A success of a business like this depends on the decisions its owner makes. Every decision carries a risk and therefore the success of the firm depends on the risk management.
The number and the type of workers will determine the direction in which your company will move. You will have to calculate the number of staff you will require depending on several factors, including the size of your budget and the target group of customers.
Should you hire workers or start alone?
You can start maid business with no employees at all. This means that you will be the only worker. This saves the money for salaries, but it also burdens you with all the work. Smaller companies should have at least one or two maids if you opt for that kind of cleaning business.
If you opt for janitorial service, then you can start the business without any full-time workers. The best way to provide the service and save some money is to hire part-time employees. You can work alone as well, but having two or three workers who work part-time will give you more time for official part of the business.
carpet cleaning company will require more workers once the business opens. This type of cleaning business has the potential to become a very successful company with a high profit. To ensure that you will have to hire one or two service people and at least one person who can handle administrative chores.
Pricing of your services
The first pricing of the services you provide has to be an estimate. This estimate is put to the test after the work is done. It’s not uncommon to have significant gaps between the estimated and actual costs on first several contracts. But the gap should disappear once you recognize the sources of the added costs.
Prices you offer should be competitive, and under the average prices, if possible. To achieve that kind of offer, you have to have correct price estimation. To come to the desired price, you will have to calculate several different sources of costs:
- The costs of labor and materials change for every contract you finish. Labor includes wages as well as benefits of the workers. If you work along with your employees, don’t forget to calculate the costs of your performance as well. The golden rule, which concerns the materials, states that you can’t have too much of something. That is indeed true, and you should always have an excess of materials.
- Overhead consists of indirect costs of your business. They cover everything from the gasoline your workers spend to rent you pay for the office.
- Profit represents the money you earn. Profit is money you get once you cover all expenses of the business. Smart business owner will take a part of that profit and leave the rest for future investments. Having some excess money on the business account is smart. These funds may come into play when you get an amazing deal for some high-end equipment or something similar.