Sharron Jones - How to Start Your Own Cleaning Business: Low Start up Cost, Fast Growing and Profitable

How to Start Your Own Cleaning Business

Low Start Up Cost,
Fast Growing and Profitable

Sharron Jones

Copyright 2016 by Sharron Jones.

Library of Congress Control Number: 2016905092

ISBN: Hardcover 978-1-5144-7973-5

Softcover 978-1-5144-7972-8

eBook 978-1-5144-7971-1

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright owner.

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Rev. date: 04/04/2016

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CONTENTS

Are you struggling to make ends meet? Are you getting tired of living payday to payday? Perhaps, you are just looking for a change. Well I say, "Yes" it is time for a change. There are many reasons why people decide to go into business for themselves. I had no idea that I was going to start a profitable business. One day, my son came to me and said that he knew of someone who was considering hiring a cleaning company. He would have taken the job himself, but he couldn't fit it into his busy schedule.

He encouraged me to get a business license, permit, Federal Employer Identification Number (FEIN), and all the other pertinent credentials necessary for starting my own cleaning business.

I had just received my Federal Income Tax Refund and I had prior experience in the housekeeping field. So, this wasn't a bad idea. It would give me that second income that I was seeking.

I knew that I had my work cut out for me as far as finding out where and how to get this venture off the ground. I began to do a little research to find out the steps involved in pursuing my new career. I found out that it was important to write a business plan. I didn't have any experience in writing a business plan and I didn't know what information to include in this plan. I took a trip to the Library and found out that a business plan needed to include a mission statement, what type of service I would be providing and how I planned on making it a success. It needed to include who was going to be my targeted audience or clients? I needed to think of the area that I wanted to provide services in, and figure out the competition in that area. It was also important to know how I planned on marketing my business and getting myself known. I needed to include information about my business structure, was I going to do this alone or as a sole proprietor? Was I considering hiring a few employees and if so, how much will I pay them? I needed to think of any and all things that would affect my business operations, such as permits, licensing, and regulatory issues, financing and any other pertinent information that will take effect on the business. It all needed to be written into a business plan. By doing this, it kept me on track. I could always go back to the business plan to see what I had accomplished and what still needed to be accomplished.

Every year new businesses are started, but many new businesses fail. This happens because new entrepreneurs don't have full understanding of the importance of the tax aspects or accounting aspects of their business.

This guide will give you a start. The Reference and Resource Page will list an accounting firm that will make this part of your business easy. They will file your quarterly taxes and prepare your payroll for you. A fee is charged for this service. Feel free to seek your own accountant/payroll service.

In this Guide I will assist you in bringing your business plan together, and I have discussed the step-by-step process I used in starting up my own business. In the beginning you will get a few bumps and bruises along the way. Don't get discouraged. You could use this as a learning tool. I was fortunate because I took courses in Tax Preparation and also studied Paralegal. These skills made it easier for me to understand the formalities of becoming a business owner. I am writing this Guide because I would like to pass on to you my knowledge and experience in being a business owner of a cleaning company.

There are many benefits to owning your own business versus being an employee. You are your own boss and you are the decision maker. No more clocking in for your employer or having a set schedule. You work on your own terms, set your own schedule and you are free from answering to anyone. You call the shots because you are the decision maker. You will decide when and how the job gets done.

There are also many tax benefits when having your own business. Of course you must save your receipts. Most of these expenses can be deducted from sales and income (net profit), that is what you pay taxes on. You could deduct expenses like, supplies, equipment purchased or rented; postage, rents paid for business office or storage fees, utilities used, cell phone purchased and cell phone bill, etc. Your business vehicle could bring many deductions, such as parking fees and gas/mileage.

You could deduct insurance premiums for business insurance, gross wages paid to employees or wages paid to a subcontractor. This list could go on and on. Save your receipts to give to your accountant at the end of the year. Also, maintain a record of your expenses in a file. Utilizing Quicken or Quick Book computer software program is another way of keeping track of your expenses.

Becoming a business owner takes dedication, perseverance, and lots of hard work. The amount of effort that you put into this will eventually pay off. Being your own boss is a great responsibility. You will find yourself working harder than you've ever had to work before. To be successful, you must love what you do and do it well. Don't be greedy and learn to pace yourself. Allow your business to grow slowly. Start small and watch how you spend your money initially. Some businesses don't see profit until after their third year.

Some businesses don't make it because of lack of financial knowledge. That is why I am expressing to you my experiences in how I am growing my business at a slow pace and watching it escalate into a profitable business. As your business grows, you will need an Accountant or a Payroll Service to perform your payroll and tax filings for you. Don't be afraid, it doesn't cost much and you will be surprised at the cost of hiring a Payroll Company. (See Reference Page for contact information). You may need an IT Computer Person to perform maintenance on your computer. Later, as it really gets off the ground, it is good for all businesses to have an Attorney. Most of all you need to have finances to start a business.

As stated in the introduction, you need to create a business plan. You are already on your way because you know what type of business you want to start. Now you need to decide a business name and structure: Sole Proprietorship, Corporation, Limited Liability Company, etc. Most importantly, you need to be legal. You will need license, permits, and registrations are required by all States. If you are running your business in another state besides D.C., please check your State's Licensing Board. This Guide will give you information for the District of Columbia. You must also meet the Federal Government requirement of owning a business. Call the Internal Revenue Service or go online to apply for your Federal Employer Identification Number. This Federal Tax Identification Number is assigned by the U.S. Internal Revenue Service for tax filing and other reporting purposes. It's misconceived that the first year in business is tax free. This is not true. If you make a profit at the end of your first year in business, you will owe taxes. Hire an Accountant or a payroll agency to file your quarterly and end of the year taxes. (See the Reference and Resource Page for contact information).