Commercial cleaning services are always in demand as businesses outsource their cleaning needs rather than hiring a custodial staff. All commercial facilities, from office buildings to hospitals, utilize professional cleaning services. The services these businesses look for range from light cleaning to disinfection services.
According to IBISWorld, the COVID-19 pandemic decreased the demand for commercial cleaning services in Australia as government restrictions left many commercial buildings unoccupied. Increasing prices for commercial cleaning services helped many companies stay afloat without experiencing a sharp decline in revenue. Expected industry revenue for the 5 years ending in 2024-25 is expected to be $13.4 billion.
In Australia, the strongest segment of commercial cleaning is interior building cleaning and washroom services. States on the east coast of Australia have a heavy concentration of larger commercial facilities, including shopping malls and office buildings, which offer more opportunities for commercial cleaning clients. Meanwhile, smaller businesses and hospitality organizations are more likely to have internal cleaning staff.
Advantages of a Commercial Cleaning Franchise Over an Independent Operation
Starting a commercial cleaning company independently is a feasible option for many people. However, it also requires the owner to handle all aspects of the business creation and management. The owner is responsible for developing the brand and writing an effective business plan that breaks down how the business will run. Every Australian state has different regulations for starting and running businesses, which requires a great deal of research to understand fully. It can also take time to gain brand recognition and grow a client base to reach a profitable level.
Commercial cleaning franchise opportunities allow owners to skip several steps, such as market research and brand development. A successful blueprint is already in place that has proven successful for the other franchise locations. A franchise is often a faster way to get a commercial cleaning business up and running quickly.
Commercial cleaning franchisees also have the advantage of the brand recognition that has already been established. Consumers may prefer doing business with an established name in the commercial cleaning industry rather than taking a chance on an independently operated cleaning service. Niche commercial cleaning services may particularly benefit from having a well-known name behind them. When a client uses a specialty cleaning service, they want to know the job will be done well. Franchise cleaning businesses in the specialty fields have established themselves as experts.
Buying into a cleaning franchise gives the franchisee access to training materials, marketing materials, and other resources offered by the franchisor. Some franchisors may also provide administrative support for the franchise locations or provide access to software programs that automate tasks such as payment processing and payroll. Franchisees may benefit from already-established relationships with vendors to gain access to the right types of supplies and cleaning tools.
Financing With Franchises vs. Independent Businesses
Commercial cleaning services often require less overhead than other types of businesses since the bulk of the work takes place at clients' locations. That means compared to many other types of franchises, the franchise fees for a commercial cleaning franchise are often lower. With a lower initial investment, commercial cleaning could be a more feasible option than other types of businesses.
However, those interested in a franchise may not have the full amount needed for their upfront investment. It's important to have the necessary assets before buying into a franchise. Even though the business comes with the familiarity of an established brand, growing the franchise to a profitable level can still take time. Going into the deal without enough capital could cause financial struggles that make it challenging for the business to survive.
Financing options are available for those wishing to buy a franchise, which helps cover the franchise fees as well as the costs for cleaning equipment and other necessities. Lenders may be more willing to offer financing to a person buying a franchise than someone starting an independent business. The established brand name and support provided by the franchisor make a franchise seem like a less risky business model. However, financing options for franchises and independent businesses vary based on the applicant's credit score, collateral, debt, and several other factors.
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