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Can A Cleaner Be A Sole Trader?
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Are you tired of working for someone else and would love to start your own cleaning business?
After all, running a cleaning business can be highly lucrative and extremely rewarding. Not to mention quite flexible!
Now, when trying to navigate the best way to start a cleaning business, you might have come across a few different business structures and are now wondering whether, as a professional cleaner, you can operate as a sole trader.
Well, the answer is yes.
And here’s how it works.
As a sole trader, your business will be treated as the same legal entity as you. This means that you can declare your cleaning income along with your other sources of income on the same tax return. And you’ll be subjected to the same tax as individuals.
If you’re ready to get out of the 9 to 5 grind and start working for yourself, here are the six steps to follow to launch a successful cleaning business as a sole trader. After reading this article, be sure to check out our 10 steps to start a business in Australia article which might give you some more insight into what you need to do to get started as a small business owner.
Choose The Kind of Services You Want To Offer
It might be tempting to offer any cleaning service, especially as you’re starting and are looking to build your customer base.
However, focusing on two or three core services will reduce start-up costs as you won’t need to buy a whole lot of equipment. Besides, being a specialist will allow you to charge more for your core skills and services than if you were a generalist.
So, do some market research to find out what kind of cleaning services are most in-demand in your local area and study your competition. This will allow you to select the right services and price them well.
Apply for an ABN and Register Your Business Name
To start a business in Australia, you'll need to apply for an ABN and register your business name. You’ll find all the information you need about applying for an ABN on the Australian Business Register’s website. And the ASIC website will allow you to check whether your business name is available and apply for it.
And whilst you’re sorting the admin side of your business, consider opening a business bank account. While this is not a requirement, it will allow you to separate your professional expenses from your personal ones. And this will, in turn, make it a lot easier for you to lodge your tax return.
Research Training and Certifications
You don’t need any specific certification or training to operate as a professional cleaner in Australia. However, if you don’t have any prior experience, it might be worth completing a certification at TAFE. This will allow you to gain adequate skills and ensure you’re providing top-notch services to your future clients.
Purchase Insurance
As a cleaner offering their services in Australia, you may be required to hold public liability insurance. Why? Because cleaning activities can be risky and public liability insurance will protect you from personal injury and damage claims.
If you’re not sure how to find the best public and products liability insurance for you, don’t hesitate to use our instant quote generator. It will provide you with quotes from market-leading insurers for cleaners within seconds and allow you to buy the perfect cover for your business within minutes.
Invest In The Right Equipment
The equipment you’ll need to buy depends on the type of services you’ve decided to offer. If you don’t have a big budget, residential cleaning can allow you to keep equipment costs low.
The most expensive item will probably be a quality vacuum. Note that it’s important to invest in a good one to ensure you do a good job at your client’s place. Investing in proper equipment will not only allow you to turn casual clients into loyal customers, but it will also make it more likely that they recommend you to others. So, it’ll be well worth the initial expense in the long run.
Market Your Business
Now that you’re all set, time to market your business both online and offline.
Some of the key things you can do to promote your services include:
- Creating a professional website and promoting your services on appropriate Facebook Groups
- Leaving your business card in cafes and restaurants in the area you want to work in
- Advertising your business on platforms such as Gumtree or Airtasker
- Leaving a flyer in mailboxes
- Creating a refer-a-friend program
And don't forget the little things such as sending a birthday card to your clients or offering discounts to repeat customers! These little details will be sure to make all the difference.
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