Cleaning services and handyman services are essential services in Singapore. With working adult busy with their day-time job, they are left with little energy to perform weekly cleaning and adhoc repair work. As such, the demand for cleaning services and handyman services is growing over years. Therefore, starting a cleaning or handyman business is likely to be profitable if you are able to get customers and contain your cost. Sometimes it may be easier to start a cleaning or handyman business by buying over a similar company which is put up from sale rather than starting from ground zero.
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3 Main Considerations when Starting Business in Cleaning Services or Handyman Services
- Licence Related Cleaning Services or Handyman Services
If you are starting a cleaning business, you should require to apply for a cleaning business licence. Similarly for handyman business, you may need a licence for electrical work. Simple plumbing work like changing tap and replacing sink may not need a plumbing licence. However, for more complex plumbing work like installing and repairing water pipes, you may require a plumbing licence. The beauty of acquiring an existing business is that all the licences are likely to be in place. If the licence is in the name of an individual (i.e. business owner), you can arrange for him to stay with the business till you obtain the licence.
- How to Outsource the Less Profitable Services?
With limited resources, you may not be able to cover all services. For example, cleaning services may include polishing the floor or cleaning the roof. If you do not have such expertise, you need to find a service provider with reasonable cost so that you can still earn some profits after outsourcing the services. For handyman services, you may be asked to provide carpentry or locksmith services which you are not good at. Carpenter usually charges quite high and you may not have much to earn. By acquiring an existing cleaning or handyman business, it is likely that it already has all the service providers’ contacts on standby. As such, you do not have to establish the contacts of service providers from scratch.
- Marketing the Handyman or Cleaning Service
Besides taking care of the backend support function of licensing and outsourcing, the most important thing is to drive the revenue. Nowadays, you need to reach out to your customers via the social media in addition to the traditional way of reaching the customers via “words of mouth”. You may have to extend your reach to both residential and commercial customers. You will have to deal with sudden spike in demand for services and period when there is low demand for services. How do you price your services to get the customers you want? Should you lower your price to drive more request for services?
Service Business for Sale
Once you have taken care of the 3 main things above, you should have a clearer picture of how you would start a business in handyman or cleaning service and whether to acquire an existing business to accelerate the process of entering into the business.
We provide sale and acquisition services particularly in business brokerage. We bring business owners who are willing to sell their business to meet potential buyers who are willing to buy over the business. Our goal is to ensure that the sale of business is successful.