Starting your own foreclosure cleaning business can be a great way to make some money while helping people in need. It can be a challenging and rewarding venture, but there are a few things you need to do in order to get started.
Here are the 8 steps you can take to get started on building your very own foreclosure cleaning business.
8 Steps to Launching a New Foreclosure Cleaning Business
1. Name Your Foreclosure Cleaning Business
Give your foreclosure cleaning business an identity so people will think of it as a well-known and respected brand. You can take the name of your foreclosure cleaning business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your foreclosure cleaning business is to make it sound appealing and trustworthy so that potential customers will be motivated to work with you.
2. Choose a Legal Form for Your Business
By incorporating your foreclosure cleaning business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your foreclosure cleaning business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common foreclosure cleaning business structures.
3. Write a Foreclosure Cleaning Business Plan
All foreclosure cleaning business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
Read our article about how to write a foreclosure cleaning business plan.
4. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your foreclosure cleaning business.
For example, you will likely need to get a business license from your local government. You may also need specialized licenses or permits depending on the type of foreclosure cleaning services you’re providing.
You must also register your foreclosure cleaning business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper foreclosure cleaning business licenses.
5. Determine Your Budget & Apply for Funding as Needed
In developing your foreclosure cleaning business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your foreclosure cleaning business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your foreclosure cleaning business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a foreclosure cleaning business to help you determine if funding is needed.
Read our article about how to fund your foreclosure cleaning business.
6. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your foreclosure cleaning business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in customer relationship management (CRM) software to help manage your customer leads and appointments, as well as a project management system to keep track of cleaning projects.
Read our article about the technology and software you need to run a foreclosure cleaning business.
7. Market Your Foreclosure Cleaning Business to Potential Clients
Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the real estate and banking industries through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Foreclosure Cleaning businesses should consider the following promotional strategies for which you should start getting prepared:
Promotional Products: Order blank notebooks with your company logo to offer to real estate agents and bank staff members who deal with foreclosures. These contacts can assist in obtaining customers or may be representing customers in their own business environment..
Advertising: Place ads in local publications and online directories that are popular among homeowners and real estate professionals.
Publicity: Get press coverage for your business by engaging with and serving in a social service charity or other nonprofit group that assists people going through foreclosure.
Referrals: Ask real estate and bank industry colleagues to refer your company to their customers going through foreclosure.
Events: Host nonprofit events like foreclosure clean-up days or open houses to attract attention to your business.
Read our article about how to market your foreclosure cleaning business for more tips.
8. Get New Clients & Grow Your Business
When you promote your services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your foreclosure cleaning business.
Read our article about how to effectively grow your foreclosure cleaning business to learn more.
Starting a Foreclosure Cleaning Business FAQs
There are many reasons to start a foreclosure cleaning business. First, there’s a lot of potential revenue to be made. Second, you can be your own boss and set your own hours. Third, it’s a relatively easy business to start in a specialized niche. And fourth, you can make a difference in the lives of people by helping them clean up their homes.
To start a successful foreclosure cleaning business, you need to have the right skills and knowledge. Then, you need to acquire the proper supplies and equipment. You also need to have the right technology and software in place. And, you need to market your business effectively to potential associates who can help direct clients to you.
If you want to start a foreclosure cleaning business online, you need to develop a website. Ensure that clients can book your services online. You should also promote your business through social media and online directories. Actively research foreclosures and make contact with the proprietors. You should also have a system in place to ensure consistency and reduce costs. And, finally, find and train the right people to help you grow your business.
Here are some tips for starting a foreclosure cleaning business:
Research the market. First, you need to research the industry and acquire the necessary skills and knowledge.
Gather your supplies. Next, you need to gather the supplies and equipment needed.
Promote your business. Then, you need to put together a promotional strategy.
Get new clients. And, finally, you need to get new clients and grow your business.
A simple checklist to use when starting a foreclosure cleaning business is as follows:
- Name Your Foreclosure Cleaning Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Write a Foreclosure Cleaning Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Foreclosure Cleaning Business to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.
Starting a foreclosure cleaning business can be a great way to make money while helping people in need. By following the steps outlined in this article, you can start your business with confidence and get moving on the path to success.