If you’re someone who wants to start their own business, well, we have an idea for you! Let’s face it, cleaning your home is a pretty dull chore. Though everyone likes a clean house, not many people actually enjoy the process – or have the time – to do it themselves.
By starting a cleaning business, you will be able to solve this problem for people – in a super lucrative way! However, starting a business is no easy task, so we’re here to help you through the process and give you step-by-step instructions to set you on the right path!
1. Check Your Bandwidth And Plan Your Legal Structure
First things first, you need to see if you’re able to spend the time to do it yourself – at least at the start. Sure it sounds like hiring a team from the start would be the smart way to go – however, if you do the initial work on your own, you’ll have a much better handle on how the business works – which helps managing the business more effortlessly in the long run. All you have to do is take a little time to understand the different nuances involved in cleaning and make sure you already have – or learn – the skills needed to do it.
Plus, when you’re out on the job on your own, you interact a lot more with clients on the daily. This is especially important for a new business because it is through these initial clients that other people in your community will hear about your business and its services. So not only do you build a personal connection with your clients, but you also instil a sense of trust in new ones that come your way!
Aside from this, another important aspect is for you to understand which legal structure works for you.
By this, we mean the way you set up the ownership and operating practices of your company. There are plenty of different ones, but the most common is either a sole proprietorship or a franchise.
2. Sole Proprietorship or Franchise?
The differences and true meanings of sole proprietorships and franchises are somewhat hard to understand. And deciding how to structure your company can be a little tricky and confusing.
So to break it down for you – and help the decision-making process easier for you – we’ve listed here the meaning of these terms and the pros and cons of each!
- Sole proprietorships are businesses owned by a single individual. This type of structure allows you to operate your business using your own name or with a registered company name.
- A franchise, on the other hand, is a business model where the owner of a business gives you a license to conduct business using their name, trademarks and other identifying factors of their business. An easier way to think of this is brands like Mcdonald’s and Green Acres.
The Pros Of A Franchise
There are many pros that make starting a franchise well worth your time.
- A franchise allows you to create a customer base far quicker – since people already know about the brand.
- Franchises often receive help from the main brand to help develop the business outlet.
- Since there is already a brand recall factor, there is a lower risk associated with starting a franchise.
The Cons Of A Franchise
When it comes to a franchise, the downsides are:
- You do not have much room to do things on your own as a lot of the business decisions are dictated by the main company’s policy.
- While the risk is lower, they still do have a hefty startup cost involved.
- There is also sometimes less freedom involved in the location of the business since the main company would not want one location encroaching upon the territory of another already existing franchise.
- You will have to pay royalties and other fees to the owner of the central business in order to maintain your franchise license. In this way, you don’t get to keep a big part of your earnings for yourself.
The Pros Of Running Your Own Business
Being your own boss is just one of the many perks associated with a sole proprietorship. Aside from this, some other perks include:
- You have much more flexibility to make your business decisions.
- You don’t have to pay any franchisor’s royalties or other fees. What you make is solely for you and your business, and you can choose to invest the money in any way you’d like.
- You get to choose where you want to set up your business.
The Cons Of Running Your Own Business
The downsides of having your own business are:
- The serious risk involved in starting a business from scratch.
- Finding the right staff and location that also fits into your budget.
- All of the time and effort you spend in marketing and getting word of your business out there.
3. Choose A Name And Register
Before you get down to choosing a name for your cleaning business, you must make sure it is available for use. For example, if your name is similar to another local business, you could face legal trouble and lose a fair amount of your customer base.
One way to check if the name you want is available is to do a background check using ONECheck. With ONECheck, you will be able to:
- Find your business name,
- Check out your web domain,
- Check on trademarks,
- Check on social media handles for your business
How To Register As A Sole Trader
If you decide to register as a sole trader, then there are a couple of points you should be aware of:
A. Document with GST number
Goods and Service Tax is a fee that is collected from your customers after the sale of the goods or services that your business provides. Then you pay the GST to your suppliers when you purchase any goods and services from them – that relate to your taxable activity.
When you file your GST returns, you must figure out the difference between the amount of GST you collected from customers and paid to your suppliers. But remember, you do not have to register for GST just because you started a business.
If you are a business entity and any of the following points are applicable to your business, only then do you need to apply for GST:
- You carry out a taxable activity, and your turnover was at least $60,000 in the last 12 months, or you expect it will be at least $60,000 in the next 12 months.
- You carry out a taxable activity, and you add GST to the price of the goods or services you sell.
Once you register for GST, you need to:
- Begin charging GST to your customers
- Make sure you file GST returns
- Payback any GST you owe to the government.
- Maintain good records of your GST.
B. NZBN – New Zealand Business Number document
If you’re self-employed (a sole trader), a partnership or trust, and you’re currently in business in New Zealand, you’re eligible to apply for an NZBN. A business can be non-profit and can also be carried out free of charge.
You can get an NZBN for your own business or on behalf of a business; you have the authority to act for (for example, as a business’ accountant or bookkeeper). To do this, you will need to know your business type.
4. How NexDo Helps Small Business Owners
- Guaranteed bookings and income
With NexDo, we manage and deal with all bookings. This helps regulate your income and also removes the stress of managing these activities from you.
- Fixed price model
NexDo’s services are fixed price with a set checklist for every service. In this way, service providers know exactly what checklist to follow and how much they’ll be earning. We don’t charge per hour, so all that matters is whether the job is done correctly.
- Business model
NexDo advertises all services to the market, and we then assign these jobs to service providers who are registered with us. We only take between 15-20% of the job value, and the rest of the earnings are all paid to the service providers.
Some of our service providers end up earning around $45-$50 per hour on average!
- NexDo Takes Care Of Marketing And Advertising For You
Since we vet our professionals thoroughly, we ensure that we do everything we can to help you get your footing in the market.
- Flexibility in terms of location and working hours
Our service providers are given the flexibility to choose where they want to work and how much they want to work. We only assign jobs to our service providers based on their availability.
- No startup costs to join NexDo
Unlike the franchise model, to join us and become one of NexDo’s service providers, there are absolutely no startup costs involved.
- Support team
NexDo’s support team is always available to attend to calls. Whether it’s about the service provider running late or a customer needing some upgrades & extras to their chosen service, our support team will sort it out directly with the customers, leaving the service provider to do what they do best!
5. How to register as a service provider with NexDo
Sounds too good to be true, right? Well, it is that good! So if you’ve decided you’d like to be a part of our team, you should:
1. Pre- Requirements –
- Own or be able to obtain market standard equipment, like power washers, specialised deep cleaning tools etc.
- Cleaning experience – we promise quality cleaning for all of our customers. Hence, we need people who already know how to clean professionally.
- Have a smartphone for the NexDo app. It is through the app that our service professionals receive job updates.
- The service providers must have their own modes of transport.
2. Vetting process
In order to vet any professionals who join the NexDo team, we first and foremost insist on a check by the Ministry Of Justice – to ensure that there are no criminal convictions recorded. It’s free to request a copy of your own criminal record.
To get your background check from the MOJ:
- You can request your own criminal record check online.
- Before you begin, you must have the following documents ready:
- A valid identification
- A signed and dated Authority to Release Information Form Remember when completing the authority to release information form, you must ensure:
- That your ID contains a signature
- That the signature on your ID matches your authority to release information form and
- You have written the correct date of signing the proof of signature form.
These documents are all uploaded as part of your online application. Note that each document cannot be larger than 6MB. You also cannot ask for your record over the phone or without the form. If you’re unable to apply online, you can still complete a paper form.
The MOJ uses a copy of your ID to check that the right person has filled in the form. So remember that your ID must:
- Be a clear and readable copy
- Exactly match the details in your form – write your name on the form exactly as it is on your ID
- Not be defaced or damaged in any way.
As a best practice, you should use one of the following as your ID:
- Your New Zealand driver’s licence. This can be current or expired within the last 2 years but must not be cancelled or a temporary licence.
- Your New Zealand passport. This must be signed and can be current or expired within the last 2 years, but it must not be cancelled.
- Your overseas passport. This must be signed and current.
- Your New Zealand firearms licence. This must be current.
If you don’t have any of these, you’ll need to ask someone to confirm your identity, or you will need to complete a statutory declaration. Usually, the request is processed within three working days.
And so there you have it! Starting your own business sure is scary, but by following these easy steps, you should be up and running in no time!