Have a go at our Cleaning Company Business Planning Quiz below. The results of previous respondents are then explained throughout this blog:
They say cleanliness is next to godliness and homes in the UK certainly seem to agree. Cleanliness has taken on something of a cult following in recent times. When ‘How Clean is Your House’ hit TV screens in the early noughties it shone a new light in the value into keeping a clean and tidy home. Subsequent shows such as ‘Obsessive Compulsive Cleaners’ have popularised the cleaning trend, with Instagram ‘influencers’ such the ‘Queen of Clean’ and her 100,000 followers confirming cleaning is more than a fad.
As much as everyone aspires to have a clean home the fact remains that few of us have the time or inclination to actually perform most cleaning tasks.
There is, therefore, increasing opportunities for cleaning professionals to develop and grow new businesses. The inherent outdoor lifestyle it brings and the low-cost requirements to found any cleaning business make them attractive proposals for the budding cleaning enthusiast and horticultural graduates to start their own ventures.
You have landed here because of your expressed interest in learning more about the cleaning business sector. Please enjoy the blog below and learn more about this ever more popular sector.
The figure below shows some of the key industry stats including market value, growth in the number of new business and the proportion of customers. The sustained growth of the industry and the multiple applications and areas of specialism encourages creative entrepreneurs to begin their own ventures. Each adopting and adapting subtly different business plans to carve out their own unique offering.
Most people spend most of their time either at work or at home. Living and working in clean and tidy places not only improves productivity and better wellbeing but also has further health implications. A clean space reduces the risk of illness and reactions to conditions like dust allergies and asthma. The often-unheralded cleaning industry plays a vital role in the nation’s health and wider economic productivity. Its value is in fact well above the £24bn industry value.
With the average person becoming busier and less likely to spend any, or very little, time to general household chores it is no wondered a record high 25% of homes employ a regular cleaner. This growing demand has led to a very healthy 12% growth in the number of new businesses in the sector.
There are virtually no barriers to entry in becoming a professional cleaner. This has led to a vast number of cleaning professionals in the UK, though few would actually categorise themselves as a business and rather are employed to work for a larger company or franchise
A genuine opportunity exists, therefore, for business savvy cleaners to create a proper brand around which they can sell their services and establish a proper, viable business.
A small cleaning company may expect to see 5 clients a day spending on average 1.5 to 1.75 hours with each. Larger, more successful businesses can invest in wider teams of people to cover a greater number of clients and look to take on bigger commercial contracts where possible.
Generally, a cleaning business will offer a range of cleaning services, though they may specialise in one specific area. Having a specialism helps to develop a brand identity and provides some much-needed differentiation in a crowded market. A carpet or window cleaning company, for example, could easily build a viable business around that single offering.
Unsurprisingly the most popular category amongst cleaning companies is General House Cleaning. The offering can be undertaken by an unskilled labour force making it easy to find relatively cheap staff. More specialist areas such as Oven Cleaning and Carpet Cleaning require a higher level of training and skill level. They also require more specialist equipment which should a cost to consider for any new business thinking about offering similar services.
End of Tenancy Cleaning Services and Commercial/Office Cleaning contracts can provide larger scale work for cleaning companies and businesses could potentially build a model around one of those areas.
Average Hourly Rate for a Cleaner
The average national hourly rate for a house cleaner is £15, though this does vary greatly from region to region. The industry is very popular with franchises and so those prices are naturally higher to build in enough margin for all parties. Fixed contracts can be secured for commercial clients which would vary from client to client but would still outsource any cleaning at a similar rate.
How Do Cleaning Businesses Get Financed?
Given that the barriers to entry are so low the industry is a clear advantage in preparing a proper business plan in order to stand above the rest of the pack.
‘Squeaky Clean’ is a cleaning start-up business founded and run by Alicia Tuckwell. After investing in the creation of a professionally written business plan she was able to secure a small start-up loan of £3,000. Alicia used those funds to lease a van, purchase some basic cleaning equipment and undertake some local branding and marketing. The business targets homeowners looking to sell their properties and her cleaning and staging service helps prepare those houses before viewings.
The business already outsources the cleaning to 3 other no-contract staff members and is growing rapidly. The rate of growth and general strategy has been undertaken in full confidence with the knowledge and security that having a proper business plan in place has given her.
Cleaning businesses are shown to be particularly popular for
The layperson may be misled into thinking a fully written business plan would only be a requirement if looking for outside finance. Whilst it is true a solid business plan would be a pre-requisite for any form of form debt or equity finance the value of having a quality business plan cannot be underestimated. Even for those self-funding, a viable and robust business plan is a sure way to keep focused and accountable which will ultimately lead to better business decision making.
Importance of a business plan
The right pricing structure, ability to secure new customers and find & retain quality staff is vital to any cleaning business. As is the understanding the business’ revenue model, showing the number of customers it requires, in order to hit breakeven.
Any serious company should look to invest in a proper, written business plan in order to maximise its potential. The graphic below shows a high proportion of cleaning businesses have invested in a professionally written plan and all new ventures should look to do the same.
So what can we say about starting your own cleaning business?
- The industry is in a period of sustained growth
- Business models are generally geared towards repeat customers
- Strong market competition makes it important to establish a recognisable brand and reputation
- Takes time to build up a customer base and
cashflowplanning is therefore key
How you can succeed
The best way to get ahead of the competition and eliminate the biggest unknowns and risks when starting your own cleaning business is to invest in a high-quality business plan. The investment is invaluable. We at MyBizPlan provide the highest quality and yet lowest cost business plan in the UK, for a minimal outlay you can obtain a high-quality, visually stunning, financially robust business plan. It will give you a greater chance of seeking that vital finance and in the long run, could save you thousands.
If owning and running a cleaning business sounds like the kind of business for you, get started with a Cleaning Business Plan from MyBizPlan. See which of our solutions is right for you by having a go at our – Do You Really Need a Business Plan Questionnaire?