Why You Need a Business Plan for Your Cleaning Company

A business plan is an important document that cleaning companies of all sizes should take the time to prepare before signing on that first account. By sitting down to write a business plan you take the time to look at your new business in an objective and critical manner. Once completed, a business plan will give you a path to follow.

Your business plan will show how your cleaning business is organized, it will list the competitors in your service area, and how you will compete against them. It will also list the services your company will provide, your management methods, how you will market your company, how your company keeps its financial records, and your goals for the future.

Taking the time to write a business plan helps to focus your ideas and increases your chance for success and growth. A finished plan is not only a communication tool for your business, but it is also a document required by most financial institutions if you are applying for a loan to get your cleaning business up and running.

Overall, a business plan will explain your niche, the cleaning services you offer, how you will find your potential customers, key personnel, and plans for growing your business. Your plan should also contain your marketing plan, an analysis of your competitors, and potential sales revenues.

It’s not difficult to write a business plan for your cleaning company. It will take time, research and a quiet place to sit down and bring all the pieces together. Write your business plan in a style that is not only readable, but enthusiastic. This will show potential lenders that you not only know what it takes to run a successful business, but that you are excited about what you are doing. Keep your plan upbeat and positive, but don’t stretch the facts and underestimate the time that it will take for your cleaning business to become profitable.

A completed business plan for a small company may run between 15-30 pages. Organize your plan into the following sections:

1. Introduction. This will include your cover page, executive summary, and table of contents. Your cover page should have all the relevant information about your business: name, location, owners, and the date the plan was prepared. Your executive summary will present a summary of the entire plan, including information about your company, your overall objectives, and your key personnel and their strengths.

2. Business Description. This will be more in-depth information about your business; the products and services you are selling, your service area, your potential clients, background information of key personnel, the unique features your cleaning company has to offer, and a timetable.

3. Business Organization. This section covers the legal structure of your business, how you will manage the business, how many employees you’ll need, and insurance and security issues.

4. Marketing. No business can be successful if people do not realize you exist. A marketing plan will help you to focus on the steps you need to take to find and reach your target audience.

5. Financial Documents. Financial documents are the records used to project income and cash flow. Accurate financial records help to set the pace of your business. Include an income statement, cash flow statement, start up expenses, and projected balance sheet. Show projections for one year, three years and five years.

6. Support Materials. Include resumes of the owner(s) and key personnel, letters of reference, sample contracts, any legal documents about your business, and sample collateral materials.

Do not overlook the value of a business plan. Sitting down and writing the plan makes you look at all the pieces you’ll need to run a successful cleaning business. It forces you to look at the competition as well as your own strengths and weaknesses. Taking the time to plan before you open the doors to your new cleaning business can save you time, money and headaches after your business is up and running. And, looking at your business objectively before you take the leap and sign up that first account, will make your cleaning business more focused and more profitable!