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’.
2.1 The Business
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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 cleaning services 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 cleaning services 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:
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 cleaning services business plan.
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 services 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.
|Research and Development||$27,000|
|TOTAL START-UP EXPENSES||$389,000|
|Other Current Assets||$198,000|
|Start-up Expenses to Fund||$389,000|
|Start-up Assets to Fund||$1,099,000|
|TOTAL FUNDING REQUIRED||$1,488,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$42,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,488,000|
|Loss at Start-up (Start-up Expenses)||$348,000|
|TOTAL CAPITAL AND LIABILITIES||$1,908,000|
Business Plan for Investors
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 cleaning services 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 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.
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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 services 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:
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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Small/ Large Businesses||37%||36,000||37,000||39,000||40,000||41,000||10.00%|
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.
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
- We have excellent customer care service. We’ll record customers’ feedbacks to provide them improved services every time they hire us.
- Through our website and user-friendly mobile app, our customers would be able to book our services remotely.
- 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
6.4 Sales Yearly
6.5 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|
|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|
|Industrial Cleaning Services||$60.00||$69.60||$80.74|
|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|
|Industrial Cleaning Services||$480,000.00||$590,208.00||$725,719.76|
|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|
|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|
|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|
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
|Year 1||Year 2||Year 3|
|Residential Cleaning Professionals||$66,000||$72,600||$79,860|
|Web Developer/ App Developer||$6,000||$6,600||$7,260|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.18%||8.19%||8.20%|
|Long-term Interest Rate||8.35%||8.37%||8.39%|
8.2 Break-even Analysis
|Monthly Units Break-even||5336|
|Monthly Revenue Break-even||$131,020|
|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|
|Direct Cost of Sales||$6,464,000||$7,762,380||$9,442,734|
|TOTAL COST OF SALES||$6,464,000||$7,762,380||$9,442,734|
|Gross Margin %||6.37%||8.56%||9.54%|
|Sales and Marketing and Other Expenses||$130,000||$126,000||$128,000|
|Total Operating Expenses||$458,375||$484,620||$519,863|
|Profit Before Interest and Taxes||($18,375)||$242,158||$475,672|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$52,000||$56,160||$60,653|
|Net Cash Flow||$15,000||$15,500||$16,200|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$281,000||$314,720||$353,745|
|TOTAL LONG-TERM ASSETS||$20,000||$22,400||$25,200|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$15,000||$16,800||$18,883|
|TOTAL LIABILITIES AND CAPITAL||$286,200||$327,040||$367,920|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.08%||2.30%||2.55%||2.40%|
|Total Current Assets||148.20%||149.00%||150.20%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.80%||96.33%||99.03%||97.80%|
|Profit Before Interest and Taxes||40.81%||41.91%||43.09%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.7||7.8||N.A.|
|Accounts Payable Turnover||15.67||15.98||16.2||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$240,300||$253,757||$267,967||N.A.|
|Assets to Sales||0.86||0.86||0.87||N.A.|
|Current Debt/Total Assets||1%||1%||0%||N.A.|
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