Are you thinking about starting a house cleaning business? If so, you’ve probably started thinking about your business name, services, and prices. Maybe you’ve even designed a logo or started working on a website. All of these steps are important when starting a business, but you may be missing some very important details. Minimizing risk in your house cleaning business is vital to your long-term success, even if it’s not as exciting as printing company t-shirts or business cards. Here are 4 important principals to follow to reduce your risk when starting a house cleaning business:
1. Have a (financial) plan
Long before you accept your first client, you will need to calculate your startup costs and sources of income. Be realistic. Although you won’t know exactly how much income you will bring in, you should be able to set a reasonable estimate by multiplying your rate by the number of clients you have time to serve. Since you won’t be booked up completely in the first months of your business, plan on making somewhere around 50% of that amount. Will that give you enough money to pay your startup and ongoing expenses? If not, what other income streams will you have?
2. Get insured.
Business insurance is an absolute must for any small business, but especially in an industry where you will have access to clients’ homes. Business insurance may seem like an unwelcome expense, but it will pay for itself if you ever have a client file a claim against you. Insurance for cleaning business should include, at the minimum, liability protection in case anything is broken or damaged in a client’s home.
3. Take the time to properly train EVERY employee
Whether you have one friend helping you in your house cleaning business or a whole crew of employees, adequate training is the key to professional work even when you are not at the job site. Teach employees that safety comes before speed every time. Proper chemical storage and handling is just one example of something your new employees will need to be taught before they can take on clients alone.
4. Keep meticulous records
Keep a copy of all receipts, contracts, and releases as documentation in case of a dispute. It can also be helpful to use a checklist each time you or your employees visit a client’s home. The checklist should include a checkbox for each of the client’s requested services as well as locking the home up when you leave. Digitizing your contracts and receipts will streamline your record keeping and cut down on clutter in your office.
With these 4 steps, you are ready to reduce your risks as you start a successful house cleaning business. Starting a small business will take hard work and effort, but it should be fun as well. When you have a safety net in place, you can focus on growing and marketing your business instead of worrying about your risks.