How much does it cost to open a janitorial business? Here are the facts.
A janitorial business can be very profitable when the right strategies necessary to its smooth running are put in place.
The startup cost is one such and is crucial to the survival of every janitorial business. So, what’s the cost involved in starting one? Well, there’s no specific answer to this question.
We’ll need to highlight different aspects of the business to find out where exactly expenses apply.
Average Janitorial Startup Costs: Influenced By Scale
To start your janitorial business, you’ll need to decide the scale at which you intend to operate such a service. Most janitorial services started as small businesses. These later grew into major services that handle major commercial cleaning contracts. A janitorial business should go through organic growth than starting at a massive scale.
The bigger the scale at which you intend to operate, the more your startup costs are likely to increase. So, you decide.
To find a ready answer to the question of cost, consider how much you’ve set aside for this business. Compare such funds to the equipment and other cleaning tools and supplies you’ll need. These and more will be discussed shortly.
Will You Be Renting An Office Space?
Deciding on your office space is one of the first things to do. Renting an outlet will impact on costs. Plus, rent costs are recurrent expenses and will add to running costs.
On the flip side, you have the option of operating your janitorial business from the comfort of your home. You can turn your garage or any available space as a base from which to provide your cleaning services.
Running your janitorial service from home cuts down on additional costs relating to rent. This is ideal for small janitorial startups working on a tight budget. You can begin this way by using your home as a temporary base. As the business expands, you’ll need to rent an office space or build one from scratch depending on your growth needs.
Janitorial Equipment Cost
Every janitorial business needs the right equipment to function optimally. There are several options available when it comes to equipment. You can decide to get the equipment on lease or buy them outright. There is also new and fairly used equipment available for purchase.
Again, janitorial businesses with a tight budget can get these used equipment for temporary use until they can afford new ones.
Janitorial equipment also comes in types, and sizes. We recommend going to commercial cleaning equipment. These cost more and will handle the rigors of the job. The type of cleaning equipment you choose will depend on the scale at which you wish to operate. So, what are these pieces of equipment? Let’s begin by listing some of these machines with their costs.
A 20-inch walk behind the cleaning machine will cost you between $4,000 to $7,000. This piece of equipment will clean the area about the size of 9,700 square feet per hour. These machines will need to be maintained and the bill for annual maintenance will cost around $800.
A 32-inch walk-behind auto scrubber can be quite expensive for small businesses. The cost of this equipment will fall within the range of $12,000 to $14,000. This will scrub a floor space of about 15,000 square feet an hour. The 32-inch walk-behind scrubber will cost you an annual maintenance fee of $1,300.
Another piece of janitorial equipment you may need is the 27-inch walk-behind scrubber. This will cost about $10,000 to $13,000 get. It scrubs a floor space of about 12,500 square feet per hour. You’ll need to set aside a yearly maintenance bill of around $1,100.
Can I Get Cheaper Janitorial Equipment?
Of course, you can! A janitorial business can be operated at any scale. You can start your janitorial service with a startup cost of about $2,000. However, this means you’ll not be using any specialized cleaning equipment but only the most basic like brooms, scrubs, and mop sticks among others.
The higher the costs, the more your equipment is likely to cost. There are cleaning equipment you can get for a fraction of the cost when compared to the cost of cleaning equipment mentioned earlier. Also, some janitorial equipment dealers offer financing options where you get to pay gradually.
Every janitorial business must have an insurance plan to cover risks. It doesn’t matter whether you operate a small-scale residential maid service or run on a commercial scale. The insurance policy you choose will depend on your risk exposure and scale of operation.
Getting an insurance plan for your janitorial business will cost between $375 to $4,000.
When it comes to janitorial services, there are different types of insurance plans involved. These range from general liability insurance, umbrella insurance, and workers’ compensation insurance. Others include commercial property insurance, commercial auto insurance, and inland marine insurance.
General liability insurance provides cover for accidents involving clients slipping from a wet floor, defamation complaints from competitors and accidentally breaking expensive household items. When there’s a case of employee dishonesty or keys get lost, commercial property insurance will be activated.
Licensing And Permit Cost
Janitorial businesses need to obtain licenses and permits. The cost of license and permits will depend on the type of business entity you chose. Sole proprietorships, for instance, will attract a licensing and permit fee between $30 to $60. It will cost a limited liability company between $100 to $500 to obtain licensing.
Your janitorial service will attract running costs ranging from $1,000 to about $6,000. Running costs will cover cleaning supplies, wage bills, equipment maintenance and fuel costs for your vehicle.
These are cost implications for establishing a janitorial business. The cost you incur will depend on your choices.
While some entrepreneurs may decide to purchase previously owned equipment, others may go for new ones. It all boils down to the startup costs available. There’s also the issue of the scale of operation. Janitorial businesses operating on a bigger scale require more funding.
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