Get Your Residential Cleaning Business off to a Good Start by Avoiding Common Mistakes
You're ready to start your entrepreneur venture as a residential cleaning business owner. After all, who doesn't want to be the boss, make the important decisions, and take your business and vision to new heights? You feel you have what it takes to be successful. Passion, willpower, fortitude, and guts! That “takes no prisoners” mentality!
However, over half a million other entrepreneurs with similar aspirations, start new businesses every year. And over fifty percent of those companies fail over the next four years. But don't allow trepidation to creep in because of the failure statistics. There are common mistakes you can avoid and get your business off to a good start.
Avoiding common mistakes for your residential cleaning business
There are literally hundreds of things you have to do - from buying supplies to figuring out your accounting system to finding customers. Your first year in business is full of excitement, but can also bring about a steep learning curve. You can be a step ahead of the game by avoiding these seven common business mistakes.
Mistake 1: Thinking all you need is energy and determination to succeed. You often hear that entrepreneurs need a "fire in the belly" to get a business off and running. It's true, you'll be much happier if you're passionate about your business, but passion alone isn't going to pay your bills. You need much more than that - you need a plan. Thoroughly research your market and write a business plan and marketing plan. It doesn't have to be a huge, overwhelming project, but it forces you to take a good, hard look at your business and what you're trying to accomplish. Consider it a road map for your business success.
Mistake 2: Underpricing your services. Many start-up home cleaning business owners believe they can undercut their competitors and "steal" customers away. Pricing your residential services below market value only costs you money and eats away at your profits. Eventually you'll resent the fact that you're working so hard for very little income. Carefully calculate how you need to price your residential services so you cover all of your costs, still make a profit and price services based on the value offered to your customers.
Mistake 3: Living off adrenaline. Entrepreneurs tend to live off the rush they get from sweating out the details of how to make a business work. That's not why you are starting your cleaning business. Your overall purpose is to make money. If you need a rush to get out of bed in the morning, make your coffee stronger.
Mistake 4: Not knowing anything about marketing. Many new business owners fail to create a marketing budget or make any plans to market their services. Some business owners even confuse marketing with sales. Sales are deals you close during the day. Marketing is doing everything you can to get the word out about your cleaning business.
Mistake 5: Being your employee's best friend instead of the boss. At the start of a business, everyone involved is working different jobs, completing different tasks, and putting in long hours. Many problems are fixed on the fly. Eventually things settle down and you develop a system for assigning jobs and taking care of problems. Make sure to have employment policies set up before opening the doors to your residential cleaning business. This will avoid legal problems and low employee morale. Remember, you are the boss and you set the pace. Have a company policy manual and employee handbook and make sure your employees follow the rules. If you don't have any rules your business will suffer.
Mistake 6: Quickly spending your capital. Most business owners will underestimate the amount of money they need to get their business up and running. Your residential cleaning business needs more than just cleaning equipment and supplies. You'll need office supplies, phone services, vehicles (or money for mileage expenses), uniforms, marketing materials (business cards, postcards, etc.), insurance, and professionals (lawyer, accountant) to get your business off on the right foot. As a residential cleaning business, you will most likely bill at the time of service so that's helpful with cash flow, but your expenses will be eating up a lot of that money in the beginning until you can build up a cushion of profit. Develop a personal and business budget that can sustain your company and then add at least 50 percent to cover unforeseen expenses.
Mistake 7: Forgetting about your family. A start up residential cleaning business can be very demanding. A new business owner might be working 60 hours or more a week. This can put a huge stress on your family. When you start a residential cleaning business, it is not only a commitment on your part, but also on your family and friends. Make sure that you find time in that hectic first year of business to show appreciation to your family and friends for the support they provide you.
You will make mistakes, have regrets, experience setbacks and question your decisions throughout the tenure of your business. Avoiding the common mistakes that trap many new entrepreneurs will get you off on the right foot and on the path to success.
“How much you can learn when you fail determines how far you will go into achieving your goals.” Roy Bennett
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