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Opening Janitorial or Cleaning Company

 
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Category : > New Business Setup
Posted On : Mon Oct 03rd,2016

 
How to open a Janitorial or Cleaning Company?
 

A complete guide to set up successful janitorial company

 

What is janitorial cleaning?

Janitorial cleaning is also known as commercial cleaning. This type of companies provides office, residence and business cleaning services. A janitor is someone who performs cleaning tasks.

 

The following bullet points may be considered while planning to start a Janitorial cleaning business:


  • Why Start a janitorial Business?
  • Industry overview
  • Market Research
  • List the Niche you are specialized in
  • Business Competition
  • Budget  and Cash Flow
  • Possible Challenges
  • Marketing Strategies

 

How to Set Up a Company and Obtain Licenses and Permits?


  • Choose the name
  • Register your Business
  • Protection of intellectual property and Trademark
  • Sale and use tax permit
  • Insurance
  • Eligibility of a non resident to opena a Janitorial Cleaning Business

Why Start a janitorial Business?

The very first question that comes in our mind “Why setting up a janitorial business?”
Registering a Janitorial business is very easy to run and does not cost huge money to invest but an extra research and understanding the business trend can make you a successful entrepreneur within no time. You are here to invest your time to learn the techniques and technology that is used in this industry to make you visible. As most of the commercial buildings need the cleaning services at night, so you can utilize your time separately.

 

Industry Overview

It is the basic point to look and take an overview what you are going to do. Are you ready to match the standards of the business? Are you ready to face the challenges? An industry overview gives you an exposure for a company registration. Study the market data and statistics. It will give you a better insight.

 

Market Research

It is like to prepare a feasibility report of your potential customers. You need to research the average janitorial cleaning clients. Doing this activity will help you to assess the demand of your services. Here is the list of few organizations may hire your services:

  • Hotels
  • Bars
  • Medical Facility
  • Restaurants
  • Casinos
  • Retail location

 

List the Niche you are specialized in

Make a list of the services in which you are well versed. Where you can think that you can show your expertise. Don’t claim that you are all in one but offer selective services that should be up to the mark. 
 

Business Competition

Research for the business trends, and which company is popular out there. You need to focus the reasons of their success and the discipline they are following. An extensive look can give you an idea that can make you different from them in the real sense.

Budget Analysis

Budget analysis is the core part to set up a Janitorial business. you have complete data of a market and business competition, looking your statistics, make a plan to invest your money precisely. Check the services you are offering actually meet your budget or not. Cash flow plays a vital role to operate and run a successful business. Cash flows helps you to control your accounts receivables and payables. Tangible cash flow is more important for your business than intangible profit. A lot of businesses fail due to not maintain a balanced cash flow.
 

Possible Challenges

Before opening a new company, look for the challenges in the industry you may have.

Challenges can be of various types:

  • Hiring Employees
  • Commercial Building
  • Rates and service quality
  • Suppliers
  • High Competition and thin profit margin
  • Location

 

Marketing Strategies

  • Marketing strategy is an essential part to open a new company in the USA. The most effective marketing strategy is to get consumer report. A consumer report tells you the customer behavior and remarks. Improving your customer reviews can enhance your marketing and brings more potential customers.
  • Online marketing is a most cost effective and popular way to advertise your business.
  • Create a website and display your pricing for your potential customers to compare the prices.
  • You should give a facility to your customers to swipe the debit or credit card on machines or charge through online portals such as PayPal or authorized.net.
     

 

How to Set Up a Company and Obtain Licenses and Permits?

 

Choose Entity Type- Selecting a right business structure to incorporate your business is very important for the tax and assuming personal liabilities to protect your personal assets. You can incorporate as a Sole Proprietorship, Partnership, Corporation or an LLC.


Choose the name-Select a name to set up your new business under the laws of the state in which you are going to start your business

 

Register your Business-Registering your business mean you can run your business activities without any legal barriers. You need to register your business federally or locally. Get an EIN number if you are going to setup a partnership or sole proprietor business.

 

Sale and use tax permit-Get a sale and use tax permit as per your state law. Janitorial and Cleaning services are taxable in most states. It is used to purchase material or collecting sales tax from your customers.

 

Insurance-Workers compensation and disability insurances are required to buy if you have employees. You can also carry the error and omissions and general liability protection insurances to protect your business and personal assets.

 

Non resident- USA is an ideal market to invest and start a business.

  • A Non US Resident can open a janitorial company in the USA
  • A Non US resident can set up a janitorial company in USA without a Social Security Number.
  • Non US resident can file as manager managed if the owner is not physically available
  • The name of your business must be registered in the state department
  • Non US resident will file a tax as a non US resident


  

Khizar Hayat

The Author of this article is a M.Phil in English Literature


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