Another big area in the setting up of your new commercial cleaning business is the establishment of rates.
There are several factors that go into determining the amount that you should charge. These include your expenses and your time.
Your expenses should include your supplies, maintenance, and gas, as well as the partial cost of your licenses, insurance, and other overall costs of running your business.
Most commercial cleaning companies will charge their customers an hourly rate. When determining your rates, you may want to make calls to other commercial cleaning companies in your area to find out what they are charging.
When you do, you will likely find that they all charge similar rate. In this case, you may want to keep your rates in the same range so as not to overcharge your customers, or to undercut yourself.
A big part of your learning curve will be to estimate how many hours it will take you to complete certain jobs.
For bigger jobs, you may charge by the month. Therefore, you will need to multiply the number of hours per visit it will take you to clean the location by the number of times per month that you go there.
This will be your monthly rate for that particular client.
Each location will likely be different, as the price and time it takes to clean will vary based upon the type of floors that are in the building, how many rooms there are in total, how many bathrooms there are, and even how many employees the building holds.
You will also need to open a business bank account. Even if your business remains small, it is essential that you keep your personal funds and your business funds separate.
Therefore, you must set up a separate bank account for your business. There are many banks and credit unions that offer special types of checking accounts for small businesses.
Usually these accounts provide you with a certain number of checks and a debit card. Some also include a business credit card as well.
Licenses & Permits
If you need to obtain any type of business licenses and/or permits, now is the time to take care of this, as you don’t want to find out later that you are operating your business illegally.
Different jurisdictions have varying requirements, so be sure that you have a good understanding of what types of licensure you need in order to operate a business in your area.
You may also need to obtain insurance. With a commercial cleaning business, you – and your employees, if applicable – will be entering into offices and other types of commercial establishments.
Therefore, you should have insurance coverage in the event that someone becomes injured or something breaks.
In this case, discuss your business insurance needs with a local insurance agent in order to ensure that you have all of your bases covered.
Otherwise, you could end up being liable for a costly accident or injury.
If you will be hiring any employees, you should also inquire about obtaining worker’s compensation insurance coverage.
You will also need to become bonded. This is because many companies will be entrusting you with the keys to their offices or establishments.
Being bonded will also help to protect you against employee theft. Your local liability insurance agent can assist you in obtaining a bond.
When you open a business and the company starts to earn revenue, you will need to file business taxes.
Therefore, you may need to work with an accountant or a CPA (Certified Public Accountant) in completing your business tax returns going forward.
It is also a good idea to have a tax professional that you can contact with any questions or concerns you may have regarding business expenses, tax deductible write offs, and other similar items.
In addition, as your business grows, you may need help making other types of financial related decisions such as purchasing additional pieces of equipment, whether to purchase or lease office space, and/or whether to start a retirement plan.
These are all decisions that an accountant or CPA can assist you with as well.