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Emma Lou

  • Posts: 14
New Business
« on: June 06, 2007, 03:18:32 pm »
Hi everyone,

  I am new to this site, which I can see is going to be fantastic, and I'd like to thank Terry from House Angels for pointing me in the forums direction! Ok so here goes with the question/s. I'm starting quite general as I guess the more I get into this forum and discussions the more direct questions I will have.

  Me and my partner are looking at setting up a domestic cleaning business though we are also interested in EOT cleaning and new builds. We both currently work, my partner for minimum wage in a job he hates, I work for an average wage but I'm looking for a career change and to have my own business again. The more we read about the cleaning business the more we like it and believe it is the right move for us. I am trying to find out as much as possible whether this will be a viable business opportunity in the area we are looking at (Middlesbrough, Teesside and local areas) There will only be the two of us doing the work and I am concerned whether the client group exists and money is available as obviously I have a mortgage etc to pay every month. What are people opinions on this?

  I have received a couple of quotes from local cleaners and they seem to be in the £8.50 ph price range. My understanding of this from posts I've read is that this is unfeasable for a thorough job, and does not cover overheads etc I also took it that most people say to price per job, on house size etc Any rough prices on basic cleans for 1-4 bed houses would be appreciated.  Can anyone help? I'm starting a business plan and financial forecasts and need to see if the idea is finacially workable for us.

Does anyone know of a good guide specific to setting up a cleaning business? Likewise can anyone help with examples of paperwork (forms, leaflets, etc) to get me going? I imagine the next few months will be put in planning and researching this business as I am also in the middle of a house move.

I feel like I've posted loads! I don't ask for much do I! Seriously though all your advice and feedback will be much appreciated.

Thanks,

Emma

Emma

martin19842

  • Posts: 1945
Re: New Business
« Reply #1 on: June 06, 2007, 04:48:55 pm »
hi there

domestic
EOT
and
new builds.

conquer the cleaning businesss in one hit, WHY NOT.

you are mixing at least two very different cleaing business types, straight away.

my advice start with one type of work, domestic or commercial, but dont try to do both from day one.

personally i would go down the commercial route,

why ??

if you have done some market research abut your local area for domestic, and the market is straining at £8.50 then stay away it isnt worth trying to get in there.

the question is why is market straining at £8.50..

with regards to commercial work you can earm more but its going to take time to get established.

therefore you need to decide which direction to focus your attention.

regards

martin

Emma Lou

  • Posts: 14
Re: New Business
« Reply #2 on: June 06, 2007, 05:20:21 pm »
Hi Martin,
 
 Yes, I can see your point thanks for the advice. The way I was viewing it was like this: I would like to keep options open, provide a broad range of services so there is likely to be more work. Is this the wrong way to think? Could you give me a breakdown of cleaning business types and the categories?

  I have only been able to contact a couple of cleaners so £8.50 may not be that accurate.  I am aware that I need to do some more market research. Whilst I have the time I I figure it's a good idea to do as much research as possible as if we go ahead with this business it needs to be a success.

Cheers,

Emma
Emma

martin19842

  • Posts: 1945
Re: New Business
« Reply #3 on: June 07, 2007, 07:54:34 am »
hi there

the cleaning business is huge,

domestic services

commercial services
office cleaning
high level cleaning
industrial clenaing
trauma scene cleaning
duct and kitcen cleaning
yellow bag and sharps services
floor cleaning services
carpet cleaning
builders cleans.

there you go thats to a mention a few. 

the market in the UK alone is huge, there is more than enough for you to take a little slice.

i really believe that you ought to concentrate on one particular service type initially, so that you can build a skill base in that particular sector first, then move onto other sectors.

regards

martin


Emma Lou

  • Posts: 14
Re: New Business
« Reply #4 on: June 07, 2007, 10:57:33 am »
Hi again,

 Thanks for that breakdown It's helpful to me. I'm going to do some more research in the different areas, have you got any suggestions on how to dothis other than asking for quotes? I can and have contacted people further afield for advice which has been very useful but with the difference in areas it there will be a fluctuation in client numbers and prices charged I'm guessing. You recommend sticking to one type of cleaning, say I chose commercial would you say for example to do Office cleaning alone and not Office Cleaning and New builds?

Thanks,

Emma
Emma

martin19842

  • Posts: 1945
Re: New Business
« Reply #5 on: June 07, 2007, 05:08:41 pm »
hi there

new builds is a completely different animal from others, if you get into that, then you'll have all your work cut out looking after that side of the business.

regards

martin

Emma Lou

  • Posts: 14
Re: New Business
« Reply #6 on: June 07, 2007, 06:31:39 pm »
Hi Martin,

 Thanks for the advice I can see what you are saying. Does anyone else have any advice about anything in this post?

Hopefully one day I'll be able to contribute more to this forum and share advice and tips with you all.

Cheers,

Emma
Emma

shelton

  • Posts: 175
Re: New Business
« Reply #7 on: June 07, 2007, 07:35:09 pm »
Hi Emma,

We launched nearly 2 years ago - pretty much looking for something that I could do that oul fit in with the school times, etc .. .

The first 18 months has seen me full to the brim with work - both Domestic & Office.  Personally, I don't really have the time, skills or inclination to get into the builders clean side of things, unless it's in relation to one of our existing clients.  We're at the stage where, for the last 2-3 months, we've been turning down work and really need to take on staff (I've posted earlier today on this dilemma).

From my admittedly brief experience (on the sunny South Coast), I don't see a problem with advertising for domestic & commercial work . ..  but maybe we've been lucky  ???


Emma Lou

  • Posts: 14
Re: New Business
« Reply #8 on: June 07, 2007, 08:37:58 pm »
Hiya Shelton,

 It sounds like you've taken the approach we were thinking of. My only concern now is working out if it will be financially viable. Didi you start out just yourself and your partner etc cleaning? Your helps really appreciated. Its great to here you're doing so well, well done!

Emma
Emma

shelton

  • Posts: 175
Re: New Business
« Reply #9 on: June 07, 2007, 10:05:18 pm »
Just me at the mo, with the odd fried chipping in here and there when I get really stuck (which isn't often as I'm careful on when I schedule customers).

Making a nice income (it's our 2nd income) which is OK for us.

It's just annoying to keep turning away customers.


Emma Lou

  • Posts: 14
Re: New Business
« Reply #10 on: June 08, 2007, 11:33:15 am »
Hi again,

 Yeah scheduling is something I am thinking about in regards to how we offer services in different areas. I'm going to start completing a business plan, more for me to get my ideas on paper nice and clearly. It will be our main and only income so we got to get it right!

It is a shme to turn down customers when it could be increasing your income,  hope you find some employees soon!

Emma
Emma

newbroom

  • Posts: 307
Re: New Business
« Reply #11 on: June 08, 2007, 11:46:33 am »
Hi Emma,

I don't see why you couldn't provide a cleaning service emcompassing e.o.t. domestic, and new builds. Its all a matter of organisation, utilising your resources effectively.

None of these areas are rocket science so shouldn't be difficult to deal with.

Emma Lou

  • Posts: 14
Re: New Business
« Reply #12 on: June 08, 2007, 01:24:42 pm »
Hi,

That sounds encouraging. That seems to be the general advice I have had off aa couple of other people. Sort of keeping our options open but doing it with a lot of planning and going in with our eyes open. Do you do this kind of work yourself?

Cheers,
Emma
Emma

newbroom

  • Posts: 307
Re: New Business
« Reply #13 on: June 08, 2007, 02:17:42 pm »
Hi Emma,

In my  business mix i have the following

window cleaning
carpet cleaning
office clean
e.o.t. cleans
builders clean
refurbishment clean
domestic clean

I think you can undertake any cleaning you want has along as you do the following

Research the area of cleaning your interested in thoroughly
Take on aboard as much advice as possible and utilise what you think is appropiate
Ensure people working for you are well trained/informed
You have the correct materials/equipment and are meeting current healtth & safety regulations

Hope this helps and good luck



Emma Lou

  • Posts: 14
Re: New Business
« Reply #14 on: June 08, 2007, 02:25:30 pm »
Hi newbroom,

Thanks for that, its certainly what I am trying to do, and due to helpful people like you (and others who've replied in this post!) I seem to be getting a lot of good advice and encouragement.  I've posted to see if there is anyone in the North East area who can help with more specific local information also, I don't know if this will work but I figured it was worth a try! You have a good mix in your business, personally the top three I'm probably not going to actively seek at first. Internal window cleaning yes. We only plan on the two of us working at first, and to be honest if that is sustainable, and we can earn a good living, then this is how I would plan on keeping it. We'll see!

Emma

PS: I'm spending so much time on this forum and researching I'm not getting much of my own housework done lol
Emma

Ian Gourlay

  • Posts: 5748
Re: New Business
« Reply #15 on: June 09, 2007, 09:11:09 am »
I am concerned that you have a Mortgage to pay.

Do you have enough funds to live on for four to six months while you develop your company/

Would you then have money left for Marketing, Equipment Staff.

If not how do you intend to live.

If you consideri borrowing could you both get jobs easily if things go wrong to repay loan plus your current outgoings.

If not you could loose your home.

Emma Lou

  • Posts: 14
Re: New Business
« Reply #16 on: June 09, 2007, 11:28:09 am »
Hi Ian,

Yeah me too lol

No I wont have enough funds to live on for 4-6 months, a few months yes as I am selling my house and moving into family rented accommodation. I will have money for marketing and set up, we do not plan on having any staff other than me and my partner. We are not going to borrow any money.

It's been suggested that we try and get odd jobs while we hold down our current jobs and see if it takes off. If it looks like we are going to be busy, make the leap from there. How does that sound?

Thanks,

Emma
Emma

Art

  • Posts: 3688
Re: New Business
« Reply #17 on: June 09, 2007, 11:46:43 am »
Hi Ian,

Yeah me too lol

No I wont have enough funds to live on for 4-6 months, a few months yes as I am selling my house and moving into family rented accommodation. I will have money for marketing and set up, we do not plan on having any staff other than me and my partner. We are not going to borrow any money.

It's been suggested that we try and get odd jobs while we hold down our current jobs and see if it takes off. If it looks like we are going to be busy, make the leap from there. How does that sound?

Thanks,

Emma

Hi Emma,

 If your thinking of replacing 2 full time wages within a couple of months starting a business from scratch then, your going to get a shock.

IF you can meet your out goings on one wage then i'd suggest start with the lowest earner packing there job in and see how it goes.

Arthur

martin19842

  • Posts: 1945
Re: New Business
« Reply #18 on: June 09, 2007, 01:46:55 pm »
hi there

build cleal market will stretch your cashflow, as they will dictate payment terms, if your paperwork is late then they hold the payment to till the following mayment run, which can be the next month.

the domestic maket wil create an more instant cashflow.

EOT depends what you negotaite with your customers.

weird thing is my new phone book arrived last night, so many people have disappeared that advertised last year.

the problem with mixing product range from day one, is that -- your marketing, efforts and resources, will be diluted into those differing areas.

if you click lucky ealry in the build clena market, you could weill be tired up on sites for a whoile chunk of your time, yes creating invoicable work, but take into account the payment terms, and you will need to factor that into your business plan.

regards

martin

J. Deans

Re: New Business
« Reply #19 on: June 09, 2007, 04:57:13 pm »
Hi Emma.

A bit more info since my email to you - and thanks for joining!

2 years ago last April, Mary was working for about £7 an hour with another cleaning firm, I was forklifting for £350 a week.
To cut a long story short, a developer asked Mary to return for the next clean because, they said, she cleaned better than her boss!
Of course the boss wasn't happy and refused, so they all had a bit of a falling out. The developer suggested that she start-up herself and he would put a word in at head office to smooth things over.
It took about six weeks to get the CIS, Insurances etc. together, but that was easy enough. Within 2 months she had won the contract from her ex-boss! Luckily there was no clause preventing her from doing this in her contract - and all's fair in love, war and business.

This was a new development of 127 properties and Mary took it on in June 2005. I worked from 6 - 2pm forklifting, so I did all the paperwork for her in the afternoons.
By August she was so busy that I packed in my job and went into partnership with her. I had never cleaned in my life - for money anyway!

Now I am not saying it was easy. As mentioned above, developers usually only do a payment run once a month, and you are paid for the work you did the month before that. (Ie: work all July - get paid begining of September) We maxed-out the credit cards, emptied our accounts and got a small loan, just to live and pay for the running costs of the business (2 months worth of deisel at 60 miles a day soon adds up!) And as with most housing developments, they can be slow to pick up and our first invoices were not enough to live on. It took about six months before we were breaking even.

We made sure the developer had everything they needed because, if they can get away with it, they will withold payment for the slightest reason. I think we had a bit of luck on our side too - this particular developer has never stopped a payment in 2 years. But you should have contingency funds - just in case!

In our case, everything worked out well. We started as Domestic New-Build Cleaners. Now we have care homes, communal areas, renovations, commercial new-builds, farm conversions and much more under our belts. We branched out into these other areas slowly - as finances allowed - but still managed it in just 2 years. We only have one employee, but recruit for help from friends and family when we need too.

I kind of agree that, to try too many different things at once, might dilute your resources. Decide what you are good at or have experience in and concentrate all your energies into making it succeed. Then have a look at other areas, I think you will find the opportunities may come to you eventually!

All the best and good luck...