Most cleaning businesses started out as small home-based enterprises. With a defined niche, a vision and a plan on how to deliver to the clients, these startups are motivated by a simple desire: to survive. This is one business which depends a lot on trust and quality. Building on these attributes, it is easy to keep old clients and find new ones.

There are a lot of different companies which are out there to be started. Studying successful companies there are only a few things which differentiate them from unsuccessful endeavors. One of the secrets of a successful company is that the founder likes the work. When the owner likes working the business, then it doesn't feel like work for him.

Ultimately, this last trait might be more important in the long run, than any other motivation to work. Running a cleaning service business is sometimes a round-the-clock job. Companies contract out janitorial jobs for work after office hours. Home cleaning services, on the other hand, are done during office hours while the home owners are out. Carpet cleaning services can be on-site or brought to the shop.

There are a lot of services which a cleaning business can offer. At some point specialization offers more benefits to the business owner and to the regular customers. Specializing on a service means that you would need to be training on less things. Additionally, you would need less equipment because of the limited number of service offerings.

The confidence to start a cleaning service shouldn't fizzle out after a few months just because you're not making the numbers you forecasted. Any and all start ups go through an organizational phase and very rarely do companies get blessed with a running start. All the planning and organizational work that you do will have to be cleaned up and refined during the first year of operations. Although you may have created as good and as realistic a budget as possibly can, conventional wisdom from successful start-ups show that your planned budget for the first year will be underestimated. A rule of thumb for start-up businesses is to calculate a budget, and when that has been refined, to double the value. The resulting amount will be closer to the actual expenditures for the first year of operations.

For most first time entrepreneurs, the first year of a company's operations are a whirlwind of new experiences. Most of these will be catch up jobs, trying to get the feel and rhythm of the business. Taking notes would be great. But paying close attention to the journal detailing every penny would be even better. You should do an internal audit and study of the company expenses and operations. It is never too early to keep a close watch of your finances. This is specially true if you have a small starting capital.

At some point, the work will seem to be more than what it's worth. The business is not expected to be earning money immediately. Another rule of thumb for start-ups is to expect to start earning after three years. It is expected that the first three years of operations will show losses. During this period the finances will be tight. It might be necessary to scrounge up additional capitalization. For an entrepreneur, this means that after starting the business, it might be necessary to do some independent contracting work outside of the cleaning business. Keeping a second job on top of the business is a common experience. Alternatively, the business owner can try to get more jobs than he had planned for. This is one motivation which gives unexpected results. Surviving the first three years of operation is a great learning experience for a first time cleaning business owner.

In any business, but especially in a small business, cash flow -- money coming in and money going out -- is important to the success of the business. Money going out is the easy part; there are always expenses: rent, supplies, equipment, salaries, etc. that you need to pay. But sometimes getting money to come in from your customers can be a slow and time-consuming process.

Most commercial cleaning businesses charge on a monthly, after the fact, basis. Special services such as carpet cleaning and window washing may be added on to the monthly bill or charged after completion. Residential cleaners often charge after each cleaning, which can be on a weekly, biweekly or once a month basis.

Customers may be slow to pay, which will adversely affect your cleaning business' cash flow. It could mean that you might have to dig into your cash reserves to pay your bills. It may also mean that you have to spend time as a bill collector making phone calls or perhaps even sending out statements and collection notices to remind customers of past due bills. How do you get your customers to pay on time?

Start by always having a signed contract or proposal. Although this seems obvious it is important to discuss payment terms in the contract, with approval by both parties. Make sure that your contract includes not only when payment is due, but what the penalties are for late payment.

Include all relevant information on your invoices. Invoices should include more than just the cleaning client's name and services provided. Include when payment is due, late payment penalties and a contact name and phone number for any questions about the invoice.

Do you provide cleaning services to government entities or large corporations? Government offices and large corporations generally have cut off dates for each billing payment cycle. You may have to get your bill in before a certain date or they won't pay it until the next payment cycle. For example, you may have to have your invoice in by the 25th or it may sit in someone's in-box for another month. Ask the billing agent or accounts payable department when they need your invoice so you receive payment on time.

Send out your billings promptly. You may do everything for your cleaning business from marketing to meeting with prospective clients to cleaning buildings. It is easy to put some things off, but don't let your billings be one of them. Make sure to send out your bills at the same time each month, or if your contract indicates that you bill right after a service is completed, then send out the invoice immediately.

Many cleaning companies require bills to be paid within 30 days (net 30). Perhaps you could offer discounts if the customer pays their invoice early. Consider offering a 2% discount if they pay the invoice within 10 days. Many of your clients will take advantage of the discount.

To keep cash flow coming in sooner, consider shortening your billing cycles. Instead of having payment due in 30 days, require payment in 15 days (net 15). To avoid any confusion state the specific due date on your invoices.

Ask for payment up-front. Although this is not a typical payment method for a cleaning business, for many other businesses getting payment up-front is standard. Offer an incentive for your cleaning customers to pay up-front - discounts, preferred cleaning times, or deductions on supply prices.

When signing up a new cleaning customer, ask if they have special billing needs. As with government entities, other cleaning customers may have specific deadlines to process invoices. You may have cleaning clients who prefer to be billed mid-month and not the end or first of each month.

Give your clients an alternative of paying by credit card. If you don't accept credit cards think of setting up an account on the Internet (through PayPal or similar payment system). These companies allow you to invoice your clients through e-mail and then they can use their credit card to pay for cleaning services.

Check with your clients regularly to make sure they are satisfied with the cleaning services your company is providing. Clients have been known to hold payment if they are not happy with their service even though they have not told you there is a problem!

Remember, your clients are in business to make a profit and so are you. Getting paid is how you pay your employees, grow your business and pay your bills. Make sure that your payment policies are stated ahead of time, communicate with your clients and provide a good service. Keeping a good incoming cash flow is vital to the stability and growth of your business. Don't be afraid to let your customers know that you expect prompt payment for a job well done!

Copyright 2006 The Janitorial Store