Cleaning companies are on the rise. The outsourcing of the cleaning function is progressing in many companies and offers good prospects for growth. Private individuals also increasingly want to eliminate this task by calling on specialists. But beware, the competition is fierce.
So, suppose you want to create a cleaning business. In that case, this special file will be useful to you: what is the sector's potential, the steps to take to get started, how to establish your market study, and your cleaning business plan. Here are the topics we will cover.
Before Starting a Cleaning Business: Assess the Market Potential
Despite intensifying competition and a slowdown linked to the crisis, the cleaning professions remain a buoyant sector.
What are the tasks entrusted to cleaning companies?
Cleaning companies deal with private or public establishments but also with local authorities. They can also work directly with individuals to maintain premises (buildings, offices, shops, factories, etc.).
Professionals are also encouraged to establish a variety of hobbies to vary their work, such as:
- specialized cleaning and maintenance (e.g., operating theaters, computer units)
- vehicle cleaning
- window cleaning
- cleaning of industrial machinery
Other related services should also be considered, such as disinfection, deratting, minor maintenance, or guarding.
What is the size of the cleaning market in France?
In 2013, INSEE evaluated this varied market at 12.2 billion euros, with around 32,000 enterprises spread as follows:
- Many VSEs represent 87% of cleaning companies and are mainly active in residential premises and shops. This sector also attracts auto entrepreneurs, who represented 23,000 structures in 2013. The majority of cleaning business creations are still under this status; even if the trend is downward, a limited number of SMEs, rather than managing apartment buildings
- , a small number of large companies (5% of companies), which nevertheless generate 75% of the turnover of the sector, especially in commercial premises, factories, and in the field of specialized cleaning (power stations, hospitals)
A high level of competition and a crisis that leaves its mark
Here are some of the market trends that are important to consider before opening a cleaning business.
With so many players, the cleaning sector is very competitive, and the principals take advantage of this to play the competition and negotiate lower prices.
In addition, the economic crisis, impacting real estate and tertiary activities, is leading to a drop in activity for cleaning professionals. These developments limit the need for cleaning and, therefore, the growth of professional turnover.
Small structures are very sensitive to this context and must cut back on their margins or find new sources of income by developing related activities.
Innovate: a good way to stand out
When you want to open a cleaning business, launching an innovative service is often a good way to enter the market by distinguishing yourself from competitors. On this side, good news: there remains in this sector a great potential in terms of innovation.
Indeed, if a few innovative concepts have flourished on the side of cleaning services for individuals: Eco wash mobile, Nettycars, Cosmeti'car..., business services are, except a few examples such as CCleaner (cleaning and disinfection of all air-conditioning systems) or Lavatrans (truck washing), which is sorely lacking in innovation.
Is the cleaning market regulated?
The profession is eligible for the status of craftsman, which requires having a diploma in the field of cleaning (CAP, BEP) or, failing that, sufficient experience in the sector.
You will also have to respect hygiene rules applicable to all companies concerning pricing, invoicing, etc.
You can consult this article to learn more about the regulations applicable to the cleaning sector.
Establish a market study to create a cleaning company?
Establishing a market study is an essential step when you want to create a cleaning business.
Indeed, the market study for your cleaning company will allow you to validate the viability of your project before the launch. In addition, this will enable you to estimate the local market's potential and analyze your competitors' strengths and weaknesses.
This step can be carried out entirely by yourself, but you can also be assisted, in whole or in part, by a professional or a junior company if you lack the means.
Market research will help you answer several questions:
- How is the local market doing, and what are its development prospects?
- What are the characteristics of the target clientele? (geographical area, consumption habits, income, age of the population, etc.)
- What are the target's needs and motivations for calling on a cleaning service?
- Who are my competitors? (company size, turnover, geographic location, etc.)
- What does your target think of the offer offered by competitors? What could be improved? These two questions are important because they can allow you to differentiate yourself from your future competitors.
What does a business plan for a cleaning company contain?
If the market study's result validates your project's feasibility, you can move on to writing the business plan for your cleaning business.
The business plan will serve as a reference document. Therefore, it must be complete, precise, and sold to obtain financing.
The idea is, therefore, to logically demonstrate that:
- The planned activity can generate profits: there is a need, and you have a solution corresponding to the targeted target to meet this need. This will cause a significant turnover, allowing your company to be profitable.
- You have a team of complementary profiles allowing you to manage your business, and you have an external network to develop your turnover.
- Your company will have a large and sustainable market share: you know the competition well and have a competitive advantage.
While there are many business plan templates, be aware that you should highlight the following points in your cleaning company business plan:
- Description of the company: legal form, date of start of the activity, capital, and shareholders
- The project leader(s), i.e., you and the company's key people, will give a presentation.
- Presentation of the services offered: what needs do they cover? Are the services innovative? What are their strengths and weaknesses compared to the current offer?
- Market analysis: identification of the different categories of customers, size and evolution of the market, presentation of competitors (direct and indirect), and barriers to entry that may exist for new entrants. This is where you can rely on your market research.
- Presentation of the commercial strategy: how will you generate turnover (sources of income, distribution channels, pricing policy, and retail strategy)?
- Operation of the company: operating plan and presentation of the resources (material and human) necessary
- Three- or five-year financial forecasts: highlighting the need for financing, the potential for profitability, and the opportunity for financial partners
Note that this complete document should not be too long and should begin with an " executive summary " (one-page summary) presenting a clear project synthesis.
The key points of the business plan for a cleaning company
There are several points to pay attention to when writing a business plan for starting a cleaning business.
At the financial level, it is, first of all, a question of properly estimating the material needs:
- the equipment itself: cleaning trolley, vacuum cleaner, Karcher, computer equipment, etc.
- the stock of cleaning products
- the vehicle(s) for transporting equipment and personnel
Then you have to pay attention to the control of the payroll and the types of contracts given to employees. A cleaning company requires a large workforce, and it is necessary to maintain certain flexibility to react in the event of a temporary peak or drop-in activity.
Finally, Paying great attention to the working capital requirement linked to the payment terms granted to your customers (especially with large groups) is necessary.
At the level of the presentation file, the most important point is to demonstrate your ability to differentiate yourself from your competitors and win contracts.
I easily realized my cleaning business plan.
If you're short on time or struggling to see how to start and formalize your cleaning business plan so that it's compelling and relevant, the best solution is to use business plan software like the one we offer.
Our software allows you to create your cleaning business plan easily:
- our written business plan instructions and templates guide you and save you valuable time in writing
- our financial simulator takes care of the calculations and the preparation of your financial statements for you
- you get a professional and nicely formatted document
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