To ensure your cleaning services business success in this highly competitive market, you need a properly structured cleaning services business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their cleaning services businesses. Using the following cleaning services business template, you can put together an effective business plan for cleaning services.
Cleaning industry businesses provide cleaning and restoration services to domestic and commercial customers. Among the most common services are cleaning internal spaces in the home or office, windows, carpets and upholstery.
Businesses in the cleaning industry provide unique or specialized services to set themselves apart from their competitors.
An earlier forecast stated that the cleaning industry will generate over $46 billion dollars in 2020, and grow by 10% by 2026. Although 1.7 million people are employed in the cleaning industry, the increase in demand is expected to spur a 6% growth in new jobs each year.
It is important to remember how popular this industry is, especially among the 27% of American households with just one person.
An cleaning services business plan is a road-map for starting and growing your cleaning services business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.
Any bank or investor you approach will require a cleaning services business plan, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a cleaning services business or pitching to investors or venture capitalists.
Cleaning services business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A cleaning services business plan allows you to thoroughly analyze every aspect of your potential business.
A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a cleaning services business idea, and may help you better understand your company’s finances and competition.
Cleaning services business owners who have a business plan grow 34% faster than those who don’t, and 77% of fast-growing businesses have one.
A cleaning services business plan is a living document that should be updated annually as your company grows and changes.
A cleaning services business is mostly funded by personal savings, credit cards, bank loans, and angel investors. In terms of bank loans, banks will want to review your cleaning services business plan and make sure you will be able to repay the loan and interest.
Angel investors are the second most common source of funding for a cleaning services business. These are wealthy individuals who will write you a check. They may ask for equity or, like a bank, they may offer a loan. Venture capitalists are not likely to fund a cleaning services business.
They may consider financing a national cleaning services business, but not a single location. The reason is that most venture capitalists expect a return of millions when they make an investment, and an individual location cannot achieve such results.
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
To write a cleaning services business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a cleaning services business plan, or you can just download our proven sample business plans to get a better idea.
The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.
It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.
Tell them what kind of cleaning services business you have and what stage you’re in; for example, are you a startup, do you have a cleaning services business that you want to expand, or do you have a lot of cleaning services businesses?
Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.
Check out these executive summary examples to help you write a perfect one for your cleaning services business plan.
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
Provide a brief overview of the cleaning services industry in your industry analysis. This may seem unnecessary, but it serves multiple purposes.
First, researching the cleaning services industry will educate you. It gives you an understanding of the market in which you are operating. Secondly, market research can improve your strategy, especially if it identifies market trends.
Third, market research shows readers you are an expert within your field. Conducting research and presenting it in your plan is the most efficient way to accomplish this.
Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.
The first condition for a cleaning services business is to identify its target customers clearly. Customers can be categorized into the following segments:
The customer analysis section is an important part of any cleaning services business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the your cleaning services will meet those requirements.
Customer analysis may be divided into two parts: Psycho-social profiles (why your cleaning services suits a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).
With regards to demographics, include information about: the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
The first step is to determine who your direct and indirect competitors are.
The direct competitors consists of other cleaning services businesses that offer essentially the same services to the same people as you do.
Indirect competitors are other cleaning services options that people have in addition to direct competitors. This includes both businesses that hire internal janitors and individuals who clean their own homes, stores and offices, etc. Such competition shows your understanding that not everyone who needs cleaning services will use a cleaning business.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your cleaning services business— but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium cleaning services? Do you offer unique cleaning services that your competitors do not? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your cleaning services business plan.
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
Creating a marketing plan for a cleaning services business involves identifying the target demographic and finding cleaning services that suit their preferences.
As part of your marketing plan for a cleaning services business, you should include:
Pricing and Product Strategy
Your cleaning services business must offer cleaning service that are quality based and different from those of your competitors. Research what your competitors offer and how they price their cleaning services.
Unique cleaning services identifies your cleaning services business as the place to go for unique services and differentiates it from others.
Placing and Promotions
Place refers to the location of the business office of your cleaning services company. Describe how your location might attract customers. As an example, Is your cleaning services next to a highly populated office building or in a high-end shopping district?
Promoting your cleaning services business is the final part of your marketing plan. In this step, you document how you will drive customers to buy your services. A few marketing methods you could consider are:
You should also think about your cleaning services company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other cleaning services businesses. Ensure that your USP is reflected in your marketing.
While the previous sections of your cleaning services business plan described your goals, your operations plan discusses how you will achieve them.
An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operations plan should be divided into two individual parts, as seen below.
Your daily short-term processes include all the tasks involved in running a cleaning services business, including hiring and training employees, serving customers, procuring supplies, administering the business, etc.
Your long-term goals are the milestones you hope to reach. It may include the date when you hope to lease the facility or remodel the facility; or when you hope to reach $X in revenue.
When writing a cleaning services business plan, the management section’ outlines your management team, staff, resources, and how your business ownership is structured.
This part may be easily organized by dividing it into the following points:
This section outlines your cleaning services business’s legal structure. If your company is a sole proprietorship, it may simply be one phrase. It might be longer if your company is a partnership or a corporation. You should make it a point to clarify who owns what part of the business.
Internal Management Team
This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your cleaning services business. Ideally, you and/or your team members have direct expertise in the cleaning services business. If this is the case, highlight your experience and skills.
External Management Resources
Think of these external management resources as your internal management team’s backup. Consider forming a advisory board if your team is lacking expertise and experience with cleaning services business.
An advisory board would consist of 3 to 7 people who would serve as mentors to your cleaning services company. They would assist in answering queries and providing strategic direction.
If necessary, search for advisory board members with expertise running cleaning services business.
Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.
The final topic to consider in the management area of your cleaning services business plan is your human resource needs.
As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Business financial statements include your income statement, balance sheet, and cash flow statement.
A profit and loss statement is more commonly called a income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.
As you develop your income statement, you need to develop assumptions. Will you serve 30 patients per day or 200? Will sales grow by 2% or 10% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.
Create a financial statement for your business by downloading our free income statement templates.
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.
The balance sheet shows your cleaning services business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:
The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.
Create a pro forma balance sheet for your cleaning services business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.
Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.
For example, spending $200,000 to build out your cleaning services business will not result in instant revenues. Rather, it is a asset that should help you earn money for many years to come.
Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.
Cash Flow Statement:
Your cash flow statement will help you determine how much money you need to start or grow your cleaning services business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cleaning services business:
Create a financial statement for your business by downloading our free balance sheet templates.
List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.
Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.
Bonus Tip: Learn how to write a business plan appendix for your cleaning service business.
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A cleaning services business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the cleaning services business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your cleaning services business.
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With wise business plans Business Plan Template, you can finish your cleaning services business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!
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Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.
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