Ready to turn your house-cleaning side hustle into a formal business? If so, then having a business plan can help you plan for the future and legitimize your business. And while it’s true that many cleaning businesses start off rather informally, it’s never too late to for creating a business plan.
Feeling intimidated? A business plan doesn’t need to be overly complicated in order to be useful. In this practical guide, you’ll learn the basics of crafting a simple yet useful plan that can grow with your cleaning business for years to come.
Do you really need a business plan for a cleaning service?
If you’ve been in the cleaning business for a while now, your first question might be, “do I really need a business plan?”
In reality, even a simple business plan could set the stage for future growth and success by helping you price your services accordingly, anticipate future staffing/scheduling needs, and even prepare to take out a business loan.
So, even if your business has gotten by well enough without a cleaning service business plan, a basic document that outlines your long-term goals and projections can serve as an extremely valuable tool as your business scales.
What makes a cleaning service business plan different?
Compared to a business plan for any other type of business, a business plan for a cleaning service company requires a more practical approach that takes into account:
- Revenue that is primarily service-based (time, labor, repeat clients, etc.).
- Local competition and pricing pressure.
- Scheduling and capacity limits.
- Customer trust and reliability.
Key sections of a cleaning services business plan
Ideally, a house cleaning services business plan should serve as a general roadmap to running your business and planning for the future. Below, you can learn more about the key sections and topics that should be covered in a business plan for cleaning services, as well as what to focus on in each section.
Services offered
Although your services might seem obvious to you as a business owner, the reality is that not all cleaning businesses have the same offerings. As you detail your services offered, then, be sure to distinguish from residential versus commercial services, as well as any add-on services that may be available (carpet cleaning, window cleaning, deep cleaning, etc.).
Many cleaning businesses also offer one-time and recurring cleanings at a different price point, with one-time cleanings typically costing more. If your business offers recurring cleanings, be sure to go into detail about your options here (weekly, bi-weekly, monthly, etc.).
Target customers
Your business plan should also include some details about your customer base. If your services are primarily residential, for example, then you might be mostly targeting homeowners, renters, and the occasional landlord (for move-in/move-out cleanings).
On the other hand, if you also offer commercial cleaning services, then you’ll want to think about how these customers differ from residential customers — as well as the types of commercial businesses you primarily work with. This might include small offices, retail shops, or even larger stores.
Regardless of your target customers, you’ll need to narrow your market research and focus to the local service area where you provide your services. This will help you get a better feel for your customer demographics, pain points, and other valuable information about what your customers are looking for in a cleaning service.
Pricing and costs
A business plan for house cleaning service should also include details about your pricing model and business-related costs. For instance, does your business charge a flat fee for cleaning services, or do your cleaners charge by-the-hour? Is there an additional fee for traveling outside of a specific service area?
In addition to your business pricing, you’ll also want to break down the costs that your business incurs — such as the cost of cleaning supplies and transportation-related expenses. Labor costs, such as the money you pay your cleaners for each job, should also be taken into account here.
With a better feel for the money your business brings in versus what you spend to keep your business running, you can get a more realistic sense of your margins.
Operations and scheduling
In writing your business plan, don’t forget to include details on your operations and scheduling procedures. This should include information on how clients book your jobs (online, over the phone, etc.) — as well as how you manage your workload to meet your customers’ needs. A closer look at your operations and scheduling strategies may help you reveal areas for potential improvement for better capacity planning and greater efficiency overall.
Marketing and getting clients
Finally, be sure to include a section in your business plan on how you plan to market and spread the word about your cleaning service in order to bring in new clients. Referrals are a common source of new clients for cleaning businesses, but having a strong online presence (such as a website, blog, and active social media page) can also make a big difference.
How to write a cleaning service business plan without overcomplicating it
If you’re still feeling a bit overwhelmed when it comes to getting started with your cleaning service business plan, it may be helpful to start with a simple outline. This outline should cover the key details and sections that you want to cover, with brief details that you can flesh out later.
As you write, avoid overcomplicating things by keeping your language simple and jargon-free. By writing in plain language as well as using estimates instead of stressing about perfect numbers, you can craft a perfectly simple and usable plan that will serve you well into the future.
Remember, too, that you can (and should) be ready to update your plan as your business grows and the industry changes. In general, it’s a good idea to review your business plan and make any necessary updates at least once every few months.
As you get started with your business plan, you’ll also want to avoid:
- Using online templates, which can unnecessarily complicate things.
- Trying to make projections for multiple years at a time. Instead, focus on a year or two in front of you.
- Framing your business plan solely for investors. You can always tweak your plan to create an “investor-frfiendly” version down the road if needed, but you want your plan to serve you as a business owner first and foremost.
Common mistakes in cleaning service business plans
As you begin writing or outlining your cleaning service business plan, here are a few common mistakes to avoid:
- Underpricing your services. Take the time to research your competitors and be realistic about what your services should cost in a changing market. Remember, too, that service prices may occasionally need to be adjusted to keep up with inflation and other factors.
- Overlooking time and labor costs. These are often the single largest expenses for cleaning businesses, so accurate estimates are important.
- Overestimating capacity. Be realistic about the number of jobs you can book at any given time based on the number of cleaners you have available.
- Writing a “one-and-done” plan. Remember that your plan should scale and grow with your business, so it will need to be updated from time to time.
Getting your cleaning business set up before planning
Even if your cleaning business is already running successfully without a business plan, it’s never too late to create a plan. In doing so, you can add legitimacy to your business while thinking ahead to the future.
Even before you decide to draft a formal business plan, there are some measures you can take to set your business up for greater success early in the game. This includes:
- Choosing the right business structure (LLC, sole proprietorship, etc.).
- Keeping business information and documentation well organized.
- Keeping business finances completely separate from personal finances.
- Making sure you have the appropriate cleaning business license for your location and services.
Conclusion
Now that you have a better idea of how to write a cleaning service business plan, you can move forward with greater confidence when it comes to setting business goals and preparing for future growth. And, as you can see, a business plan doesn’t need to be perfect or extremely meticulous in order to be useful. At the end of the day, starting simple is better than not having a plan at all.
Looking for more help when it comes to starting your business or growing it more intentionally? Tailor Brands offers a wide range of services tailored to small and growing businesses, from LLC formation to business insurance, bookkeeping, marketing, and much more. Drop us a line today to learn more about what sets us apart and what we can do for your cleaning business!