How to finance your cleaning business
LOANS are a good way to finance your cleaning company.
Try getting a bank loan for your expanding business. Most banks will require a concrete business plan, but some might not. Just start at the local branch that you already do business. Or, another option from your local bank is a line of credit. With lines of credit you can exhaust the full approved amount or get just enough – a little at a time as you need it.
Also, think about family and friends that you can borrow from. Some of them may not hesitate to see your new business succeed.
PERSONAL SAVINGS is always a fantastic idea to start a cleaning business.
Don’t ever, ever, ever feel bad to “gift” or “grant” your new start-up funds from your personal savings. There are a lot of business owners who would rather use their own money when their business funds are low and they need to cover costs. Don’t ever feel shame – do what it takes.
INVESTORS is a route to go if you want a quick start-up plan to start a cleaning company.
You might be surprised, but there are always people searching for good solid businesses to invest in. They could be silent partners or general partners. Nevertheless, they are people who are willing to give you money to expand your business. Of course, they will want a percentage of income in return.
Additionally, investors will want to see your business plan, proof of the health of your business, and your projections for growth. So, be ready to show a realistic business projection and financials.
BONUS: 4. Save a portion of all income earned for a ‘special’ savings account.
Now this method of acquiring money for your growing professional cleaning business is not unique, but it is an option that some cleaning services forget about.
This is called a reserve savings account. The funds can be used for whatever you decide. I can personally say that have had a reinvestment savings account for years with our professional cleaning service. And, it allowed us to fund these post construction and office cleanings.
You can use this reserved savings for a multitude of expanding expenses for your company.
If you get an influx of customers and they want you to start, right away, you are going to be hit with the costs of labor, material and equipment…. right away.
If you see that you want to expand the services of your business and you need to purchase large items such as floor machines.
A reserve account can be used to expand your business’ offices. You may see a need to have several offices in order to accommodate a growing clientele.
The reserve savings account is used for whatever you need to expand your business. It should not be considered a source of frustration, but should be treated as a normal expense like any other.
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