How To Start Your Own Residential Cleaning Business And Make Extra Money
To start a new business that does cleaning in New Zealand is a daunting thought. Perhaps the first question is why? To make money is the obvious answer, but what you should be asking is whether there is a problem you can solve or a need that you can fill. New businesses in New Zealand have a good chance of surviving, but market research and some analysis before you start will give a new business a better chance to survive, and thrive.
According to StatsNZ, 35% of businesses are located in the Auckland region. Their Breakdown of enterprise births from 2013 to 2022 showed that over the period, an average of 85% of businesses survived. Cleaning services are relatively simple to start up in Auckland, but it’s a competitive market. Analyze the market and see where you can fit in by offering something unique or better than the rest. Many cleaners are looking for a job who can be valuable assets in your new business.
Research the Market And The Competition
What do cleaning services offer? With around 2,000 cleaning services, Auckland still has needs that are not being met. The cleaning industries are broadly divided into:
- Commercial Cleaning
- Industrial Cleaning
- Domestic cleaning
- General cleaning (including specialties like carpet cleaning, high window cleaning, and others)
Often new businesses start with house cleaning and then get referrals and grow into other sectors such as commercial cleaning services from there. See where you can fill a need and then do market research on:
- What services are offered (and seek out what services you can offer)?
- Who the competition is (and how you can do better).
- The monthly operating costs, such as how much to pay a cleaner in Auckland.
- Income possibilities, including pricing models.
How Much Do You Need To Start A Cleaning Business in 2023 in NZ?
The amount of money needed to start a cleaning business depends on whether you are buying a cleaning franchise or are going it alone. Your own cleaning business will need to make provision for costs for :
New businesses don’t need industrial quality (or priced) machines, and basics such as vacuum cleaners, mops and brooms, cloths, and other items can be bought new or second-hand. They could also already be in your home waiting to be used, especially if you are starting with house cleaning.
Office space rental:
Although many new businesses are run from home to save on this expense.
If you don’t already own a car, a suitable vehicle must be sourced to visit clients, and transport equipment and cleaners.
A small supply must be kept in stock at all times, but don’t go overboard and waste money on products that you won’t use within a month or two.
This is often the highest monthly expense and will have to be budgeted for while a new business waits for money to be paid by clients.
Start-up costs include setting up a company, business- and IRD registration telephones, printers, and computers, as well as provision for insurance, accounting fees, and office supplies.
Viability And Business Plan
Initially, a one-pager will help you to assess whether you can make the income at least balance the expenses, and make a little profit. But work out some plans for growth, based on what money you need to get from your business when it starts, and how much you will like to see in the future.
The Government’s website for small businesses offers expert advice and a business plan template. A business plan is necessary if you are looking at external funding but it’s also a worthwhile tool to help in your planning.
What Is Involved In Setting Up a Cleaning Business in New Zealand?
The first decision is deciding on a name. Onecheck can help you see if it is available- including the domain and social media names.
Decide whether you will run your business as a sole proprietorship, partnership, or company. There are pros and cons to all three but a sole proprietorship- where you trade in your personal capacity, is simpler. It does make you personally liable for the business so setting up a company may be a more comfortable option for you.
The New Zealand government has online portals available to register your new business on various platforms:
- To register a company, the process starts by reserving the company name at the Companies Office.
- The Domain Name Commission has a list of Authorised registrars
- A RealMe® profile helps to get a few registrations done at government agencies.
- Get a New Zealand Business Number. The New Zealand Business Number (NZBN) is a unique identifier for your business that makes doing business a little easier.
- Inland Revenue- or IRD, offers a quick, easy, and free registration service for GST if you’re earning more than NZ$60,000 each year.
All registered, it now remains to get the equipment and supplies, source clients, and find cleaners so you can get to work.
How Do I Get Clients For My House Cleaning Business?
To make your services stand out from the rest:
Develop your unique identity:
Identify what sets you apart and use your unique selling point (USP) to market your cleaning services.
Identify key customers:
Start with your circle of friends and family, network with people who are prospective customers, and start developing a database of potential clients.
Establish a price list:
Fair prices can help seal the deal, but people also respond to value for money. Consider adding certain tasks to cleaning service packages.
Funding And Support For New Businesses In Auckland
The Ministry of Business, Innovation & Employment offers support for businesses in the form of advice and support in getting new businesses started. There is limited access to grants for new businesses. and mainly comprises building your skills and knowledge, and linking you with advisors and networks.
Banks and financial institutions have financing options like business loans, but they are careful to assess new businesses according to specified criteria. This differs between the various organizations, but a properly drafted business plan will be essential. Financing from family or friends should be a last resort, exercised with caution, and preferably avoided.
Whether it’s your own new house cleaning business or franchise, we at CleaningNZ wish you many years of success and hope that we can help along the way.