industrial Cleaning Services

Our last service will industrial cleaning services. We have certified cleaners experienced in dumping construction, metallic and plastic waste.

Any questions? Get in Touch

Marketing Analysis of Cleaning Services Company

You should have an in-depth knowledge of your target market before starting a business. The best way to know your customers and competitors is to do the market analysis in your office cleaning service business plan. The market analysis should also study the previous, existing, and forecasted market trends. Moreover, it should assess the market prices and your business’ financial goals to figure out the prices you can set for your services.

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If you don’t know the components of detailed marketing analysis, you can take help from this business plan for starting cleaning services for free. In this cleaning service business plan pdf on how to write a business plan for cleaning services, we have studied the market trends and groups of target customers of Pro Cleaning Services.

5.1 Market Trends

According to IBISWorld, residential cleaning service franchises hold a market size of $888 Million in the United States. The commercial cleaning businesses hold even more market size i.e. nearly $47.5 billion, according to Statista. In general, the demand for cleaning services is rising as people prefer to hire professional cleaners to renew their properties. Moreover, the demand is extremely high in the commercial and manufacturing sector as they need special services to dump their huge and hazardous waste material.

5.2 Marketing Segmentation

The potential customers of Pro Cleaning Services are divided into the following groups:

Cleaning Service Business Plan - Marketing Segmentation

5.2.1 Residential Community

Our primary customers will be the residents living in our vicinity. They are expected to avail of our basic house cleaning services on almost daily basis. And they are also expected to avail our specialized cleaning service to refresh their exterior, interior, walls and everything, two to three times a year.

5.2.2 Small/ Large Businesses

Our second target customers will be commercial property owners, they will utilize all of our services especially office cleaning and specialized cleaning.

5.2.3 Educational Facilities

This will be our third target group of customers. Educational facilities usually have their own cleaners and janitors. However, for detailed and grand cleaning of their buildings, they are expected to avail of our specialized cleaning program.

5.2.4 Manufacturing Units

Lastly, construction sites and chemical and other manufacturing industries will also be availing our specialized and green cleaning. With us, they will be able to safely and quickly discard industrial waste.

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Residential Community 38% 39,000 40,000 41,000 42,000 44,000 10.00%
Small/ Large Businesses 37% 36,000 37,000 39,000 40,000 41,000 10.00%
Educational Institutes 16% 13,000 14,000 15,000 16,000 17,000 10.00%
Manufacturing Units 9% 7,000 8,000 9,000 10,000 11,000 11.00%
Total 100% 95,000 99,000 104,000 108,000 113,000 10%

5.3 Business Target

  • To become the number one cleaning service throughout Manhattan
  • To expand our offerings to also include metallic waste disposal by the end of the first five years
  • To earn a net profit margin of $31.7k per month by the end of the third year
  • To achieve and maintain a CSAT score above 93%

5.4 Product Pricing

Our prices for specialized cleaning are a little higher than those of our competitors. However, our other offerings are available to our customers in a similar price range as that of our competitors.

Marketing Strategy

To become prominent amidst a huge competition, you need to come up with several competitive aspects. Moreover, you also need to develop a strong marketing strategy so that more and more people recognize you.

In this sample business plan for commercial cleaning services we’re providing the sales strategy of Pro Cleaning Services. You can learn a lot from here if you are making a business proposal for a cleaning services company.

Any questions? Get in Touch!

6.1 Competitive Analysis

  1. We have excellent customer care service. We’ll record customers’ feedbacks to provide them improved services every time they hire us.
  2. Through our website and user-friendly mobile app, our customers would be able to book our services remotely.
  3. We’ll implement green cleaning practices by using eco-friendly, non-toxic, and biodegradable cleaning products.

6.2 Sales Strategy

  • We’ll advertise our services through Google Local ads service and social media.
  • We’ll offer a 50% discount on basic house cleaning services for the first two months of our launch.
  • We’ll offer a 30% discount on specialized cleaning services for the first month of our launch.

6.3 Sales Monthly

Cleaning Service Business Plan - Sales Monthly

6.4 Sales Yearly

Cleaning Service Business Plan - Sales Yearly

6.5 Sales Forecast

Cleaning Service Business Plan - Unit Sales

Sales Forecast      
Unit Sales Year 1 Year 2 Year 3
House Cleaning Service 47,000 49,820 52,809
Specialized Cleaning Program 60,000 63,600 67,416
Office Cleaning 28,000 29,680 31,461
Industrial Cleaning Services 8,000 8,480 8,989
TOTAL UNIT SALES 143,000 151,580 160,675
Unit Prices Year 1 Year 2 Year 3
House Cleaning Service $40.00 $46.40 $53.82
Specialized Cleaning Program $58.00 $67.28 $78.04
Office Cleaning $38.00 $44.08 $51.13
Industrial Cleaning Services $60.00 $69.60 $80.74
Sales
House Cleaning Service $1,880,000.00 $2,311,648.00 $2,842,402.38
Specialized Cleaning Program $3,480,000.00 $4,279,008.00 $5,261,468.24
Office Cleaning $1,064,000.00 $1,308,294.40 $1,608,678.79
Industrial Cleaning Services $480,000.00 $590,208.00 $725,719.76
TOTAL SALES $6,904,000.00 $8,489,158.40 $10,438,269.17
Direct Unit Costs Year 1 Year 2 Year 3
House Cleaning Service $36.00 $41.00 $48.00
Specialized Cleaning Program $55.00 $62.00 $71.00
Office Cleaning $36.00 $41.00 $46.00
Industrial Cleaning Services $58.00 $66.00 $75.00
Direct Cost of Sales
House Cleaning Service $1,692,000.00 $2,042,620.00 $2,534,841.60
Specialized Cleaning Program $3,300,000.00 $3,943,200.00 $4,786,536.00
Office Cleaning $1,008,000.00 $1,216,880.00 $1,447,196.80
Industrial Cleaning Services $464,000.00 $559,680.00 $674,160.00
Subtotal Direct Cost of Sales $6,464,000.00 $7,762,380.00 $9,442,734.40

Personnel plan

The cleaning business depends a lot on the efficiency, behaviors, and dedication of the cleaners. Jack knew the importance of hiring the most collaborative and skilled employees. Therefore he created a list of required employees along with selection criteria while writing a business plan for cleaning service.

7.1 Company Staff

  • 1 Co-Manager to help in overall operations
  • 6 HCT Certified Residential Cleaning Professional
  • 6 CIMS Certified Commercial Cleaners
  • 8 General Cleaners
  • 1 Technician to upkeep the machinery
  • 1 Web Developer/ Mobile App Developer to manage online sites
  • 2 Sales Executives to organize and promote sales
  • 1 Accountant
  • 2 Drivers
  • 1 Receptionist

7.2 Average Salary of Employees

 Personnel Plan      
Year 1 Year 2 Year 3
Co-Manager $15,000 $16,500 $18,150
Residential Cleaning Professionals $66,000 $72,600 $79,860
Commercial Cleaners $80,000 $88,000 $96,800
General Cleaners $76,000 $83,600 $91,960
Technician $7,000 $7,700 $8,470
Web Developer/ App Developer $6,000 $6,600 $7,260
Sales Executives $12,300 $13,530 $14,883
Accountant $9,000 $9,900 $10,890
Receptionist $6,000 $6,600 $7,260
Drivers $12,000 $13,200 $14,520
Total Salaries $289,300 $318,230 $350,053

Financial Plan

Just increasing sales doesn’t ensure that your business has become successful and is yielding profits. To earn profits, it is essential to manage your operations timely and efficiently. To make sure that your business is not getting into a loss, you must carry out a detailed financial analysis while you create business plan cleaning service.

In your financial plan, you must identify when and how you’ll be able to cover your investment amount with the earned profits. Moreover, you should also analyze your yearly expenses to find out the possibilities of reducing them.

Here we’re providing the detailed financial plan made for Pro Cleaning Services. So that you can get an idea of the business finances.

8.1 Important Assumptions

 General Assumptions      
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.18% 8.19% 8.20%
Long-term Interest Rate 8.35% 8.37% 8.39%
Tax Rate 23.87% 24.20% 24.70%
Other 0 0 0

8.2 Break-even Analysis

Cleaning Service Business Plan - Break-even Analysis

 Break-Even Analysis  
Monthly Units Break-even 5336
Monthly Revenue Break-even $131,020
Assumptions:
Average Per-Unit Revenue $231.00
Average Per-Unit Variable Cost $0.66
Estimated Monthly Fixed Cost $164,020

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss      
Year 1 Year 2 Year 3
Sales $6,904,000 $8,489,158 $10,438,269
Direct Cost of Sales $6,464,000 $7,762,380 $9,442,734
Other $0 $0 $0
TOTAL COST OF SALES $6,464,000 $7,762,380 $9,442,734
Gross Margin $440,000 $726,778 $995,535
Gross Margin % 6.37% 8.56% 9.54%
Expenses
Payroll $289,300 $318,230 $350,053
Sales and Marketing and Other Expenses $130,000 $126,000 $128,000
Depreciation $2,275 $2,390 $2,440
Leased Equipment $0 $0 $0
Utilities $2,800 $2,900 $3,070
Insurance $2,000 $2,000 $2,100
Rent $3,000 $3,100 $3,200
Payroll Taxes $29,000 $30,000 $31,000
Other $0 $0 $0
Total Operating Expenses $458,375 $484,620 $519,863
Profit Before Interest and Taxes ($18,375) $242,158 $475,672
EBITDA ($18,375) $242,158 $475,672
Interest Expense $0 $0 $0
Taxes Incurred ($3,675) $48,432 $95,134
Net Profit ($14,700) $193,727 $380,537
Net Profit/Sales -0.21% 2.28% 3.65%

8.3.1 Profit Monthly

Cleaning Service Business Plan - Profit Monthly

8.3.2 Profit Yearly

Cleaning Service Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Cleaning Service Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Cleaning Service Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Cleaning Service Business Plan - Projected Cash Flow

 Pro Forma Cash Flow      
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $54,000 $58,320 $62,986
Cash from Receivables $16,000 $17,280 $18,662
SUBTOTAL CASH FROM OPERATIONS $70,000 $76,300 $82,404
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $72,000 $77,000 $83,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $34,000 $35,000 $36,000
Bill Payments $17,000 $17,700 $18,600
SUBTOTAL SPENT ON OPERATIONS $51,000 $52,000 $54,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $52,000 $56,160 $60,653
Net Cash Flow $15,000 $15,500 $16,200
Cash Balance $24,000 $26,000 $27,000

 

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet      
Assets Year 1 Year 2 Year 3
Current Assets
Cash $265,000 $296,800 $326,480
Accounts Receivable $23,000 $25,760 $28,954
Inventory $4,200 $4,704 $4,900
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $281,000 $314,720 $353,745
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $17,000 $19,040 $21,420
TOTAL LONG-TERM ASSETS $20,000 $22,400 $25,200
TOTAL ASSETS $292,000 $327,040 $367,920
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable $17,700 $19,824 $22,282
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $15,000 $16,800 $18,883
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $14,200 $15,904 $17,876
Paid-in Capital $29,000 $30,000 $31,000
Retained Earnings $52,000 $56,680 $62,348
Earnings $190,000 $207,100 $227,810
TOTAL CAPITAL $272,000 $296,480 $326,128
TOTAL LIABILITIES AND CAPITAL $286,200 $327,040 $367,920
Net Worth $278,000 $303,020 $333,322

8.6 Business Ratios

 Ratio Analysis        
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 7.20% 7.98% 8.84% 3.00%
Percent of Total Assets
Accounts Receivable 9.18% 10.17% 11.27% 9.80%
Inventory 5.36% 5.94% 6.58% 9.90%
Other Current Assets 2.08% 2.30% 2.55% 2.40%
Total Current Assets 148.20% 149.00% 150.20% 158.00%
Long-term Assets 11.31% 11.32% 11.39% 12.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.88% 4.92% 4.96% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.44% 7.50% 7.57% 7.38%
NET WORTH 100.82% 101.63% 102.56% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.02% 97.59% 100.32% 99.00%
Selling, General & Administrative Expenses 93.80% 96.33% 99.03% 97.80%
Advertising Expenses 1.49% 1.53% 1.57% 1.40%
Profit Before Interest and Taxes 40.81% 41.91% 43.09% 33.90%
Main Ratios
Current 33 35 36 32
Quick 33.5 34 34.85 33
Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
Pre-tax Return on Net Worth 73.01% 73.88% 74.70% 75.00%
Pre-tax Return on Assets 96.23% 101.04% 106.09% 111.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 33.10% 34.13% 35.18% N.A.
Return on Equity 55.02% 56.73% 58.48% N.A.
Activity Ratios
Accounts Receivable Turnover 7.7 7.7 7.8 N.A.
Collection Days 100 100 100 N.A.
Inventory Turnover 32.2 33.81 34 N.A.
Accounts Payable Turnover 15.67 15.98 16.2 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.5 2.5 2.6 N.A.
Debt Ratios
Debt to Net Worth -0.04 -0.03 -0.04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $240,300 $253,757 $267,967 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.86 0.86 0.87 N.A.
Current Debt/Total Assets 1% 1% 0% N.A.
Acid Test 29.01 29.04 29.07 N.A.
Sales/Net Worth 2.1 2.3 2.3 N.A.
Dividend Payout 0 0 0 N.A.

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