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  • #987870
    TFbond
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    • Total posts: 18
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    Hey everyone,
    I’m a newbie and have a few questions about starting a business. My partner and I have been discussing starting a end of lease/carpet cleaning company. I invest in property and have a large number of friends in local real estate agencies who have said they would use my services as long as I match their current providers amount so that their clients still get a decent price. So I already have client potential we just don’t know how to start? Is there a site that has a list of step by step things to do I understand you need a ABN and Registration of the company but the insurance I’m not so sure about. As for the start up costs could I purchase all the company equipment before the EOFY and claim deductions even if we haven’t started trading/or have just begun trading? Anyone ever started a company similar and would have an idea about the initial set up and costs and procedures. Sorry for the rant I’ve been on the internet for hours and my brain is melting with conflicting information lol.

    #1164659
    MissSassy
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    Exciting times for you – there is a lot to consider and I recommend that you speak with people who have done this before.

    I have set up and worked with many others who have travelled down the same path as yourself in setting up a business like this. It is not as easy as you think and the work may not come as easy as you think either.

    Happy to help you answer any questions

    #1164660
    Dave Gillen – Former FS Concierge
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    Hi there,

    A big welcome to the forums!

    You’ve obviously identified some of the things you need to have in place, so I’d start listing them all and adding costs to this list.

    Once you have your setup costs and some idea of how much you’ll charge and how much it’ll cost to provide the service then you should be getting a good overview of whether this is a worthwhile opportunity for you.

    Hopefully some carpet cleaners (we do have some around) can drop by to give you some specific advice or contacts.

    Good luck!

    Dave

    #1164661
    alliedib
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    Hi TFBond,

    I have a number of clients that are involved in cleaning businesses, so I am happy to answer any of the insurance questions you may have – fire away!

    Regards,

    Mark

    #1164662
    TFbond
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    • Total posts: 18
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    Hi everyone,
    Thanks for the replies everyone. Forums helped me develop a successful property portfolio so I sure this site will help me create a successful business(hopefully :)) Once we get back from holidays we will get right into starting it. Thanks Mark does business insurance work like most other insurances you just pay for an annual term? What happens if your not sure about the amount of clients you will have is there a Pay as you go system or do you just change the insurance policy if you have more clients.

    Once again everyone thanks for the replies :)

    #1164663
    Hobidi Bob
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    • Total posts: 43
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    Hi TFbond,

    My wife and I own a home services business specialising in vacate cleaning and carpet cleaning. I would be happy to help.

    As for step by step, there isnt much out there that we found that could give a step by step, although ATO has a package regarding things you should have in place.

    Insurance- We pay month to month for our business and public liabilty insurance. For workers comp it will depend on that state you are in. We live in NSW and pay workers comp anually.

    Pricing- its great that you already have some clients. I urge you to make sure you and your business are making enough money. We work for 7 different real estates regularly. They are happy with the prices we charge, yet others want me drop the price $10-$15/hour to match their current cleaners. I thank them and walk away as I cant work for the type of money they ask for as I have staff I need to pay.

    Costs- This is a rough idea of what we have paid.
    Equipment $5000
    Carpet cleaner $1400
    Trailer $400 (for rubbish removal and lawn mowing equipment)
    Insurances $4000

    Some of the equipment was purchased as we go (instead of lump sum) and carpet cleaner we got on finance.

    Hope this helps

    #1164664
    TFbond
    Member
    • Total posts: 18
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    Hobidi Bob, post: 190561 wrote:
    Hi TFbond,

    My wife and I own a home services business specialising in vacate cleaning and carpet cleaning. I would be happy to help.

    As for step by step, there isnt much out there that we found that could give a step by step, although ATO has a package regarding things you should have in place.

    Insurance- We pay month to month for our business and public liabilty insurance. For workers comp it will depend on that state you are in. We live in NSW and pay workers comp anually.

    Pricing- its great that you already have some clients. I urge you to make sure you and your business are making enough money. We work for 7 different real estates regularly. They are happy with the prices we charge, yet others want me drop the price $10-$15/hour to match their current cleaners. I thank them and walk away as I cant work for the type of money they ask for as I have staff I need to pay.

    Costs- This is a rough idea of what we have paid.
    Equipment $5000
    Carpet cleaner $1400
    Trailer $400 (for rubbish removal and lawn mowing equipment)
    Insurances $4000

    Some of the equipment was purchased as we go (instead of lump sum) and carpet cleaner we got on finance.

    Hope this helps

    Wow Bob thanks that helps heaps. If you don’t mind me asking where do you source all your chemicals from? We’ve found a few places but not sure which one is the best?

    Thanks tony

    #1164665
    Craig_Longmuir
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    isn’t the carpet cleaning business one that has a lot of franchise opportunities? costs more to get going but you are up and running with all you need much quicker

    #1164666
    alliedib
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    TFbond, post: 190554 wrote:
    does business insurance work like most other insurances you just pay for an annual term? What happens if your not sure about the amount of clients you will have is there a Pay as you go system or do you just change the insurance policy if you have more clients.

    Hi,

    An insurance policy is a contract that is generally provided for a 12 month period. Some insurers will allow you to pay the policy off in monthly instalments, however the intention is that it will run for the full 12 months (if you do cancel it before the expiry you may need to pay the balance of the premium).

    For Business Liability, the cost of a policy is determined by a number of factors, including:
    – How much cover you want (eg $5m / $10m / $20m or more);
    – What you do (domestic / commercial / shopping centres etc);
    – How you do it (sole operator / employees / sub-contractor or contractors);
    – Where you do it (different states have different duty rates);
    – How much you do (policies are generally turnover and worker based so the larger you are the more you will pay for the cover).

    If you are starting out, the best thing to do is to pigeon-hole exactly what you will be doing and how you will be doing it eg. domestic cleaning using employees, then estimate how much you will be doing. An insurer will request you provide a ‘good faith’ estimate so as they can provide an accurate premium. If there is any material change in the risk eg. you change to commercial work or start using contractors or your turnover substantially increases, you need to update and confirm cover with your insurer and they may then alter the premium (to reflect the changed risk).
    I generally suggest that a client looks at their business plan and determines exactly where their business may be heading (or where it possibly could in the future) and then chooses their insurer accordingly. If you are contemplating taking on contracts for commercial properties or shopping centres, there is no point in getting a policy from an insurer which will ONLY insure domestic cleaners as this will not be suitable should you expand.

    Workers Compensation depends on a number of factors, but is usually a % of the payments you make to ‘workers’. In some states the % is fixed across insurers, but in others the insurers set their own rates depending on the risks they want to write.

    Equipment policies are usually based on a % of the value of the items (either the replacement or market value depending on the policy).

    Hopefully this helps – let me know if you have any further questions.

    Regards,

    Mark

    #1164667
    Collins Insurance
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    Hi TFBond,

    Insurance cost from minimum of $450 to thousands of dollars a year. You can choose to pay monthly but it will include some interests and fees. The premium depends mainly on your scope of work, volume of business and the insurer’s own claim experience.

    You mentioned you are using staff. You will need to inform your insurance broker whether they are employed staff or subcontractor. I just want to highlight this as most of my Cleaning industry clients use subcontractors and that needs to be correctly covered in the insurance policy.

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