Get Your Cleaning Business off to a Good Start by Avoiding These Common Mistakes

Get Your Cleaning Business off to a Good Start by Avoiding These Common Mistakes

As you get ready to start your own cleaning business there are literally hundreds of things you have to do - from buying supplies to figuring out your accounting system to finding customers. Your first year in business is full of excitement, but can also bring about a steep learning curve. You can be a step ahead of the game by avoiding these seven common business mistakes.

Mistake 1: Thinking all you need is energy and determination to succeed. You often hear that entrepreneurs need a "fire in the belly" to get a business off and running. It's true, you'll be much happier if you're passionate about your business, but passion alone isn't going to pay your bills. You need much more than that - you need a plan. Thoroughly research your market and write a business plan and marketing plan. It doesn't have to be a huge, overwhelming project, but it forces you to take a good, hard look at your business and what you're trying to accomplish. Consider it a road map for your business success.

Mistake 2: Under pricing your services. Many start-up business owners believe they can undercut their competitors and "steal" customers away. Pricing your services below market value only costs you money and eats away at your profits. Eventually you'll resent the fact that you're working so hard for very little income. Carefully calculate how you need to price your janitorial services so you cover all of your costs and still make a profit. And price your services based on the value you offer your customers.

Mistake 3: Living off adrenaline. Entrepreneurs tend to live off the rush they get from sweating out the details of how to make a business work. That's not why you are starting your cleaning business. Your overall purpose is to make money. If you need a rush to get out of bed in the morning, make your coffee stronger.

Mistake 4: Not knowing anything about marketing. Many new business owners fail to budget or make any plans to market their services. Some business owners even confuse marketing with sales. Sales are deals you close during the day. Marketing is doing everything you can to get the word out about your cleaning business.

Mistake 5: Being your employee's best friend instead of the boss. At the start of a business, everyone involved is working several different jobs and perhaps even working seven days a week. Many problems are fixed on the fly. Eventually things settle down and you develop a system for assigning jobs and taking care of problems. You can avoid this common mistake by making sure that you have employment policies set up before opening the doors to your cleaning business. This will avoid legal problems and low employee morale. Remember, you are the boss and you set the pace. Have a company handbook and make sure your employees follow the rules. If you don't have any rules your business will suffer.

Mistake 6: Quickly spending your capital. Most business owners will underestimate the amount of money they need to get their business up and running. Your janitorial business needs more than just cleaning equipment and supplies. You'll need office supplies, phone services, vehicles (or money for mileage expenses), uniforms, marketing materials (brochures, business cards, etc.), insurance, and professionals (lawyer, accountant) to get your business off on the right foot. As a cleaning business, you will most likely bill at the end of the month and on top of that, some customers may drag their feet when paying their invoice. That means that you'll be providing cleaning services well before you receive any payment so you need to have cash on hand to pay the bills. Develop a personal and business budget that can sustain your company and then add at least 50 percent to cover unforeseen expenses.

Mistake 7: Forgetting about your family. A start up cleaning business can be very demanding. A new business owner might be working 60 hours or more a week. This can put a huge stress on your family. When you start a cleaning business, it is not only a commitment on your part, but also on your family and friends. Make sure that you find time in that hectic first year of business to show appreciation to your family and friends for the support they give you.

Steve Hanson is co-founding member of TheJanitorialStore.com, an online community for owners and managers of cleaning companies who want to build a more profitable and successful cleaning business. Sign up for Trash Talk: Tip of the Week at http://www.TheJanitorialStore.com and receive a Free Gift. Read cleaning success stories from owners of cleaning companies at http://www.cleaning-success.com/ .