How to Start a House Cleaning Business For Maximum Profit

One good reason to start a house cleaning business is that you have a never-ending supply of prospects. People are living longer and they are unable to do a lot of the cleaning they used to do to perfection. Not only that, but everyone is working today – who has time to clean the house?

That’s not the only reason this is always a good business to start. The best reason is, there are always too many house cleaners who start a house cleaning business, but have no idea how to clean or run the business. These cleaners come and go. A healthy byproduct of this is unhappy clients who are tired of looking, hiring and firing house cleaners.

This means there is always room for quality house cleaning businesses in every city. The first step in starting a cleaning business is to identify the need in your city. Who are the top players and how do they hire and train their workers? What kind of turnover do they have and what is the overriding reason for that?

Successful businesses are built because the owner took the time to research a winning business model. Yes – anyone can put together a few rags and cleaning products and hire themselves out as a house cleaner, but how long can you ride that business model? Certainly not to make the type of money you’ll need to stay in business. Not to mention that you will never have the lifestyle you want as an independent business owner.

The only way you can start a house cleaning business for maximum profit is to design a business plan that will correctly state how you will:

Start the business
Run the business
Keep your clients happy
Plan changes to business strategies as needed due to the economy
Increase Revenue
Have time off for you and your family

This is one reason a lot of new house cleaning businesses disappear – the owner is killing him/herself doing all the work alone. Not only is this hard on your body, but it’s taking up all your time that could be used to strategically grow your business.

Another reason for failure is that people start a house cleaning business and immediately hire workers to do the work for them. This is a perfect recipe for disaster!

Starting and running a house cleaning business is not easy, but it doesn’t need to be this hard, either. With proper planning, you could develop a process that allows you to start small, take the time to establish procedures that work and then expand your house cleaning business with a winning formula.

To start a house cleaning business for maximum profits, you need to plan to hire workers to do the work for you. Before you hire the workers, you have to have a plan to find the workers, train the workers, monitor the work they perform and mentor them for improvement. This must all be done within the labor laws in your city. One wrong move and you could be out of business.

How do you keep your business legal? You will need:

A business license and DBA or
Incorporation or LLC
Liability Insurance
Bond
Workers Compensation Insurance

All of this will cost you some money. But – the good news is you can start with a local business license and DBA, perform the cleaning yourself and work the business up from there. As you increase your profits, you can increase the insurance coverage you have on the business and your workers. Any insurance agent in your city can help you with the insurance needed for your business. Your local city hall can assist you with obtaining a business license and DBA (doing business as).

Once you are running a legal business, you are ready to start getting clients. Don’t expect to start out with the top paying clients. You will have to go through a trial and error period while you figure out how to run the business. There are a lot of situations you will run into that will surprise you. Things you never thought of that will occur while you are cleaning and after you leave the residence.

Clients will call to file a complaint about the service that was just performed; clients will call and report that something was broken or damaged; clients will call at the last minute and want to cancel the next appointment. All these are situations that need to be handled properly and in order to do that, you need to anticipate what could go wrong in your business. Once you have these documented, put them in your business agreement so the client knows the terms of doing business with you in advance.

Once you know how to handle all these special situations, you’re ready to go after the top paying clients who are ready to pay for the service you provide. That’s when the money really gets good and you are able to start doubling and tripling your income. The ability to duplicate your processes will be the key to your success.

4 Reasons Why the Business Broker Has Listed No Price on the Business For Sale

I’ve seen this as an increasing trend in listings. The seller will not post a list price for the company for sale. Why wouldn’t they list how much they want? Here are a few responses I’ve received from qualified brokers.

1. It dissuades buyers who aren’t serious from wasting the broker’s time. Business brokers seriously get bombarded by unqualified buyers. According to various resources only 10% of the people who say they are interested in buying a company will get to the point where they actually submit a written letter of intent. Even less will actually close on a business. Most business brokers are compensated based on contingency, meaning that if they don’t sell the business they don’t get paid. Several will charge an administration fee or a listing fee to gather all of the pertinent documentation and list the business for sale with various services. A buyer who puts in an offer without knowing the price will be more likely to have done their homework.

2. Selling a business is like playing poker – The business broker is trying to get you to show all of your “cards.” When a buyer puts in an offer the broker will try to get you to represent how much is coming from cash and how much is coming from bank or lender financing. Business brokers love “mostly” cash buyers because it means they can get paid quickly. Rarely are businesses purchased with all cash. If the business broker knows they are waiting on an SBA loan or other financing they will ask for proof of your financing.

3. The price of the business is subjective to the buyer. I firmly believe that every business is subjective to the buyer in their personal and financial situations. I also believe you cannot pay too much for a great business. The greatest question is the business you’re buying a great business or a poor business? Business brokers also cite that there is a range of prices that businesses move in. There is never a magical number that will get the deal done. Rarely do business buyers shoot out a super high price. It’s more frequent that the price is going to be low.

4. The terms are more important than the price to the seller. One business broker told me that through his experience sellers of businesses are much more interested in the people that are buying their business as opposed to the price. Most business owners/ managers are more concerned that their people, reputation, and clients are well taken care of as opposed to the large chunk of cash they have to pay taxes on when they sell the business. These sellers are usually business owners/managers as opposed to true absentee owners. If the wrong buyer is trying to acquire the business, the price will never be enough. If the right buyer is buying the business, the price is always negotiable.

Small Business – Low Budget Start Ups

Start a small business with little or no money

Starting a small business is an exciting and mind fulfilling experience. It’s a beautiful thing when an entrepreneur begins to dream, the energy heightens, and the confidence levels are mistaken for being egotistical. Every entrepreneur believes in his or her own ideas and wants everyone to see how this great idea can prosper into a big return. The first thing that comes to mind is how much money can the business make and how much freedom will the business offer you.

Having a passion for an idea can be converted into a cash cow when you bring it to life. Below are powerful real life proven steps to getting started into turning your idea into a prosperous business. Anything can be sold for a profit even on a low budget.

Products Business…

The 4 keys for opening the door to getting products sold on low budget start-ups:

1. Product Knowledge

Knowing your product is an important step in sales. Turn on the TV and watch 3 commercials selling a product, take notice on how the ads aim for emotion or it promote a person (like a celebrity), because the seller knows the product very well. Therefore, they were able to target their audience with ease. Always be sure to sell from the heart not your mind and through the practice of the product.

How in demand is the product or service?

Is it needed or not?

§ It’s easier and faster to sell needed product then not needed product. Selling not needed product may require more power in the marketing words and selling approach. Key point: (People tend to buy the sales person or the emotion before the product.)

Is it a Profit or not?

§ If you’re selling in the community can you profit and make a good living, or do you need to expand your sales statewide, or is the Internet a better place? Know your market! Get creative, and look for inexpensive ways to get the word out.

Squash the high inventory:

Only buy showcase stock at first, always use your sold product funds to purchase inventory, as you need it. It can be costly to stock too many unsold products, unless you have a physical storefront.

What is the economic status?

Are you selling in a Recession or Not?

Selling in a down market is an important artery to a thriving business. If the product is not a need to have, then the product will sell slower in a slow spending market. Do your research, how are your competitors during and what is their advertising and marketing strategy?

Can your Product or service be sold?

The more people you introduce to the product, you will have a better chance of getting the product sold even in a slow market. You may need to be more aggressive in your advertising and marketing approach.

2. Marketing and advertising

Getting the word out is a real big deal and lots of work. The bottom line it’s only 2 ways to get the word out, its called time and money. You either going to save time and pay someone to get the word out or you’ll save money and put the time in during it your self.

For this article the main objective is to start a small business with a low budget.

Let’s look at some inexpensive ways to market your product or service:

A website, handouts, product cards, blog, Face book, email, CDs, flyers, car magnets, post cards, letters, email campaign, brochure, business cards, banners, promotional item give-away (pens), newsletter, press release, etc…

Let’s look at some inexpensive places to advertise your product or service:

Door-to-door, word-of-mouth, local stores, Churches, events, Internet free classifieds, network parties, joint venture, B2B relationships, car ads, garage banners, banners on the side of your house or a friends house, lawn signs ask (10 friends and their 10 friends if they will allow you to place it in their front yard), garage sales, downtown breakfast and lunch rush, night clubs, Internet social media, network groups, host parties, craigslist, eBay, your cell phone voice mail, email signature, t-shirts, etc…

There are many, many and many different ways and places to get the work out. Everyone should know the product exist. Always keep the product selling itself even when you’re not around.

You should definitely have a plan not just a written plan but an active system built into systems, this plan of systems will keep you from wasting money or going out of business before you get started in business.

Your action plan will consist of:

WHO will get the word out?

WHAT are the steps?

WHERE will you start?

HOW many, how often, how long?

TRACK all your results.

The system is what every large corporation and successful small business owners’ use to keep from stumbling too many times. It does take some time to put together a system. I cannot explain it all in this article,

3. Time

“Time is money, and money is time”, Time is the most valuable thing in your business and life. Make sure you track your time on each task. You could find yourself busy at doing nothing. Keep the focus on moneymaking activities.

Time and Money are two crucial to your business.

Your time is very valuable you should have a plan of action the night before you start your day. Plan your daily tasks, do not waste too much time on administration tasks and unnecessary running around, because unmonitored time will give your product a longer shelf life.

Balance the Scale

“Time is of the essence”, Watch your time, if you have family you should always have balance in your personal life while running a business, please… set aside downtime.

4. Money

It’s possible you will need some small money to get started. Do not quit your day job yet or just keep in mind starting a small business will have you juggling your current or in between jobs; it’s the worthy risk all entrepreneurs take. To take action in your small business you will need a little starting money for marketing material, gas, internet/email hosts, promotional items, cell phone, product display, etc..

A business is like raising a child or nurturing a seed to grow into a tree. It takes a lot of time and dedication. Selling a service is somewhat the same processes as selling a product. The difference from the product is that the service will consume you. Starting a low budget service business can be profitable, but you may need to invest in time management classes and/or outsource for help.

Service Business…

Here are 4 key principles for service low budget startups:

1. Service Knowledge

You will most likely be the one performing the service. You will probably spend the first few years perfecting and critiquing your service, and building your client’s trust. It’s possible that time can take you pass 12 hours a day, and you will not see the clock moving.

How in demand is your service?

If your service is in high demand you will become very busy quickly. You may consider hiring someone who is patient about waiting for a paycheck. You may want to offer an incentive to encourage their hard work and patience. It’s very important you do not overwork yourself. Reserve some energy for family, clients, and your quality service so that it doesn’t lack, and you do not burn out.

What is the economic status of your country?

In some cases for a service not needed you may still get some business but not enough to keep you busy at first. Look at your service, how are your competitors during? Take a walk in their business and observe, and ask the receptionist a few questions from a customer point of view {it seems like your slow today? Has it been this way all week?}. Check in on your medium to large competitors, because if they are really slow you might want to rethink your plan to start your business at this time, or be sure to keep your day job while in business for yourself.

2. Time

How much time are you willing to put into growing your business?

I cannot stress enough on how much time and energy it takes to grow a service business. Answer these questions for understanding of what it takes. Does your family need your income for survival at that time? Are you in good physical health? Are you consistent? Are you faithful? Are you a people person? And, Are you patient? It takes a lot to grow and run a service business. It’s rewarding, but it comes with a passion to work, headaches, energy, time, emotion, you name it. Do not quit the day job just yet. You should wait to build a profit from the business that will support at least your bare minimum budget.

3. Employees

A service business in the beginning may not need employees right away. Keep in mind it’s not always good to start a service business if you’re not going to work at it first before hiring someone to replace you. You definitely want to build your client’s trust before you hire someone to cover you. The client is very smart, because they already had a bad experience from the last folks they hired; this is probably how you got that client. Win them over first before hiring someone to take your place. When you do hire someone be sure to share this information with your client. Introduce your new staff and his or her qualities they will bring to the client’s service. (The client is only concerned with how the new staff will benefit them)

4. Money

§ The good thing about a service business, is that most of your tools you use for servicing the clients needs was purchased through your years of practice, or trial and error, or through a hobby. You may only need to purchase a few things upfront. If you do not have all your tools most of the time you can rent them and charge the client for the rental fees. Your small business will need to use small money to get the word out. (See product marketing and advertisement listed above).

The great part about making mistakes as an entrepreneur… is getting that fresh start to do it better the next day. Every effort, every creative thought, everything put into action in getting the business moving is a plus. Always remember business integrity and business ethics. Be honest, give respect and be fair. Remember your time is valuable everything cannot be free set aside a giveaway, or something that will not take too much of your time or money. {Example: a business card size printing, educating the buyer about something needed or about your product or service}.

It doesn’t matter if you’re a million dollar sales person or not. There are 2 crucial principles that must be remembered in order to stay in business:

1. You must educate yourself all the time

Learn budgeting, bookkeeping, tax filing, your product and service, and know your competitor status outlook

2. You must love your buyer as you love yourself

Be honest, give respect, and be fair.

Owning your own business is rewarding it doesn’t matter if its service or product. Once you get moving… there is no turning back, unless you give up. (Its right there at that turn point of giving up, SUCCESS creeps……in).

This article is a short version of starting a small business on a low budget. There are many tactics to follow in order to run and maintain a successful startup. Before you get started in your low budget business do your homework, and do not go out of business before you get into business. You need a SYSTEM! A system is the action of systems inside of a plan. You need a powerful motivating system, before you start any business.