After coming up with the idea, the next step in starting your business should be to write a clothing line business plan. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.

Related: How to write a business plan

Finding the perfect business name can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for naming a cleaning business

A business entity (also called a business structure) refers to how a business is legally organized to operate. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business entity is best for a commercial cleaning business, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay. The corporation can be a good choice because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Related: Guide to forming your LLC

It’s possible to run a single-vehicle business right out of your home, but once you invest in multiple vehicles, it may be time to rent a garage or a storage building with a parking lot. Cleaning chemicals often need to be kept within certain temperatures, so you may need to look for an air-conditioned building or storage facility. Rental costs will depend on the type of property, its size, and location.

Related: Choosing a business location

A commercial cleaning business will need to obtain certain business licenses and permits, including permits and certifications for the cleaning chemicals used. These permits and licenses can vary based on the state and town where the business is located.

Additionally, there are some general local, state, and federal business registrations like a state sales tax permit, Employer Identification Number (EIN) with the IRS, and local Occupancy Permit.

Related: Common business licenses, permits, and registrations by state

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a cleaning business is another. In order to get a loan, the borrower(s) will need to have good credit and be able to personally invest 15-25% towards the total start-up costs.

Related: Finding the money to start a business

Keeping your business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
 
Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

Now that you are getting close to opening, it’s time to get marketing materials planned and created. It’s important to understand your market and what media they consume so you can effectively reach out to them and let them know you’re open.

Set up your business listing on Google My Business, Angie’s List, and social media platforms like Facebook, LinkedIn, and Instagram, in addition to handing out business cards and flyers.

Also, don’t forget the marketing basics like picking up the phone and following up with potential clients, and getting out in the community to introduce yourself to business owners. You’ll also need to be ready to back up your marketing with client testimonials and a professional bid package.

The more effort you put into professionally presenting your business, the more likely you’ll be to secure additional clients.

Related: Low-cost ideas to market a new business

A commercial cleaning service will need to consider several types of insurance to protect the business. A few of these include:
–General liability insurance protects the business if a client is ever injured due to the business’ work or equipment. This type of policy usually helps to cover expenses like medical bills and legal fees.
– Commercial property insurance protects the business if its equipment or property is ever damaged or destroyed in an event, like a fire.
– Commercial auto insurance offers protection if a business vehicle is ever involved in an accident.
– Workers’ compensation insurance protects the business if an employee is injured while on the job, and it can cover expenses like lost wages and medical bills.
– Janitorial Bonds protect the customer if an employee commits theft or damages their property.

Many factors affect insurance policy costs, including the value of the business’ equipment and the value of its vehicles. To get the most accurate idea of insurance costs, it’s best to request quotes from multiple insurance companies. Then, compare the quotes, but don’t just look at the premiums. Instead, consider all of the factors, like differences in coverage limits, exclusions, and deductibles.

Related: Types of insurance your business may need

Many cleaning businesses start with the owner being the only employee, but at some point, additional help is probably going to be needed. Not only will the owner need to consider the risk to their income should they become sick, but the physical labor demands can be hard to keep up for a long period of time.

According to Indeed, janitors earn an average of $19.24 per hour, while those salaries can range from as little as $7.45 to as much as $35.45 per hour.

In addition to budgeting for employee salary costs, a business’ budget also needs to include other expenses like paid time off, health insurance contributions, and worker’s comp insurance.

Hiring dependable staff can be a challenge as a majority of the work is done at nights and on the weekends, and the pay is often low.

Related: Hiring your first employee

Setting up an accounting system for your cleaning business is critical to the long-term success of your business.

Staying on top of taxes not only keeps the business out of trouble with the government but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up the accounting for your business