Cleaning Business Guide

# Contractor Types

There are 3 types of cleaning companies. Independent contractor, sub-contractor and franchise. Each one can have pros and cons.

# Independent Contractor

Most cleaning companies strive to become independent contractors because they are in control of every aspect of their business. With other types of contractors you give up some control of your business. However, this is the most challenging but most rewarding position to be in.

Pros

  1. You own the contract
  2. You determine the price and terms of the contract.
  3. Only the client can fire you.
  4. You can manage the service the way you choose.

Cons

  1. You have to learn the business on your own.
  2. Clients are harder to get without a sales team.

# Sub-Contractor

If you have some experience but don't have the time or skills to get clients this may be an option. Becoming a sub-contractor you do not own the contract with the client and the service pay is not always the best deal. The Independent Contractor has to get their cut of the contract.

Pros

  1. You don't have to find clients
  2. Quicker method to getting started
  3. You may build a relationship with the Independent Contractor and get a lot of opportunities.

Cons

  1. The Independent Contractor may fine you for not showing up, complaints or poor performance.
  2. You don't own the contract or the relationship with the client.
  3. Price is not in your control

# Franchise

If you are new to cleaning and don't have the skills or time to get sales this may be an option for you. The franchise model is a done for you model. They have the branding, marketing, sales team, and training you will need to be successful, but it comes with a cost to your bottom line.

Pros

  1. You don't have to find clients.
  2. You can manage the service the way you choose.
  3. You are taught the business
  4. They have an operations team to help you with issues.

Cons

  1. You don't own the contract.
  2. You have to pay various cost upfront and monthly fess to start the business.
  3. If you want the franchisor to get you more clients you will have to pay a finders fee plus a monthly royalty percentage.
  4. You can be fired from the account due to fault of yours or not yours and lose your investment. This account won't be replaced.

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