Are you a clean freak and wish to turn your passion into a business? Do you want to learn how to start a cleaning business in Australia? Because if you want to, then you should definitely go for it by reading the following guide.
The Australian cleaning business is presently worth around $12 billion. Recent studies predict that the market will expand at a 6.3% CAGR from 2022 to 2027, reaching a size of almost USD 83.6 billion by 2026. Let’s take a look at some of the other advantages of starting your own cleaning business.
- Starting a cleaning business is relatively inexpensive compared to other specialised businesses: All you require is a crew of cleaning professionals, supplies, tools, and high-quality service. Hence, instead of worrying about how to start up a cleaning business in Australia, you can start immediately.
- The cleaning industry is diverse with many options: This includes cleaning for offices, homes, retail stores, warehouses, storefronts, and many other locations. In other words, you will never run out of customers, and your investment will always yield a higher return.
- The demand for professional cleaning has grown significantly: One of the key reasons for the increased demand is busy work schedules and the need for high-quality services.
Other benefits include boosting your goals, increasing your revenues, and building a strong reputation in the existing market without needing prior industry experience. Lastly, cleaning can be your best business opportunity if you want to commence your entrepreneurial journey.
However, since everything has pros and cons, the cleaning industry also has disadvantages that you should be aware of before getting involved.
- Competition: This is present in the market because of the low entry barriers. Due to this, many entrepreneurs have begun to establish their businesses in this industry. Do you want to stay one step ahead of the competition? Delivering top-notch services is essential, but you will also need to up your game by learning cutting-edge methods for marketing and supervising your cleaners. If this is done while maintaining a high standard of cleaning, it will generate a ton of revenue.
- Recruitment: The commercial cleaning industry has a high job turnover due to the frequent arrivals and departures of cleaners. Some cleaners will leave their jobs with less than a month’s notice, demonstrating a lack of commitment to the job. To help employees perform at their best on the job, hiring managers should ensure they receive the appropriate training and other employee benefits.
- Churn: Customers in this industry can cancel their membership or subscription to your services, making revenue forecasting difficult and unpredictable. To minimise this, paying attention to your churn rates and trends is critical.
- Impatient customers: Customers expect a lot, and when things do not turn out well, they tend to turn impatient. This could result in them opting for another cleaning business and leaving yours. Therefore, it is a must that proper instructions are given to employees before they go out to do fieldwork.
- Limitations on passive income generation: Making passive income in this industry can be more difficult. This is because the amount of money you can make is frequently constrained by how much time you have available daily.
Now you have gone through the positives and negatives of starting your own business. It is time to move on to the day’s main topic, which is how to start up a cleaning business in Australia. We are extremely proud of you for coming this far. Now, be sure to take these necessary actions because they may help you get to the precise place you desire in your life.
Checklist for Australian Startup Cleaning Businesses.
Step 1: Identify the Business Model
The choice is yours. Obviously, each has its own pros and cons, which you should be aware of before finalising the decision. The following are the points for your reference:
Step 2: Find your Purpose and Niche
This particular step is extremely crucial, both for yourself and the survival of your company. This stage involves asking questions and identifying the purpose.
Make sure to identify your ‘WHY’. For example, why are you choosing this? How does it align with your strategies and personal goals? Is this something you are really passionate about, or are you starting the business for the sake of it?
Once you are confident about going ahead with the entrepreneurial journey, it is time to think about the target market and what services you will offer your clients. Will it be everything, or will you provide specialised niche services? Following are a few industry opportunities you could specialise in.
The target audience could be:
- Residential cleaning: Today, home cleaning service customers are in their 30s to 50s. The primary reason is that saving a few hours allows people to spend their weekends with their families instead of worrying about housework.
- Corporates: Providing a pleasant and clean work environment is essential for ensuring the well-being of employees. As a result, commercial cleaning is now in demand. Commercial cleaning companies would now prioritise on-demand cleaning work in addition to routine cleaning tasks.
- Other: Banks, schools, hospitals, nursing homes, restaurants, movie theatres, convention centres, hotels/motels, manufacturing facilities, amusement parks, daycare centres, retailers, shopping malls and even automotive centres.
However, specialised services could be:
- Disaster cleaning and restoration
- Post-death and trauma cleaning
- Blind cleaning (mini-blinds and Venetian blinds)
- Pressure washing
- Restroom cleaning
- Window cleaning
- Chimney sweeping
- Ceiling, and wall cleaning
These services require varying levels of training, skill, and equipment. These services can either be stand-alone operations or added as an additional service to your cleaning company. The choice is yours, based on your company’s goals and objectives.
Step 3: Legalisation and Paperwork
Now it’s time to make it REAL! Register your business. You will need a company name and a legal structure for your enterprise. You can choose a sole proprietorship, partnership, corporation, or limited liability company (LLC) as your business structure.
In Australia, most cleaning practices are not regulated, so there are no minimum qualification requirements. However, it is always better to check twice.
Also, obtain a complete insurance package to ensure your business’s security and future hires. You might choose the following insurance options for your cleaning business:
- Public liability insurance covers accidents or damage while working at a client’s property.
- Business Owner’s Policy (BOP) covers general liability, business property, and interruption.
- Workers’ compensation insurance covers the costs of worker injury, covering medical bills, lost wages, and rehabilitation.
Once these steps are completed, put together a business plan. This document outlines every aspect of your business’s operations. This can include regular operations, staffing, organisational structure, and projected income and expenses.
In the meantime, it is worthwhile to consider getting a degree even though it is not required to work in this field.
For instance, if you have a recognised qualification, you will have the necessary abilities, expertise, and knowledge to carry out cleaning tasks correctly and effectively. Additionally, you can use your credentials as a marketing strategy to set yourself apart from the competition.
Step 4: Acquiring Important Assets
The most important resources for a cleaning company are its staff, equipment, and technology investments. Consequently, this is a crucial decision that must be made with great care because the company’s success depends on it.
Employees are the greatest asset. Therefore, before starting the hiring process, you should answer four essential questions:
What kind of cleaners will you consider? (full-time/part-time/contract basis)
- How can your employees help grow your customer base?
- How will you train them?
- Why should they retain and not leave after a short period?
Investing in the right technology is a shortcut to completing more than half of your work perfectly!
Consider investing in a Field Service Management solution that helps you fast-track your processes and streamline workflows. The right software will help you step up your compliance game and help you offer more process transparency to your customers.
i4T Business is one such revolutionary solution, which offers everything from quoting, scheduling, invoicing, reporting and recording your jobs from start to finish.
It also offers integration with your favourite accounting app, so you do not have to switch between different platforms.
Vehicle: Depending on the services you will provide, you can determine the type of vehicle you want. This will be used for the transportation of equipment and other heavy items. In the long run, purchasing a vehicle will significantly reduce expenses.
Uniform: Believe it or not, all cleaning-based companies have their own uniforms for all their employees. While not mandatory, uniforms make it professional and trustworthy in the eyes of the clients. After all, it also acts as an indirect way to promote your brand.
Step 5: Pricing
Pricing will again depend on the services offered by your company. So, avoid attempting to compete on price. Even though it can be alluring to do so, especially when you see your competitors offering outrageous discounts, doing so will result in low-profit margins.
Always keep in mind that customers are willing to pay more for high-quality services. So, if you are positioning your cleaning company as a “premium quality” company, then charge the prices accordingly.
When customers realise the value and quality your company provides for the price charged, they will never leave. In fact, you will be able to get more and more clients based on their recommendations to their networks.
Step 6: Client hunting
There are many forms of reaching out to the targeted audience. However, the most appropriate way to advertise a cleaning business is as follows:
- Website: Enhance your brand’s reputation through this platform. A website can aid in increasing your online visibility and gaining potential clients’ confidence. (Include SEO optimisation).
- Social media marketing: Popular social media platforms like Facebook, Instagram, and YouTube are great places to forge stronger online ties and gain and maintain client trust.
- Review websites: If your customers are happy with your services, ask them to post reviews to boost your reputation and bring in more business
- Local business events: Network to promote new business in your area and spread word of mouth, particularly among local investor groups.
- Offline marketing techniques: Flyers, leaflet drops and newspaper advertising. If you are wondering how to make a cleaning business flyer, do not worry. It is possible with software such as MS Word, Canva, etc.
There are a lot of cleaning companies your clients can choose from. Nothing is impossible; if you wish to commence the business, then you should. As you read through this blog, the steps are really simple, and the benefits of starting this business outweigh the negatives.
True dedication, commitment, and integrity will reward you for your success. The recipe for success is simple; you must tailor your work to the needs and preferences of your customers. Nothing can stop you from expanding and scaling up your business as long as it is done correctly and employees are happy.
We hope by now you might have sorted out how to start up a cleaning business in Australia. With all the groundwork down and your business ready to take off, we suggest that you try out i4T Business to get your first few jobs completed and we promise you won’t look any further. We wish you the very best of luck in all your future endeavours!
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With our cutting-edge technology and in-depth knowledge of how the Field Service Management sector operates, the i4T Global Team loves to share industry insights to help streamline your business processes and generate new leads. We are driven by innovation and are passionate about delivering solutions that are transparent, compliant, efficient and safe for all stakeholders and across all touch points.