If you’re thinking about starting a new cleaning business as your primary source of income or even as a side business, you want to make money. No one works for free! But, your profit potential will depend on how much work you put into your new cleaning business, your expenses, how many employees you hire and how good they are. If you keep all of these things in mind, you could grow your business into a six-figure income.
Here are the things to keep in mind when it comes to the profit potential of a new cleaning business:
Hire the Right People for Your New Cleaning Business
Hiring the right people for your new cleaning business is crucial for your bottom line. For starters, you want to hire people with experience and people who enjoy cleaning. This will show in their work. Someone who has professionally cleaned houses before will know how to get the job done in a fair amount of time. You want their work to be stellar, but don’t want them to take too much time that it’s taking away from other clients.
You’ll also want to hire trustworthy people. You can get an idea about a potential employee’s character by doing a background check. This will raise any red flags to any criminal background or activity. If anything pops up in this area, that’s a huge sign that you should not hire someone.
Hiring the right team will allow you to take on more clients. When this happens, you can hire more people and grow your business. This can truly affect the profit potential of your new cleaning business.
Keep Expenses Down in Your New Cleaning Business
Just because you’ve started a new cleaning business doesn’t mean you have to break the bank when it comes to expenses. You can buy a lot of the cleaning supplies you’ll need in bulk to save money. When you’re just starting out, you also want to only buy enough supplies that you need for the amount of people you have working for you. As you grow and get more clients and more employees, you can buy more supplies.
You can also look for free and inexpensive software to manage clients and your payroll. While it certainly would be nice to hire an accountant from the beginning, you’re not going to reach your maximum profit potential if you have to pay an accountant’s salary as well. Keep this in mind as you strive to grow your business. As you grow, you may be able to add an accountant to your payroll.
Realize that Your Commercial Profit Potential May be Lower Than Residential Profit Potential
Your profit potential is going to be affected by whether you focus on residential or commercial cleaning. Typically, the profit potential for commercial cleaning will be higher because you are dealing with bigger clients that have more needs. But, your overhead for these types of projects is also going to be higher. You’ll need more equipment and more staff to get the job done.
When you focus on residential clients, you may not reach the type of profit potential you could achieve with commercial clients, but your overhead and payroll will be less. Many people who start a new cleaning business begin with residential clients and then move up to commercial clients once they are established.
Your Profit Potential Will be Affected by Your Rates
It’s common sense that the more you charge per hour, the more money you’ll make. But, the amount you charge can be drastically impacted by your location. Some parts of the country may charge more per hour than others. But, that doesn’t mean that you still can’t have a 7-figure business. You just may need to have a different approach.
Research what the competition is charging per hour and how long they’ve been in business. This can give you a good idea of whether they are succeeding with their rates. If so, you’ll want to be competitive. The trick is to set your rates so that you can make money but still remain competitive. You don’t want to be too low that you’re just covering your expenses. You don’t want to be too high that you out-price yourself out of the competition. There needs to be a middle ground.
Have the Right Mindset to Grow Your Business
If you want to grow your business, you need to have the right mindset to make it happen. You need to be goal-driven and want to make it to the top. Researching the competition and then seeing how you can stand out can also help you reach your maximum profit potential.
Having the right mindset also means understanding that your profits will grow over time. As you stay in business, proof yourself, and offer new services, you will see your profit potential grow.