Commercial Cleaning Business Plan Template
If you want to start a Commercial Cleaning business or expand your current Commercial Cleaning business, you need a business plan.
The following Commercial Cleaning business plan template gives you the key elements to include in a winning Commercial Cleaning business plan.
Commercial Cleaning Business Plan Example
I. Executive Summary
Business Overview
[Company Name] provides commercial cleaning and janitorial services to companies throughout [location]. The Company provides dependable, customized cleaning programs, specific to the needs of your industry, number of employees, building size and budget. The Company’s services include basic commercial contract cleaning, deep cleaning, day porters, floor care and carpet cleaning, touchpoint cleaning and disinfecting cleaning services. They offer daily, weekly and monthly cleaning services, as well as one-time cleaning projects. [Company Name]’s goal is to become one of the leading commercial cleaning companies in the area.
Services
The Company will provide the following services to its clients:
- Commercial Cleaning
- End of Tenancy Cleaning
- Window Cleaning
- Steam Cleaning
- Floor Waxing and Polishing
- Office Furniture and Upholstery Cleaning
- Carpet Cleaning
Customer Focus
[Company Name] will primarily offer its services to facilities within a 25-mile radius of the business location. The demographics of the customers are as given below:
- Small Businesses
- Educational Institutions
- Factories and Manufacturing Companies
- Government Facilities
- Medical Facilities
Management Team
[Company Name] is led by [Founder’s name], who has been in the cleaning industry for [x] years. [Founder’s name] graduated from the University of ABC, where he majored in business. During his apprenticeship in the commercial cleaning industry, he acquired in-depth skills in practicing cleaning services and is well aware of the practices related to the commercial cleaning industry. Additionally, he worked as a cleaning services manager at a smaller firm, learning how to manage and run a cleaning service business before starting [Company name].
[Company name] will also employ an experienced assistant manager to manage cleaning operations. There will be an experienced operations manager who will be trained in cleaning services operations by [Founder’s Name].
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for cleaning services within the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of people in need of professional cleaning services.
- The management team has a track record of success in the cleaning services business.
- Commercial cleaning services have a proven track record of business success in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $150,000 to launch its commercial cleaning business. Specifically, these funds will be used as follows:
- Office design/build: $60,000
- Working capital: $90,000 to pay for marketing, salaries, equipment and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] provides commercial cleaning and janitorial services to companies throughout [location]. The Company provides dependable, customized cleaning programs, specific to the needs of your industry, number of employees, building size and budget. The Company’s services include basic commercial contract cleaning, deep cleaning, day porters, floor care and carpet cleaning, touchpoint cleaning and disinfecting cleaning services. They offer daily, weekly and monthly cleaning services, as well as one-time cleaning projects. [Company Name]’s goal is to become one of the leading commercial cleaning companies in the area.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for cleaning services who seeks to provide effective commercial cleaning services using innovative technologies to the community, which will also cost less than other similar services available in the market for everyone in one place. [Company Name] will become a known commercial cleaning shop in [Location], offering a wide range of commercial cleaning services ranging from one-time cleaning to large facilities’ maintenance.
Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the commercial cleaning shop.
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
- Created the list of services to be offered
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the commercial cleaning industry
[Company Name]’s Services
The Company will provide the following services:
- Commercial Cleaning
- End of Tenancy Cleaning
- Window Cleaning
- Steam Cleaning
- Floor Waxing and Polishing
- Office Furniture and Upholstery Cleaning
- Carpet Cleaning
III. Industry Analysis
[Company Name] competes against small, independent commercial cleaning businesses and major national chains. The industry’s market size is expected to grow 4.1% to reach $75.6 billion in the next year. The commercial cleaning industry in the US is the 4th ranked Services industry by market size in the US.
The Commercial Cleaning industry in the US increased faster than the overall economy. The primary positive factors affecting this industry are the industrial production index and the number of businesses.
Further, it is anticipated that businesses often expand when corporate profit grows, leading to greater demand for janitorial services. Corporate profit is expected to increase in the coming years, representing a potential opportunity for the industry.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve businesses and facilities in [location] and its surrounding areas.
The following numbers of businesses operate within 20 miles of our headquarters:
| Total Businesses | 38,124 |
|---|---|
| Forestry, Fishing, Hunting, and Agriculture Support | 0.29% |
| Mining | 0.35% |
| Utilities | 0.23% |
| Construction | 9.64% |
| Manufacturing | 4.16% |
| Wholesale Trade | 5.62% |
| Retail Trade | 14.54% |
| Transportation and Warehousing | 2.83% |
| Information | 1.81% |
| Finance and Insurance | 6.56% |
| Real Estate and Rental and Leasing | 4.75% |
| Professional, Scientific and Technical Services | 11.36% |
| Management of Companies and Enterprises | 0.69% |
| Admin, Support, Waste Mgt, Remediation Services | 5.15% |
| Educational Services | 1.20% |
| Health Care and Social Assistance | 10.80% |
| Arts, Entertainment and Recreation | 1.66% |
| Accommodation and Food Services | 8.59% |
| Other Services (Except Public Administration) | 9.78% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Small Businesses: The Company’s first target group will be small businesses. This segment is most likely to seek cleaning services to maintain their offices and work spaces clean and tidy, since this will impact the mood and environment of the workplace.
- Educational Institutions: The Company’s second target group comprises educational institutes that will avail of the cleaning services to combat the spread of disease in high-touch and high-traffic areas in order to make educational experiences both safe and memorable.
- Factories and Manufacturing Companies: Dirt and debris can accumulate quickly in these environments, and it’s important to remove them to avoid harming workers and expensive machinery. Commercial cleaning is necessary to tackle the specialized cleaning needs of factories and manufacturing units to achieve a pristine workplace for both employees and customers.
- Government Facilities: Government buildings serve the community, and with that civic obligation comes a wide range of visitors, responsibilities, and potentially heavy foot traffic to the facility. Government facilities, as representatives of the public, need to maintain high standards of cleanliness and presentation.
- Medical Facility: The cleaning needs of medical facilities are very crucial for patient safety, confidence, HCAHPS scores, and their reputation could all suffer if the medical facilities are not in good hygienic condition.
V. Competitive Analysis
Direct & Indirect Competitors
Pro Cleaners
Pro Cleaners has been leading the United States’ professional cleaning market for xx years. The company has grown from a single-person window washing service to a corporate cleaning giant in its service history. Competitor 1 commercial custodial cleaning and maintenance services focus heavily on green cleaning and environmental stability. The cleaning and janitorial teams are trained in using modern cleaning equipment and educated on all necessary chemical and safety protocols.
Two Tone Cleaners
With a mission to create a “cleaner, healthier, and safer environment,” competitor 2 has been in the cleaning industry for over a century. The company is one of the largest commercial cleaning businesses in the country, providing indoor commercial cleaning services in more than 25 states.
Top Notch Cleaning
Top Notch Cleaning has grown significantly to provide various services and cleaning solutions to clients across the country. Adhering to practices set by the EPA, CDC, and FDA, Top Notch Cleaningmakes use of specialty, proprietary cleaning, and disinfecting systems to eliminate dust and bacteria from a variety of services and areas. The company regularly cleans daycare centers, schools, hotels, laboratories, manufacturing plants, medical centers, shopping centers, and office buildings.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: [Founder’s Name] has been extremely successful working in the cleaning service businesses and will be able to use his previous experience to assure clients of the best cleaning practices. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
- Great service at an affordable price: The wide range of cleaning services offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these commercial cleaning services at a much more affordable price.
- Location: [Company Name]’s location is near the center of town, giving the company access to small and large businesses, educational institutions, factories and manufacturing units, government facilities, medical facility, and restaurants in the city.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a respectable and renowned competitor in the commercial cleaning industry. Customers can expect to receive professional cleaning services from skilled and experienced cleaning specialists for a price somewhere between discount chains and national chains.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide variety of commercial cleaning services
- Convenient location
- Comfortable, customer-focused environment
- Moderate price point
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be businesses and facilities within a 25-mile radius of the [location]. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening the commercial cleaning shop, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its services in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different cleaning hacks and post customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the services they are paying for. The customer can expect to receive exceptional cleaning services at a far more affordable price than what they pay to a well-established commercial cleaning company.
VII. Operations Plan
Functional Roles
To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:
Service Functions
- Janitorial and cleaning staff
- Sales manager
- Customer service
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Appointment making
- Supplies Inventory management
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s name], who has been in the cleaning industry for [x] years. While [Founder] has never run a commercial cleaning company himself, he has extensive experience providing innovative cleaning ideas. [Founder’s name] graduated from the University of ABC, where he majored in business. During his apprenticeship in the commercial cleaning industry, he acquired in-depth skills in practicing cleaning services and is well aware of the practices related to the commercial cleaning industry.
Additionally, he worked as a cleaning services manager at a smaller firm, learning how to manage and run a cleaning service business before starting [Company name].
[Company name] will also employ an experienced assistant manager to manage cleaning operations. There will be an experienced operations manager who will be trained in cleaning services operations by [Founder’s Name].
Hiring Plan
[Founder] will serve as the CEO. In order to launch the commercial cleaning services, the company will need to hire the following personnel:
- Operations Manager
- Accountant
- Sales Executive [Number]
- Cleaners
- Customer Representative [Number]
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the fees charged from the commercial cleaning services offered. The major costs for the company will be salaries of the staff, lease of the building, cleaning equipment and products. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].
Capital Requirements and Use of Funds
[Company Name] is currently seeking $150,000 to launch its commercial cleaning business. Specifically, these funds will be used as follows:
- Office design/build: $60,000
- Working capital: $90,000 to pay for marketing, salaries, equipment and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 120 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 200 |
| FY 5 | 220 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
