Cleaning Business Plan Template [Updated 2024]

Cleaning Business Plan Template

If you want to start a Cleaning business or expand your current Cleaning service, you need a business plan.

The following Cleaning business plan template gives you the key elements to include in a winning cleaning service business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Cleaning Company Business Plan Sample

I. Executive Summary

Business Overview

[Company Name], located at [insert location here] is a new home cleaning service providing home and apartment cleaning services to its clients. [Company Name] is headed by [Founder’s Name], an experienced home cleaner and cleaning services manager.

Services

[Company Name] will focus on providing weekly home cleaning services to upper class residents as well as specialty cleaning services to other clients. These specialty services will include exterior cleaning services (porches, patios, building exteriors) and deep cleaning of homes that have heavy build up of debris and garbage (preparation for moving or estate sales).

The founder, [Founder’s Name], will also develop proposals for cleaning services specific to the needs of the client and the amount of space to clean. [Founder’s Name] will write newsletters to clients describing the best practices in home cleaning, reviewing new products, and answering frequently asked client questions.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Customer Focus

[Company Name] will primarily serve the residents within a 10 mile radius of our location. The demographics of these customers are as follows:

• 27,827 residents
• Average income of $74,700
• 58.9% married
• 49.6% in Mgt./Professional occupations
• 75% of residents are homeowners
• Median age: 38 years

In addition to this relatively wealthy adult demographic for a cleaning service business, there are five large apartment buildings in the area. The management companies of these apartment buildings may require cleaning services to prepare for new tenants to move in.

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a cleaning services manager for the past 15 years. He has spent much of his career working with Regal Hotel Management, where he oversaw housekeeping operations for fifteen hotels. He spent the more recent portion of his career at a smaller firm, King’s Cleaning, where he sold cleaning services worth over $1 million to homes and businesses.

[Company name] will also employ an experienced assistant manager to manage cleaning operations. This will be an experienced operations manager who will be trained in cleaning services operations by [Founder’s Name].

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.

• Our location is in a high-wealth area where customers are in need of house cleaning services.

• The management team has a track record of success in the cleaning services business.

• The local area is currently under served and residents rely on independent and often illegal house cleaners.

Financial Highlights

[Company Name] is seeking a total funding of $92,000 of debt capital to open its cleaning service. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Headquarters design/build: $46,000

• Working capital: $46,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], located at [insert location here] is a new home cleaning service providing home and apartment cleaning to its clients. [Company Name] is headed by [Founder’s Name], an experienced home cleaner and cleaning services manager.

While [Founder’s Name] has been in the cleaning services sector for some time, it was in [month, year] that he decided to launch [Company Name]. Specifically, during this time, [Founder] met with a former friend and fellow independent cleaning services provider in Fort Lauderdale, FL who has had tremendous success. After discussing the business at length, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in his hometown were so similar that he knew the business would work. After surveying the local population, [Founder’s name] went ahead and founded [Company Name].

[Company Name]’s History

Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential retail office, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there.

Since incorporation, the Company has achieved the following milestones:

• Found office space and signed Letter of Intent to lease it

• Developed the company’s name, logo and website located at [website]

• Determined equipment and fixture requirements

• Began recruiting key employees

[Company Name]’s Services

[Founder’s Name] will be able to provide clients with the following services:

• Weekly Residential Cleaning: regular, general residential cleaning services, customized to the needs of each client, for apartments, small homes, and large homes.

• Exterior Cleaning: cleaning of exterior walls, patios, porches, driveways, etc

• Deep Cleaning: garbage removal, carpet cleaning and deep cleaning of walls and floors for tenants who are moving, home sales, and landlords of apartment buildings

• [Company Name] Newsletter: frequently asked questions, cleaning tips, and product reviews for clients

As [Founder’s Name] understands, the key to a successful cleaning service is being responsive to the particular needs of clients. [Founder’s Name] will have a full-time assistant manager who will, among other things, manage operations including scheduling, supply procurement, inventory, and bookkeeping. This will free up the time of [Founder’s Name] to work on sales and customer service.

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

The cleaning industry is generally strongly correlated with the strength of the real estate market. However, last year, according to Freedonia, the commercial and residential contract cleaning services market was $48.4 billion in the U.S. The market will grow at 5.3 % annually for the next three years and that “gains will be driven by the shift toward “”do-it-for-me”” cleaning services in the residential market and by the outsourcing of noncore functions in the nonresidential market.”

The cleaning industry includes nonresidential interior building, residential interior, swimming pool, street and parking lot, exterior building, chimney, transportation equipment, window, and more. Within the residential interior segment, some providers specialize in areas such as carpets, kitchens, walls, and floors.

Trends in the cleaning industry include the following:

• Customer interest in companies that clean with all-natural or environmentally-friendly products only.

• Customer interest in companies that clean with non-toxic products.

• Market downturn leads to growth in residential customers hosting dinners and events at their homes to save money, leading to increase in cleaning services before and after such events.

• Customer interest in expert advice as to how they clean and maintain their homes better.

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 10 mile radius.

The area we serve is populated mostly by the middle and upper class and lead busy lifestyles; as a result, they have both the need for cleaning services and the means to pay for it.

Customer Segmentation

The Company will primarily target the following three customer segments:

1. Middle and Upper Class Homeowners: The area in which the Company will operate has a significant population of homeowners. Many homes have two working parents with limited time to keep up with housekeeping and cleaning. Even homes with one parent staying at home can have a need for regular cleaning services or specialty services from time to time, especially when there are three or more children to care for.

2. Wealthy Renters: Many wealthy singles and couples chose to rent apartments and homes rather than to buy because of a temporary living situation in [company location]. These renters tend to work long hours at consulting companies, banks, and financial services and do not have the time or interest in cleaning their apartments regularly.

3. Apartment Management Companies: There are five apartment buildings in the vicinity which may be interested in outsourcing their cleaning services for apartment units when they are vacated.

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following two cleaning services firms are estimated to serve 50% of the house cleaning services customers within a 10 mile radius of [Company Name], as determined by a survey of 100 homes. Independent housekeepers are used by many more, although the exact number is difficult to determine.

King’s Cleaning

King’s Cleaning is an established local business and residential cleaning service that has been in operation for ten years. The company earns approximately half of its revenue through residential cleaning and half through business and office cleaning. [Founder’s Name] is very familiar with this competitor, having served as its sales manager for the past five years.

King’s customer reviews are often mixed. There are often reports of cleanings being incomplete. While King’s does send crews back to redo any shoddy work, their reputation has been damaged by these incidents over time.

[Company Name] will create a brand built around the specific cleaning needs of homeowners and renters rather than serving both home and business owners.

Merry Maids

Merry Maids is a nationally franchised brand that cleans more than 300,000 homes, apartments, and condos in North America every month. Founded in 1979, the company has more than 300 locations and calls itself the largest home cleaning franchise network in the world.

Merry Maids operates on a similar model to [Company Name], providing customized proposals to clients based on an estimate of their specific needs. They encourage weekly service, but can provide service on any schedule chosen by a customer or one-time cleanings.

However, Merry Maids does not offer any rates on their website, insisting that a home inspection must take place before any cleaning rates can be discussed. [Company Name] will offer basic rate ranges (competitive with Merry Maids) on their website, helping customers to come to a decision faster. Furthermore, [Company Name] will build its brand as a cleaning expert through its intelligent weekly newsletter.

Independent Housekeepers

Dozens of independent housekeepers operate their own businesses, generally illegally, for area residents. These housekeepers advertise their services through word-of-mouth and flyers in supermarkets and local stores. They offer low rates (as low as $10 per hour) to clean homes and require payment in cash.

While many customers seek out these “off-the-books” workers to clean their homes, others are wary of hiring illegal workers who avoid taxes and don’t hold insurance or business licenses. Those who are legal to work in this country can potentially become employees of [Company Name], effectively buying them out as competition.

Competitive Pricing

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with his clients through weekly newsletters about cleaning.

• Management: [Founder’s Name] has been extremely successful working in the cleaning services business and will be able to use his previous experience to assure clients of the care that [Company Name] will take to do the job right. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.

• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his ties to homeowners from his work at King’s Cleaning to develop an initial client base.

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

[Company Name] will use several strategies to promote its name, develop its brand and reach its target customers. By using an integrated marketing strategy, [Company Name] will win clients and develop consistent revenue streams.

The [Company name] Brand

The [Company name] brand will focus on the Company’s unique value proposition:

• Client-focused home cleaning services, that treat each home individually and get the job done right the first time

• Service built on long-term relationships

• Big-firm expertise in a small-firm environment

Promotions Strategy

Targeted Cold Calls

[Company Name] will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used; targeting individuals in homes are most likely to demand the services of a cleaning company. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

Referrals

[Company Name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer their friends and neighbors by providing discounts for new client produced. This strategy will increase in effectiveness after the business has already been established.

Additionally, [Company Name] will aggressively network with local area hardware and cleaning supply stores that sell products used by [Company Name]. This network will generate referral leads and give out flyers to customers at no charge in exchange for the steady purchase of cleaning supplies. In return, clients who seek to use the high-quality products that [Company Name] uses will be directed to these stores.

Internet

[Company Name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company Name] as the trustworthy, well-qualified home cleaning firm that it is.

Publications

[Company name] will place print advertisements in key local publications, including newspapers, area magazines, and local sport programs. Additionally, the Company will print brochures and place them in specific locations frequented by target individuals, such as supermarkets and real estate offices.

Pricing Strategy

[Company Name]’s pricing will be competitive compared with Merry Maids and lower than King’s Cleaning, although higher than illegal independent housekeepers. For regular, weekly clients, pricing will be based on the average labor needed for a job and a steady fee will be set. For one-time clients, or clients who are trying out the firm’s services, a competitive hourly rate will be charged.

VII. Operations

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

[Company Name] will carry out its sales operations through phone calls and home visits/consultations. House cleanings will be scheduled within time ranges (i.e. 10 am – 4 pm Wednesday) rather than at exact times to allow leeway for jobs that may be longer or shorter than expected. After clients are served a number of times, appointments will be scheduled more tightly together based on the average service time for each home.

The headquarters will not be used for client meetings, allowing savings on the renovation costs needed for this space. This space will house the three full-time, non-cleaning staff as well as cleaning supplies for the cleaning staff. Cleaning staff will be required to travel to client homes in their own vehicles and will be reimbursed for travel expenses.

[Founder’s Name] will work as the primary salesperson for the company’s services, although the assistant manager and administrative assistant may be trained in sales activities over time. The assistant manager will manage company operations, under [Founder’s Name]’s supervision. The administrative assistant will handle basic scheduling work for the assistant manager, as well as light bookkeeping, answering phones, and organizing human resources.

Milestones

[Company Name]’s long term goal is to become the highest quality provider of consistent home cleaning services in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.

The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a cleaning services manager for the past 15 years. He has spent much of his career working with Regal Hotel Management, where he oversaw housekeeping operations for fifteen hotels. At Regal, [First name] learned the requirements for detailed cleaning from both a technical and customer service perspective.

[First name] spent the more recent portion of his career at a smaller firm, King’s Cleaning, where he sold cleaning services worth over $1 million to homes and businesses over the past five years. During this time he witnessed firsthand successes and failures in service operations and service quality, while developing deep expertise as a customer service representative.

[Company name] will also employ an experienced assistant manager to manage cleaning operations. This will be an experienced operations manager who will be trained in cleaning services operations by [Founder’s Name]. The desired individual with have an undergraduate business degree or years of small business operations management experience.

Hiring Plan

In order to launch the business we will hire the following employees:

• Cleaning Staff: 9 full-time, experienced home cleaners. Must be read and speak English in order to take directions directly from clients, as needed. Cleaning staff will be added consistently to fill the growing need for [Company Name] services.

• Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.

IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue & Pricing

[Company Name]’s revenues will come primarily from cleaning fees to residential clients.

[Company Name]’s main revenue streams will be:

Key Cost Drivers

As with most services, labor expenses are the key cost drivers. Cleaning staff will earn a competitive salary, allowing [Company Name] to hire workers who previously operated independent businesses. Furthermore, the costs of supplies and travel to client sites are expected to be roughly 20% of revenue.

The major cost drivers for the company’s operation will consist of:

• Salaries

• Cost of cleaning (supplies and travel to homes)

• Lease on company headquarters

Moreover, ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $92,000 of debt capital to open its cleaning business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Headquarters design/build: $46,000

• Working capital: $46,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions & Forecasts

The following table reflects the key revenue and cost assumptions made in the financial projections model.

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

 

Summary
Crafting a cleaning services business plan is an essential part of the business planning process. The cleaning company business plan template above provides you with the a solid foundation to get started on your own cleaning services business plan.