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commercial cleaning

Executive Summary

Your executive summary is the first part of your business plan, but you usually write it last because it is a summary of all the important parts.

The point of your Executive Summary is to get the reader’s attention quickly. Tell them what kind of business you are running and what the status is. For example, are you just starting out, do you want to grow your commercial cleaning business, or do you have businesses in more than one city?

Next, give an overview of each part of your plan that follows. For example, you could give a quick summary of your business. Talk about what kind of business you are running. Detail your direct competitors. Tell us about your ideal customers. Give a brief overview of your marketing plan. Find the important people on your team. And explain what your financial plan is.

Company Analysis

In your business analysis, you will explain what kind of commercial cleaning business you run.

For example, you might run one of the following types of commercial cleaning companies:

  1. General commercial cleaning focuses on cleaning bathrooms, floors, kitchens, desks, tables, and floors. Standard services may also include things like dusting, watering plants, and other small tasks.
  1. Healthcare and lab cleaning is the main focus of this type of business.
  1. Damage Restoration: This type of commercial cleaning usually includes water extraction, dehumidification, mold and mildew remediation, debris removal, and site reconstruction.

In the Company Analysis section of your business plan, you should not only describe the type of business you will run, but also give background information about the business.

Answers should be given to questions like:

  • When did you start your business, and why?
  • What important steps have you taken so far? Milestones could include the number of customers served, the number of good reviews, the total number of contracts won, and so on.
  • Your legal structure. Are you set up as an S-Corporation? An LLC? A single-person business? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to give an overview of the industry.

Even though this may seem pointless, it has more than one use.

First, learning about the industry gives you knowledge. It gives you a better idea of the market you are in.

Second, market research can help you make your strategy better, especially if it shows you market trends.

The third reason to do market research is to show your readers that you know a lot about your field. You do just that by doing the research and putting it in your plan.

In the industry analysis section, you should answer the following questions:

  • How much money does the business make?
  • Is the market going down or up?
  • Who are your main rivals in the market?
  • Who are the main market suppliers?
  • What changes are happening in the field?
  • How fast is the industry expected to grow in the next 5–10 years?
  • How big is the market that matters? That is, how big could your commercial cleaning company’s market be? You can figure out such a number by figuring out how big the market is in the whole country and then applying that number to the population in your area.

Customer Analysis

In the customer analysis section, you need to explain who you serve and/or who you hope to serve.

Office buildings, health care facilities, factories, and airlines are all examples of customer segments.

As you might guess, the type of business you run will depend a lot on the customer segment(s) you choose. Office building owners would respond to different marketing campaigns than, say, medical lab owners.

Try to figure out who your ideal customers are based on how they look and how they think. In terms of demographics, talk about the ages, genders, locations, and income levels of the people you want to serve. Because most commercial cleaning services mostly work with people in the same city or town, it’s easy to find this kind of demographic information on government websites.

Psychographic profiles explain what your target customers want and need. The better you can understand and define these needs, the easier it will be to get customers and keep them coming back.

Competitive Analysis

In your competitive analysis, you should list your business’s direct and indirect competitors and then focus on the direct ones.

Other commercial cleaning companies are their main rivals.

Indirect competitors are other places where customers can buy things that aren’t direct competitors. This includes businesses with their own cleaning staff. You should also talk about this competition.

In terms of direct competition, you should talk about the other commercial cleaning companies that you compete with. Most likely, the closest commercial cleaners to you will be your main competitors.

Give an overview of each of these competitors’ businesses and list their strengths and weaknesses. Unless you’ve worked at one of your competitors’ companies, you won’t know everything about them. But you should be able to find out key facts about them, such as:

  • What kind of clients do they work with?
  • What kinds of cleaning do they do?
  • How much do they charge (high, low, etc.)?
  • What can they do well?
  • What do they do wrong?

For the last two questions, try to answer them from the customers’ point of view. And don’t be afraid to ask the customers of your competitors what they like and dislike about them.

The last part of your competitive analysis section is to list the ways you are better than your competitors. As an example:

  • Will your cleaning or sanitation services be better?
  • Will you offer services that your competitors don’t offer, like “green cleaning” or “white glove cleaning”?
  • Will you treat your customers better?
  • Will you price things better?

Think about how you will do better than your competitors and write them down in this part of your plan.

Marketing Plan

Usually, a marketing plan has four parts: the product, the price, the place, and the promotion. Your marketing plan for a business cleaning service should include the following:

Product: In the product section, you should repeat the type of commercial cleaning business you wrote about in your Company Analysis. Then, give specifics about the products you’ll be selling. For example, do you offer custom services like specialized disinfection or high-tech cleaning in addition to general commercial cleaning?

Price: Write down the prices you’ll be charging and how they compare to those of your competitors. In the product and price sections of your marketing plan, you mainly talk about the things you sell and how much they cost.

Place is where your commercial cleaning company is located. Write down where you are and how that will affect your success. For example, can you drive to your commercial cleaning business from more than one business district? Talk about why your location could be the best for your customers.

Promotions: The last part of your marketing plan for commercial cleaning is the section on promotions. Here, you’ll write down how you’ll get people to your location (s). Here are some ways you could promote your business:

  • Putting ads in newspapers and magazines in your area
  • Contacting local websites
  • Flyers
  • Social media marketing
  • Local radio advertising

Operations Plan

In the other parts of your business plan, you talked about your goals. In your operations plan, you talk about how you will reach those goals. Your plan for operations should have two separate parts.

Everyday short-term processes include all of the tasks you need to do to run your business, such as getting contracts, finding supplies, supervising work sites, cleaning, getting specialized training, etc.

Long-term goals are the goals you want to reach in the future. These could be the dates when you hope to sign your 100th contract or earn $X. It could also be when you plan to open a new cleaning business in a different city.

Management Team

Your commercial cleaning company needs a strong management team to show that it can do well. Showcase the backgrounds of your key players, focusing on the skills and experiences that prove they can help a company grow.

You and/or other members of your team should have experience running commercial cleaning companies. If so, talk about your experience and skills. But also highlight any experience you think will help your business succeed.

If your team is missing something, you might want to put together an advisory board. A two-to-eight-person advisory board would help your business in the same way that a mentor would. They would help answer questions and give advice on how to plan. If you need to, look for advisory board members who have run cleaning companies or small businesses successfully.

Financial Plan

Your 5-year financial plan should include a monthly or quarterly breakdown for the first year, then an annual breakdown after that. Your income statement, balance sheet, and cash flow statement are all part of your financial statements.

A more common name for an income statement is a Profit and Loss statement, or P&L. It shows your income and then takes away your expenses to show if you made a profit.

You need to make assumptions in order to make your income statement. For example, will you clean five houses a day or just one house for a special customer? And will sales grow by 2% or 10% every year? As you might expect, the financial forecasts for your business will be greatly affected by the assumptions you choose. Do as much research as you can to try to make sure your assumptions are true.

Balance sheets show both your assets and your debts. Balance sheets can have a lot of information, but try to boil them down to the most important parts. For example, if you spend $50,000 setting up your commercial cleaning business, you won’t make money right away. Instead, it is an asset that you can use to make money for years to come. Likewise, if a bank gives you a check for $50,000, you don’t have to pay it back right away. Instead, you will have to pay that back over time.

Cash Flow Statement: Your cash flow statement will help you figure out how much money you need to start or grow your business and make sure you never run out of cash. Most business owners and entrepreneurs don’t realize that you can make money but still go bankrupt if you run out of money.

When making your Income Statement and Balance Sheet, be sure to include some of the most important costs of starting or growing a commercial cleaning service:

  • Location build-out, which includes construction, design fees, etc.
  • Cost of supplies and equipment
  • Payroll or wages given to employees Business insurance
  • Taxes and licenses:
  • Legal expenses