Is a commercial and residential cleaning business still profitable during this recession period?

Is a commercial and residential cleaning business still profitable during this recession period? Topic: Is a commercial and residential cleaning business still profitable during this recession period?
June 27, 2019 / By Abital
Question: I have been laid off from work and I have considered starting a cleaning business. I have done a lot of research on the business. I have inquired about insurance, supplies also advertising. I am 38 years old and starting over and was wondering if it is still profitable to start this business. I do know a lot of people in community so word of mouth advertising won't be a problem. Thank you for all of the help. I live in indiana, just to let everyone know in case someone has prices i should charge.
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Best Answers: Is a commercial and residential cleaning business still profitable during this recession period?

Swithun Swithun | 5 days ago
Is this type of business still profitable. Yes it is. Consider that the major component of your cost of doing business is labor. Cleaning is labor intensive. If you are planning on doing the work yourself, then you pay yourself what you think you're worth, or what the market will bear. (when bidding on cleaning contracts) When hiring other people you have to be aware of what the wage laws (and payroll taxes) are in your state. You might even consider leasing employees. One thing you might want to take advantage of is factoring your receivables or invoices you give to your commercial accounts. You'll give them an invoice at the end of a month, and they might not pay for another 30 or 45 days. That is a long time to wait to get paid, and to pay your employees out of your own pocket (8 weeks of wages). You can sell your commercial invoices and get paid immediately, I can help you there, just send me a msg. If you think you can get commercial accounts, then by all means do so. As for residential cleaning, that is a little tougher as in a down economy people will most likely clean their own homes instead of paying for someone else to do it. Unless you're in an very upscale neighborhood. Best of luck.
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Swithun Originally Answered: Real estate.residential or commercial?
Commercial real estate usually involves a depth of understanding of these properties as the sale of an ongoing business, a site for a potential business, a possible business investment property, etc. That means you need a good solid familiarity with the concept of EGIs, GIMs, GRMs, NOIs, capitalization, depreciation, economic life, market and investment values, sales comparison, vacancy and collection losses, zoning and permitting and licensing - etc. - depending on what kind of commercial properties you are going to be working with. This is all great stuff, and a wonderful challenge, if you have the expertise. If your background includes this kind of experience (as an accountant, lawyer, banker, property manager, county or state employee - whatever) use your old contacts as a launching point in your marketing plan. People who know you already, professionally, will have some amount of faith in your abilities and can send you business - if you ask them to keep you in mind. If this is all new to you, you will need to build credibility. Take classes that pertain to this field (business, real estate, accounting - whatever you can find) and join the local commercial real estate associations. Build up your resume and network, network, network - and have a solid marketing plan to put your face out there. Ideally, you will find a mentor to help you along the way - perhaps in your local commercial real estate association? If this is your dream and your passion, and you are willing to set logical goals and work hard, you can do it. Good luck and best wishes.
Swithun Originally Answered: Real estate.residential or commercial?
There is one rule to remember in commercial real estate whether you are a buyer and holder, or someone who makes money on the management side: financial value is judged on what can be made going forward, not what it was in the past. The trick is to identify this potential and what can be done to build value going forward. The following drivers are important to consider when examining potential value in commercial real estate: 1. Location. Location. Location. Potential value will come from a high-traffic area with strong demographics, an area where new condos or subway line expansion are great examples. Being closer to transit or places easily accessed by walking is also attractive. 2. Revenue, cost and capitalization rate People sometimes forget the cost of upcoming vacancies. Is there a major tenant about to leave? Any zoning and developing issues/trends? What else is coming up in the area? All this impacts capitalization rates, an important measurement of risk, so avoid thinking of a property in isolation. For more tips visit: http://richardcrenian.ca/spotting-value-in-commercial-real-estate/ Richard Crenian

Patrick Patrick
probably not residential - that's kind of a luxury for people as for businesses - you have have to call on businesses and go quote every job based on what is needed and how big the place is - work time will be after 5pm - evenings - then getting reliable cheap labor is the next issue - you will probably need to get workmens comp insurance for your workers and leran how to deal with payroll and payroll taxes, plus you might only get paid from your customers once a month and that may be 30 days or more after you give them the invoice, so you have to be able to have enough cash up front to last a while until you get paid - a lot of work
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Lorin Lorin
Hey Buddy D I live in New York and here in N.Y. we have a 311# which we can call for any matters which concerns the city or. If i had that problem i would call the city...they would put me on to the small business association who would point me in the right direction direction. See if you don't have a 311# to call or some thing similar.
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Lorin Originally Answered: do anybody here own a landscaping business, or if you own a business period can you give me advice?
A landscaping business is fairly easy to start up I would think, not awhole lot of overhead. Just the machine like lawnmowers, plows shovels etc. You'll have to do estimates for customers, go to STAPLES, and grt an estimate form so you can write a written estimate which will protection you and customer. That way the customer will know what they are getting from your services. Also get a Dome Book at STAPLES to keep track of your daily expenses, gas, items for job, etc. it's much easy at tax time when you have this book. Make sure you save all your receipts. Ypu can get on the internet and find out what deductions you can use for tax purposes. Make sure you have insurance on you business. And don't overbook yourself that way you'll keep all your customers happy.. Good luck with you adventure.
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