Commercial Cleaning Business

Are you thinking about starting your own cleaning business?  Running your own business offers many rewards and gives you the freedom of being your own boss.  You can also achieve great personal satisfaction from starting with a just few cleaning clients and building a successful and thriving business.  Starting a new business is demanding on your time, family and finances.  So before getting too far into the process of setting up your new cleaning business, it's important to take an objective look at yourself and see if you have what it takes to become a successful entrepreneur.

Do you have the basic cleaning skills and knowledge of products and equipment?  Your clients depend on you to provide the most effective products, equipment, and procedures needed to get their buildings spic-and-span.

A great deal of time, effort, sweat and hard work is needed to get your cleaning business off the ground.  Many small business owners work full-time jobs and start their business on a part-time basis, starting slowly and building consistently over time.  It can take several years before your cleaning business is successful enough to support you and your family.  That's the bad news.  But the good news is that once you have developed a good reputation, business will be easier to get and clients will come to you instead of you going to them.  Patience and hard work will pay off as you see your cleaning business grow and become profitable!
 
You've bought all your cleaning supplies and equipment, told everyone you know that you have started a cleaning business and now you are ready to start bidding on jobs and getting down to work.  Therefore, your next step is to meet with potential clients and put together a bid for their cleaning services.  But how do you know what to charge for cleaning your potential client's building?

Start by remembering that you are in business to make a profit and earn a living.  Sometimes the tendency is to price your services low in order to get your foot in the door.  Pricing your services too low may mean you will end up working for very little per hour.  More importantly, you will have little left over to reinvest in the growth of your company.  There are cleaning companies that charge more than others charge and have all the work they can handle, and there are companies that have lower fees yet are struggling to find work!  Don't sell yourself short or you will not be able to earn a living off your cleaning business.

The rates for commercial cleaning vary widely depending upon the area you live.  Hourly rates depend on the type of services that you provide, the type of building you are cleaning and the frequency of cleaning, whether or not you are doing the work yourself and your company's overhead and expenses.

You will most likely be charging your customers a monthly price and you will need to figure that price by estimating how long it will take to perform the services that your client has requested.  The more productive you or your employees are, the higher the hourly production rate.  It is also a good idea to find out what the "going rates" are in your area.  A few phone calls to competitors may be necessary to get an idea of the basic charges in your area.  Use a script when you call so you can compare “apples with apples”. 
To estimate what you should charge for cleaning a building, start by doing a walk-through with the building owner or manager.  Keep track of the following

• Frequency of cleaning.
• Overall square feet.
• Types of floor surfaces and square footage of each – carpet, vinyl, ceramic tile.
• Types of rooms – also note the number of toilets and fixtures used.
• Any special considerations – heavy traffic areas, lifts, unusual requests, etc.
• Specific services the client is seeking, such as emptying rubbish, dusting and mopping.
  

The following services are specialized services and you should bid them separately, and list a per-service charge on your bid:

• Stripping and Waxing.
• Buffing and Polishing.
• Machine Cleaning of Ceramic Tile floors.
• Carpet Cleaning.
• Cleaning appliances such as microwave, refrigerator etc.
• Window Washing.

Make sure you take enough notes so you can put together a realistic price that is fair to the client and one in which you will make a profit.  After your first meeting with the client, go back to your office look through your notes and decide what it will cost you to clean the building.  You may have to consult a production cleaning rate chart to determine how long it will take you and your staff to clean the building.  Once you have an idea of how long it will take to clean the building you can put your cost estimate together:

• Estimate the time it will take by using a production cleaning rate chart or calculator.
• Determine your labour cost for cleaning the building the first time.
• Determine your monthly labour cost to clean the building.
• Estimate a monthly cost for supplies.  This will be perhaps 1 or 2% of monthly sales.
• Be sure to add in a profit margin!

 Add up the figures and you will come up with your monthly cost.  If you have access to a bidding calculator you will be able to put in a series of numbers and come up with a price.  A bidding calculator will also show what profit you can expect to make.  It is also advisable to add a first time cleaning charge.  The first time you go through a building it will take longer and you may find the previous cleaning service may have left dirt in cracks and crevices that you will have to clean the first time through.

Once you have your price established, put your proposal together.  Your proposal should specify what you are responsible for and what the client is responsible for – bathroom supplies, etc.  It should also include the monthly charge for cleaning services, how long the agreement is for and the procedure to cancel the contract if either party is unhappy.

It is important to learn how to price your cleaning services so your customers know you are providing a professional service at a realistic price and so that you make a profit.  After all, if you do not make a profit you will not stay in business very long!