WHAT IS THE BUSINESS MODEL OF A CLEANING COMPANY?
The business model of a cleaning company is to offer premises maintenance services to companies, individuals, and even local authorities. Interventions often concern offices, homes, shops, industrial buildings, and factories.
We also note that a cleaning company, apart from routine maintenance, can intervene after disasters: water damage, glass cleaning, and high-pressure washing. In addition, sometimes, such a company can provide its services to sort out rat infestation and infestation issues.
The Business Model Canvas is the tool for presenting the business model of your cleaning company.
Our business plan specially designed for a cleaning company does contain a (complete) Business Model Canvas for a cleaning company.
WHO IS THE TARGET AUDIENCE FOR YOUR CLEANING BUSINESS?
A great diversity of market segments characterizes the cleaning market. Therefore, you have many options for choosing your targets.
You can target only companies and establishments working in a specific activity (for example, health establishments, pharmaceutical laboratories, chemical hangars, etc.).
It is also possible for you to target only individuals (home, car, etc.). However, you can adopt a generalist positioning and combine several services simultaneously. In particular, industrial cleaning, disaster cleaning, office maintenance, and high-pressure washing.
It should be noted that thanks to the outsourcing of maintenance services by companies, industrial cleaning constitutes a large market share in the sector. In addition, specific sectors, such as healthcare and the pharmaceutical industry, can also present excellent opportunities for rapid development for cleaning companies.
To identify your target audience, you should rely on the research conducted during market research for your cleaning business. The data collected in this document will allow you to make an informed and reliable decision.
HOW TO STUDY COMPETING CLEANING COMPANIES?
As we did in the business plan for a cleaning company, you must study your main competitors.
Also, you will have to present their strengths, then compare your cleaning service offer to theirs.
You must differentiate yourself and present competitive advantages.
A competitive advantage is anything that gives your cleaning business a competitive advantage over its competitors.
How to find competitive advantages for your cleaning business? To do this, identify the weaknesses of competing cleaning companies. This can be a mediocre quality of service, poorly qualified field agents, or even a range of services that are too limited.
These shortcomings probably generate frustration among the customers of these cleaning companies. It’s up to you to do better: provide impeccable services, listen carefully to the needs and expectations of customers or even offer services at more affordable prices. These are potential competitive advantages for your cleaning business.
It should be noted that to meet market requirements and stand out, compliance with ecological approaches is essential. To do this, you can use products that preserve the environment and let your customers know about them.
You can also bet on the professionalization of your services. This consists of building the capacity of your stakeholders by training them on new cleaning methods. A quality certification, such as ISO 9000 standards, can also be a huge asset in this sector.
Finally, list both the opportunities and threats posed by the environment in the SWOT analysis of your cleaning business. This tool allows you to target the strengths and weaknesses of your cleaning company.
This SWOT is present in our business plan designed for a cleaning company. It is fully written and editable to fit your project. The document also contains the competitive advantages that a cleaning company can exploit.
HOW TO SUCCEED IN THE MARKETING STRATEGY OF YOUR CLEANING BUSINESS?
Show that you are betting on the long term: draw up a development plan over three years.
What will you do to prevent your cleaning business income from stagnating?
How are you going to develop a competitive cleaning service offer?
How are you going to win new customers?
Here is what you can put in place:
– develop a website to present your cleaning services to customers
– form strategic alliances with other professionals
– create a YouTube channel to give cleaning tips
– set up a system of a free quotes, in addition to a response in less than 24 hours
– offer the sale of cleaning products through an e-commerce
– offer specific services (COVID disinfection, Diogenes syndrome, etc.)
– recruitment of qualified and motivated agents
– accept services even on small surfaces, hard-to-reach places, etc.
– set up a system for making appointments online
– offer monthly subscriptions to allow customers to benefit from your services
– use cleaning products that respect the environment while being innovative (washing without water, for example )
– use healthy cleaning products and adopt a real recycling policy to convince your customers
– publish reviews and videos of your satisfied customers on your social media pages, website, and your YouTube channel
Our business plan for a cleaning company contains the complete development strategy for this sector of activity.
THE FINANCIAL BUSINESS PLAN OF A CLEANING COMPANY
HOW TO ESTIMATE THE INCOME OF YOUR CLEANING BUSINESS?
Finding the typical basket of expenses is the first step in calculating a cleaning company’s revenue.
You will manage a cleaning company, so the average hourly rate you will charge should be between 20 euros and 50 euros. This amount will depend, in particular, on your region of establishment, the type of intervention, and the travel costs you an invoice.
Now, and this is a little more difficult, you have to find the number of trades you could potentially make.
Be modest in your start-up estimates. However, this number will increase in the following months (thanks, in particular, to your efforts in marketing and communication). For example, we’ve often seen cleaning companies increase their turnover by up to 60% between year one and year 2.
As an entrepreneur, you need to plan for ambitious (but reasonable) growth for the figure projected turnover of your cleaning company.
For an accurate and personalized estimate of the income of your cleaning business, use our financial forecast for a cleaning company.
After modifying the assumptions of the financial forecast, the turnover, the break-even point, and the other economic indicators specific to your cleaning company are calculated instantly. Also, a verification system tells you if your forecasts are consistent (or not).
HOW TO GET A PROFITABLE CLEANING COMPANY?
The break-even point represents the amount your cleaning business must make to generate a profit.
Where is the break-even point for your cleaning business? At what time of year does your cleaning business break even? Our financial model for a cleaning company will show you this data.
A profitable cleaning company depends on two criteria:
– the turnover of your cleaning company
– the expenses of your cleaning company
HOW TO INCREASE THE TURNOVER OF A CLEANING COMPANY?
You need a solid marketing strategy to attract customers, retain them and then increase your sales of cleaning services.
The marketing strategy is a process of study and reflection that allows your cleaning company to meet current demand. We discussed some of these points in the previous section.
You can locate the entire marketing plan here in our business plan for a cleaning company.
HOW TO OPTIMIZE THE EXPENSES OF A CLEANING COMPANY?
For your cleaning business to be profitable, expenses must also be controlled.
If you want to increase the profits of your cleaning business, you will have to reduce the number of expenses.
Watch out, though. Being frugal with your cleaning company’s starting budget isn’t always a good idea.
For example, it is preferable to plan a solid communication budget for the launch of your business to make yourself known and obtain good visibility from the start.
However, you have to remain attentive to these common charges, which will affect the operating results of your cleaning business.
For example, overly expensive cleaning products and tools can significantly increase your expenses. It is the same for a local rent that would be too high. These charges, if too high, can potentially lead to serious cash flow problems.
As for the staff members, as you are a service provider, their salaries naturally represent one of the most important expense items. It should consequently get special consideration.
Also, each marketing initiative put in place by your cleaning company must be profitable (bring back more than it costs)
. As for taxes, make sure you have chosen the right legal regime for your cleaning company.
WHAT ARE THE ELEMENTS OF THE FINANCIAL FORECAST OF A CLEANING COMPANY?
The financial part of the business plan for your cleaning company, to be complete, must include these elements:
– turnover assumptions
– an income statement
– a multi-year balance sheet, generally over three years
– a forecast cash budget
– performance indicators
– details of the working capital requirement
– the financing plan
– initial investments
– financial ratios, as well as graphs