Begin With A Business Plan

Many people ask me how they can start a window cleaning business because they are attracted by the apparent simplicity of the work. However, to be successful in this line of work you must treat it like any other business venture by writing a good business plan. Now don't get freaked out by the 'business-speak' - all we are talking about here is taking a realistic view on some pretty fundamental but vital issues:

What type of legal entity will you trade under? This topic could form the basis of an article in its own right. Options in the UK are:

• Sole Trader (much less bureaucracy but your personal assets could be at risk if you are sued).
• Limited Liability Partnership (as it says 'on the tin' it limits you for any financial claims against the company but costs money and time to set up).
• Limited Liability Company (as above) Of course you could start off as a sole trader and move onto one of the other legal entities at a later date.

How much will it cost to start your window cleaning business?

• Vehicle
• Ladders
• Special equipment
• Staff Recruitment (if applicable)
• Insurances (these can be expensive)
• Premises (this probably will not be an issue to begin with)
• Stationery (customer receipts or invoices etc)
• Marketing (leaflets, sign writing etc)
• Etc

What are the ongoing monthly costs?

• Staff costs (if applicable)
• Consumables o Vehicle costs (fuel, maintenance, road tax)
• Your drawings out of the business
• Advertising
• Bank charges
• Telephone
• Etc

What are your income projections (month by month)? This is so important because if you don't set targets how will you motivate yourself and ensure your company is on track. How long will it take before you are in profit? This is a key issue if you are taking out any sort of loan or overdraft to start a window cleaning business.

How are you going to price jobs (per hour, per window, on a job by job basis). You want to be competitive but don't make the mistake of confusing quality with cost. If your service is better than your competitors your customers will not mind paying a premium.

How are you going to market your company to win business? Ask yourself why people would use you instead of your competitors - what is your unique selling point. For example, you may be offering to clean windows the old fashioned way, whereas your competitors are using a water-fed pole system. Alternatively perhaps you are going to exploit a hidden niche in the market place?

Are you going to operate in the residential and / or the commercial market (business to business)? There is probably more profit in the commercial sector but it will require different skill sets to win and retain business. My advice would be to play to your strengths. Perhaps start with the residential sector and branch out into the more lucrative commercial contracts when you have established a track record and grown in confidence.

All of this may seem a bit daunting and feel like drudgery when you are raring to go but believe me if you don't pay attention to these issues when you start up there is a real danger your company will not survive because you make insufficient profit and /or underestimate costs. Lack of proper planning could cause you serious cash flow problems, which is very bad news so get the planning done before you start a window cleaning business. A well thought out business plan will also impress potential lenders if you are looking for a start up loan.

An alternative to starting a window cleaning business from scratch would be to buy a window cleaning round for sale, which will be covered by a separate article. In essence the purchase of an existing window round eliminates much of the risk because the likely income is known in advance; however, this advantage has to be offset against the extra cost of purchasing the business.

In conclusion my advice is don't rush to start a window cleaning business until you have drawn up your business plan.

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