business plan for a commercial cleaning company

Commercial Cleaning Business Plan Template & PDF Example

• September 4, 2024

Creating a comprehensive business plan is crucial for launching and running a successful commercial cleaning business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your commercial cleaning business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a commercial cleaning business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your commercial cleaning business concept into reality. Let’s dive in!

Our commercial cleaning business plan is crafted to address all key elements crucial for a thorough strategic outline. It specifies the business’s service protocols, marketing tactics, industry analysis , competitive positioning, organizational setup, and financial outlook.

• Executive Summary : Offers an overview of your commercial cleaning business concept, market analysis , management, and financial strategy.
• Operations & Location: Describes the operational aspects of your commercial cleaning service, including the range of cleaning services offered, the strategic importance of your location(s), and coverage area.
• Services & Pricing: Lists the types of cleaning services offered, such as office cleaning, industrial cleaning, healthcare facility sanitation, and specialized deep cleaning.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the commercial cleaning market.
• Key Trends : Highlights recent trends in the commercial cleaning industry, such as the demand for eco-friendly and sustainable cleaning practices and the integration of advanced technology.
• Key Competitors: Analyzes main competitors in your area and differentiates your service in terms of cleaning standards, service range, and pricing.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis specific to your commercial cleaning business.
• Marketing Plan : Details strategies for promoting your commercial cleaning service, including digital marketing, local advertising, and community engagement.
• Timeline : Key milestones and objectives from launch through the first year of operation.
• Management: Information on who manages the commercial cleaning service and their roles.
• Financial Plan: Projects the commercial cleaning service’s 5-year financial performance, including revenue streams from various cleaning services, profit margins, and major expenses. 

Commercial Cleaning Business Plan Template (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as the gateway to your commercial cleaning business plan, presenting a succinct overview of your company and its offerings. It should articulate your market position, detailing the spectrum of cleaning services you provide, its operational base, scale, and the daily operational framework.

This section must also delve into your business’s integration within the local market, encompassing an analysis of the direct competitors in the vicinity, identifying who they are, and highlighting your business’s unique selling propositions that set it apart from these competitors.

Moreover, the summary should shed light on the management and founding team, delineating their roles and the value they bring to the company’s success. Additionally, a précis of your financial forecasts, including anticipated revenue and profit margins over the upcoming five years, should be included here to offer a transparent view of your business’s financial strategy.

Commercial Cleaning Business Plan Executive Summary Example

Business Overview

The  business overview  serves as the introductory facet of your executive summary. It outlines essential details such as the name of your cleaning service, its location, and the core operational aspects.

To carve a distinct identity in the market, emphasize your  unique selling proposition  ( USP ). Whether your focus is on eco-friendly cleaning solutions, specialization in specific industries like healthcare or retail, or providing a comprehensive array of cleaning services, the USP should be prominently featured. It’s the hook that sets your cleaning service apart in a competitive industry landscape.

Example: “Sparkling Solutions,” strategically positioned in [City Name], provides premier commercial cleaning services within a [x]-mile radius. Our comprehensive range of services includes office cleaning, industrial sanitation, healthcare facility maintenance, retail space upkeep, and specialized deep cleaning. We specialize in fostering clean, healthy, and inviting environments through rigorous standards and sustainable practices, defining our unique position in the market.

Market Overview

Demonstrating an acute understanding of the market is pivotal. This section delves into  market size , growth trends, and industry dynamics relevant to the commercial cleaning sector. Incorporate data-driven insights showcasing the potential of the industry, including market valuation, growth rates, and emerging trends.

Additionally, analyze the competitive landscape. Identify  key competitors  and elucidate how your cleaning service positions itself uniquely. Whether through unparalleled service quality, transparent pricing models, or specialized cleaning methodologies, showcase how your service stands out amidst competitors.

Example: Within the vast US commercial cleaning services market valued at approximately $90.1 billion in 2023 and projecting a compelling +5.5% CAGR, Sparkling Solutions operates within a competitive landscape characterized by diverse enterprises. Our keen focus on eco-friendly practices and harnessing advanced technology positions us uniquely among competitors within our [x]-mile operational radius, resonating with clients inclined towards sustainability and cutting-edge service delivery.

Management Team

Highlighting the expertise and background of your management team in the executive summary instills confidence in potential investors and partners. This section emphasizes the qualifications and experience of key team members, showcasing their instrumental roles in driving the cleaning service’s success.

Example: At Sparkling Solutions, our leadership is spearheaded by individuals boasting extensive expertise in commercial cleaning techniques and project execution. Their leadership ensures the delivery of stringent quality standards, fosters robust client relationships, and maintains excellence in our service provisions.

Financial Plan

The financial plan section provides a snapshot of your cleaning service’s fiscal goals and projections. Include revenue targets, profit margins, and a strategic overview of the financial trajectory.

Example: Sparkling Solutions is committed to reaching a significant milestone of $1.2 million in annual revenue, coupled with a commendable [13]% profit margin ( EBITDA ) by 2028. This financial aspiration is underpinned by a robust strategy encompassing prudent fiscal management, operational efficacy, and a relentless pursuit of superior service delivery that surpasses industry standards.

Services & Rates

Elaborate on the comprehensive range of cleaning services your business offers, from regular office cleaning and maintenance to specialized services such as deep cleaning, sanitization, and industrial cleaning.

Detail your pricing model , ensuring it aligns with the value and quality of services you deliver, and is competitive within the market you are targeting.

Emphasize any unique service packages, contractual discounts, or loyalty incentives that you offer to foster long-term business relationships, encourage repeat engagements, and enhance client retention.

Industry Size & Growth

Begin your Market Overview by analyzing the commercial cleaning industry’s size and its potential for growth. This examination is essential to comprehend the market’s breadth and to pinpoint opportunities for scaling your business.

Key Market Trends

Continue by discussing prevalent trends in the commercial cleaning sector, such as the growing emphasis on eco-friendly and sustainable cleaning practices, the increasing demand for specialized sanitation services (especially in the wake of health crises), and the adoption of advanced cleaning technologies.

For instance, highlight the shift towards green cleaning products and methods, the heightened need for disinfection services in various sectors, and the integration of automation and smart technologies in cleaning operations.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your commercial cleaning business in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps in identifying your commercial cleaning business’s unique selling points, essential for differentiating your business in a competitive market.

In addition, the competitive analysis is integral to laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Commercial Cleaning Industry

Identifying your competitors is the cornerstone of comprehending your commercial cleaning business’s position in the market. Begin by mapping out local cleaning companies and franchises that offer services akin to yours. Direct competitors could be specialized cleaning services targeting particular industries (e.g., healthcare or hospitality), while indirect competitors might include general maintenance companies that offer cleaning services among their repertoire.

Leverage online resources like business directories, Chamber of Commerce listings, and industry-specific platforms to gather a comprehensive list of competitors. Platforms like Google My Business and Yelp provide valuable insights through customer reviews and ratings, shedding light on competitor  strengths and weaknesses . For instance, if “Spotless Solutions” is praised for its efficient service and environmentally friendly practices in customer reviews, this highlights a competitive advantage to consider.

Commercial Cleaning Business Competitors’ Strategies

Analyzing competitors’ strategies involves delving into various aspects:

• Service Offerings:  Examine the range of services provided by competitors. For instance, if “Eco-Clean Services” has gained traction by emphasizing eco-friendly cleaning solutions, it signals a  market trend  toward sustainability that your business might consider capitalizing on.
• Specialization and Expertise:  Consider specialized cleaning techniques or expertise. A company focusing on medical facility sanitation might adopt different protocols than one specializing in office cleaning or post-construction cleanup.
• Pricing and Packages:  Compare pricing models and service packages offered by competitors. Are your rates competitive with those of “Budget Cleaners,” or do they align more with the premium services provided by “Elite Janitorial Solutions”?
• Marketing and Outreach:  Assess competitors’  marketing strategies . Do they heavily invest in digital marketing, have a strong online presence, or rely more on referrals and established client networks?
• Customer Relations and Satisfaction:  Evaluate customer experiences and satisfaction levels. “Sparkling Service Co.” might be known for exceptional customer service, prompt responses, and tailored cleaning solutions, influencing client retention and loyalty.
• Operational Efficiency and Technology Adoption:  Observe if competitors are leveraging technology or innovative methods to enhance efficiency, such as “Tech-Clean Innovations,” utilizing advanced cleaning equipment or software for scheduling and tracking services.

What’s Your Cleaning Business’s Unique Selling Proposition?

Reflect on your commercial cleaning business’s  unique value proposition . Perhaps your company specializes in green cleaning practices, using environmentally friendly products that are increasingly in demand. Alternatively, your focus could be on specialized cleaning for specific industries, such as high-tech office spaces or industrial facilities, filling a niche not adequately addressed by competitors.

Identify market gaps and emerging trends through client feedback and  industry analysis . For instance, if there’s a growing demand for COVID-19 disinfection services and few competitors specialize in this area, it presents an opportunity for your business to cater to a pressing need in the market.

Consider your operational strengths and the geographical market you serve. A cleaning business targeting corporate offices might emphasize professionalism and after-hours service flexibility, while a company focusing on residential cleaning might prioritize personalized service and flexible scheduling to suit homeowners’ needs.

Begin with a SWOT analysis for your commercial cleaning business, emphasizing Strengths (like a comprehensive range of cleaning services and a highly trained workforce), Weaknesses (such as limited brand recognition or the challenge of high initial investments), Opportunities (including the growing demand for hygienic and sanitized work environments), and Threats (like market competition or regulatory changes affecting cleaning standards).

Marketing Plan

Develop a marketing strategy that focuses on how to attract and retain business clients through methods such as B2B networking, targeted digital marketing campaigns, promotional offers for first-time customers, a strong online presence that showcases your services and testimonials, and participation in local business events or associations.

Marketing Channels

Utilize various marketing channels to reach potential clients and establish your brand as a reliable and reputable cleaning service provider.

Digital Marketing

• Website and SEO:  Develop a professional website optimized for local SEO to increase visibility in search engine results.
• Content Marketing:  Share informative blog posts, articles, or videos on cleaning tips, industry trends, and best practices.
• Social Media:  Use platforms like LinkedIn, Twitter, and Instagram to showcase your expertise, share client testimonials, and engage with prospects.

Local Advertising

• Networking:  Attend local business events, trade shows, and chamber of commerce meetings to network and build relationships within the community.
• Local Publications:  Advertise in local newspapers, business directories, or industry-specific magazines.
• Direct Mail:  Send targeted mailers or flyers to businesses in your service area to introduce your cleaning services.

Promotional Activities

Attract potential clients and incentivize engagement with your cleaning services through promotional offers and activities.

• Special Offers:  Launch time-sensitive promotions or discounts for new clients or during seasonal periods to attract attention and encourage trial of your services.
• Referral Programs:  Create incentives for existing clients to refer new business by offering discounts or additional services for successful referrals, thereby expanding your customer base through word-of-mouth referrals.
• Free Demonstrations:  Offer complimentary cleaning demonstrations or trial services to showcase the quality and effectiveness of your work, establishing credibility and trust with potential clients.

Sales Channels

Sales channels  serve as crucial methods through which your commercial cleaning services are marketed and sold to clients, playing a pivotal role in revenue generation and ensuring customer satisfaction.

On-site Service Enhancement

Enhancing services directly on-site helps maximize revenue per client engagement:

• Specialized Add-Ons:  While discussing cleaning packages, propose additional services tailored to client needs, such as carpet stain removal or high-touchpoint sanitation. Tailoring add-ons based on client requirements enhances service value.
• Supplementary Cleaning Products:  Showcase and recommend specialized cleaning products during service visits, emphasizing their benefits. Educate clients on the advantages of using these products to maintain cleanliness between professional cleanings.
• Customized Packages:  Offer bundled cleaning services targeting specific needs, such as comprehensive office sanitation packages or specialized deep cleaning services for industrial facilities.

Online Sales and Convenience

Leveraging online platforms streamlines the sales process and offers convenient options for clients:

• Digital Booking System:  Implement a user-friendly online booking system on your website and social media platforms. Incentivize online bookings by offering discounts or priority scheduling.
• E-commerce Integration:  Sell cleaning supplies, equipment, or additional services through your website. Provide easy access for clients to purchase products and schedule additional services online.
• Virtual Consultations:  Offer online consultations to understand clients’ unique cleaning requirements. Provide tailored service recommendations and suggest suitable cleaning solutions based on virtual assessments.

Membership and Loyalty Programs

Initiating loyalty programs can foster repeat business and client loyalty:

• Membership Packages:  Create membership programs offering regular cleaning services at a discounted rate. For instance, offer monthly or quarterly packages that include a variety of cleaning services tailored to different business sizes or industries.
• Loyalty Rewards Program:  Develop a digital loyalty program where clients earn points for every service availed. These points could be redeemable for discounts on future services, encouraging repeat business and fostering client loyalty.

Strategy Timeline

Construct a detailed timeline that sets out key milestones for your commercial cleaning business’s launch, marketing initiatives, client acquisition, and scaling strategies. This timeline should provide a structured roadmap for achieving business growth and operational goals, ensuring that the business advances with clear objectives and measurable targets.

The Management section focuses on the commercial cleaning business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the commercial cleaning business towards its financial and operational goals.

For your commercial cleaning business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your commercial cleaning business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your commercial cleaning business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Cleaning Business Plan Template (+Free PDF Download)

Read Time 8 minutes

Author Joanne Bratton

Published March 29, 2024

Table of Contents

Executive summary: Setting the foundation

Industry analysis: understanding the market landscape, marketing plan: promoting your cleaning services, financial plan: estimating costs and projections, operations plan: running a thriving cleaning company, set up your commercial cleaning business for success.

A commercial cleaning business plan can kickstart a new endeavor or clear the way for growth for an existing enterprise.

Crafting a comprehensive commercial cleaning business plan is pivotal to starting a new venture or fostering significant growth in an existing service. A well-structured business plan becomes a cornerstone for:

Making informed decisions

Setting objectives

Navigating the competitive commercial cleaning market

A cleaning company business plan isn’t a one-and-done task. You should regularly review and revise your business plan to evolve as your company grows to reflect your current vision, market, and financial targets.

This template provides a sample to help create a business plan.

An executive summary is an overview of your entire business plan.

While the executive summary is the first section of a business plan, most business owners find it makes sense to write it last. The executive summary often is one to two pages, but you should keep it as short as possible.

Essential components of an executive summary include:

Mission statement: Defines your company's mission, vision, and core values.

Company overview: Write a company description of services, locations, and number of cleaning staff. Include a short history of how the business started, names of owners, and business growth milestones.

Market synopsis: Provide an overview of your market, mentioning your commercial cleaning business's size and competitive advantages.

Financial elements: Summarize your business financials, including sales, profits, and projections for one to two years.

Future objectives: Outline your company’s plans for growth, such as offering new services, adding verticals, or expanding your service area.

Your executive summary must be clear and concise. If you’re seeking funding for your small business, the executive summary should demonstrate your cleaning company’s value to potential investors.

An industry analysis identifies the potential market for your commercial cleaning or janitorial services. This involves defining and comprehending key elements such as:

Target customers

Competition

Cleaning industry trends 

Customer’s changing demands

Customer analysis

Commercial cleaning companies perform a customer analysis to understand and meet customer needs. This research-based process identifies your potential client base's demographics, values, and behaviors.

To perform a customer analysis:

Gather information about your target market through your existing customer data, industry research, online tools such as Google Analytics, and social media surveys.

Segment your customers based on similar demographics, traits, preferences, and pain points.

Create customer personas, or fictional profiles, of your target customers and their specific needs.

Leverage your customer analysis to inform business services, products, and prices.

Customer relationship management (CRM) software assists market analysis by providing invaluable information about your customers and their buying journeys.

→ Aspire commercial cleaning business software helps businesses connect the dots with real-time customer data, feedback, and analysis. 

CRM data empowers companies to retain existing customers and expand their customer base by cultivating strong relationships with prospects and customers through:

Efficient communication

Personalized offers

Proactive support to address potential issues before they escalate

Competitor analysis

A competitive analysis identifies the competitors in your market. It helps you understand market demand and gives your business a competitive edge.

For instance, if you plan to specialize in carpet cleaning or window cleaning, you’ll want to know if competitors offer these services and what they charge.

Steps to perform a competitor analysis include:

Identify and gather information about your competitors.

Evaluate competitors’ services, service areas, prices, promotions, reputation, sales tactics, marketing strategies, target audience, and online presence.

Analyze the strengths and weaknesses of your business.

Develop sales, marketing, and pricing strategies to gain a competitive advantage.

Once you know your customers and competitors, these assessments will help you develop effective marketing campaigns.

While a service business plan template provides a guideline for developing a marketing plan , it’s crucial to identify your company’s marketing goals and include methods to measure outcomes.

An effective marketing plan includes the following components:

Market research: Know your audience, their preferences, and their preferred online channels.

Marketing objectives: What do you want to accomplish? Increase cleaning contracts? Generate leads? The more specific your objectives, the better.

Marketing strategies: The marketing channels you use depend on your target audience. The most effective marketing campaigns use an omnichannel approach to share a consistent message online and offline.

Pricing strategy : A cleaning service pricing strategy should cover costs and include an appropriate profit margin. Your target market preferences and competitor pricing should also be factored into your pricing strategy.

Marketing budget: Determine the percentage of revenue for your marketing budget. Focus on the channels that deliver the best return on investment (ROI). You can adjust your budget depending on objectives, channels, and results.

Key performance indicators (KPIs): Measure marketing effectiveness with KPIs. These could include conversion rate, customer acquisition cost, cost per lead, customer lifetime value, and overall ROI. Track KPIs to make better marketing decisions and improve your ROI.

Review your marketing plan annually. Some businesses review their marketing strategy and budget quarterly to adjust as needed.

A solid financial plan ensures your commercial cleaning business doesn’t just stay afloat but thrives.

To get funding for business operations, you’ll need a realistic estimate of: 

Initial startup costs

Ongoing operational expenses

Financial projections 

A comprehensive, realistic financial plan shows potential partners and investors the value of your company and outlines business growth.

→ Include graphs and visuals in your financial plan to break down the numbers and easily communicate business information.

If you struggle with financial planning or creating budgets and forecasts, consider hiring a professional financial advisor.

The right business management software makes collecting accurate data in your initial months much easier to ensure your initial estimate and projections are sound. 

→ The earlier you can adjust operations and pricing to maintain profitability, the quicker you can set and achieve new goals.

The following sections provide more detail about key areas of a financial plan.

Calculating initial startup costs

Initial startup costs cover one-time expenses for a new cleaning or janitorial business.

While startup expenses vary based on several factors, the average cleaning service spends $3,500 on startup costs .

Startup costs may include:

Legal fees: If you seek the advice of legal professionals, you’ll need to budget for legal expenses.

Business licenses and permits: Check on local regulations because you may need to register in additional states if your business performs work or hires employees from another state.

Cleaning equipment: Equipment such as floor buffers, vacuums, brooms, mops, cleaning supplies , cleaning products, and other specialty equipment.

Office space and equipment: Property purchase or rental deposit for an office space and technology costs.

Company vehicles: Depending on the size of your company, you may use a fleet of branded company vehicles.

Operational software : Instead of implementing siloed solutions for different aspects of your business, look at comprehensive software capable of scaling with you as you build. 

You’ll also want to consider additional marketing and advertising dollars to spread the word about your business.

A clear understanding of operational expenses ensures you correctly price cleaning jobs and target realistic revenue goals.

Recurring expenses are costs you pay regularly to keep your business running. Ongoing expenditures include:

Employee payroll and benefits

Mortgage or rental payments

Office utilities

Business insurance

Vehicle insurance

Cleaning products and supplies

Equipment maintenance

Technology subscriptions

Some expenses may be fixed, such as the mortgage payment, while others may be variable, such as the cost of cleaning products. 

Follow a budget, use best-practice accounting procedures, and track expenses to make needed financial adjustments.

Aspire’s comprehensive business management software collects financials above the gross margin line and pushes them in a one-way data sync to your accounting platform so you have clean, accurate data to inform your business plan updates. 

Financial projections and realism

Financial projections predict business revenue over a certain period. Data-backed financial plans drive better business decisions and help you plan for the future.

A startup cleaning business uses projected financial statements to determine future revenue and expenses. Industry and market analysis data can provide a starting point. In the case of an established cleaning business, use your historical data to project a percentage of financial growth.

To create a financial projection, you’ll need the following financial statements:

Income statement: An income statement, or profit and loss statement (P&L), shows your income and expenses. Your income statement should cover one year.

Cash flow statement: This statement projects all incoming and outgoing expenses for one year. A break-even analysis shows you how much revenue you need to break even with your expenses.

Balance sheet: This document lists business assets and liabilities and shows a summary of a business at present. 

In financial projections, accuracy is key. You don’t want to inflate your numbers, fail to reach your goals, or underestimate and miss out on growth opportunities.

As your business continues to operate, it’s important to use the right software to capture accurate financial data to achieve financial objectives and increase the accuracy of future projections. 

Aspire commercial cleaning business software integrates purchasing, invoicing, accounting, and payroll for full financial visibility. Robust reporting allows you to drill into sales, financials, job costs, and KPIs.

With real-time data , you gain deeper insight into business performance and can develop more effective business growth strategies.

A business operations plan outlines how your company will deliver high-quality service and achieve operational goals.

As you create an operations plan, involve your management team for ideas and input. After all, your managers are the ones who provide on-the-job oversight and remain accountable for operational goals.

An operations plan includes these elements:

Determine operational goals: Set business and departmental  goals. For instance, you could set a goal to increase annual revenue by 20% or a sales goal of 10 new cleaning contracts monthly.

Create roles and job descriptions: Clearly define the roles and responsibilities of each position. This ensures accountability and the ability to measure performance.

Plan the how-tos: Detail business processes and workflows in every department so your team delivers consistent, efficient results. This includes investing in commercial cleaning business software to centralize data and streamline operations.

Track performance: Set KPIs to measure short-term goals and identify areas for improvement. Operational KPIs measure the performance of your operations, such as average contract amount, contract renewal conversion rate, closing percentage, and gross profit percentage by department. 

Aspire provides user-based dashboards so every role can see the KPIs relevant to their short- and long-term goals. Having accurate, real-time information fuels responsive management, building ongoing growth momentum.

Commercial cleaning business owners who optimize operations experience the greatest profitability and growth. Aspire commercial cleaning business software provides seamless workflows in every area of business, including:

Crew management

Job costing

Equipment and supply management

Streamlined processes reduce waste, increase efficiency, and improve performance in your operations.

Creating a thorough commercial cleaning business plan sets the stage for business growth. But successful results rely on how well you execute your plan.

Aspire commercial cleaning business software provides industry-specific management tools to empower business owners to take control of operations. From simplified scheduling to accepting customer credit card payments online, Aspire’s advanced features give cleaning contractors full visibility into business operations and finances.

To get your business plan off the ground, implement the right tools to improve business and boost year-over-year growth.

Ready to see what Aspire can do for you? Request a demo to see Aspire features in action.

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Sample Janitorial and Commercial Cleaning Business Plan

Example commercial cleaning & janitorial service business plan.

This is a comprehensive tutorial on putting together a sample janitorial & commercial cleaning service business plan. This template can be used by cleaning services, janitorial service, commercial cleaning specialty and carpet cleaning businesses.

The goal was to write out a custom business plan using practical information and cover the main topics.

Some of the topics were too big and we had to use an introduction and then provide a link to the full resource. Every section has a link to view details of specific sections.

The plan divided into 6 sections:

• Business Description

Table of Contents

Commercial Cleaning- Janitorial, Carpet Cleaning, VCT, Tile, Office Cleaning

In the executive summary we list all the main sections and then give a brief description of the topic.

• Business Description – Next Door commercial cleaning service located in Toledo Ohio and was incorporated as an S Corp July 2020. We are currently in the start up stage with August 1st 2020 as our first day of business. We currently have 3 employees, one marketing person and 2 cleaning technicians. ND currently leases 5 000 sqr feet of office and warehouse space out of Toledo. Our current target market is employers with 50- 100 plus employees, primarily professional offices with cleanable office space of 10,000 sqr feet minimum.
• Services – Next Door will provide daily cleaning services to local businesses including an emphasis on specialty cleaning services such as : Carpet cleaning, hard tile cleaning, VCT waxing, furniture and general disinfecting. Most businesses don’t have the time to recruit, hire and especially training cleaning staff. It can take 3-6 months to train a good cleaner, this is time, money most businesses would rather devote to their specialty and their clients and not on maintaining a clean building.
• Marketing – The company is going to use Account Based Marketing, what this means is weighting our budget to best payoffs. The strategy is to shift our resources to the biggest payoff and not market to every business equally. Some businesses will spend $1200 year, while others might spend $50k. We want our marketing plan to reflect that . This can really hit home – if we apply 80% of our effort to just 20% of our leads (our Key Accounts) we will receive 80% of the  rewards.
• Management – As we grow especially in commercial services where its common for businesses to have 10, 20 and even hundreds of employees. We want to avoid this first slide of every employee, every customer, invoice, equipment question coming to you directly. This is guaranteed to fail eventually and create lots of stress in the process.
• Operations – Commercial cleaning employee manual or handbook, this can be used for janitorial, carpet cleaning and commercial cleaning services. The purpose of this sample is to share some topics and general information to include in an employee manual.
• Financial – The financial part is the final part of the business plan and here we will use charts, graphs and spreadsheets mainly to map out a long term successful future.

1.Business Plan- Summary

Next Door commercial cleaning service located in Toledo Ohio and was incorporated as an S Corp July 2020. We are currently in the start up stage with August 1 st 2020 as our first day of business. We currently have 3 employees, one marketing person and 2 cleaning technicians. ND currently leases 5 000 sqr feet of office and warehouse space out of Toledo.

Our current target market is employers with 50- 100 plus employees, primarily professional offices with cleanable office space of 10,000 sqr feet minimum.

Client sustainability is going to be the main variable to consider when deciding which business to market to. We want to be thinking of industries that will be in business for the next 20 years.

Medical, clinics, doctor, technology, professional services like architect, law, financial. We see these as basic services that will survive the ups and downs of the macro economy. The main threat long term is the use of remote workers but we feel this is still a long ways out in large numbers.

Next Door plans to be diverse offering daily building cleaning services and also high margin specialty services. We believe this mix will balance our revenue/profits out over long term macro changes.

1.1 Industry Overview

Currently the retail sector of the industry is a mess and very difficult to make work. As more people continue to buy online retail stores continue to close stores and significantly cut back on cleaning budgets.

Right this second hospitality is also in shambles with pandemic and government ordered shutdowns or limitations on capacity. This includes restaurants, hotels, leisure, etc. We believe there will be permanent damage to this sector and will stay away for the first couple years. Even when they do get back on their feet they will be keeping budgets tight.

Industrial businesses are hit and miss, really depends on the specific product they make. This will be a sector ND will keep in the marketing mix

Medical, including hospitals clinics and doctor services are always needed and with an aging population only will be needed more. The only risk long term is more doctors using online tools to speak with patients but they will always need to see patients face to face somewhat.

Professional services including technology, lawyers, engineers, management, etc is one of the safest in our opinion long term. These are services that can’t be replaced easily by future robots. These services require thinking and not just repeating tasks. The risk is remote staffing but we feel in large numbers there will always be enough office space needed.

Commercial Property Management is currently experiencing a lot of financial problems with 20-30% of tenants not paying leases. We will be avoiding this sector over the short term.

1.2 Company Description

Next Door is an S Corporation formed in the state of Georgia with 2 shareholders Jason & Lisa Jones. The state or city does not require any special permits or licenses. The company will provide building cleaning services to other businesses.

The office/shop is located in between 2 main thruways giving access to all areas throughout the metro area within 30 minutes. This was a major reason for choosing this location, it is centrally located. Also with commercial cleaning businesses we needed warehouse space to hold various equipment and store misc cleaning products.

 Office is currently leased for 5 years.

Most cleaning staff will report directly to the buildings they service and not come to the office often. The office will be staffed with marketing, management and human resources. Supervisors will share workspace in the office but mainly work in the field at client buildings.

Because of this we only needed 3000 sqr feet of office space and 2000 sqr ft of warehouse.

Mission Statement Our goal is to provide a clean and healthy environment for our customers through state of the art cleaning technology and a commitment to customer service Method Clean Biz

Safety is a priority for our customers and employees, while in your facility we follow a detailed health & safety program, This insures quality service, happy employees and competitive prices.

One of the things Next Door wants to be about is safety, this is as a value proposition for marketing but also be aggressive in training, supervising employees through monthly safety meetings. We feel this is a topic that will be important in the forseeable future.

Also the large employers we target are generally the ones that care about safety. Under 50 employees you will start to see the topic be less and less important.

1.3 History and Current Status

The company is a start a up and we don’t have any history to share. Jason and partner Lisa Jones started the company August 1 st 2020. Jason has worked in the commercial cleaning industry for 20 years as a former franchise owner, operations manager and salesperson for 2 different businesses in the industry.

Lisa is a former office manager and salesperson for a landscaping service for 7 years with an MBA from Georgia University.

Jason feels after 20 years in the industry with practical real life experience in various management roles that the industry is changing and one variable is to focus more on high margin project work to combine with lower margin cleaning contracts.

Lisa has an MBA and can add the business structure needed to grow and sustain long term growth.

Both have experience in sales specifically in the service industry and know how to market, sell contracts.

1.4 Goals and Objectives

The goal is to build the business to about $1.5 million in sales with an owner benefit of about 20% which equals about $300k in benefits, wages and profit for the shareholders. The timeline is 5 years with a slower rate in the first 2 years while they are building the core infrastructure and then dramatically scale that up in years 3-5 after the core is solid.

One of the experiences Jason has had is small businesses growing too fast too early and then crashing because they don’t have enough management in place. Often owners try to do everything themselves and burn out.

1.5 Critical Success Factors

The key to success in the cleaning industry is human resources, people. Recruiting, hiring, training and supervising staff and also developing management, supervision talent in house. We feel the best way to grow and sustain it long term is by developing our cleaners into supervisors.

Each lead person is creating the next lead person. Trying to hire supervisor’s from other cleaning businesses comes with a lot of challenges, some have bad habits to begin with that are difficult to change. Also run the risk they quit after a short time and have information about the internal workings of the business and client lists, training material etc.

Training and supervision will be key success factors. The challenge In the cleaning business is employees are working at the customers location, mainly unsupervised on an hour by hour basis. This is why hiring the right people in the first place is so critical and then getting them in a routine through training.

We will create a culture of everyone sticking together and supporting each other. With 90% of the workforce working remotely it becomes important we communicate with each other on a regular basis and trust each other.

There will be a big emphasis on communicating nightly through email, text, phone so employees are tuned in.

1.6 Company Ownership and Exit

The company has 2 shareholders with Lisa owning 40% of the shares and Jason 60%. Each has the option to buy the other out at an agreed upon price after 5 years. Shares cannot be sold to a third party unless agreed to by both.

Jason will hold the title of CEO and have direct authority over Operations dept. Lisa will have the title of President with administrative and Sales/Marketing directly reporting to her.

The long term plan is operate the business for approximately 15 years and sell to the general public splitting the sale price 60/40.

2. Services

Next Door will provide daily cleaning services to local businesses including an emphasis on specialty cleaning services such as : Carpet cleaning, hard tile cleaning, VCT waxing, furniture and general disinfecting.

Most businesses don’t have the time to recruit, hire and especially training cleaning staff. It can take 3-6 months to train a good cleaner, this is time, money most businesses would rather devote to their specialty and their clients and not on maintaining a clean building.

The 2 nd part is specialty work. Most businesses do not want to invest $10ks of dollars of capital into cleaning equipment that is used 1x month or maybe even only a couple times a year. Also the training of employees required, again for a task that might only need to be done a couple times a year.

Businesses would rather spend that capital on areas where there is a much bigger payoff.

2.1 Service Description

• Daily janitorial and office cleaning
• Carpet steam cleaning truckmount
• Carpet cleaning low moisture
• Hard surface steam cleaning including ceramic, porcelain and quarry tile
• VCT floor waxing, polishing
• Office furniture steam cleaning
• Disinfecting services

Daily Janitorial and office cleaning

The company feels the key to success in daily cleaning is one initial training and two communication. Often cleaning businesses are small and lack management talent, understaffed and overall desperate for bodies on any given day.

We feel the competitive advantage is in training cleaners not only the technical skills but also the importance of service skills. Often clients will like a cleaner and think they are the greatest in the world even if their technical skills are average.

NEXT DOOR wants to make this a key part of training cleaning staff. Some of the training elements will be uniform, appearance, communication with the client, body language, how to address complaints, safety equipment like wet floor signs, tone to use when speaking with clients, etc.

Training will take approximately 3-6 months with technical training only taking 30% of the time. The company feels not only will we have happier clients but cut down on employee turnover by reducing the stress. We feel by training employee’s customer service skills they will also feel like we care about them and want to see them succeed in life in general.

More than anything clients want to know you care and we want to focus on training staff to be proactive in relaying that message. Most clients understand people are human and will make technical mistakes. BUT it is unacceptable to not care about a client building or the staff that works in that building when they are paying you.

2 nd Key element is communication. Most cleaning employees work remotely and does not interact with management on a daily basis. This more than anything can lead to cleaners feeling like nobody is watching and worse nobody cares.

The company is going to be very aggressive in creating a communication system so we interact with every cleaner, every day in some way. Either by a supervisor stopping by, calling, texting or maybe even email in some situations. Our thinking currently is daily text alerts mixed with phone calls.

Carpet Steam Cleaning- Truckmount

The company will invest almost $40k in a van based carpet cleaning system. This system will allow us to steam clean carpets at a very high level of quality and production. With advanced systems we can have a 10 on quality and a 10 in production. This system can also clean up to 300 feet away from the van, targeting large employers we will need to work at great distances on a regular basis.

Carpet Cleaning- Low Moisture

An emerging and often overlooked service is using low moisture technology to clean carpets. With this service the company can sell high margin services at an affordable price. Often in larger buildings access can be a problem or they need the area turned over quickly, low moisture provides a quick 30 minute dry time.

Hard Tile Steam Cleaning

Using the van based carpet cleaning system we can quickly change tools and offer steam cleaning of various tools. This is another high margin service to offer and it makes the daily office cleaning a lot easier and quicker.

Often these areas are the toughest areas to clean: restrooms, lobbies, cafeterias and also the areas that receive the most complaints.

The long term goal is create a route just cleaning hard tile surfaces, the benefit is it’s a high margin service and also can help get our foot in the door to sell big monthly cleaning contracts.

VCT Floor waxing, Polishing

VCT flooring is usually located in high traffic areas like hallways, cafeterias and restrooms. We have found the overall appearance of a building can be greatly impacted by having shiny, clean looking floors. This can be accomplished by stripping old finish off and applying new or high speed polishing.

How clients “feel” about a cleaning service overall can come from how well a cafeteria floor looks. This is medium profit margin service in most cases because how labor intensive it can be. But can help greatly in the overall satisfaction of clients.

Office Furniture Cleaning

Office furniture is another high margin but niche service. The company will use the van based truckmount system in most cases to keep production high. This can include partitions, chairs and small sofas

2.2 Competitive Advantage

In section 2.1 we covered what we believe our competitive advantage is for janitorial and daily office cleaning.

Specialty cleaning services: carpet cleaning, upholstery, office furniture, VCT, hard surface cleaning has some of the same focus but there are two key points to make.

Two things we have found true with specialty services is most janitorial businesses are not very good at them. The main reasons are lack of training in staff and equipment. We believe in buying the highest production equipment available and spending considerable resources in training of technicians.

These two variables can give NEXT DOOR a significant advantage over competitors and get our foot in the door for janitorial services at client buildings of competitors.

#1 Using van based truckmounted system and also current low moisture carpet cleaning systems.

#2 Using dedicated technicians that have been through specialized training at certified organizations like the IICRC.

Often janitorial services will send general cleaners out to complete these tasks with limited training and modest equipment.

3. Marketing Plan

Marketing is a huge subject in itself, we already have a large section with a specific marketing plan. In this section we will give a brief overview and then the link to the full marketing plan.

3.1 Marketing Research

Toldeo Ohio metro area is the designated service area. Toledo has a total of 18,000 businesses but we need to narrow that number down to a manageable number.

Key Accounts – businesses with 100+ employees = 328

Businesses with 50 + = 659

Key Account total = 987 businesses

These represent where we will dedicate 75% of our budget and resources

Growth Accounts- businesses with 10 -50 employees = 4300

These are growing businesses that we will dedicate roughly 15% of our budget too. Remember some of them will grow to 50 employees over the long term.

Advertising – misc. advertsing will receive the smallest piece of the pie of 10%. This will include google, adwords, social media etc. The reason is we can’t control always who calls from a big advertising campaign, some will be big and most small but its still an opportunity for PR/Marketing and fill in gaps. 

3.2 Competitors- High Barriers To Entry

Part of our marketing strategy is coming up with areas that are difficult for our competitors to easily repeat. If there is one thing we know about human behavior its if something is easy everyone will do it. So we want to look for tactics that are very difficult for our competitors to do.

Difficult to do: targeting businesses with 50 plus employees is a key part of this strategy. Most commercial cleaning services will find it very hard to do consistently over long periods of time. One of the biggest reasons is patience, larger jobs take a lot more patience and lets face it most cleaners are not very patient and our current society is built for on demand.

EASY To Do:

• Lead generation service
• Google search adwords
• Facebook marketing

HARD To Do:

• Telemarketing
• Door to Door sales
• Highly Targeted Google display ads
• Direct Mail

3.3 Sales Plan

6 Simple Steps To Creating a Commercial Cleaning Sales Plan

How to create a commercial cleaning sales plan, this can apply to commercial cleaning, carpet cleaning and janitorial services. We are going to cover 6 steps to creating a dedicated sales plan we can follow every day, month and year. A sales plan is meant to be a living document that as we learn will be updated and improved over time.

Step 1 What is our objective or financial goal?

Step 2 What Resources are available, what is your commitment level?

Step 3 Targeting, who are the types of businesses you will focus on?

Step 4 Services, what services will you focus on?

Step 5 Activity Log- What physical actions will you take on a daily/weekly/monthly rotation

Step 6 Training- What Training do you need to accomplish your goals?

3.4 Pricing Strategy

Pricing Strategy- After deciding on a goal we then can create a pricing strategy.

Cost Plus – we figure our costs for a job and then add our gross margin. Our gross margin goals will be as follows

• Specialty cleaning  jobs including carpet, tile, furniture and VCT- gross profit- 70%
• Small cleaning jobs less than $10k per year- 60% profit
• Medium jobs- $10k – $30k per year – 50% profit
• Large Jobs- $30k plus- 40% profit

The reason is smaller jobs require much more office support in fill in staff, supervision, training, supplies, etc.

Larger jobs are self contained with a team leader working on site at a client building to provide all those tasks.Supervisor will inspect 1x week.

Square foot – sqr ft or unit pricing is best when you have experience with a specific service and type of client. Sqr ft pricing will be used using the above gross profit goals.

Time and Materials – or another way to use this is hours X hourly rate. This is often used when you are unfamiliar with a service or type of client building. This strategy will be used when we are unfamiliar with a job, misc tasks, obscure requests and 1x jobs.

3.5 Sales Strategy

Strategy section: objective is increase cashflow, measure by percentage increase, goal is 30%. How do I increase our cash flow? How does this change our sales strategy?

 In commercial cleaning, carpet cleaning or janitorial cashflow is extremely important, maybe the most important challenge we face. What happens whenever taking on a new project is we have costs of labor, chemicals, equipment, gas but might not see a payment for 30, 60 or even 90 days. First is the data or analytical part, we currently are at 22% and in previous months hovered around 24% but now need to greatly increase that.

How to: look at the current client list, is there a pattern with accounts that fall below our goals? Reduce invoice terms, is there a pattern of industries, sizes or areas that are paying in terms greater than 30 days net? Change our terms to 15 days net for all one time jobs, these are usually specialty cleaning services carpet cleaning, windows, small construction projects.

Over time I think most of us find certain industries have industry logic built in that it is commonplace to pay in certain invoice cycles. This is fine but something we have to think about as we grow.

For example you are currently cleaning a lot of property managers and they are all paying 60 days plus, that might be a situation where its time to stop marketing to that group and find a new target

3.6 Sales Forecasting

This is a quick video on using forecasting to determine when it is time to hire a new technician. Often us contractors wait until the last minute to hire new staff and that usually doesnt work out too well. Regardless if hiring a part, full time or casual employee its always best to plant the seed and start the process months before we actually need someone.

The easiest way is to create a table in word or spreadsheet in excel or just take a piece of paper and a pencil. This is an example of a sales forecasting table separate by 3 columns. Customer, estimate amount and probability or forecast.

In the first column list name of the customer or bid, examples medical building, restaurant and property management account. Second column list the gross amount of the bid, in this example we put $1000 dollars for medical, $12000 restaurant and $3000 for property management company. The total comes to $16,000.

To forecast list low,medium and high of 25 percent%, 50 percent % and 75 percent %. Now this is subjective, sometimes we win low % bids and lose bids we think we have nailed down, it happens.

At this point its time to start placing ads, time to collect and read resumes, interview the best applicants. You want to have all this pre-planned and set up 2 weeks, 2months and 4 months in advanced so when the work does come in you have a list of contacts to put in place.

4. Management

4.1 company organization.

As we grow especially in commercial services where its common for businesses to have 10, 20 and even hundreds of employees. We want to avoid this first slide of every employee, every customer, invoice, equipment question coming to you directly. This is guaranteed to fail eventually and create lots of stress in the process.

This second example is more of a traditional organizational chart for a commercial cleaning service, janitorial service. In this slide we show 3 departments: operations, sales and administration. You can see a big difference right away in this structure, instead of every employee reporting directly to you, now they report to the managers and the manager’s report to you.

The Operations Manager will have all the supervisors, team leaders, technicians, specialty cleaners and cleaning staff reporting directly to them.

Sales Person might have 1-2 assistants working for them setting appointments, sending out direct mail, emails etc. Often these can be part-time staff that either work inside sales setting appointments over the phone or outside sales/networker going door to door and attending events.

Office Manager or Administration might have the bookkeeper and 1-2 office assistants helping with employee interviews, HR, fact checking resumes etc. Note, some owners prefer to have the bookkeeper/financial staff next to them and report directly to owner and not under admin.

4.2 Professional Support

The company needs to make a list of various vendors, suppliers and professional services. Below is a starting list of vendors will need to hire.

• Accountant/ Tax
• Financial advisor
• Equipment supplier
• Day to day cleaning solutions supplier Main
• Back up supplier
• Payroll service
• Credit card
• Credit card processing
• Website hosting
• Digital marketing
• Design marketing
• CRM provider
• Technical consultants – IICRC or ISSA
• Business specialty consultants
• Phone service
• Van mechanic- tires, inspection, etc.

4.3 Management Structure

In this section we will show some examples of organizational charts to structure a commercial cleaning, janitorial or commercial carpet cleaning service.

5. Operations

5.1 employee handbook.

Commercial cleaning employee manual or handbook, this can be used for janitorial, carpet cleaning and commercial cleaning services. The purpose of this sample is to share some topics and general information to include in an employee manual.

** Note this is not a legal document and any employee manual should be customized and verified with a local consultant or lawyer based on your specific state laws.

Welcome to Commercial Cleaning Service!

On behalf of our big family of fellow associates, owner, vendors, customers and management we want to welcome you to our team.

At Commercial Cleaning Service, we believe that every associate contributes to our growth and are also rewarded equally. We want every team member to take pride in driving our van, wearing our uniform and serving our customers to the best of your ability.

This employee handbook is a simple way to describe the expectations of our team members and outline the policy and procedures we follow to provide the absolute best service experience possible.

All associates are expected to become familiar with the contents of this handbook in the first 30 days of employment and share all questions they may have with management.

Topics to be covered:

• Timekeeping
• Direct deposit
• Termination
• Phone usage
• Equipment usage

5.2 Recruiting, Hiring and Interview Process

How to hire employees for your commercial cleaning service. The goal is to create a flow chart to map out the hiring process, I find it very helpful to be able to see processes and map out the different steps involved. I feel it helps a lot in understanding and the actual follow through.

The 10 Essential Steps To Hiring Amazing Employees For Your Commercial Cleaning Service

• Job opening

Job Description

• Create Database

Find Recruits

Phone Interview

Onsite Interview

The first step is determining we have a job opening or several job openings and writing a job description. A job description has the basic tasks involved, hours/days, full time or part time, any certification or education requirements.

Identify the type of person we would like to hire. Some positions require a detail minded person while others need a lot of physical labor. It is our job to find good matches of the recruits with the position.

Before running ads we want to create a database to hold all of this information and make it easily searchable in the future. Often we will have several qualified candidates but only one opening currently and want to find the other candidates later on.

Run Advertisements

Decide where we will run advertisements on, for how long and what is our total budget. The best place to start is referrals of course by sharing on social media and through email blasts of our current database and reaching out to former candidates. Some options for advertising are indeed, monster, local newspaper.

Go over the resumes and score the best qualified candidates for contact.

I personally like the phone interview first to reach out and get a feel for the candidate, ask a couple basic questions and make sure they understand the job description.

This will depend on the position of course, next an onsite face to face interview. Also can meet in a coffee shop, some people prefer a relaxed setting so candidates are more comfortable.

Go over all the information and make a final decision.

This is where we have the new employee fill out required paperwork, insurance, sign off on employee manual’s and layout the next steps.

5.3 Safety Meetings

The goal of this template is to create a 12 step safety manual with meetings on a monthly basis covering different topics. Cleaning businesses encounter several situations at clients building’s, company shop, office and driving to commercial carpet & tile cleaning jobs.

12 Month Health & Safety

Month 1 Introduction

The purpose of this health and safety program is to establish company standards for working in client buildings, driving in company vehicles and working in company office/shop.

The company has identified 12 key topics to be covered in monthly safety meetings that all employees must attend. It is intended that this manual is a “living” document to be upgraded and added to with input from employees, owners and managers.

• Introduction
• PPE- personal protective wear
• Electrical Cords
• Work area signs, tape
• Vans/Equipment maintenance
• SDS Sheets, Chemical storage, mixing

5.4 Employee Compensation

Often, we try to reward employee behavior through bonus programs and focus on one specific performance at a time, for example an attendance bonus.

In this example instead, we are going to create a Balanced Scorecard using a point system. The difference is we will have 5 different performances instead of focusing on only one.

The points vary from poor to satisfactory to excellent and at the end of the review we will add the points up give a financial bonus based on the number of points.

The five variables we will be using in this bonus evaluation are

• Inspections
• Customer Survey or Review

The Top 5 Performance Evaluations

Attendance- Attendance will depend on if the employee is full time or part time. I think we definitely have to weight this somehow. We could deduct a point for every day missed but honestly anymore than 1 is too many and even 1 is not good.

On Time- I understand some cleaning jobs when they clock in doesn’t matter a lot but for project work like carpet cleaning, floor work, etc. often clients are waiting for us, so it is critical.

Inspections- This can be a weekly or monthly inspection you would normally have. To make this easier I would just use a 5 point system or grades A,B, C,D,F and then transfer that to the scorecard.

Equipment- will depend on the type of service, for office cleaners we will be mainly looking at floor machines and maintaining vacuums.

For project work though like carpet cleaning, tile cleaning the equipment is critical and cost upwards of $50k plus. In that case I would weight it much higher than an office cleaning position.

Customer Survey or Review- This will break down between residential and commercial cleaning services. With residential nowadays reviews have become very important in digital advertising.

5.5 Inventory

The company will use an inventory control system made with excel spreadsheets managed by the operations manager. Inventory will be made on a 30 day cycle and 14 day cycle when cashflow is tighter in the first 2 years.

• On site inventory will be delivered and maintained by the building supervisor on a weekly basis. Cleaners and team leaders are to submit to supervisor supply needs and supervisor hands in worksheet to operations manager.
• Specialty Cleaners working out of shop will complete an inventory checklist daily and hand in to operations manager.

5.6 Credit Policy and Cashflow

The company will extend terms to clients following the sales strategy explained above.

Standard 30 days net

Exceptions 60 day net

60 day plus only authorized by CEO

Specialty cleaning jobs recurring 15-30 day net

1x Specialty jobs due on receipt to 7 day net maximum.

The company will follow this policy regarding tracking accounts receivable and payable

Complete an aging receivable at least monthly to track how much of your money is tied up in credit given to customers, and to alert you to slow payment problems.

Also tracking accounts payable using the same format.

Current- 30 day- 60 Day- 60 day + – Charge offs

6. Financials

The financial part is the final part of the business plan and here we will use charts, graphs and spreadsheets mainly to map out a long term successful future.

The main topics we will cover are:

• Start up funds and 1 st year
• Income statement
• Break even point
• Balance Sheet

6.1 Start up and 1st Year

In this section we think about all the money we will need to start up including 1x cost and monthly cost.

GENERAL/ADMIN                           

BANKING FEES  $200.00                $15.00

CONSULT FEES   $500.00                $95.00

OFFICE SUPPLIES              $200.00                $60.00

LICENSE FEES      $150.00                $15.00

BUSINESS INSURANCE   $500.00                $380.00

TOTAL GENERAL/ADMIN              $1,550.00            $565.00

SUBSCRIPTIONS                $237.00

TOTAL OPERATIONS       $-            $237.00

MARKETING/PROMO                    

ADVERTISING    $1,500.00            $1,800.00

PROMO $300.00                $50.00

TOTAL MARKETING/PROMO       $1,800.00            $1,850.00

WEBSITE/MOBILE APP                  

DOMAIN              $1,000.00            $30.00

HOSTING             $-            $30.00

TOTAL WEBSITE/MOBILE APP     $1,000.00            $60.00

RENT/LEASE       $-            $750.00

PHONE $-            $137.00

ELECTRIC              $-            $237.00

GAS       $-            $150.00

WATER/SEWAGE              $-            $50.00

WASTE REMOVAL            $-            $40.00

REPAIR/MAINTENANCE $-            $200.00

SECURITY             $-            $25.00

Then Estimate what the first year will look like.

TOTAL START-UP COSTS $4,850.00

TOTAL RECURRING MONTHLY COSTS               (1 YR = 12 MO)        $87,612.00

TOTAL BUSINESS EXPENSES         $92,462.00

ESTIMATED FIRST-YEAR BUSINESS INCOME          $112,000.00

BUSINESS FIRST-YEAR PROFIT/LOSS         $19,538.00

AVAILABLE CASH/ SAVINGS/OTHER          $30,000.00

BUSINESS BALANCE        $49,538.00

6.2 Break Even Point

In this section we look at how much revenue we need to generate to break even every month. This can be tricky sometimes for beginners, we want to calculate using a fixed monthly cost like rent and also a percentage of cogs or cost of service.

Fixed Cost            $4,300

Cost of goods sold            $3,000

Number of Jobs 1

Average Job Price             $9,300

6.3 Income Statement

Our income statement is a profit and loss statement, looking at net income and then minus taxes to see net, net.

6.4 Cashflow

Cashflow statement is one of the most important financial metrics to follow for a commercial cleaning business. Just because we have invoiced a client doesn’t mean we physically have the money in the bank.

Often what can happen is cleaning services fall behind and then have to start borrowing large sums of money to stay alive each month.

6.5 Balance Sheet

Lastly is the balance sheet what do we own and what do we owe. Including intangible assets like intellectual property which is difficult to judge so be very conservative.

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Cleaning Business Plan Template

Written by Dave Lavinsky

Cleaning Business Plan

This sample cleaning company business plan, created by the experts at PlanBuildr.com, is here to guide you through creating a winning cleaning company business plan.

With over 20 years of experience helping entrepreneurs build successful businesses, this plan is the product of real-world knowledge and tested strategies. Whether you’re planning to clean homes, offices, or something bigger, this plan will provide the blueprint for getting your business off the ground and making it thrive.

Sample Business Plan for Cleaning Business

Below is an example for each of the key elements of a cleaning business plan that you can use to create your own well-crafted business plan:

Executive Summary

Business overview.

QP Cleaning Services is a professional cleaning company in Phoenix, Arizona that will service small commercial businesses and residences. Aside from basic janitorial services, QP will offer specialty cleaning services such as window cleaning, floor cleaning, upholstery cleaning, and carpet shampooing. We are committed to only providing friendly and quality service at affordable prices. All employees will undergo and complete a training program where they will learn and master the highest cleaning standards for every situation.

Founded by Luis Mendez, a property management professional for over 20 years, Luis has had to work with his fair share of cleaning companies. Not being satisfied with any of them, Luis knew there was a need for a reliable company who can perform exceptional cleaning services at a reasonable cost. Luis is also a proponent of getting acquainted with each and every client to ensure an open line of communication for all feedback and questions. Luis is committed to providing a cleaning service company for the area residents and commercial businesses of the greater Phoenix metroplex and surrounding suburbs.

Product Offering

The following are the list of services that QP Cleaning Services will offer:

• Daily and weekly janitorial services to include dusting, mopping, vacuuming, and restroom cleaning
• Upholstery cleaning
• Window cleaning
• Professional floor care
• Commercial pressure washing
• In-depth carpet shampooing

Customer Focus

QP Cleaning Services will focus on the residents of Phoenix and the surrounding suburbs. We will also focus on commercial business such as office parks, industrial warehouses, small locally-owned retail shops, and locally-owned restaurants.

Management Team

Luis Mendez will be the owner and operator of QP Cleaning Services. He will employ a skilled management staff to include an Accounting manager to oversee all client billing and payables, Human Resources Manager to oversee all hiring and onboarding as well as payroll and an employee benefits program, and a Training Manager to develop and implement cleaning standards and protocol program to ensure all cleaning professionals are fully qualified and prepared to deliver quality cleaning standards.

Success Factors

QP Cleaning Services is primed for success by offering the following competitive advantages:

• Professional and friendly service at affordable prices.
• Owner who will interact with each client on a weekly or monthly basis to ensure they are completely satisfied with their cleaning service. Owner will ask for any constructive criticism in order to implement strategies beneficial to client retention and referrals.
• A referral program where clients can earn a free cleaning for every business and/or household they recruit.
• A training program for each employee to ensure they are fully qualified to perform the highest cleaning standards for any business or household.

Financial Highlights

QP Cleaning Services is seeking $115,000 in debt financing to open its headquarters in Phoenix, Arizona. The funding will be dedicated for leasehold improvements, professional insurance for bonding, working capital, marketing costs, and startup overhead expenses. The breakout of the funding is below:

• Office location design/build: $25,000
• Bonding Insurance: $25,000
• Working capital: $10,000
• Marketing: $25,000
• 3-months worth of salaries and wages: $30,000

Company Overview

Who is qp cleaning services.

QP Cleaning Services is a startup residential and commercial professional cleaning company based in Phoenix, Arizona. QP Cleaning Services will service office, retail, industrial, and household residences in the greater Phoenix area and surrounding suburbs. Aside from daily or weekly cleaning services, QP will also offer specialty cleaning services such as floor care, upholstery cleaning, window cleaning, and commercial pressure washing. QP Cleaning Services will employ qualified cleaning professionals who undergo a background and qualification test. QP will be committed to only delivering the highest quality and reliable cleaning services in the Phoenix area.

QP Cleaning Services History

QP Cleaning Services is a startup of Luis Mendez of Phoenix, Arizona. Luis has made his career as a Property Manager for multiple office and industrial buildings and has worked with numerous cleaning companies in his tenure. Frustrated by the lack of professionalism and quality, Luis decided to venture out on his own, taking with him all the lessons he learned by dealing with cleaning companies as a client. Luis began recruiting and hiring a talented and reliable staff and through his property management connections, has a portfolio of clients that are ready to contract with QP Cleaning Services.

Since incorporation, QP Cleaning Services has achieved the following milestones:

• Registered QP Cleaning Services, LLC as an entity qualified to do business in the state of Arizona.
• Signed an office space lease for 1,200 square feet.
• Registered the domain www.QPCleaningServices.com and began the development of the website.
• Recruited ten janitorial workers with a tentative employment start date.
• Developed a training program to ensure every employee will deliver the highest quality cleaning service.
• Has four signed contracts with local businesses to perform daily/weekly cleaning services.

QP Cleaning Services

QP Cleaning will offer the following services to its clients:

All clients will receive pricing for either daily or weekly janitorial services and will have the option to add the remaining services as needed or on a monthly or quarterly basis.

Industry Analysis

Revenue for the cleaning industry is expected to grow over the next five years to over $75 billion. This growth is due partially by the increase in demand from businesses across all sectors. Businesses are expected to continue outsourcing cleaning activities to janitorial and cleaning service specialists. In particular, education, healthcare and medical-related industries, which outsource the majority of their cleaning requirements, will likely provide sustained demand for industry services.

An aging US population and greater demand for healthcare services will also likely bolster demand for cleaning services at medical and surgical hospitals, urgent care clinics and retirement facilities.

The industry will also benefit from a rise in key drivers including:

• Per capita disposable income- as more consumers attain high incomes, more will likely demand residential cleaning services.
• The number of businesses in the United States- an increase in the number of businesses will increase the potential client base for industry services.
• Corporate profit- as favorable economic conditions are anticipated to help sustain business growth, incomes and corporate profit, demand for industry services are expected to rise.

Customer Analysis

Demographic profile of target market.

QP Cleaning Services will target a variety of businesses in the greater Phoenix metropolitan area as well as the surrounding suburbs. QP will market primarily to property management companies of office buildings, industrial warehouses, retail stores, and household residences. The business owners will have a need for cleaning services where their own employees are not responsible for performing their own cleaning of the space.

The precise business demographics for the Phoenix metropolitan area are:

Customer Segmentation

QP Cleaning Services will primarily target the following customer and client profiles:

• Residences needing cleaning of their homes who are not currently contracted with another cleaning service
• Property management companies who manage a portfolio of office and/or industrial buildings
• Commercial spaces of restaurant and retail businesses who need cleaning services during off hours

QP will target small and medium-sized businesses who require cleaning aside from what their employees already provide. For instance, they will not target large franchise-owned establishments such as Walmart, Target, Best Buy, etc.

Competitive Analysis

Direct competitors, phoenix cleaning solutions.

Phoenix Cleaning Solutions was established in 1951 and primarily services office buildings in downtown Phoenix. The business consists of a team of 25 men and women who perform janitorial services for their clients. All clients are kept on a contract, and they do not offer special cleaning services such as carpet shampooing or upholstery cleaning. While their business is large and they have a great deal of clients, there is a high turnover of employees due to a lack of employee satisfaction. There are no employee benefits offered and the pay is kept at minimum wage. Most employees are hired due to their previous experience of cleaning jobs and there is no training or employee retention program. Because of the high turnover, quality lacks and the reputation of Phoenix Cleaning Solutions is seen as low-end budget quality. All clients are office and industrial warehouses. They are a competitor due to their economy pricing and large portfolio of clients.

Hall’s Family Cleaning

Family-owned and operated since 1982, the Halls family has made a name for themselves in the greater Phoenix area. Servicing mostly residential households, Hall’s has branched out to local restaurants and small businesses. Most employees are of the Hall’s family with the top management being the patriarch and matriarch of the Hall family. All employees are trained to the Hall family standard and are compensated based on seniority. The Hall family relies heavily on traditional marketing techniques such as bench ads, cold calling, and flyer distribution. Their services offered are basic janitorial duties and add-on services such as window cleaning and carpet shampooing. Pricing will be competitive as they offer a similar pricing model but do not focus as much on customer satisfaction and retention. Within the past year, a nephew of the Hall family started a subsidiary under the family cleaning business as a landscaping company. Hall’s Family Cleaning and Hall’s Landscaping & Maintenance will cross market with each other’s clients.

Merry Maids of Phoenix

Merry Maids of Phoenix is a professional cleaning service that is part of the Merry Maids franchise of cleaning establishments across the United States. Merry Maids services are for residential establishments solely, but they offer many professional services that are a benefit of being part of the franchise. Their menu of cleaning services include apartment cleaning, house cleaning, maid service, specialty cleaning, housekeeping, detailed cleaning, enhanced disinfection services, holiday cleaning, green cleaning, and move in/out cleaning. The website is user-friendly and comprehensive with a messaging option and online scheduling capability. They can also call their local phone line and speak with a customer service representative who can assist in recommending a personalized option for each client. Since Merry Maids is a franchise and offers premium service, pricing is on the higher end of the cleaning service spectrum. Their website also outlines the cleaning process used to clean every area of the residence. All employees are required to undergo a thorough background check and complete the Merry Maids Cleaning Program and Protocols. Merry Maids also offers a Worry-Free Guarantee where the clients’ money will be refunded if they are not completely satisfied with their service. Clients are also able to participate in their seasonal offers which provides discounted prices for one cleaning session. Their array of services have something to fit most clients’ budget and needs.

Competitive Advantage

QP Cleaning Services will be able to offer the following advantages over their competition:

Cleaning Marketing Plan

Brand & value proposition.

QP Cleaning Services will offer the unique value proposition to its clientele:

• Affordable and quality cleaning services for every type of business and household.
• Highly trained staff prepared to service a wide range of clients.
• Professionally designed website with social media and a referral program that will reward existing clients for referring new clients.

Promotions Strategy

QP Cleaning Services will utilize traditional marketing concepts with modern promotions in order to reach a greater audience.

Cold Calling and Door-to-Door Business Sales Calls

Luis Mendez will be visiting businesses to explain his new company and describe the services they will offer. He already has many relationships with existing businesses due to his time as an office property manager. He believes that by building on existing relationships and forging new ones, he will be able to obtain multiple business contracts for their first year.

Referral Program and Word-of-Mouth

Luis will also implement a referral program that will reward an existing client with a free cleaning service if they recruit a fellow business or household and they sign a new client contract with QP. Luis is also very confident with the quality of cleaning his team will be able to provide, that word will get out about QPS and existing clients will be sure to refer them to potential clients.

Business Industry Membership & Advertising

QP will be a member of local business associations such as the Phoenix Chamber of Commerce. By being a member, Luis will attend all networking functions and pay for advertising space in their publications and at their events.

Website & Social Media

QP will have a professionally designed website, www.QPCleaningServices.com, where new and potential clients will be able to view a list of the services, pricing menu, and ability to schedule a cleaning consultation. The website will also include client testimonials and showcase the Employee of the Month to highlight their professional and personal accomplishments. When clients can get to know an employee, their confidence and trust with that person is greater.

QP will also have a business Facebook, Twitter and Instagram profile. Luis will post monthly specials, showcase employees, and showcase satisfied clients.

The pricing of QP Cleaning Services will be moderate and on par with competitors, so customers feel they receive value when purchasing their services.

Operations Plan

QP will utilize the following operations plan.

Operation Functions:

• Luis Mendez, Owner, will oversee all operations and marketing.
• Staff Accountant will manage all client invoicing, billing, and payables.
• Human Resources manager to oversee all employee hiring, onboarding, payroll, retention and benefits programs.
• Training manager to develop and implement a strict cleaning protocol program that every employee will have to pass.
• 8 – 10 hourly cleaning professionals at startup. More hourly employees will be hired as needed for growth.

Milestones:

QP Cleaning Services will have the following milestones complete in the next six months:

• 2/1/202X – Finalize lease agreement for small office space
• 2/15/202X – Begin build out of leased space
• 3/1/202X – Final walk through and approval of office space
• 4/15/202X – Owner, Accounting Manager, Human Resources Manager, and Training Manager begin employment.
• 4/16/202X – First set of hourly employees begin training program
• 5/1/202X – First day of cleaning for the first set of 4 contracted businesses

QPS will be solely owned and operated by Luis Mendez with the help of a management staff.

Luis Mendez, Owner

Luis Mendez is a native of Phoenix, Arizona and has made his career as a Property Manager for multiple office and industrial buildings and has worked with numerous cleaning companies in his tenure. Frustrated by the lack of professionalism and quality, Luis decided to venture out on his own, taking with him all the lessons he learned by dealing with cleaning companies as a client. Luis began recruiting and hiring a talented and reliable staff and through his property management connections, has a portfolio of clients that are ready to contract with QP Cleaning Services.

Sylvia Smith, Accounting Manager

Sylvia Smith has over 20 years as an accounting and bookkeeping executive for numerous businesses throughout Phoenix. Sylvia’s diligent and meticulous method has proved very successful as she is able to manage all levels of accounting, tax filings, and accounts payable for small to medium-sized companies. Sylvia will be a great asset for Luis as her management of various business-necessary items will ensure the success of QP Cleaning Services.

Liz Cane, Human Resources Manager

Liz Cane is a recent graduate from the Arizona State University Business School and has worked for a large property management firm in Phoenix. Liz also carries the designation of PHR (Professional Human Resource) and is a member of the Human Resource Society of Phoenix. Liz’s breadth of human resource knowledge and Arizona employment and labor laws make her a vital member to the management team. Ms. Cane will manage and administer the employee benefits program that provides health insurance and paid sick and vacation time to the entire staff of QPS.

Tony Aguirre, Training Manager

Tony Aguirre was recruited to QP after working for many years at Phoenix Cleaning Solutions. There he was a senior janitorial employee where he learned many techniques and quality standards but was unable to implement them due to management’s rules and time limits. It was during his time servicing one of the office buildings that Luis Mendez managed that the two met and struck up a friendship. Luis noticed the hard work and dedication of Tony, and also noticed he was frustrated by his current employer. By hiring Tony and entrusting the training program to him, QP Cleaning Services will benefit from his perfectionist standard while maintaining a friendly attitude.

Financial Plan

Key revenue & costs.

The revenue drivers for QP Cleaning Services are its menu of cleaning services. Aside from regular janitorial services, QP will also offer specialty services such as carpet shampooing, window cleaning, upholstery cleaning, and floor cleaning. Each client will be billed on a monthly basis based on the type of contract they sign. All clients will be able to choose pricing based on monthly or daily services with the option of adding a specialty service as needed.

The cost drivers for QP Cleaning Services will be the employee overhead to cover the salaries of the managers, hourly wages of the cleaning professionals, and health insurance for the entire staff. Other cost drivers will be the marketing expenses, rent and utility cost, and professional insurance for bonding.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clients (Commercial/Business): 16
• Number of Clients (Residential): 14
• Average Client Contract per month (Commercial/Business): $400
• Average Client Contract per month (Residential): $150
• Annual Lease: $18,000

Financial Projections

Income statement, balance sheet, cash flow statement, cleaning business plan faqs, what is a cleaning business plan.

A cleaning company business plan is a plan to start and/or grow your cleaning business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your cleaning company business plan using our Cleaning Business Plan Template here .

What Are the Main Types of Cleaning Businesses?

The most common cleaning service businesses are residential and commercial cleaning businesses. There are also cleaning service businesses that offer more specific services like windows cleaning, washing, carpet cleaning, swimming pool cleaning, and car washing.

What Are the Main Sources of Revenues and Expenses for a Cleaning Business?

The primary source of revenue for a cleaning business is its cleaning fees. Most companies charge an hourly rate for their services.

The key expenses for a cleaning business are labor expenses and supplies.

How Do You Get Funding for Your Cleaning Service Business Plan?

Cleaning company business plans are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a cleaning service business plan and a commercial cleaning business plan.

What are the Steps To Start a Cleaning Business?

Starting a cleaning business and becoming a business owner can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals, get started faster and lead to a thriving business.

1. Develop A Cleaning Business Plan - The first step in starting a business is to create a detailed cleaning business plan that outlines all aspects of the venture. This should include potential market size and target customers, the cleaning services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cleaning business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks, so it’s important to do research and choose wisely so that your cleaning business is in compliance with local laws.

3. Register Your Cleaning Business - Once you have chosen a legal structure, the next step is to register your cleaning business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your cleaning business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Cleaning Equipment & Supplies - In order to start your cleaning business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cleaning business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful cleaning business and cleaning business planning:

• How to Start a Cleaning Business

Where Can I Get a Cleaning Business Plan PDF?

You can download our free cleaning business plan template PDF here . This is a sample cleaning business plan template you can use in PDF format.

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