Cleaning is a booming industry in Texas, and it’s not hard to see why. With the state’s large population, booming economy, and bustling global industries, there are plenty of work opportunities for those who want to get into cleaning. With so many people moving here every day, there are always new homes, apartments, and businesses that need to be cleaned.
If you’re considering opening a cleaning business in Texas, that’s great! You’re taking the first step toward making your dream a reality. If you’re new to the industry, or even if you’re not, it can be hard to figure out where to start. That’s why we put together this resource for you. In this blog post, we’ll walk you through the process from start to finish so that you can get your business up and running quickly.
Let’s get started!
10 Steps to Start a Cleaning Business in Texas
1. Create a business plan for your cleaning business
When starting a cleaning business, it is important to have a clear idea of your goals and how you plan to achieve them. This means creating a business plan. Your business plan should include an overview of your business, your target market, your marketing strategy, your financial projections, and your operations plan. It is also important to make sure that your business plan is realistic and achievable.
To do this, you will need to do some research into the cleaning industry and the specific needs of your target market. Once you have a solid understanding of the cleaning industry and your target market, you can start to develop your marketing strategy and financial projections. With a well-thought-out business plan, you can ensure that your cleaning business is successful.
Here are a few crucial things you need to include in your business plan:
Startup and ongoing costs
Starting a small-scale cleaning business can be a relatively low-cost venture. Most of the necessary supplies, such as mops, buckets, and cleaning solutions, can be purchased for a few hundred dollars. Additionally, many people who start cleaning businesses already have some of the essential equipment, such as vacuum cleaners.
Registering your business as an LLC will cost you around $750. Advertising and marketing materials such as logo, business cards, and flyers are other startup expenses. These can cost you anywhere between $100 to $500.
The ongoing costs for a cleaning business include the cost of supplies, insurance, advertising, and the cost of paying employees. Liability insurance will cost you between $600 and $1200 every year for a $1 million coverage.
When starting a cleaning business, it’s important to identify your target market. This will help you determine what services to offer and how to market your business. For example, if you’re targeting residential customers, you may want to offer basic cleaning services such as vacuuming, dusting, and mopping.
However, if you are targeting commercial customers, you may need to offer more specialized services. Once you have determined your target market, you can begin to develop a marketing strategy that will help you reach your potential customers.
As a professional cleaning service, one of the most important things you can do is price your services correctly. Not only do you need to cover your costs, but you also need to make a profit. However, pricing your services too high can dissuade customers from using your business, while pricing them too low can leave you feeling overworked and underpaid. So how do you strike the right balance?
One approach is to start by surveying the competition. What are other businesses in your area charge for similar services? Once you have an idea of the going rate, you can then adjust your prices based on the unique features of your business. For example, if you offer eco-friendly cleaning products or same-day service, you may be able to charge a premium.
Here is how most cleaning businesses calculate their pricing for cleaning services:
Step 1: Make a guesstimate of how many man-hours the area will take to be cleaned. Then multiply man-hours by how much you pay a cleaner per hour (employee or contractor). This will be the total labor cost.
Step 2: Then, add the cost of supplies, taxes, gas, insurance, and other miscellaneous expenses to complete the job. This amount will usually be around 10% of the labor cost.
Step 3: Now, you need to add your profit margin to it. On average, cleaning companies target somewhere between 30% to 45%. So add your profit margin to the total cost, and you are ready with your bid price.
You should also consider what type of customer you are targeting. If you’re aiming for high-end clients, your profit margin will need to reflect that.
On the other hand, if you’re trying to attract budget-conscious customers, you may need to undercut the competition.
Ultimately, there is no one-size-fits-all solution when it comes to pricing cleaning services. By doing your research and offering competitive rates, you can ensure that your business is profitable and appealing to potential customers.
On average, the profit margin for cleaning businesses in Texas range between 30% and 45%. For small operations, annual earnings can fall anywhere between $50,000 and $100,000. Meanwhile, large commercial cleaning companies can bring in upwards of $1 million annually.
Of course, these figures will vary depending on a number of factors. Nevertheless, it is clear that there is considerable potential for those looking to enter the cleaning industry. With the right mix of hard work and marketing savvy, there is no reason why your business couldn’t be raking in healthy profits in no time.
2. Choose a suitable name for your business
Choosing a name for your cleaning business is one of the most important decisions you’ll make. It’s the first thing people will see when they search for you online, and it can make or break whether someone decides to reach out to you or not.
When choosing a name, it’s important to consider both the meaning of the name itself and its connotations in the mind of your target audience. Take into account not only the literal meaning of the word itself but also how it sounds and feels when said aloud. It should reflect the personality of your company and speak to the values that drive it forward.
While there are many factors to consider when choosing a name, here are some important things to keep in mind:
1. Keep it short, catchy, and simple: A name that is easy to remember and pronounce is more likely to stick in people’s minds. Having a catchy name will help people remember you and want to call you when they need a good, solid clean.
2. Make it relevant: Choose a name that reflects what your business does. This will help potential customers find you when they’re searching for professional cleaning services.
3. Be unique: With so many businesses out there, it’s important to choose a name that sets you apart from the competition. A unique name will make you more memorable and help you stand out in the crowded marketplace.
4. Don’t infringe on someone else’s trademark: You’ll want to make sure that whatever name you choose isn’t trademarked and is already in use by another company. You can do this by searching online with Trademark Electronic Search System (TESS). You can also check with your local Chamber of Commerce to see if they have any companies with similar names or services operating in your area.
5. Check the domain name availability: Another thing you need to do is make sure your domain name is available. This can be done by going to GoDaddy or another domain name provider and searching for your desired name.
6. Test it out: Before you settle on a name, be sure to test it out on friends, family, and potential customers. Get their feedback and ensure they understand what your business does just by hearing the name.
Keep these guidelines in mind, and you’ll be sure to choose a great name that will help your business succeed.
Also read: 427 Catchy Cleaning Business Name Ideas
If you’re struggling to find a good name for your business, check out our naming service.
3. Form your cleaning business into a legal entity
After deciding on the name, the next step is to register your business. For that, you need to choose a business structure. In the United States, there are four basic types of business structures: sole proprietorship, partnership, LLC, and corporation. Each has its own advantages and disadvantages, so it’s important to learn about them before making a decision.
A sole proprietorship is the simplest way to structure a cleaning business, and it comes with several advantages. For example, it’s easy to set up, and you have complete control over the business. However, there is also some downside. For instance, you’re personally liable for all debts and losses incurred by the business, which means your personal assets are at risk if something goes wrong.
A partnership is similar to a sole proprietorship in terms of liability and control, but it allows you to bring in partners who can share in the work and profits of the business.
A limited liability company (LLC) offers protection from personal liability, as well as flexibility in how you structure the business. You can choose to have the LLC taxed as a corporation or partnership, which can offer some tax advantages. Due to these benefits, most cleaning businesses in Texas are registered as LLCs.
Finally, a corporation is a legal entity that exists separately from its owners. This provides limited liability protection for shareholders, which means they are not personally responsible for debts incurred by the company. However, corporations can be complex and expensive to set up, and they are subject to a higher level of regulation than other business structures.
If you’re not sure which one would work best for you, reach out to an experienced business attorney! They’ll help you figure out what will work best for your business.
4. Obtain EIN for your business
The next step is to obtain an Employer Identification Number (EIN) from IRS. Obtaining an EIN is a simple process that can be completed online. You can apply here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
You will need to enter information about your business, such as your name, address, and other details. Once you complete the application and submit it to the IRS, they will assign you an EIN number within two weeks.
Once you have received your EIN number, you will need to use it in all of your business dealings with the IRS, including tax filings and reporting requirements. It’s important that you do not use someone else’s EIN number because doing so could result in fines or penalties for both parties involved.
5. Purchase business insurance
If you’re running a cleaning business, it’s important to protect your assets. You don’t want to get caught in the middle of a lawsuit or have to pay out of pocket for damages or injuries that happened on the job.
Business insurance will protect your cleaning business from things like theft, fire, or damage to property. It also covers many of the things that could happen to your employees, such as an injury on the job. It’s especially important for businesses that involve physical labor, such as cleaning businesses. If one of your employees slips and falls while on the job, business insurance can help cover their medical expenses.
A good way to start looking into what kind of insurance coverage you need is by talking with an agent who has worked with cleaning companies before. They will be able to help you understand what types of risks exist in your industry and how to protect yourself from them.
Here are some of the insurance coverages that you should consider having:
General liability insurance: This type of insurance can help to protect your business in the event that someone is injured while on your property or if you are accused of causing damage to another person’s property. In addition, general liability insurance can help to cover the costs of any legal fees that may be associated with a liability claim. As such, it’s an essential piece of protection for any cleaning business owner.
Workers’ compensation: Workers’ compensation covers medical expenses incurred by employees who suffer injuries while working for you. It also covers lost wages from time off work due to injury or illness related directly related to their job responsibilities. However, Workers’ compensation is not mandatory in the state of Texas.
Commercial auto insurance: This type of insurance protects your business in case one of your employees causes an accident while driving a company vehicle. It can also provide coverage if one of your employees is injured while driving or if the damage is caused to a third-party vehicle.
Janitorial bonds: Janitorial bonds are a type of surety bond that provides coverage for theft or unscrupulous behavior by your employees.
6. Open a bank account for your business
The next step is to open a bank account for your business. You will want to open a new account in your business name rather than in your personal name.
Having a dedicated business account will make it easier to track expenses and income, and it will also provide a layer of protection for your personal assets. When choosing a bank, be sure to research the fees and services that are offered.
Most banks will require you to have a minimum balance in your account, so be sure to ask about this before you open an account. You’ll also need to provide some documentation, such as your ID, EIN, and Articles of Incorporation.
7. Obtain the required licenses and permits for your cleaning business
While the state of Texas does not require a general business license, some cities or counties may have their own regulations. You will need to check with your local government to see if there are any additional requirements.
8. Purchase cleaning equipment and supplies
Before you can start working, you need to purchase the necessary equipment and supplies. This includes items like commercial-grade vacuum cleaners, dust mops, dust cloths, glass cleaners, all-purpose cleaners, buckets, sponges, and other cleaning chemicals. You may also want to consider purchasing a carpet shampooer if you plan on offering carpet cleaning services.
While it is possible to find some of these items second-hand, it is generally advisable to buy new equipment that is specifically designed for commercial use. This will help to ensure that your business runs smoothly and efficiently. You will also need to stock up on paper towels, gloves, masks, trash bags, and other disposable items.
9. Setup a business website
A website is a powerful marketing tool for a cleaning business in this digital age. By setting up a website, you can reach a wider audience and showcase your services in a professional way. Plus, a website can be a great way to build credibility with potential customers.
It also gives people who are interested in working for you an opportunity to learn more about the job before applying. This includes getting an idea of what the job is like and how much it pays as well as any requirements or special skills that are needed in order to be hired.
When setting up your website, there are a few key things to keep in mind.
First, make sure that your site is easy to navigate and includes clear information about your services. Your website is the first impression your clients will have of your cleaning service. Your site needs to be professional, well-designed, and easy to use. It should have all the information that a potential client would need to decide whether or not they want to work with you.
Second, use high-quality photos and videos to show potential customers what your business has to offer. You can also use your website as a way of introducing yourself to potential clients by including a brief bio about yourself and any relevant experience or education you have.
Thirdly, post a lot of SEO-optimized informational blog posts about cleaning on your website. Your goal should be to make it easy for people who need cleaning services to find your business online. This means having a blog that is optimized for search engines, which means being able to rank highly in Google searches for terms related to your industry.
Fourth, if you have good testimonials from previous clients on your site, then it will help convince new clients that you’re the right person for the job and help them feel confident about hiring you.
And finally, don’t forget to include your contact information so that interested customers can easily get in touch with you.
10. Market your business
It takes more than just hanging up a shingle to make your cleaning business successful. You need to let potential customers know that you exist and that you’re the best choice for their needs. Marketing is an important part of running any business, and it’s especially important for small businesses like cleaning companies. There are many different ways to market your business, including online marketing, word-of-mouth marketing, and print advertising.
To reach potential customers online, create a website and use search engine optimization techniques to ensure that your site appears high in the results when people search for cleaning companies in your area. You can also use social media to reach potential customers and promote special deals or discounts. Don’t forget to set up your Google business profile, as it’ll help you show up in the local search results.
Word-of-mouth marketing is also key; make sure your current customers are happy with your services and that they’re spreading the word to their friends and family. Finally, don’t forget about traditional advertising methods like print ads in local publications or flyers posted around town.
With some effort and creativity, you can definitely get the word out about your cleaning company and attract new customers.