If you are interested in starting a cleaning business, you need to start by finding the right space. Your office space should include an administrative staff work area, a small office for cleaning equipment and supplies, a small work area for repairs, and a break room for your employees. Your office is not likely to receive customers, so choose a location where people will feel safe while working. Your business’ address should not be a prestigious one, however, as this can give a bad impression.
Costs of starting a cleaning business
The startup costs of a cleaning business are typically less than $500, but you will need more if you have employees. The total startup cost will depend on the number of employees you plan to hire, as rates for independent contractors or part-time employees may vary from state to state. Listed below are some of the costs you will need to cover before starting your business. Listed below are a few of the most important costs to consider when starting a cleaning business.
A general business license costs approximately $75 a year. Insurance coverage for a cleaning business may require workers’ compensation coverage, which is usually around $400 per employee per year. A bond acts as a financial guarantee against employee theft and is usually mandatory in Atlanta. Bonded companies are preferred by clients as they have the security of a bond and the assurance of getting paid if an employee does damage or theft to their clients’ property.
Legality of operating as a sole proprietorship
Operating as a sole proprietor is the easiest legal structure to set up, but it also carries the greatest risk. If you fail to meet your cleaning business obligations, you may be liable for those financial burdens, which could put your personal assets at risk. Having said that, the process of forming a sole proprietorship is easy and does not require any fees or registration with the government. Nonetheless, if you plan to hire employees, you may want to register as an employer identification number (EIN).
Choosing the legal structure for your cleaning business is a technical matter. There are many types of legal structures, and the “right” one is going to depend on your unique circumstances. The government’s Business USA guide offers helpful advice on what’s best for you and your business. In addition to consulting with a legal advisor, you may want to consider hiring an accountant or lawyer to assist you with your legal needs.
Cost of equipment rentals
When you first start your cleaning business, the cost of supplies and equipment can be a big concern. These costs can add up quickly if you don’t own all of the equipment you need. Equipment rentals can be expensive, but you can also save money by using free cleaning agents. When renting equipment, shop around for the best price. If you’re not sure where to get equipment at a discount, wait until you’ve established your business and are earning a steady income before investing in costly equipment.
If you’re just starting out, you might find it cheaper to hire temporary workers until you have enough regular customers to justify investing in permanent staff. When hiring equipment rentals, make sure you follow the manufacturer’s guidelines so you get the best performance out of it and extend its life. Be sure to provide your staff with adequate training before hiring them. This way, they’ll be able to use the equipment to its full potential.
Cost of janitorial bond
A janitorial service bond is an important financial investment for any cleaning business. Using a janitorial service bond protects your clients from possible employee theft or misconduct. This bond provides a financial guarantee up to the amount of the penalty in case a client has a complaint about your service. If you fail to pay the penalty, the client can make a claim against the bond and the surety will investigate the claim and pay the amount. Unlike a surety bond, a janitorial service bond does not cover the costs of hiring subcontracted help.
A janitorial service bond is a form of advertising that protects clients from loss. Moreover, it projects a positive image about your business to potential customers. Clients generally prefer a cleaning company that is bonded over one without. While the amount of the bond varies from one business to another, the premiums are relatively low. A janitorial service bond will cost about $300.
Cost of workers’ compensation insurance
As a cleaning business owner, you may be concerned about the cost of workers’ compensation insurance when starting up your company. This insurance protects your employees, providing medical and rehabilitation benefits if they get injured at work. Additionally, workers’ compensation can pay death benefits for the dependents of deceased workers. It may seem like an unnecessary expense, but the cost of this insurance is well worth it. By learning more about the benefits of workers’ compensation insurance for cleaning businesses, you will be well on your way to being financially protected.
Although there are a variety of factors that influence the cost of workers’ compensation insurance, the most important factor is the type of work you do. General janitorial workers, for example, have low occupational risk, while medical cleaners deal with bloodborne pathogens and need higher insurance premiums. However, regardless of the type of work you do, there are ways to lower your costs, especially when starting a cleaning business.