Do you want to start a housekeeping business? If YES, here is a complete guide to starting a housekeeping business with NO money and no experience.
Okay, so we have provided you an in-depth sample housekeeping business plan template. We also took it further by analyzing and drafting a sample housekeeping service marketing plan backed up by actionable guerrilla marketing ideas for housekeeping businesses. In this article, we will be considering all the requirements for starting a housekeeping business. So put on your entrepreneurial hat and let’s proceed.
Why Starting a Housekeeping Business?
For as long as there are busy parents and households, there will always be housekeeping businesses to take on by people. This is a very competitive business, but yet lucrative as more and more people are starting this type of business. Housekeepers are those people who take care of households these folks are paid to take care of the household. This can happen while the guardians or home owners are away, or it could as well happen whilst they are around.
Opening housekeeping business can be a great way for you to make some extra income. Some people take this as a fulltime business, whilst others do this on a part-time basis. This type of business to a large extent requires that you pay full attention to so many things. This only goes to mean that you have to a kind of person who love to put things in place.
In starting this business, you can decide if you want to start with a team or just by yourself. You will also need to have some raw training in the field. This is because no matter what you want to go into, you would need to have an extra put you through some things.
You will also need to write a business plan. The business plan is a very important part of any business because of the power of direction and purpose it gives. Here is a comprehensive guide of how you too can start a housekeeping business.
Starting a Housekeeping Business On a Shoestring Budget – A Complete Guide
- Industry Overview
The Housekeeping industry offers a wide array of services. These services however vary from house to house. In 2014 there were about over 800,000 businesses employing about over 3 million people. The industry can be said to be very vulnerable to economic downturns.
- Interesting Statistics About the Housekeeping Industry
It has therefore suffered several rough years during the credit crunch period in the United States of America. Revenue fell 5.3% in 2008 and another 6.1% in 2009. Generally the housekeeping business is believed to be a dispensable luxury when times are tough.
Over the years of economic strength and after things have picked up, we have seen the industry bounce back, and in 2015 alone, it generated over $50 billion in revenue. This fresh upward drive can be credited to both unemployment and office vacancy rates deteriorating. Over and above, statistics is forecasting that job growth of about 6% from 2014 levels to 2020 will take place.
Nevertheless, notwithstanding the industry strong growth, it is projected that the average housekeeping business loses up to over 50% of their customer base every year due to poor service. This goes ahead to affirm what a business owner stated “good work goes unnoticed for years, but a bad job gets you fired immediately”.
Starting a Housekeeping Business – Market Feasibility and Research
- Demographics and Psychographics
When it comes to the demographic and psychographics composition of those who need the services of a housekeeper, we can categorically say that everyone needs the services of a housekeeper at some point or the other in life. They include;
- Old people
- Sick people
- And so on
List of Niche Ideas within the Housekeeping Industry
The services offered by housekeeping providers are usually uniformed services, and so there is no clear cut service that may distinguish one housekeeper from another, when an employee has to distinguish create a unique and additional service
Some of the areas of specialization in the housekeeping industry include;
- Removal of Litters
- Removal of Dirt
- Meal preparation
- Assistance in daily activities that might be required.
The Level of Competition in the Housekeeping Industry
Opening a housekeeping business can offer a good source of income for entrepreneurs with a knack organization. Housekeeping businesses need hard work, care for detail and good time management skills. It also requires the skill of gaining and keeping clients. It is no doubt that the industry is really saturated with people already, however, this doesn’t mean that you cannot carve a niche for yourself as you start out in this business.
The housekeeping business has been growing since 2010, and has not even accounted for people who may want to retire within the next 5 to 10 years. Competition to a large extent is encouraged in this industry. Old-fashioned competition in this industry involves one or more elements, which includes price, quality, convenience, new technology and innovation. One of the key roles of competition lies in providing great housekeeping services.
One of the things that can stand anyone out in this industry is mastering the business so well so that he or she can be a great force to reckon with. Big brands that have made it so well have found out that they have continuously worked on offering the best of services and so that have shot them to the limelight of success.
- List Of Well – Known Brands in the Housekeeping Industry
Brands have grown from strength to strength in the past centuries in the United States of America. There are well known housekeeping brands that have done well in the past and have continued to attract the best clients. Here is a list of few well known housekeeping brands in America
- Address Our Mess
- Blue Chip
- EB Mold
- Restoration SOS
- The Maids Richmond
- The Maid Orlando
Before entering into this business, it pays to do well to thoroughly examine the industry and be certain of various influences before venturing in. This is really needful so that all can be laid down and followed duly. Whoever plans to start this business has to have an eye for details so that all that will be done would be done to the satisfaction of the clients that may have hired them.
It is vital to note that the request for housekeepers is mostly determined by those who are really busy and need the services of one who can man the home front while they are away. There are lots of homes that require the input of housekeepers and so demand is on an all-time high.
The economic situation does not in any way affect this business because people who have to face their businesses and have people back at home to be catered for, have no choice than to employ the services of a housekeeper.
Is a Housekeeping Business Worth Starting from Scratch or is Buying a Franchise Better?
The choice on whether to begin a housekeeping business from the scratch or if to team up with a big time housekeeping company franchise exclusively depends on the entrepreneur and what you feel might be good for you in the long run. Each choice comes with its challenges.
Opening your own housekeeping business has lower start-up costs without being faced with paying any entry or re-occurring franchise fees, with the ability to create your own business strategies that you feel will be best for your business in the short, medium or long term. This also includes writing out a detailed business plan that will clearly show how you mean to start, operate, and
Nonetheless, a franchise will also deliver a business model, start-up guidance and continual support. You would also get additional clients using the brand name of the franchise than you would have on your own.
Possible Threats and Challenges You Will Face When Starting a Housekeeping Business
Starting the housekeeping business like other businesses has several challenges. There are various challenges that abound. But it is important that you master the challenges so that you can be able to rise above it. One of the challenges include;
- Getting reliable people to be guarantors
- Not getting reliable protégés
- Getting clients at the outset of business since people love to hire people with experiences.
Even with a great feasibility studies, one may still encounter this problem. However, you will have to constantly look for ways to overcome them.
Starting a Housekeeping Business – Legal Matter
- Best legal entity to use for a Housekeeping business
Although, some of the concerns of business ownership is common across industries, housekeeping business has certain unique entity formation requirements.
Some of the basic requirement in starting off this kind of business is to set up a business entity. You will need to determine which business entity is best for your business needs. There are different kinds of legal entities which are sole proprietor, partnership, Limited Liability Company (LLC), S Corporation and C Corporation.
There are diverse ways to go about this and they include exploring online on the website of your state government, checking with an attorney and or CPA about the appropriate business structure, payroll information, sales tax, workers compensation and the liability insurance for your business.
Catchy Business Name ideas Suitable for Housekeeping Business
There are several business names that is known all over the globe. This means that one of the reasons why you have to have a business name is so that your business can be well noticed by the populace. Here are some attractive names to adopt;
- We Care Keepers
- The House Keepers
- Tidy Gurus
- Orderliness Experts
- Rough To Neat
You will need to check with that appropriate organization in charge of registering businesses, to be sure that the name you opt for isn’t taken.
The Best Insurance Needed for a Housekeeping Business
There are several insurance documents that are used by different businesses. For the housekeeping business, you will need some documents too. The following are simple insurance covers that you would need to get to successfully carry out your housekeeping business in the United States of America:
- General Liability Insurance
- Professional Liability Insurance
- Workers’ Compensation Insurance
- Hazard Insurance
- Business owner’s policy Insurance
Is Intellectual Property Protection Needed to Start a Housekeeping Business?
Intellectual properties are majorly needed when there is a written brain child or creativity that has to do with your business. Except if you are looking to document some of the processes that you use; otherwise, this business may not need to be patented.
Is Professional Certification Needed to Start a Housekeeping Business?
To own or manage housekeeping Business, it is not required that you have a formal training or, even though knowledge is highly needed and regarded by some, it is not a requirement. However, you can also decide to go to some schools that offer some basic courses on the business aspect of housekeeping. This will help you broaden your scope in the industry. Some experts who have done well over the years now may see the reason to set us schools where upcoming people can be a part of.
Legal Documents You Need to Run a Housekeeping Business
There are several documents that is required for you to run your housekeeping business successfully. These are some of the basic legal documents that you would need to successfully run a housekeeping business in the United States of America:
- Business Plan
- Business License
- Certificate of Incorporation
- Medicare and Insurance
- State Permits
- Employer ID Number
- Contract Document
- Employment Agreement
- Non Disclosure Agreement (NDA)
Writing a Business Plan for Your Housekeeping Business
A business plan can be likened to a map that is needed to successfully run a business; it is the document that will inspire all your business decisions and actions.
Having a business plan is not just for the reason of having a business document; but it is for the reason that it will help in drafting strategies that will help the entrepreneur effectively manage and man the housekeeping business. The business plan ought to also cover strategies on how start-up capital will be generated, clients attracted and how the scope of the business will be expanded. These key components must not be missing from the business plan.
Other key components that should be included in your business plan are as follow;
Executive summary which clearly states what your home healthcare agency business will be all about, the company’s corporate culture, sales and marketing strategies, marketing goals, target market and perhaps what stands you out from your competitors, It is also expected that you state your company’s vision statement, mission statement and the areas where you would likely want to cover.
Lastly, other key components such as products or service offering, SWOT analysis, marketing and sales analysis / strategies, pricing, costing and financial projection, publicity and advertising strategy, budget and start – up capital generation should be made available in the document.
Not everyone can write a detailed business plan themselves, and so you would need to employ an expert to help in writing a business plan for your home healthcare agency business, or you can download an online business plan template to be used as a guide for your home healthcare agency business.
A Detailed Cost Analysis for Starting a Housekeeping Business
The cost implication of starting a housekeeping business depends on the route you choose to take into the industry, you can choose to either buy into a franchise, and this can be done by buying an existing agency or starting from the scratch. Also, another major factor will be how you want to start. Will it be small, medium or large scale?
Whichever way you decide to start out, you have to know that there cost implications. Basically, you would need to guarantee that the following items are taken care;
- Obtaining proper license would cost $1,500
- Setting up your entity would cost $1,500
- Setting up your office which included rent and utilities, phones and communication tools, computers, internet connectivity, back office systems. Forms preparation would cost $35,000
- Uniforms for your employees would cost $2,000
- Insurance coverage would cost $3,000
- Hiring and training of caregivers would cost $3,000
- Marketing for clients would cost $2,000
- Launching an official website would cost $1,000
- Additional expenses like business cards, signage would cost $1,000
The detailed cost analysis means that you will need at least $50,000 to start a housekeeping agency on a small scale in the United States.
If you want to start a medium scale housekeeping business in the United States, you would need nothing less than $120,000. And if really want to kick start on a large scale in the United States of America, then you should look towards getting well over $250,000 as your start – up capital.
Financing Your Housekeeping Agency Business
Financing a business is one of the first major decisions that you will have to face is to determine where and how you plan to source for funds. There are several options available depending on the type of housekeeping business you intend to go into:
- Funding can be gotten through working with insurance companies
- Government funded programs
- Private pay patients
- Personal savings
- Applying for loan from the bank
- Sourcing for loans from friends and family members
Choosing a Suitable Location for your Housekeeping Business
One of the major decisions that will have to be taken is siting the business at a suitable location. The business of housekeeping is an ever-growing one. This is because there will always be the need to have someone cater for the home front while work is being carried out to put food on the table.
In setting up a housekeeping business, and to decide a place that might be most suitable for your business, you can look at doing some proper research of the internet. The internet is a very good place to get this information because you will come
Apart from using the internet, you could also look for suitable locations in local publications, such as newspapers so as to find local retirement communities. These should then be your target areas when looking for a suitable place for your business.
If you do not carry out these checks and locate your business anywhere, it might be difficult for you to do business, as you or your employees might have to commute for a long distance before getting to a patient, which will automatically make your operating costs higher than it should be. Also apart from commuting, the relative of your patient might wish to get in touch at your office, and would not appreciate having to drive very far.
After finding the suitable location, you should then look for a professional office space. The ideal leasing you should consider should be between 600 square feet and 700 square feet; this is so that you would have enough room for a reception space, an office and a small conference space. This does not mean that you go bankrupt, as you might decide to go for something smaller depending on your budget.
The reason why an office is needed is due to the employees you would have as well as having clients come over or the different agencies of the government or insurance companies.
Starting a Housekeeping Business – Technical & Manpower Details
The housekeeper requires firm tools and equipment that will very much ease the business. These equipment and tools will be needed to be used in the homes where they will operate. These are some of the equipment that would be needed by you to start and operate your housekeeping business successfully:
- First Aid Kit
- Cleaning chemicals
Regarding the number of employees needed to run a home keeping business, it can vary depending on how you want to start off. If you choose to be the only, then you would need to cut down on the marketing, this is so that you do not absorb, more than you can handle. If you mean to start on a scale, then you can employ more people. You can start with 5- 10 people.
The Production Process in Home Keeping Business
There is no production process involved in the home keeping business as this is a business where service is provided. The procedure can array from offering personal care like bathing, assisting with daily living activities like dressing and feeding, preparing meals, and housekeeping.
Starting a Housekeeping Business – The Marketing Plan
- Marketing Ideas and strategies
There is no business on the face of the earth that doesn’t need advertisement. If you want to create income for your business, then you must look towards marketing your products and services. It is imperative for an entrepreneur to take this seriously. This seriousness can be achieved by either investigating deeply and widely, looking for the help of knowledgeable owners in the same industry, and/or seek the assistance of a consultant that would help make marketing ideas practical.
What does marketing really do? Marketing your business attains two things; it produces income for your housekeeping business, and also increases publicity for your company or business. The right marketing policies and ideas for a business are necessary and might sometimes be tweaked to suit a particular business such as the home healthcare agency business.
This is why a business plan helps to express the marketing strategies and ideas that would be used for a business. Here are some tips that you can adopt to market your housekeeping business;
- Send sales letters and brochures introducing your business to individuals as well as busy executives.
- Reach out to local all businesses and adults.
- Place advertisements in local newspapers
- Get your business written about in local publications
- Follow up with phone calls to reinforce the image of your business
- Use your website to give out information and tips that could help senior citizens
- Use social media platforms like LinkedIn, Facebook and Twitter to connect with those that might act as a source of referral
Factors That Will Help You Get the Right Product Pricing for your Housekeeping business
The factors that will enable you get the right price quotation for your services; prices that will be pocket friendly to your client will solely depend on the payment method your client has chosen, as this can only work if your client is paying you out of their own pocket, as payment from healthcare funders are usually determined.
If your client is paying out of his own pocket, then determining the right price would be in seeing that your operational costs aren’t more than the revenue, and also ensuring that you keep your costs at a minimum, so as not to be seen to exploit.
Possible Competitive Strategies for Winning Your Competitors in the Housekeeping Industry
One of the most important tip for competition favorably and winning is by competing in a way that is healthy in the industry. This can be done by designing your business in such a way that you can securely work with all kinds of clients. That is not only high or low end kinds of clients, but those that might require long term care as well.
Another competitive strategy is hinged on you locating one of the best locations for your business that will ensure that you have some competitive advantage in place that would give your business a boost over the others.
Possible Ways to Increase Client Retention for your Housekeeping Business
In working at retaining customers for your business, you need to make your existing clients and their families happy and really satisfied with your services. This is achieved when their needs are met, and their anxieties are addressed directly.
Also, you have to make sure that the housekeepers that are assigned to various homes are well trained, knowledgeable, as well as friendly. This is really important because before you are referred to other potential clients, the existing clients have to be really satisfied.
You have to have that at the back of your mind at all times when dealing with a client. This is important because one client is able to refer at least 3 more clients to you. Now imagine if you have plenty of satisfied clients? Then that means that the potentials are unlimited.
Strategies to Boost your Brand Awareness and Create a Corporate identity for your Housekeeping Business
It is imperative to create plans that will help you increase your brand awareness and to create a corporate identity for your business. Anyone that sets out to run a business has to look for ways to promote their brand and if possible, hire brand experts to help handle that aspect of your business.
Below are the policies you can leverage on to boost your company’s brand and to promote and advertise your business;
- Start a website to promote your business
- Write news stories for local publications
- Join local family fairs
- Write and distribute press releases
- Connect with referral sources such as family groups, community groups, as well as other individual based groups that is able to help you garner more clients as the days go by.
- Leverage on social media platforms like Facebook, Twitter to promote your services
Creating a Suppliers/Distribution Network for your Housekeeping Business
Anyone that runs a standard home housekeeping business should be prepared to look for suitable solutions products and services that would be needful to the industry. There is a high need to identify the places where some of the things needed for the execution of the jobs in this business require. There are several ways that this can be gotten. You may want to use the internet to do your studies.
Tips for Running a Home Housekeeping Business Successfully
Running a housekeeping business is indeed a great move. However, there are a lot of things that you have to consider in running a housekeeping business. These factors that needs to be considered has to be dealt with in the most serious way so that the business can be run in a way that clients will be satisfied, as well as those who are at the helms of running the business.
Some of the factors that need to be considered when looking to run a business successfully include the following;
- Make sure that employees are paid well
- Do not be a slave driver. Give your employees a break if need be
- Train your employees so well that clients have no part in resisting them
- Plan and implement workable advertising strategies
- Reward loyal clients at all times
- Put in place incentives that can be an attraction
- Create a great feedback system. Feedback systems help clients be secure in sharing all that they feel completely without holding back.