Starting a cleaning business in New Zealand can be a profitable venture if you structure things wisely and plan ahead. Especially in the cleaning industry, it is essential to think about the type of clients that you would like to target and the variety of services that you will offer to these clients. For example, will you focus on residential properties or office buildings? Will you provide carpet cleaning and window cleaning services, or will you recommend a contractor? These decisions will influence other vital areas, such as: <\/p>\n\n\n\n
This article will explain the main steps to start a cleaning business in New Zealand, as well as some of your legal and tax requirements as a business owner. <\/p>\n\n\n\n
If you will be doing most of the cleaning yourself, you may be tempted to operate as a sole trader<\/u><\/strong><\/a> because it is the easiest and cheapest legal structure to set up and manage in New Zealand. However, there are other common structures<\/u><\/strong><\/a>, such as companies and partnerships, which may be more suited to your business. <\/p>\n\n\n\n For example, if you operate as a company, you can limit your personal liability towards the debts of the business and your tax rate is lower than personal rates. As a company, it is also easier to:<\/p>\n\n\n\n From choosing a name to sorting out your finances, there are several tasks that you need to complete before you start a small business in New Zealand. It is relatively easy and quick to complete these setup tasks using various Government\u2019s websites. <\/p>\n\n\n\n Additionally, you can explore franchise<\/a> opportunities where large commercial cleaning companies are looking to expand. If you choose to own a franchise, it is a good alternative to starting your own cleaning company, as it requires much less work.<\/p>\n\n\n\n Before you choose a name<\/u><\/strong><\/a> for your cleaning business, you need to make sure that it is available for use. If your name is the same or too similar to another business\u2019, you could run into legal trouble. You can check whether your name is available by conducting a background check with ONECheck<\/u><\/strong><\/a>. <\/p>\n\n\n\n ONECheck allows you to check the availability of your:<\/p>\n\n\n\n If your business name is free for use, you can also use ONECheck to reserve it, register a domain name or get started with your trade mark.<\/p>\n\n\n\n Once you have a name, you need to register your business with the NZBN Register or the Companies Office. While NZBN registration<\/a> is not compulsory for sole traders, partnerships or trusts, it has some benefits. For example, it makes it easier to interact with your suppliers and customers and frees up time you would otherwise spend on administrative tasks. <\/p>\n\n\n\n Companies are required by law to register with the Companies Office. To incorporate your company, you have to:<\/p>\n\n\n\n As part of your registration process with either the NZBN or the Companies Office, you will receive an NZBN number<\/u><\/strong><\/a>. This unique identification number differentiates your business from others and makes it easier for you to liaise with other companies and government agencies. <\/p>\n\n\n\n Your cleaning business startup costs can quickly add up when you factor in costs like marketing, website development, insurance premiums and legal and accounting advice. On top of these costs, you may also need to purchase a vehicle, equipment and cleaning products.<\/p>\n\n\n\n It is a good idea to work out how much money your business will need to survive until you start breaking even. You can use the free template (available on business.govt.nz) to create a business plan and apply for financing if your budget is limited.\u00a0<\/p>\n\n\n\n Before you start receiving payments from your clients, you will need to set up a business bank account. Many banks offer startup business packages that include:<\/p>\n\n\n\n You will also need to register your business with Inland Revenue and get an IRD number for your business unless you operate as a sole trader and use your personal IRD. As a business owner, you are responsible for meeting your tax obligations which may include: <\/p>\n\n\n\n You are also responsible for keeping accurate records. You can use an accounting system to automate most of your record-keeping tasks and minimise the chances of making an error. This will also free up your time to focus on other areas of the business. You should talk to your accountant to help you choose a system that suits the needs of your business.<\/p>\n\n\n\n It is also essential to get adequate insurance cover to safeguard your business assets. At a minimum, you should consider getting public liability insurance to protect you if you: <\/p>\n\n\n\n\n
Set Up Your Cleaning Business\u00a0<\/h2>\n\n\n\n
Choose Your Business Name <\/strong><\/h3>\n\n\n\n
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Register Your Business<\/strong><\/h3>\n\n\n\n
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Sort Out Your Finances <\/strong><\/h3>\n\n\n\n
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Protect Your Assets<\/strong><\/h3>\n\n\n\n
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