Opening up cleaning service...questions

[Epcotmgm]

Scared and excited about possibly starting a home cleaning service. I need all the help and advice I can get and find. Those of you that have cleaning companies come over. Do you provide cleaning supplies? What times are they open? Do you as a customer picks the hours or do they pick a day and just show up. I'm swamped at work but will hopefully be back to talk some more in a bit. Any advice or information is welcome and appreciated.

 

[Alesia]

My mom owns her own cleaning business. She uses her own supplies and equipment. She schedules her clients and is there at the same time for each appointment.

Have you ever cleaned houses professionally before?

 

[alexensmom]

I have an errand service and have several houses I clean each month. When I meet with each one before I begin work, we go over what will be cleaned, etc. I ask them if they want me to use their products or bring mine with me. All of my clients have me use what they have. I have a set time for each one, but everyone is flexible if they or I have a scheduling conflict. My clients have come from referrals from friends.

 

[Rarity]

At my workplace, our cleaning crew comes by twice a week on Wednesdays and Saturdays (deep clean). Those were the days we picked out. When they first started, they bought their supplies and billed us for that expense on top of our monthly fee. We replenish their supplies as needed going forward.

Are you bonded and insured? That's something some clients, especially businesses, would require.

 

[Cheshire Figment]

I have Merry Maids come to my house once a month. They will send a team of two or three people, with their own supplies and equipment. I am scheduled for a year in advance the very same day of the week every four weeks, so one month a year I will get two cleanings. Normally they will call me the day prior to let me know the approximate time of arrival.

If I will need a different day I will try to give them at least a few weeks notice, and if I need a specific time (such as having a Dr appointment) I will try to let them know several days out.

 

[Sagginit]

commercial or residential? that makes a big difference.

i knew a few people who had their own small residential cleaning businesses and as a teenager often picked up some hours with them to make extra cash (like babysitting but without the kids ). we always brought our own cleaning supplies including vacuum. with that one we never had to worry about breaking the clients and we knew we had one in good condition and that was efficient. our own cleaning supplies also ensured we had what we needed to get the job done.

the big thing is to understand your pricing. we gave a flat price per house, not time. we always discussed what they wanted cleaned in each room and if there were any special instructions (for ex. one house wanted sheets changed - normally not included so extra for that, another had special cherry hardwood floors that required its own cleaning solution, beach house had to be vacuumed a bazillion times to get the sand). in the case of my friends mom she had more houses in the summer as she took on rentals. she then employed my friend, me and maybe a few others. we did the same accounts she did year round but did them in a fraction of the time to move on to more jobs. i don't think hourly pay is ever a good idea.

as for times we basically cleaned between 8-6. we set the time based on other appointments and what worked for them. most people wanted the home cleaned during the day on weekdays when they werent home, but summer rentals would often be on saturday afternoons after one family left for the week and before the other got there. sometimes we did do some sunday mornings.

 

[msmama]

I may be wrong but I vaguely remember hearing something about taxes becoming an issue when people use THEIR cleaning products vs YOURS. Something about if one person supplies them then they are considered something different and taxed differently.

I obviously don't remember the specifics, and it may pertain more to like a full time housekeeper situation, but I guess what I'm saying is to make sure you check out all the strange laws in your state!

 

[Cheshire Figment]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

 

[mandy14]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

I very much agree with this. When I had my own editing company my accountant had it figured that I would be paying nearly 50% of my income in taxes. He was right with the tax bracket etc. So be prepared for this.

 

[SamSam]

I very much agree with this. When I had my own editing company my accountant had it figured that I would be paying nearly 50% of my income in taxes. He was right with the tax bracket etc. So be prepared for this.

I agree, DH and I have had our business for years and while I do the bookkeeping, we rely on our accountant for taxes and to make sure we're doing what we need to as far as the government is concerned.

 

[chunkygal]

Agree with above advice. As someone who hires cleaning services, one of the first questions I ask is about tax filing. If person wants "just cash" and does not claim taxes, I pass. It may be "cheaper", but these are also people who probably don't have insurance...and an injury on my property would be a lawsuit, plus I don't want the hassle of being involved in someone's IRS problems down the road.

It amazes me the number of people who seems to think it is OK not to pay taxes. Believe me I disagree with the amount I pay, but since many work "off the books" I pay more!

 

[TheRustyScupper]

Scared and excited about possibly starting a home cleaning service. I need all the help and advice I can get and find . . .

1) Go the the SCORE.ORG website and request assistance.
2) These are 13,000 volunteer businesspeople willing to help.
3) SCORE is
. . . free
. . . sponsored by the Small Business Administration
. . . free
. . . able to help you from inception to up-and-running
. . . free
. . . can work with you for one phone call, or for years
. . . free
4) You will get a return phoine call usually within 48-hours.
5) Did I mention the mentoring/counseling is free?


.

 

[scrapquitler]

I have absolutely no knowledge of the cleaning business, but I can make these suggestions:

1. definitely get tax advice, and know how you are going to legally establish your business: will you be set up as a DBA, an LLC, a corporation? These choices make a big difference when it domes to separating your personal finances vs. the businesses finances and when it comes to filing your taxes.

2. be very clear what business licenses (if any) are required in your area.

3. be very clear that you understand insurance issues pertaining to your business. You may need to have your own liability insurance to protect you against any damages you may cause to your client's property, you may need it to protect yourself from injuries, etc. You may also need to be bonded to make your customers feel more secure about having you in their homes.

4. get everything in writing with your customers.

 

[Lilliputian]

As someone who has hired several cleaning ladies/agencies over the years, here are some of my tips:

• I like it when they provide their own cleaning products. It's one less thing for me to worry about.
• I also like it when they'll allow me to provide my own cleaning products. Sometimes I like them to use my own all-natural floor cleaner when I have a crawling baby.
• I certainly don't mind providing the vacuum cleaner and other big equipment that I already have and don't have to keep going to the store to buy more. I even think it may be a little healthier than using a shared vacuum, toilet brush, etc.
• Being able to schedule at approximately the same time every week is important.
• I like it when they divide the house into zones and deep clean one zone each week (but do a basic clean for the whole house). For example, one week they may deep clean the living room and dining room, including baseboards, ceiling fans, windows, etc. The next week they may deep clean the kitchen, which includes the oven.

I've had a lot of bad experiences with house cleaners. Some have been slow to contact me, not shown up when scheduled, or left dirty spots. If you are careful to do the basics really well, you'll be a lot better than some of the people in your area, which is obviously good for your business.

 

[Epcotmgm]

Thank you for the information. Which has a better market, commercial or private cleaning? How do I figure out a price per hour and how do I estimate how long things would take?