Anyone who is thinking of starting their own cleaning business should be aware of the many costs involved. While some of these costs may be incurred up front, others may be ongoing expenses that need to be budgeted into a monthly or yearly forecast. In this article, we will take a look at some of the most common costs associated with starting a cleaning business.
Overhead Costs
One of the first costs you will need to consider are your overhead costs. These can include the cost of leasing office space, as well as the cost of utilities and other monthly expenses. On average, you can expect to spend around $1,500-$3,000 on overhead costs to start-up your cleaning business.
Cost of Supplies
In order to provide your services, you will need to purchase cleaning supplies. This can include items, such as mops, buckets, and cleaning solutions. The cost of supplies will vary, depending on the type of business you are starting. For example, if you are starting a residential cleaning business, you will need different supplies than if you are starting a commercial cleaning business. On average, you can expect to spend around $500-$1,000 on cleaning supplies to start your cleaning business.
Equipment Costs
In addition to supplies, you will also need to purchase any equipment needed to run your cleaning business. This can include commercial vacuum cleaners, floor buffers, and carpet cleaning equipment. The cost of equipment will vary, depending on the type of business you are starting. On average, you can expect to spend around $2,000-$5,000 on equipment to start up your business.
Transportation Costs
If you plan on providing mobile services, you will need to factor in the cost of transportation. This can include the cost of gas, as well as any vehicle maintenance costs. If you are providing mobile services, but don’t yet own a practical vehicle, you will want to factor in the cost for that expenditure in your start-up costs. Gas and vehicle licensing will probably cost $200-$400 to start your mobile cleaning business.
Labor
Of course, one of the biggest costs associated with starting a cleaning business is labor. This includes the cost of hiring employees or contractors. Depending on the size of your business, you may need to hire multiple people. The cost of labor will vary, depending on the number of employees you need to hire, as well as the hourly rate you will pay them. On average, you can expect to spend around $3,000 on labor each month, with an increased amount if you hire contractors or other professionals to assist you in getting started.
Marketing/Advertising
In order to get your business up and running, you will need to market it to potential customers. This can include items like creating a website, designing marketing materials, and advertising your cleaning business. The cost of marketing will vary depending on the type of marketing you do. On average, you can expect to spend around $500-$1,000 for your first few months in business.
Business Licensing & Permits
Depending on the state where your business is located, you may need to obtain a business license for your cleaning business. The cost of a business license will vary, however licensing is usually around $100 to register your business and obtain a license. If your state or city requires permits for the type of cleaning business you are starting, you’ll also have to pay a small fee for that, as well.
Insurance Cost
Another cost you will need to consider is insurance. This includes general liability insurance, which will protect you in the event that someone is injured while working in your company. The cost of insurance will vary depending on the type of business you are running. On average, you can expect to spend around $300 on general liability insurance monthly, with additional costs for worker’s compensation if you’ve hired employees. A general amount of $300-$500 should be budgeted for insurance when starting your cleaning business.
Conclusion
As you can see, there are many costs associated with starting a cleaning business. By considering all of these costs, you can be sure that you are prepared for everything that starting a business entails. Overall, you can expect to spend anywhere from $6,000 to $10,000 on start-up costs. While this may seem like a lot of money, it is important to remember that the cleaning industry is a billion-dollar industry. With proper planning and execution, your business can be extremely successful in a short period of time.