Buying a Cleaning Business in 6 Steps
A cleaning business offers a low investment, recession-resistant opportunity with recurring revenue. Busy homeowners turn to cleaning services to save time and reduce stress. The U.S. residential cleaning market is growing at a steady rate of nearly 5% per year. If you want to join this high-demand industry, finding the right deal, negotiating the price, and setting yourself up for success can be tricky. To help you navigate the process with confidence, let’s cover the six essential steps to buying a cleaning business.
1. Determine Your Budget
Before you make any purchasing decisions, it’s important to understand your budget and financial goals. Starting a cleaning business is a big endeavor. You’ll need working capital to sustain the business and pay employees until it starts to turn a profit, and you need a financial cushion for unexpected expenses.
To start on the right foot, you’ll need to secure financing. There are many financing options for small business owners, including loans from the U.S. Small Business Administration, personal savings, and bank loans. Rollovers as Business Startups (ROBS) allow you to use your retirement to fund your new business without a penalty.
2. Outline Your Business Goals
Clarify your business goals. Do you want to launch a business to find work-life balance or diversify your portfolio for retirement? Is your goal to create a legacy to pass on to future generations? Will your business replace your current job, or do you plan to be a semi-absentee owner?
Understanding your goals will help you determine the type of cleaning business you want to run. A residential cleaning business operates on a 9 to 5 schedule while commercial cleaning happens after employees go home.
3. Research Cleaning Businesses for Sale
To find a cleaning business for sale that matches your goals, search online marketplaces like BizBuySell, or work with a broker specializing in service-based businesses. You can also explore franchise opportunities with established brands like Two Maids, which has a streamlined buying process and built-in support.
4. Conduct Due Dilligence
Once you are ready to buy a cleaning company, it’s important to conduct due diligence. Carefully review the business’s financials, operations, and legal standing to ensure it’s a solid opportunity. Turn to a business attorney and accountant for added assurance. If you are considering a franchise cleaning company, you can use the franchise disclosure document (FDD) to provide many of these details as well as an outline of the franchise agreement.
5. Negotiate the Deal
The art of making a deal varies. It’s a good rule of thumb to make an offer below the asking price but within a reasonable range to allow for negotiation. If the buyer is highly motivated to sell, you may be able to negotiate a better price. Take your time during the negotiation process for the best results and don’t be afraid to walk away if the terms aren’t favorable.
6. Get Started
Once the sale is final, it’s time to get started on your new venture. Transitioning employees and maintaining current customers is crucial.
Franchising vs. Buying a Cleaning Business
If you want to purchase an existing business, starting a franchise can be less risky than an existing independent operation. A franchise offers a proven business model, brand recognition, and ongoing guidance. Unlike an independent operation, you’ll get operational support such as training, marketing, and business systems to help you run the business efficiently. A franchise has a blueprint for profitability, helping to minimize costly mistakes. You will also get a network of peers invested in your success that you can turn to for business tips and group buying power to lower supply costs.
Two Maids: A Trusted Brand with a Proven Track Record
Partnering with Two Maids to launch a residential cleaning business can set you up for success. We have the tools, training, and support you need to achieve your financial goals. Our unique Maid-to-Shine program ensures high levels of customer satisfaction and improves professional house cleaner retention. Franchise owners get the advantage of our scheduling tool that allows customers to receive a quote immediately and book a cleaning within 60 seconds, a call center has expertly trained sales associates to schedule franchisees clients, and an in-house marketing team that handles franchisees digital marketing campaigns.
You don’t need experience in the cleaning industry to be successful as a Two Maids owner. New owners can take advantage of our robust training program, marketing support, and business guidance.
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