Starting a janitorial business can be a lucrative endeavor, but it does come with some startup costs, including obtaining necessary janitorial cleaning certifications. In this article, we will explore some of the expenses you can expect to incur when starting your own janitorial business.
Overhead Costs
One of the biggest expenses when starting a janitorial business is overhead. This can include the cost of renting or leasing office space, as well as the cost of utilities and other monthly expenses. On average, you will want to budget about $2,000 for the first six months for overhead costs.
Cost Of Supplies
Another significant expense when starting a janitorial business is the cost of supplies. You will need to purchase cleaning supplies, such as mops, buckets, cleaning solutions, and trash bags. You will also need to purchase personal protective equipment (PPE), such as gloves and safety glasses. You will require $300-$500 for supplies to start up your janitorial business.
Equipment Costs
In addition to supplies, you will also need to purchase professional equipment for your janitorial business. This can include items such as a commercial vacuum cleaner, floor buffer, steam cleaner, and extension ladder. To successfully start up your janitorial business, budget about $3,000 to spend on commercial equipment.
Transportation Costs
Another expense to consider is transportation. If you will be driving your own vehicle to and from cleaning jobs, you will need to factor in the cost of gas and maintenance. On average, janitorial businesses spend about $200 on transportation each month.
Labor
Of course, one of the biggest expenses when starting a janitorial business is labor. You will need to pay your employees for their time and efforts. On average, janitorial businesses spend about $4,000 on labor each month. If you are the sole employee of your janitorial business, you can eliminate the full amount of this cost; however, you should record some payment for yourself to establish that you are working as an employee. This will help when your janitorial business pays files tax forms annually.
Marketing/Advertising
In order to get your janitorial business off the ground, you will need to market and advertise your services. This can be done through a variety of methods, such as online advertising, print advertising, and word-of-mouth. On average, janitorial businesses spend about $500 on marketing and advertising each month. Considering the need for advertising your start up, you may want to increase the advertising budget to heavily advertise during your first few months in business.
Business Licensing & Permits
Another cost to consider is the cost of a business license. In most cases, you will need to obtain a business license from your state or local government in order to operate your janitorial business. The cost of a business license is usually about $100. Determine whether or not you need any permits for your janitorial service. If so, you’ll need to pay nominal fees yearly for permitting.
Insurance Cost
Finally, you will need to insure your janitorial business. This is important in case of any accidents or injuries that may occur while you are working. On average, janitorial businesses spend about $200 on insurance each month, with an additional $2,000 per year for worker’s compensation if employees are hired.
Conclusion
As you can see, there are a number of expenses you need to consider when starting a janitorial business. However, if you are prepared for these costs and forecast expenses for the first six months, you will be well on your way to success in your janitorial business.