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5 Features to Start a Cleaning Business | Start a Cleaning Business

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When looking for a distributorship for sale, many potential buyers are looking for a business they can quickly start making a profit and hit the ground running. However, there is more than just low start up costs and a great brand, service or product that allows you to operate a distributorship smoothly and generate a profit.

In order to achieve this, it’s important that you look at the features of a business in a strategic and long-term mindset. Ensure your business will be a long-term investment, rather than a “sink or swim” venture, by looking for the following 5 key features when purchasing a distributorship.

BACKING OF AN ESTABLISHED BRAND

There is more out there than the typical franchise model when looking for a distributorship to purchase. In fact, purchasing a franchise, although it may be an established brand, could do your business operations more harm than good

When entering into a franchise business, you are associated with not just the reputation of the service or product you are selling, but their entire branding. It’s possible that a fellow business owner may not be operating their franchise at the highest of standards. When this happens, your business can unfortunately be associated with these issues

Instead, look for a distributorship that may allow you to operate under your own business name, yet still provide the backing of an established brand through leveraging off their professional marketing department and their quality service or product

An element to look out for in an “established brand” is their business experience and reputation. Ask yourself, how long have they been around for? Do they have positive media exposure surrounding their brand? Are they proactive in marketing their product or service?

EQUIPMENT INCLUDED IN THE START UP COST

When purchasing your distributorship, ask yourself, what exactly am I paying for? A positive benefit to choosing a distributorship rather than a franchise option is that you normally won’t need to pay thousands of dollars, or any dollars for the matter, for branding rights.

Therefore, what your start up costs will mostly involve will be for the product/s and or access to data or information to get your business running. For an equipment or product based distributorship, ensure you invest in a range of products or have access to a range of products for your target market. This will ensure that you will have the right products and solutions on hand.

It is also ideal to receive as part of your start up costs an initial marketing campaign by the brand, product training and business support. Business support should include access to a customer relationship management system, advice as to how to forward plan and a representative coming out to your local area and providing guidance during your first week of business.

NO ONGOING FEES

There are many distributorship opportunities available that don’t require ongoing fees. To minimise your business costs, look for an opportunity that just requires you to invest in the products you need to either demonstrate to customers and/or directly sell onto your market for a profit.

Most distributorships may also require or strongly recommend that you carry out your own local marketing every 3 months as part of ensuring business growth. However, this marketing shouldn’t be expensive or require you to hire a marketing expert.

Depending on what is stipulated in your contract regarding marketing restraints, a typical marketing campaign may be a flyer drop, regular social media engagement, a paid ad in a magazine, gathering customer testimonials or being in a tradeshow.

Although this may be a form of ongoing investment it isn’t an ongoing fee. The difference is marketing is an investment and any money spent on it should provide a return on investment and allow you to generate a further profit.  Also, any marketing you conduct should be local marketing, and benefit you as a business directly. In order for any business to succeed, marketing is normally essential. Not only is it part of a smart business plan, it is integral to keeping your business ticking along.

There are various DIY PR and marketing templates and guides online if you require some guidance when conducting your own marketing. 

PROVEN BUSINESS MODEL

An ideal distributorship opportunity should be proven. Ask the seller of your potential distributorship how many successful distributors they already have. It is also beneficial to ask if you can have a contact number of a couple of current distributorships so you can ask current distributors directly any questions you might have about the business.

Speaking to current distributors is worth its weight in gold. They will be able to honestly tell you the day to day operations of running the distributorship, feedback from the market regarding the product or service, the successes you may have and any barriers you might face. This will give you a credible insight into whether the distribution business you will be investing in is truly is a proven business model.

EXCLUSIVE GEOGRAPHICAL AREA

Having an exclusive, geographical area to market to will give you peace of mind that you have your own area to leverage off. If people in your area want your product, then they will need to come through you.

However, having an exclusive area is normally under certain conditions and sales targets. In order to be eligible to have your own exclusive territory, you will need to show that you will take advantage of this benefit. Otherwise, the seller of the business is allowing a key area to potentially go to waste and miss out on potential sales.

By looking out for these 5 key features of a distributorship, you will be making a smart and calculated business decision, and give yourself the best chance of generating a profit.

 

 Murray works closely with his distributors to ensure each individual business has a secure business plan, sales process and generates profit. Visit www.duplexcleaning.com.au or https://www.carpet-cleaning-equipment.com.au/start-a-cleaning-business/

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About Author
Murray McDonald provides distributorship opportunities across Australia and New Zealand through his company Duplex Cleaning Machines. As Director of Duplex Cleaning Machines, Murray has over 25 years experience in the distribution of commercial cleaning equipment, such as high temperature steam cleaning machines and floor scrubbers, for a variety of industries including healthcare, automotive, education, hospitality, industrial and more.

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