Choosing a line of business the line of business is not an easy task. And, something that is even tougher to decide is line in business. Before making any such decision, it is paramount for any aspiring entrepreneur to study or research the market. Without which, the business or even the entrepreneur may fall prey to the risks and heavy competition that the market puts forward.
There are sectors in the corporate world, demand for which, never seems to fall short.
Food, education and pharmaceuticals or health are just a few examples which are always in need. Till the time, life exists; the food will always remain a need. But, with major multinational brands in the scene, the competition in food sector remains tough and it will grow even tougher. When it comes to health or pharmaceutical sectors, is even more difficult, costlier business to start and also requires specialization in the field. One has to invest large sums of money and time as well, for the research on medicine production. These are only few of the factors that keep men wary from choosing these sectors as their business startup.
For those who are looking for a viable, always in demand business startup opportunity in India must not get disheartened. We have answer for you. An opportunity that is always in demand, is sustainable for the long run and requires minimal capital as compared to other sectors- Cleaning Business.
Although, the cleaning business, considered one of the best business opportunities in the country, doesn’t mean, that one should take a plunge in this sector with a blind eye. Just like in every other sector, proper planning and research is required to start a cleaning business too. There a few questions that one must ask themselves before making any major decision-
1. Consumer or commercial driven? First and foremost, the entrepreneur needs to ask him/ herself about the business design that would serve them best. They need to ask, “Whom should they focus upon as potential clientele”. In the cleaning business, there are mainly two segments on which they work- Commercial and Consumer.
a. Commercial Segment: The commercial segment caters to businesses and it provides the cleaning business, a wider range of clients with a focused set of services. The commercial segment offers janitorial and other cleaning services required by a firm. It provides stability to the cleaning business as the services are based on tenders.
b. Consumer Segment: The consumer driven segment which has more services such as carpet cleaning, window cleaning or residential maids, tends to get business by managing daily public relations. Due to the small scale nature, the consumer driven cleaning business requires least skill sets and minimal capital to invest.
2. Location for operation? The nature of the cleaning business, requires the entrepreneur, to visit their clientele, therefore, starting the work at home is a very cost effective decision to make. But, it is always advisable to own a commercial space, as it gives the entrepreneur, the freedom to operate the business startup, the way they see fit. A commercial space or storefront also gives space for storage of toxic chemicals necessary and an area to place the business startup’s name board, which in the long run helps to build and promote the brand.
3. Independent business startup or franchise? Although, to start an independent cleaning business startup, requires lesser level of skill sets and minimal capital is easier to pursue. But, to own a franchise helps the entrepreneur on the long run. A total investment called franchise fee and a space which is demanded by the franchisor from the franchisee. In return of the franchise fee, the franchisee enjoys various services such as operational training and benefits of the large business networks of the franchise brand. Franchise startups also provide the entrepreneur with an initial boost in the market with the added brand value and goodwill. There are many companies in the market, such as Frantastic, which may help the aspiring entrepreneur, find some of the franchise business opportunities.
After these initial set of questions are answered, the real work starts. The entrepreneur needs to complete some documentation and follow certain steps to officially start or setup their business.
1. Naming the firm- This is the first and the most important step to take. The name is the most integral characteristic of any business company. While deciding the name, the entrepreneur needs to keep it short and memorable. Keep a number of options in your pocket and once chosen, check online if any other business of the same or different nature is not registered. And designing the logo is not optional. Name and logo are two things that give the business startup, its identity and is critical for building brand value.
2. Register the startup-Registration is necessary for any business to setup. In India or any other country around the world, all the companies need to operate under the guidelines of their respective laws. This is a step that cannot be skipped. Documentations needs to get cleared and licenses or permits have to be obtained, depending on the offered services and size of the business startup.
3. Get insurance- There are a number of risks involved even in the top business opportunity. So, to be on a safer, the entrepreneur must get a number of insurances. One of the most important insurance for a cleaning business startup is liability insurance. Liability Insurance helps the business startup when, because of the worker’s fault, the clients property gets damaged.
4. Startup Capital- Every business startup requires an initial startup capital to run. Depending on the size of the business one may save, take a loan or even invest in the equipments required step by step, as the necessity arises. Partnership is also smart option, where the partners can pool their resources and not get burdened by the financial needs of the business startup.
5. Setup- An office or commercial space might not be paramount, but there are a number of cleaning equipments that are necessary to run the cleaning business. Equipments such as floor cleaning supplies, trash bags, and industrial grade vacuum cleaner are some of the essentials in the cleaning business. While buying these equipments, it is wise to go for heavy duty gears as they are resilient to daily wear and tear and lasts longer. Safety equipments such as gloves and masks are also necessary for workers to remain healthy, effective and efficient. For those with bigger startup capital may also buy a vehicle for transportation of their equipments and workers.
6. Workers- For a cleaning business, workers or manpower are not paramount. Initially, the owner or the entrepreneur might complete the jobs required. The cleaning business is not about the number of hands but the quality of work. If in time, the need arises, the entrepreneur has two options to work with. They may hire the workers on permanent or contractual basis. It is very most important to meet the legal requirements and do not forget to conduct background check on the workers.
7. Pricing Structure-After taking factors, such as cost of labor and materials into consideration, the entrepreneur must construct a pricing structure. Although, the industry standards can be followed for the services offered, but setting a base price is imperative. Negotiation with clients is always an option.
8. Accounting System- Business is economic in nature. There are always payments to make or receive. Keeping an account is always a wise option. Accounting also makes it easier to analyze the progress of the business in the long run. Initially, accounting softwares are of great help but as the business grows, hiring an accountant becomes essential.
9. Promotion- To find potential clients, promotion of you brand is the most essential thing. It also builds brand value for the company. Social media platforms can come handy when it comes to building clientele and business promotion. Those in favour of traditional approach may advertise about their brand in the newspaper or electronic media such as radio or television.
Any aspiring entrepreneur looking forward to start their cleaning business startup must follow these nine basic steps to ensure smooth functioning of their startup.
Conclusion
Cleaning business is one of the businesses which require least skills and minimal investment. But what makes it hard for a startup to survive.
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