Putting Your Tax Refund to Work to Launch a Cleaning Business

Contributed by Greg Bavaro, Master Franchise Owner, Anago of Queens & Long Island

Starting a cleaning business can be lucrative, especially in today's market. With demand for commercial cleaning services on the rise, now may be the perfect time to invest your tax refund in this industry. 

Market Conditions Look Ripe for the Taking

The commercial cleaning industry is experiencing substantial growth, driven by the increasing demand for businesses to outsource these services. This trend is anticipated to persist. According to Statista, the commercial cleaning services industry in the United States maintained a substantial market share in 2022, with an estimated $92 billion in annual revenue, and has continued to employ a significant workforce. 

So why not use your tax refund to get in the game? And if so, should you go it alone or buy into a proven franchise system? 

Consider the Cost Involved

Before you leap into a commercial cleaning business, studying the costs involved to be competitive and successful is wise. Along with a comprehensive business strategy, how to market, advertise, train, and purchase equipment is the best place to start.

A well-executed marketing strategy will help you reach your target audience, generate sales leads, and grow your business. From creating a professional website to running paid advertising and lead generation campaigns, investing in how you present your business to potential clients is critical. This is not an area to skimp or apply low-budget methods. Start strong but with an honest approach and think ahead for scalability.

Invest in Continuing Education and Training

Staying ahead of the competition and providing top-notch service to your clients requires continual learning and skill development. There are various avenues for continuing education and training in the cleaning industry. Obtaining industry certifications is an excellent way to further enhance your credibility and expertise. Certifications demonstrate your commitment to quality and professionalism, setting you apart and instilling confidence in your clients. 

Invest in Hiring Employees and Growing Your Team

 The size and structure of your team will depend on the scope and scale of your operations. For instance, if you plan to offer a wide range of cleaning services, such as residential, commercial, and floor care, you may need to hire specialized cleaners for each service. First, determine the cleaning services you will offer and the employees you need. This is another area where you can start lean and mean and scale successfully.

 Invest in Expanding your Service Offerings

Once you’ve reached a predetermined level of success, diversifying your services can help you attract a broader client base, increase revenue, and reduce reliance on a single service line. Consider specializing in a particular type of cleaning, such as medical facilities, schools and educational institutions, or construction sites. Specialization allows you to develop expertise and cater to specific client needs, potentially commanding higher prices and enhancing your reputation.

In addition to essential cleaning services, consider offering complementary services such as carpet deep cleaning, window cleaning, or hard surface floor maintenance. These add-on services can increase client satisfaction and generate additional revenue streams. Also, consider expanding your geographic area. If your business is limited to a specific area, think about broadening your market reach to tap into new markets. 

When to Consider Franchising

Developing a business concept, building a brand, creating operational systems, and establishing a customer base can overwhelm aspiring business owners. However, an alternative path to business ownership offers a proven business model, brand recognition, ongoing support, and a much lower threshold to entry — franchising.

Franchising is a popular business model that allows entrepreneurs to invest in an established brand and business concept. By buying into a franchise, individuals can benefit from the reputation and goodwill of the franchisor without having to build a brand from the ground up. This access to a recognized brand can significantly reduce the time and resources required to establish a successful business.

One of the critical advantages of franchising is the proven business model provided by the franchisor. Franchise systems have been refined and optimized over time, allowing franchisees to benefit from the experience and expertise of the franchisor. This time-tested business model helps franchisees avoid common pitfalls and navigate the challenges of running a business more effectively.

In addition to a proven business model, franchising offers extensive training and support to franchisees. Franchisors typically provide comprehensive training programs, ongoing guidance, and support to help franchisees succeed. This support is invaluable for individuals new to business ownership or the industry in which the franchise operates.

If you've carefully considered these factors and believe franchising is the right path for your commercial cleaning business, it can be a rewarding and lucrative decision. Franchising enables you to leverage your brand, systems, and expertise to expand your reach, generate additional revenue streams, and establish a network of like-minded business owners.

Greg Bavaro is the Master Franchise Owner for Anago of Queens & Long Island, part of the Anago Cleaning Systems brand supporting over 1800 franchises across the U.S. and Canada.