4 Financial Requirements for Starting a Janitorial Business

When you are starting a janitorial business, you are going to need to meet certain financial requirements. There are a variety of different things that are going to require capital in order for you to be successful. Here are a few financial requirements to consider if you are starting a janitorial business.

1. Down Payment Real Estate

If you are planning on purchasing a space for an office, you will need to come up with a down payment for the property. In most cases, you are going to have to come up with at least 20 percent so that a lender will approve your loan. This might be your largest initial expenditure. You can often get around this by leasing a building instead of purchasing one.

2. Equipment

When you are starting a janitorial business, you are going to have to purchase a lot of equipment. You will need cleaning supplies and cleaning equipment in order to do your job. Because of this, you will need a large amount of capital. In most cases, all of the supplies and equipment could end up costing thousands of dollars. You will also have to have enough money to purchase cleaning supplies on an ongoing basis for a certain amount of time once you start working.

3. Wages

If you are going to have other employees, you are going to have to have enough money to pay for their wages for a certain amount of time. Until you start bringing in money from your clients, you are going to have to be able to pay for their wages out of your own pocket. Your employees are not going to work for free and they will not wait until your customers start paying their bills. Therefore, you may have to have a little bit of cash on hand to handle all of the wages until you start bringing in money.

4. Advertising

Another important part of your planning process should be the cost of advertising. Most of the time, you are going to need to do some advertising in order to bring in enough clients to stay busy. Most large customers are already going to be working with another janitorial business. Therefore, you may have to spend quite a bit of money in the advertising department to get your name out there.

Advertising will create brand recognition and allow you to bid for larger jobs. This is going to be necessary in order to take some of the large customers away from the established companies in your area. Do not ever hesitate to invest a large amount of money in advertising. Just be sure that you are investing in quality advertising that actually gets results before putting any of your money into that particular avenue. This is a necessary expense for almost every business and the janitorial industry is no different.