Start & Run a Home Cleaning Business. Susan Bewsey

for your service. Keep them in mind for the future. Over time you can see how people’s priorities change. Are the new owners starting to landscape their yards? Are there drapes in the windows? Check out condominium developments in your area as well.

      Targeting older, wealthier neighborhoods is a greater challenge. People in these neighborhoods generally employ a personal domestic. However, at least once a year there are heavy tasks that a personal domestic may not be able to perform, such as window washing, wall and ceiling washing, and drapery removal. Consider reaching these clients by offering services that go beyond basic housecleaning.

      2. Assessing The Competition

      Who is your competition? Are they well liked? How much do they charge? These are the questions that you need to answer.

      Do a survey of cleaning businesses that service your market. The Chamber of Commerce or Yellow Pages are both good sources of information to help you find these businesses. Once you have your list of businesses you want to survey, approach them as a potential client, asking what their prices are. Make notes about everything they tell you, as well as your general impression of each business and what it offers.

      Don’t fear competition. In fact, when considering operating in an area which already boasts other services, you should take comfort in the fact that the consumer in that area has already been exposed to the maid service business.

      There’s always room for “a better service,” one with more options or range of services. The consumer likes to shop around for the best rates for the best service possible.

      What do you already know about your competitors? What have other people said about them? Within your community, you probably have contact with people who already use a cleaning service. What do people you meet say they like or dislike about their cleaning service?

      Record all the information about your competitors; such as business name; type of services offered; how they charge; where they work or travel; and other notes. Be on the lookout for other information about competitors, such as things people say or a news item about a particular company. When researching larger companies, annual reports are also helpful for research.

      3. Legal Requirements

      3.1 Zoning

      Since you probably plan to headquarter your business out of your home, make sure that you are legally allowed to do this in your area. There are often municipal restrictions regarding operating a business in a residential area. Many apartment owners and landlords have specific clauses in their rental or lease agreements that prohibit the use of rented space for business purposes. Since zoning is a municipal responsibility, always check with your municipality first. (You can do this by calling or visiting your city hall, town hall, or mayor’s office.)

      3.2 Insurance

      Consult a professional regarding insurance for your business. A standard policy does not cover lawsuits, damages, or accidents that may result from your business. Call at least three insurance companies to discuss whether they handle the type of insurance necessary for your business. In particular, a home cleaning business must consider coverage for these areas:

      (a) Vehicle insurance for business use and staff transport.

      (b) Liability and bonding insurance to offset the costs of major damages. This insurance is important protection, and it also conveys to the public that your company offers financial protection to its clients. When a company buys bonding insurance, the insurance company will provide protection to the employer in the case of financial prosecution as a result of actions by its staff, financial protection to the employee if a claim is made against him or her, and also compensation to the injured party.

      Annual premiums are generally based on the gross earnings of the company and there is a set rate. Insurance premiums are often due annually so be sure to include annual premiums in your budget.

      (c) Dishonesty insurance, which traditionally accompanies liability and bonding insurance and is normally included in the liability and bonding insurance package.

      (d) Workers’ compensation, which provides compensation for injury while on the job, and is required in many areas. Check with local employment authorities as to whether your business has to comply.

      (e) Medical and dental insurance, which are attractive options to be able to offer employees. You can also elect to share the cost with employees and pay a portion of the insurance.

      (f) A disability insurance plan, which is a prudent measure should you become unable to work or if an employee is unable to work.

      Insurance is not just a legal requirement; it also brings peace of mind. When a disaster strikes or you are liable for damages, being properly insured gives you the confidence to keep things going. If you are confident, your clients and staff will also be confident. Insurance costs are also tax deductible, another good reason to indulge in peace of mind.

      3.3 Licenses

      By law, you must be licensed to run a business. Usually a local business license is all you need. Food service businesses must also meet local health requirements and licenses, so if you are considering offering food preparation as part of your party hosting or reception service, make sure you meet these requirements. Refusing to obtain a license can mean the forced closure of your business. Note that the cost of a license is tax deductible.

      3.4 Business taxes

      As a business owner, you have to register with the federal tax department, as well as pay any local and state/provincial business taxes. In the United States, businesses can register with the Internal Revenue Service (IRS). If you hire employees, you must also pay social security tax according to the Federal Insurance Contributions Act (FICA). Depending on where your business is located, there may be other state requirements such as workers’ compensation and disability insurance. Contact the irs for the most up-to-date requirements.

      In Canada, your business must comply with all applicable federal, provincial, and municipal laws. Businesses may apply to the Canada Revenue Agency (CRA) for a provincial or federal tax number which grants exemption from payment of tax on goods for resale. Businesses with gross revenues over $30,000 must charge 6 percent goods and services tax (GST) on the goods and services they provide. Every business must pay 6 percent GST on anything it buys. You can register with CRA for the GST, which allows you to recover any GST that you spend on business purchases.

      As an employer, you are also responsible for remitting Employment Insurance (EI) and Canada Pension Plan (CPP) or, in Quebec, Quebec Pension Plan (QPP). Some provinces also require that businesses pay all or a portion of their employees’ provincial health insurance premiums. Check with CRA and your provincial tax office for the latest information.

      4. Choosing A Business Name

      Naming your cleaning service is a very important step in setting up your business. It reflects what you do and what type of business you run, and it will be on your business cards, stationery, and advertising, and possibly online, so choose a good name.

      Write down every name you can think of. Then narrow your selection down to three favorites, with the name you like best at the top.

      There is a good reason to choose three names. Before you register your business, do a name search to make sure that no other business is using the same name. You can do this by scouting your local Yellow Pages, newspaper classified ads, trade journals, and special-interest publications. Check out all three of your company name choices. This way, if your first choice doesn’t work out, you already know if your second choice is available. Before you invest in stationery, advertising, and business cards, be absolutely sure that you can legally use the name.

      In the United States, county or city clerks can do a name search for you. In Canada, a name search can be done through the provincial ministry responsible for corporate affairs.