How to Start a Cleaning Business in Australia

8 Easy Steps on how to start a cleaning business in Australia

Discover the step-by-step guide on how to start a cleaning business in Australia. Learn the costs, legal considerations, marketing strategies, and tips for ensuring customer satisfaction. Find answers to FAQs and explore government grants for cleaning businesses. Become a successful entrepreneur in the cleaning industry today!

Starting a cleaning business is something that can be done with low investment and all you need is an entrepreneurial spirit, some basic equipment, and a car/van to drive to work. With the correct design and techniques, beginning a cleaning business will be a reasonable way to become a business owner in Australia.

Our Cleaning Expert Mr. Prakash Humagain says, Starting a cleaning business is often an extremely money-making business in Australia. There’ll continuously be homes that require cleaning, and it’s employment

individuals are wanting to hand off. Over the course of several years, he doubles his cleaning business’ hourly rate from $26 per hour to $52 per hour! Even higher news: your direct investment is often next to nothing, particularly if you’re willing to try and do tons of the work yourself.

You’ll have to be compelled to follow the laws in your space to wrongfully observe business. At the terribly least, this sometimes suggests that you’ll need to register your business. Whereas not forever wrongfully needed, you will need to explore business insurance. And, of course, you’ll have to be compelled to get essential cleaning provides. Professional cleaners, rags, bags, and scrub brushes are the sole approach you’ll be able to get the task done!

Now, let’s specialize in the items you’ll be able to do to start out your cleaning business that doesn’t need thousands of dollars of cash.

house cleaning

 

Table of Contents

Research and Planning

  • Market Analysis

Understanding the demand for cleaning services in Australia: Before diving into the cleaning business, it’s essential to analyze the demand for cleaning services in different regions of Australia. Research market trends, demographics, and economic indicators to identify areas with high demand.

Identifying target markets and niches: Determine your target market based on factors such as residential or commercial cleaning, specific industries, or specialized cleaning services. Identifying a niche can help you stand out from the competition and cater to specific customer needs.

  • Competitor Analysis 

Researching existing cleaning businesses in Australia: Study your competitors to understand their strengths, weaknesses, pricing strategies, and target markets. Analyze their online presence, customer reviews, and service offerings to find opportunities for differentiation.

Assessing their strengths and weaknesses: Identify the areas where your competitors excel and areas where they may be lacking. This analysis will help you position your cleaning business strategically and capitalize on the gaps in the market.

  • Developing a Business Plan

Setting clear goals and objectives: Define your business goals, both short-term and long-term. Determine what you aim to achieve with your cleaning business and outline measurable objectives to track your progress.

Creating a budget and financial projections: Develop a detailed budget, including startup costs, equipment expenses, marketing expenses, and ongoing operational costs. Create financial projections to estimate revenue and profitability based on market research and industry benchmarks.

Outlining marketing strategies: Determine how you will promote your cleaning business and attract customers. Consider online marketing, traditional advertising, referrals, partnerships, and networking events to reach your target audience effectively.

Legal Considerations

  • Business Structure and Registration

Choosing the right business structure: Decide on the most suitable business structure for your cleaning business, such as a sole proprietorship, partnership, or company. Consult with a legal professional or accountant to understand the legal and tax implications of each structure.

Registering your cleaning business with the appropriate authorities: Register your business name and obtain the necessary permits and licenses required to operate a cleaning business in Australia. Check with local government agencies and industry-specific regulatory bodies for specific requirements.

  • Licenses and Permits

Understanding the licenses and permits required: Determine the licenses and permits you need to comply with legal and safety regulations. This may include general business licenses, occupational licenses, and specific permits for handling hazardous materials or operating in certain environments.

Navigating the regulations and compliance standards: Familiarize yourself with the industry regulations, health and safety standards, and environmental requirements related to cleaning businesses in Australia. Ensure that your business operations align with these regulations to avoid penalties and maintain a positive reputation.

  • Insurance Coverage

Types of insurance necessary for a cleaning business: Identify the insurance coverage required to protect your business, employees, and clients. This may include general liability insurance, workers’ compensation insurance, and property insurance.

Securing liability insurance and workers’ compensation: Consult with an insurance agent or broker specializing in commercial insurance for cleaning businesses. They can help you assess your risks and find the appropriate coverage to mitigate potential liabilities.

End of Lease Cleaning

Setting Up Operations

  • Equipment and Supplies

Essential cleaning equipment and supplies: Compile a list of essential cleaning equipment and supplies needed to provide efficient and high-quality services. This may include vacuum cleaners, mops, brooms, cleaning solutions, and safety equipment.

Evaluating quality and cost-effective options: Research suppliers and compare prices, quality, and warranties to ensure you invest in durable and cost-effective equipment. Consider factors such as energy efficiency and eco-friendly options to align with sustainability practices.

  • Hiring and Training Staff

Determining staffing requirements: Assess your business needs and determine the number of employees required to meet customer demand. Consider factors such as the size of the cleaning contracts, frequency of service, and specialized skills needed.

Recruiting, interviewing, and onboarding employees: Develop a recruitment process to attract qualified and reliable cleaning staff. Conduct interviews, perform background checks, and verify references to ensure you hire competent and trustworthy individuals. Create an onboarding program to familiarize new hires with your business values, processes, and safety protocols.

Developing training programs for cleaning staff: Provide comprehensive training to your employees on cleaning techniques, safety procedures, and customer service. Regularly update their skills to meet industry standards and stay updated with the latest cleaning practices and equipment.

  • Scheduling and Workflow

Creating an efficient cleaning schedule: Develop a systematic approach to scheduling cleaning services based on client requirements and staff availability. Optimize routes and time allocation to maximize productivity and minimize travel time.

Optimizing workflow for maximum productivity: Streamline your cleaning processes to improve efficiency and quality. Establish clear protocols for each task, ensure proper supply management, and implement quality control measures to maintain consistent service standards.

Marketing and Branding

  • Brand Identity

Defining your cleaning business’s unique selling proposition: Identity what sets your cleaning business apart from competitors. Determine your unique selling points, such as eco-friendly practices, attention to detail, or exceptional customer service.

Crafting a memorable brand name and logo: Choose a brand name that reflects your business values and resonates with your target audience. Design a professional logo that communicates trust, reliability, and professionalism.

  • Online Presence

Building a professional website: Create a user-friendly website that showcases your services, expertise, and testimonials. Optimize it for search engines to improve visibility. Include an online booking system, customer reviews, and contact information for easy communication.

Utilizing social media and online directories: Leverage social media platforms like Facebook, Instagram, and LinkedIn to reach and engage with your target audience. List your business on online directories, such as Google My Business, to improve local search visibility.

  • Offline Marketing Strategies

Creating marketing materials (business cards, flyers, etc.): Design professional marketing materials that highlight your services, contact information, and unique selling points. Distribute them at local businesses, community centers, and networking events.

Networking and building partnerships in the local community: Attend local business events, join industry associations, and collaborate with complementary businesses, such as real estate agencies or office supply companies. Building relationships with local influencers and community leaders can generate referrals and new clients.

Financial Management

  • Pricing and Profitability

Determining pricing strategies for your cleaning services: Research industry pricing standards and consider factors such as labor costs, overhead expenses, and market demand when setting your prices. Offer competitive rates while ensuring profitability.

Calculating costs and ensuring profitability: Keep track of your expenses, including equipment maintenance, supplies, employee wages, and marketing expenses. Regularly assess your financial statements to ensure your pricing structure covers all costs and generates a profit.

  • Bookkeeping and Accounting

Setting up a system for financial record-keeping: Implement a reliable bookkeeping system to track income, expenses, and invoices. Consider using accounting software or hiring a professional accountant to manage your financial records accurately.

Managing cash flow and tracking expenses: Maintain a healthy cash flow by monitoring your income and expenses. Pay attention to accounts receivable, accounts payable, and budgeting to ensure you can meet financial obligations and sustain your business growth.

Providing Quality Services

  • Cleaning Techniques and Standards

Implementing effective cleaning techniques: Stay updated with the latest cleaning techniques and best practices. Train your employees to use appropriate cleaning methods for different surfaces and environments, ensuring thoroughness and efficiency.

Maintaining high-quality standards: Establish quality control measures to maintain consistent service delivery. Regularly inspect completed work, seek customer feedback, and address any issues promptly to ensure customer satisfaction.

  • Customer Satisfaction

Understanding customer expectations and preferences: Communicate with your clients to understand their specific needs, preferences, and expectations. Tailor your services to meet their requirements and provide personalized experiences.

Building strong relationships with clients: Focus on building long-term relationships with your clients. Offer exceptional customer service, respond to inquiries promptly, and go the extra mile to exceed their expectations. Encourage client feedback and use it to improve your services continuously.

Expanding and Scaling

  • Assessing Growth Opportunities

Identifying opportunities for expansion: Regularly assess market trends, customer demands, and industry developments to identify potential areas for business growth. Consider expanding into new geographic locations, offering additional services, or targeting specific industries.

Considering additional services and target markets: Explore diversification opportunities by offering complementary services such as carpet cleaning, window cleaning, or specialized cleaning for specific industries like healthcare or hospitality. Assess the market demand and invest in appropriate training and equipment to expand your service offerings.

  • Hiring Managers and Delegating Tasks

Transitioning to a managerial role: As your business grows, delegate operational tasks to capable managers. Focus on strategic decision-making, business development, and maintaining the overall vision of your cleaning business.

Delegating responsibilities to employees: Empower your employees by assigning them clear responsibilities and authority. Foster a culture of trust and accountability, allowing your team to take ownership of their roles and contribute to the growth of the business.

8 Easy Steps on How to Start a cleaning business in Australia

  1. Company Name, Logo, and register through ASIC.
  2. Design and wear your business uniform all the time.
  3. Make a company Website, Facebook Page, Instagram Page, Twitter, and all other Social Media Accounts, and start advertising your services.
  4. Insurance, Public Liability, and Worker’s Compensation according to the business model
  5. Choose and target the right customer.
  6. Set Hourly Rate or Square Foot Rate or Flat Rate.
  7. Do the Cleaning Yourself and make the client happy also get as many Testimonials from the client to improve your recommendation better for the next customer.
  8. Establish Your Brand

Getting your company values on paper can assist you communicate to your customers what they will expect from your business, and the way you’re completely different from the competition.

Sydney Local Cleaners are the best in Sydney, where we are able to make thousands of customers happy. People who are starting a new cleaning business can join us and become a valuable contractor and take our clients to increase their own business. We have helped many local cleaning businesses in Sydney. Go through join us page and apply for the contractor to get more leads.

The cleaning industry in Australia has grown and there are many opportunities available. In particular, there are many domestic cleaners in Australia that have been trained and certified for special Covid Deep Cleaning.

There are many different types of cleaning services available in Australia. Some people like to do their own cleaning while others prefer to hire a cleaner.

The cleaning industry employs more than 1.1 million people in Australia, making it one of the country’s largest industries. The sector has grown steadily over the past decade, rising from $6.7 billion in 2001 to $10.8 billion in 2011. In the last few years after Covid 19, there have been increasing pressures to control the growth of the industry, including the introduction of minimum wages for cleaners and the Cleaning Industry Code of Practice.

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Yes, it is very profitable. In fact, it is one of the most profitable businesses in Australia. It is estimated that the cleaning industry makes up $9.3 billion in annual turnover in Australia alone.

The answer is “yes” if you are running a quality cleaning business. It is possible to run a cleaning business and earn $1,000 a week or more. However, there are certain things you need to understand before you launch your cleaning business.

  • Do you have experience in cleaning businesses?

It’s always a good idea to research the different types of cleaning businesses and what they offer. For example, do you think that a cleaning business is suitable for you if you are looking to become a housekeeper? Do you have experience in taking care of customers, making a booking, and delivering cleaning services?

  • Do you have the required cleaning equipment?

Equipment plays a big part in the cleaning business. It should include a broom, mop, dustpan, duster, vacuum cleaner, floor cleaner, and other things. In addition, you should ensure that you are comfortable using and cleaning the equipment. If you are uncomfortable using certain equipment, you could end up not cleaning effectively and this could negatively impact your customers.

  • Are you confident that you can communicate with your customers in English?

Many cleaning businesses operate in Australia and many of them are based in Sydney. Many of these companies are run by non-English-speaking Australians. This means that you might have to communicate with your clients in a foreign language. In order to do this, you need to practice conversational English and also read and write it.

  • Do you have the required marketing skills?

Marketing is vital for any business. You will need to advertise your cleaning business and get it known in the community. In addition, you will need to know how to attract customers and engage with them.

  • Do you have the required time to work in the business?

You will need to put in a lot of hours in your cleaning business. In addition, you will need to ensure that you get things done on time. When you have to do multiple jobs at the same time, you are bound to miss out on one or two jobs. If you are able to complete all the jobs on time, you will need to plan accordingly and ensure that you get more hours of work.

  • What is your desired financial goal?

This question is quite important when considering starting a cleaning business. In addition to the above, you will need to consider how much you want to earn. There are many different ways of earning money. For instance, you could start a cleaning business with the aim to earn $1,000 a week or more. You can even start with a small amount of money and build up your earnings.

Advantages of cleaning business

Now that you simply have a good plan for starting a cleaning business regarding the way to begin a cleaning business, we are able to summarise the most edges increased before the conclusion:

  • The revenue potential is higher because of the lower investment.
  • Flexibility to work on a full-time or part-time basis.
  • No ought to maintain workplace infrastructure, you’ll be able to additionally operate from home.
  • The big selection of service decisions on the market.
  • Satisfied customers would bring you additional business through word-of-mouth promotion.
  • Quality consciousness and a strict vigil would guarantee the continuity of business.
  • Profit margins would never decrease as a result of provisions of minimum wages.
  • Embark on the business currently and knowledge of exponential growth in a brief time with the right strategies!

Services you can add to your cleaning business

After you have been cleaning homes for a while, you may decide to offer additional services to your cleaning company. There are so many services you can add:

  • Window Cleaning Services
  • Carpet Cleaning Services
  • End of Lease Cleaning Services
  • Bond Cleaning
  • Office Cleaning
  • Construction Cleaning
  • Regular House Cleaning Services
  • Commercial Cleaning Services
  • Unit Cleaning Services
  • Spring Cleaning
  • Move-In/Move-Out Cleaning

Remember one of the foremost vital qualifications for a cleaning service is TRUST. Customer has got to understand they will trust you alone in their home. Once you acquire a number of cleaning positions raise the clients if you’ll use them for a reference. Most of the time they’re over willing to allow you to use them for a reference. this is often however you build your business and acquire new customers through referrals. Be dependable.

Most clients can need to be established on associates weekly or each alternative week schedule on a similar day of the week. Attempt to continually keep this same schedule unless the consumer asks you to change to a different day. If you have got to cancel a cleaning date, check that you are trying to reschedule at the earliest attainable date to create up the cleaning.

Cleaning-Business-in-Sydney

FAQ

  • How to start a commercial business?

Starting a commercial cleaning Sydney business is not that difficult, but better education equals a smoother start-up and better profits. Here are answers to some frequently asked questions to help get started.

  • How much does it cost to start a cleaning business in Australia?

Starting a cleaning business in Australia can vary in terms of costs depending on various factors such as the size of your business, location, equipment, and marketing expenses. On average, the initial startup costs can range from a few thousand dollars to tens of thousands of dollars. It’s important to create a detailed business plan and budget to accurately estimate the costs specific to your cleaning business.

  • Do I need prior experience to start a cleaning business?

While prior experience in the cleaning industry can be beneficial, it is not always necessary to start a cleaning business. With the right research, planning, and willingness to learn, you can enter the cleaning industry without prior experience. However, acquiring knowledge about cleaning techniques, industry standards, and best practices through training courses or working alongside experienced professionals can give you a competitive edge and increase your chances of success.

  • How long does it take to establish a profitable cleaning business?

The timeline to establish a profitable cleaning business can vary depending on various factors such as market conditions, competition, marketing strategies, and your ability to deliver quality services. It typically takes time to build a customer base and establish a reputation for reliability and excellence. With effective planning, strategic marketing, and providing exceptional service, it is possible to achieve profitability within the first year or two of operation.

  • Can I operate a cleaning business as a sole proprietor?

Yes, you can operate a cleaning business as a sole proprietor in Australia. As a sole proprietor, you have full control and ownership of your business. However, it’s important to understand the legal and financial implications of operating as a sole proprietor, including personal liability for business debts and obligations. Consulting with a legal professional or accountant is advisable to ensure compliance with local laws and regulations.

  • What marketing strategies work best for cleaning businesses?

Effective marketing strategies for cleaning businesses include a combination of online and offline approaches. Some strategies that work well in the cleaning industry include:

  • Building a professional website and optimizing it for search engines
  • Utilizing social media platforms to showcase your services and engage with customers
  • Listing your business on online directories and review platforms
  • Networking and forming partnerships with local businesses and organizations
  • Distributing business cards, flyers, and brochures in targeted areas
  • Offering referral incentives to current customers for bringing in new clients

 

  • How can I ensure customer satisfaction in the cleaning industry?

To ensure customer satisfaction in the cleaning industry, focus on the following:

  • Clearly communicate expectations and requirements with clients before starting any cleaning job
  • Train your staff on effective cleaning techniques and provide ongoing education to keep up with industry standards
  • Conduct regular quality control checks to maintain consistent service delivery
  • Promptly address any customer concerns or complaints and take necessary actions to resolve them
  • Seek feedback from customers through surveys or follow-up calls to understand their needs and improve your services accordingly
  • Provide excellent customer service by being responsive, reliable, and professional in all interactions.

 

  • What are some common challenges faced by cleaning business owners?

Some common challenges faced by cleaning business owners include:

  • Intense competition in the market
  • Finding and retaining reliable and trustworthy employees
  • Managing cash flow and balancing expenses
  • Adapting to changing customer demands and preferences
  • Maintaining consistent service quality across different jobs
  • Building a strong reputation and gaining customer trust
  • Keeping up with industry trends and technological advancements
  • Navigating complex legal and regulatory requirements.

 

  • Are there any government grants or support available for cleaning businesses in Australia?

In Australia, there may be government grants, funding programs, or support initiatives available for small businesses, including cleaning businesses. These programs can vary based on factors such as location, industry, and business size. It is advisable to research government websites, industry associations, and business support organizations to explore available grants, loans, or support schemes specifically tailored to the cleaning industry. Additionally, consulting with a small business advisor or accountant can provide further guidance on accessing government support programs.

  • What supplies are needed?

This depends on the type of cleaning. Basic supplies will include a supply cart stocked with rags, paper towels, cleaners, a mop and bucket, a broom, trash bags, and a vacuum. Specialty services can be offered that will require other equipment such as a pressure washer, carpet shampooer, handyman tools, etc.


  • What are the hours?

The hours for a commercial cleaner normally start when the employees have gone home for the day and may include weekends as well. If janitorial services such as bathroom cleaning are provided, you may work during the day as well.

  • How do I choose a name?

The name that you choose should be simple and to the point. Since the business will be servicing other businesses and corporations, a cute name will undermine the professional image of the company.

  • How do I get licensed?

Check with local city business offices to get a local permit or license. In addition to a license, insurance, and bonding will be required.


  • What is bonding?

Bonding protects the company from employee theft. For example, if an employee steals a laptop from a client, the company will be covered by the bond and the owner will not be held personally responsible.

  • How do I find customers?

Check with family, friends, or co-workers to get leads, take out an ad in the newspaper or an online website, distribute flyers and business cards, and call local companies. Do a few jobs for free to get your name out there and use those clients for references. Offer referral incentives to encourage clients to distribute your business cards.

  • How much should I charge?

It depends on several factors: how much profit is desired, what the average is in the area, what types of services are provided, and how many employees are involved, among others. Trial and error will be required to find just the right rate.

  • What forms and paperwork are needed?

You will need bid forms to submit to potential customers, proof of insurance, contracts, and invoices for completed work. Other optional paperwork includes cover letters, letters of reference, checklists, liability releases, satisfaction surveys, bad check notices, and breakage reports.

  • Should I charge tax?

Tax requirements will vary by state. If necessary, the taxes should be added to the client’s bill and then paid to the government quarterly. Normally in Australia when your turnover goes more than 72,000 in a year you should register in GST.

  • How do I do an estimate?

Walkthrough the building with the potential client and take note of the number and size of the rooms, type of flooring, number of stalls in the restrooms, and anything that pertains to the job. Talk with the client so you know exactly what they are expecting. Provide a free, written bid to the client within 3 days.

Plan to set up a cleaning business

Cleanliness is a basic human need. It is demanded on a daily basis by homes and neighboring communities as well as by companies, facilities, and organizations of all types: the range of clients is wide. If we consider dedicating ourselves to this activity, it will be necessary to define previously what we want and we can clean up. Here you can read the keys to set up a cleaning business in Australia.

In this sector, it is possible to differentiate between three types of cleaning services. The first is that general cleanings are occasional or sporadic and are aimed at both private homes and companies, commercial premises, and other facilities. End-of-site cleanups, in-depth, or claims cleanups are also included here.

The second modality is specific sectoral cleaning. There are sectors of demand that require specific cleaning plans, with adequate materials, techniques, machinery, and personnel. These peculiarities mean that in maintenance cleaning there are also several specializations, in some cases quite complex: that of industrial buildings requires height cleaning; in health centers, hygiene procedures are very strict; in the agri-food and pharmaceutical sector, personnel must be adequately qualified; while the technical and industrial cleanliness of nuclear power plants are at the top of the specialization pyramid.

The third type is specialized in technical cleaning. The maintenance cleaning service does not cover certain elements that require specific periodic treatments, such as ceilings, upholstery, blinds, or air conditioning ducts, among others. In the same way, there are special circumstances that require specific interventions, such as the removal of chewing gum, graffiti, and graffiti, dressing and polishing of floors, derivatization, disinsection, environmental deodorization, ceramics, etc.

THE FIGURES FOR THE SECTOR

Although general cleaning can be a good way to start this activity, specialized technical services and sector niches are a very good positioning opportunity to differentiate yourself from other companies in the sector. And they can generate significant demand if it is possible to create an attractive, useful, and differentiated offer in a traditional and mature sector.

According to the most recent INE data, the number of companies engaged in cleaning activities amounts to 31,938 (1,049 more than the previous year) and employment to 3,337,646 people. In 2020, total turnover amounted to $ 9.97 billion (1.8% more than in 202019). Although the sector is highly atomized (it is made up of 95% of micro-enterprises, from zero to ten workers), the turnover of the first 10 operators is around 20% of the total, and large companies (250 employees or more) generate 61% of turnover Large companies mainly provide services to public administrations, while micro-businesses are especially active in the household market.

KEYS TO SHINE IN THE SECTOR

The experts of this market highlight the following aspects as especially relevant to succeed in it:

  • People Management: They are the “soul” of the business and it is a particularly critical point in a sector characterized by a high rate of absenteeism, high turnover, and little attachment to the profession. Training, motivation, and the remuneration system are the tools to achieve employee satisfaction and guarantee their productivity. In addition to the cleaning staff, there can be no shortage of business, as well as organizational, profiles to achieve proper work planning.
  • Professionalism and dedication to service: This aspect is vital since cleaning services are provided regularly. Sandra Moreno, Manager of Limpiezas Castilla, puts it this way: “Would you leave the keys to your house to someone?”. The commitment to quality service and the generation of trust are the driving force of his company, which has been providing services since Azuqueca de Henares (Guadalajara) since 1992. Its people management policy has been key in its longevity. “Many ladies (most of their staff are women) have been with us from the beginning. Feeling valued and managing to combine her personal life has been decisive ”, explains Sandra Moreno.
  • Modern machinery, techniques, treatments, and products: Being at the forefront in this area and even innovating, as well as good purchasing management, in quantity and quality, can represent considerable cost savings and increases in productivity.
  • Attention to regulations: It is necessary to know and strictly comply with current environmental, storage, and handling regulations for chemical products, as well as with personal subrogation regulations, in case a contract changes ownership.
  • Communication: Gaining notoriety is essential for any business, especially in the early stages. This involves time and resources, so you should have an adequate initial budget. It will be necessary to adjust a good mix of activities, both online (web, social media, SEO, SEM) and offline, such as media announcements, signage, and signage, business visits, public relations (press releases, sponsorship, networks,), etc.

THE CALCULATIONS OF OUR SUPPOSED: BALANCE OF RESULTS

The income statement records all income and expenses incurred during the year (not including VAT). The main expenses incurred by a cleaning services company are:

  • Personnel expenses: The sum of gross wages and social security paid by the company. It is the highest expense in this labor-intensive activity and must also be covered on time every month, so treasury control is especially important. The salary range stands at an average of $ 15,380 gross per year. In our case, we collect in this section the remuneration of a team of 4 cleaners, a specialized worker, and the employer.
  • General expenses: Supplies (electricity, water, telephone, gas, Internet connection, fuel), external services (leasing – local and rental of the van), professional services – in our case, the agency -, maintenance and repair costs, insurance, advertising).
  • Amortizations: They represent an unavoidable expense that includes the loss of value of the elements of the fixed assets. In our example, they add up to a total of $ 4,591 per year.
  • Financial expenses: Interest on loans or bank loans.

Subtracting from sales the cost of sales (or variable cost), which does not include labour and is associated with the consumption of goods necessary to perform each service (basically cleaning products), obtains a gross sales margin of 95.5%. A value close to 100% makes it necessary to sell the equivalent of the available expenses to reach the break-even point. As in the first year, only sales of $ 108,500 are achieved, and losses of $ 43,392 are generated.

To start giving positive results while maintaining the same margins and expenses, sales should increase by 43%, although this will also increase operating costs. Likewise, it will be very important to guarantee a stable income derived from maintenance cleaning, since general and specialized companies report more irregular income.

The prices of the services vary according to the type, the expected costs, the types of clients, the prices of the competitors, and the possible differentiation aspects. In this sense, specialized technical cleaning allows higher prices and margins.

These are all the things you can implement before and after you start a cleaning business in Australia. If you have any problem setting up a cleaning business then you can send an email and we will guide you step by step on how to start a cleaning business in Australia.

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