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Cleaning Services: Turn Your Love for Cleaning Into a Business

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The cleaning industry is a good place for you to start a small business. Because of the spread of the CORONA virus, services that involve commercial or residential cleaning are now in demand more than ever. In fact, the cleaning industry in the United States generates 46 billion dollars every year. This proves that there is definitely business potential in this line of service. People want clean homes and offices, and you will be there to provide for their needs.

Register Your Business Name

All businesses start with the proper paperwork, and this begins by registering your chosen business name. The requirements for this depend on which state you’re in and the local legislation. There are several ways for you to register your business name, but the two most ideal ones for this type of business are:

  • Limited Liability Corporation (LLC) – also known as a sole proprietorship, registering your business as an LLC reduces the liability you have as a private individual. LLC makes it a point that in worst-case scenarios, only your business will be affected and not your personal assets.
  • Doing Business As (DBA) – another way you can register your cleaning company is to file it as DBA. It establishes your assumed business name and makes sure that your company operates legally.

You can also protect your name and have it trademarked so that no other company under the same industry umbrella can use your business name. To check for name availability, you can go to the website of the United States Patent and Trademark Office.

Get a Business License

The type of business license will depend on your location or type of industry. In some states, businesses are monitored on both state and federal levels, especially if your business involves cleaning, construction, food and restaurants, retail, and plumbing.

If you register as a DBA or LLC, you can file for a business permit from your local city or county office. They will be the ones who will instruct you regarding the fee, requirements, and the whole registration process. You can also visit the website of the United States Small Business Administration for further information.

In addition to that, having an LLC type of business also requires you to get a license from your state office for you to able to conduct any business. With this, you are considered a legitimate company if you have a physical presence in your state, conduct in-person meetings with clients living in your state, most of your income comes from business conducted in your state, and have employees within the state.

Insure Your Business

Unfortunate events while conducting your business as a cleaning company are not uncommon. Accusations of incomplete jobs or theft are risks you should expect in this business.

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You need to protect yourself during these unwanted situations, and you can do that by purchasing insurance. The most commonly used insurance in the cleaning industry is general liability insurance, which protects your business and employees if there are injuries or third-party damages to your client’s property. Other types of insurance that you should get are:

  • Janitorial Bonds – is a type of insurance specific to the cleaning industry. It covers damages if you or one of your employees gets accused of performing unsatisfactory work or stealing from the client.
  • Commercial Property Insurance – if you want to launch a carpet-cleaning service and own expensive equipment like steam cleaners, you need to have commercial property insurance. This will allow you to reimburse the cost of equipment that is damaged, stolen, or lost.
  • Workers’ Compensation Insurance – Some states would require you to have this type of insurance that focuses on the welfare of your employees. This coverage takes care of medical bills and lost wages while they are sick.

Determine the Price of Your Services

Several factors could affect your cleaning rates, such as the internal condition of the house, clientele, competition, and location. If you will charge your customers by the hour, the standard rate is between USD 30 and USD 90 per hour. This is the most common billing method among cleaning companies.

You can also consider setting a flat rate. For a single-family home, you can price your service at USD 120 to USD 150. And lastly, you can consider implementing a square foot rate. It is commonly used in commercial projects to charge anywhere between 0.5 and 20 cents per square foot.

Now that you have set the foundation of your cleaning business, the next thing for you to do is to purchase cleaning equipment and advertise your business. Now that cleanliness means being safe from the virus, people will need your services as a cleaning company.

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