406 Creative Nail Salon Names (2024)


April 10, 2024

406 Creative Nail Salon Names (2024)

Did you know there are over 56K nail salons in the U.S.? You need a great nail salon name to make your business stand out.

We’ve compiled a list of over 400 nail salon name ideas to help you find inspiration for your nail business name. In addition, we provide naming tips and information about how to register your nail salon business name once you’ve chosen one.

What Makes Good Nail Salon Names?

Young business owner standing in the middle of her nail salon

Good nail salon name ideas normally include some or all of the following:

  • Use a memorable name: The easier it is for potential customers to remember your nail salon name, the more people are likely to contact you.
  • Make it personal: Choose names that appeal to your client base and how their nails will make them feel.
  • Include keywords: Including words like nail, salon, studio, gel, boutique, and other words relating to your nail business can help with SEO and an immediate understanding of what your company does.

Keep reading for lots of nail business name ideas.

30 Nail Salon Names

Woman holding clipboard standing inside of Polished & Poised nail salon

Consider some of these nail salon name ideas before you name your nail business.

1. Perfectly Polished
2. Artistic Touch Nail Salon
3. Glamourous Nails Studio
4. Whimsical Nail Wonderland
5. Elegant Tips & Toes
6. Beautifully Buffed Salon
7. Enchanting Nail Boutique
8. Chic & Unique Nails
9. Radiant Nail Reflections
10. Blissful Nail Haven
11. Divine Nail Creations
12. Serene Nail Sanctuary
13. Lavish Nail Oasis
14. Opulent Nail Emporium
15. Charm’s Nail Art

16. Majestic Tips
17. Exquisite Nail Salon
18. Gel Nails on the Square
19. Allure Nail Atelier
20. Flawless Nails Salon
21. Sassy & Classy Nails
22. Vivid Nail Dreams
23. Dreamy Nail Escape
24. Sparkling Nails
25. Royal Nails
26. Delicate Nail Delights
27. Dazzling Nails
28. Posh and Pampered
29. Enchanted Nails
30. Blissful Nails

Pro Tip: Using an adjective like perfect, artistic, glamour, whimsical, elegant, or beautiful along with nail, nails, or salon can be a great way to come up with good nail business name ideas.

30 Nail Salon Name Ideas

Closeup of rainbow and stars nail art manicure

There are plenty of other nail business name ideas. Consider some of these.

1. Polished & Poised
2. Gilded Tips & Toes
3. The Painted Palette
4. Mani Matchmaker
5. Blissful Digits
6. The Buff & Polish Bar
7. Bubbly & Beautified
8. The Polished Peacock
9. Glitter & Grace
10. Serene Sips & Tips
11. Brushstroke Brilliance
12. The Nailing Project
13. Bohemian Bliss Nails
14. Wink & a Mani
15. Classy Claws

16. The Tipsy Touches
17. The Quirky Cuticle
18. Polished to Perfection
19. Luxe & Lacquer
20. The Nail Foundry
21. The Pampered Paw
22. Fingertip Fantasy
23. The Art of Manis
24. The Royal Mani
25. Zen Polish
26. Vibrant Varnish
27. The Polished Posse
28. The Nailery
29. Nails, Chromified
30. Brushed with Brilliance

Pro Tip: Once you find nail business names you like, make sure they are available as web domains and trademarks.

Nail Salon Names And Logos

The best nail business name will also work well with a logo. Think about what the logo would look like for each of your potential nail salon names.

Your nail business name and logo will be used on everything from your website to invoices and will help potential customers remember your company. 

30 Good Nail Salon Names

You might want to choose a good nail salon name idea from the list below.

1. Rose Nail Lounge
2. Azure Nails & Spa
3. Willow Nail Studio
4. Sunbeam Nail Salon
5. Ocean Breeze Nail Retreat
6. Crimson Nail Boutique
7. Silk Nails & Beauty
8. Moonlit Nail Haven
9. Golden Nail Palace
10. The Nail Sanctuary
11. Pearl Nail Bar
12. Vixen Nail Emporium
13. Midnight Nail Lounge
14. Serendipity Nails & More
15. Sapphire Nail Oasis

16. Emerald Nail Studio
17. Ruby Red Nails
18. Aura Nail Atelier
19. Lavender Nail Boutique
20. Crystal Nail Creations
21. Mystic Nail Spa
22. Coral Nail Paradise
23. Diamond Nail Haven
24. Enchanted Nail Escape
25. Charm Nail Studio
26. Secret Nail Hideaway
27. Orchid Nail Emporium
28. Ruby Nail Artistry
29. Siren Nail Sanctuary
30. Aurora Nail Boutique

22 Funny Nail Salon Names

Nail salons can sprinkle some humor into the name for their nail services. Consider some of these funny nail salon business name ideas.

1. Punny Nail Shack
2. Nail it or Bail it Salon
3. The Nailinator
4. No Pain, No Polish
5. Nailed It!
6. The Fingernail Follies
7. Funny Fingers & Twinkle Toes
8. The Nail Nerd
9. Tipsy Tips Nail Bar
10. Claws for Celebration
11. The Mani-Mirth Manor

12. The Polish Parody
13. Snip ’n’ Snark Nail Salon
14. Whiskers Nail Den
15. Hilarious Hands
16. Nails & Nonsense
17. Cuticles Nail Club
18. Chuckle Nail Chalet
19. Tickled Pink Nail Bar
20. Puns & Polish Parlor
21. The Cuticle Cabaret
22. Sweet Feet Nail Boutique

Pro Tip: Nail business name ideas can incorporate some humor by using puns or alliteration. Figuring out what works for you and your clients’ senses of humor can make picking a name an even more exciting venture.

30 Press-On Nail Business Names

When your nail business is a pressing matter, you might consider a company name from this salon name ideas list.

1. Press-On Perfection Boutique
2. Instant Glamour Press-Ons
3. The Quick Fix
4. Ready-to-Wear Nail Haven
5. Snap & Go Nail Emporium
6. Press-On Paradise Salon
7. Insta-Nails & More
8. Elegance Press-On Studio
9. Pop & Press Nail Oasis
10. Fast & Fabulous Nails Inc.
11. Click & Stick Nail Bar
12. Peel & Play Press-Ons
13. Nail It Easy
14. Instant Chic Press-On
15. Peel, Press & Wow

16. Ready in a Snap
17. The Quick Press-On Studio
18. Click & Chic Nail Boutique
19. My Pop-On Polish
20. Insta-Glam Nailz
21. Simply Press-Ons
22. Click & Go
23. Snap-On Nail Shack
24. Click & Charm
25. Ready, Set, Glam!
26. Press-On Perfection
27. Click & Carry
28. Quick Glam Nail Quarters
29. Snap & Show Nail Retreat
30. Insta-Chic Nail Club

Pro Tip: Including keywords related to press-ons in your nail names is a great way to let people know that your nail artists focus on providing quick service.

30 Nail Art Salon Names

Nail salon client picking out a manicure color

Nail art is one of the most complex types of nail services in the competitive beauty industry. Consider some of these unique nail salon names to let people know you specialize in artistic nails.

1. Artistic Touch Nail Gallery
2. Creative Canvas Nail Studio
3. Masterpiece Manicures Salon
4. Vibrant Nail Atelier
5. Brush & Blush Nail Artistry
6. Palette & Polish Haven
7. Artistic Aura Nail Emporium
8. Canvas & Color Nail Lounge
9. Chromatic Creations Nail Spa
10. Brushstroke Nails Sanctuary
11. Artisanal Nails & More
12. Dreamy Nail Oasis
13. Eclectic Elegance Nail Gallery
14. Muse & Manicure Nail Chalet
15. Abstract Nail Retreat

16. Bohemian Nail Boutique
17. Kaleidoscope Nails & Spa
18. Serene Nail Emporium
19. Fusion of Colors Nail Atelier
20. Artistry Avenue Nail Sanctuary
21. Chromatic Canvas Nail Lounge
22. Vivid Visions Nail Gallery
23. Dreamy Designs Nail Spa
24. Enchanted Easels Studio
25. Palette Nail Haven
26. Rainbows Nail Chalet
27. Whirls Nail Boutique
28. Imagi-NAILS Oasis
29. Brush & Bling Nail Emporium
30. Abstract Nail Atelier

Pro Tip: Nail businesses specializing in nail art should use a unique nail business name that includes words relating to art like artistic, brush, canvas, or whatever style of art you specialize in.

30 French Nail Salon Names

French nails provide an elegant look, and you should have an equally unique nail salon name, especially if you specialize in French tips. Consider some of these nail company names for your French nail services.

1. Chic Clous Nail Salon
2. Elegance en Blanc Nail Parlor
3. Parfait Poli Nail Lounge
4. Ooh La La Nails & Spa
5. Belle Beauté Nail Boutique
6. L’Art de L’ongle Nail Studio
7. Blanc Brillant Nail Atelier
8. French Finesse Nail Haven
9. Rêverie de Roses Nail Retreat
10. Charme Château Nail Chalet
11. Magnifique Manicures Salon
12. Lueur de Luxe Nail Emporium
13. Parisian Perfection Nail Sanctuary
14. Beauteous Blanc Nail Gallery
15. Douceur de Diamant Nail Spa

16. Élégance Éternelle Nail Lounge
17. La Beauté Blanche Nail Boutique
18. L’Éclat d’Argent Nail Oasis
19. Doux Douleur Nail Atelier
20. La Fleur Fleurie Nail Pavilion
21. Charmant Ciel Nail Hideaway
22. Belle et Bien Nail Studio
23. Delicate Digits Nail Salon
24. Joie de Vivre Nail Emporium
25. La Lune Lumineuse Nail Boutique
26. Finesse Française Nail Retreat
27. L’Amour en Blanc Nail Chalet
28. Lumière de Lune Nail Lounge
29. La Vie en Rose Nail Spa
30. Doux Désir Nail Atelier

Pro Tip: Everything sounds just a little sexier when you use the French language. Consider beautiful French words to give your nail salon name some mystique.

26 Classy Nail Salon Names

Closeup shot of a glittery blue and pink-with-blue-flowers nail art manicure

Nail business names can reflect class to help present a high-end reputation. Consider some of these classy nail business names.

1. Classique Couture Nail Salon
2. Opulent Obsessions Nail Atelier
3. Sophistique Salon & Spa
4. Eclat Elite Nail Lounge
5. Regal Reflections Nail Boutique
6. Luxe Legacy Nail Studio
7. Prestige & Polish Nail Parlor
8. Grandeur Nail Emporium
9. Decadence Nail Retreat
10. Noble Nails & Spa
11. Haute Heritage Nail Chalet
12. Majestic Manicures Salon
13. Refined Radiance Nail Haven

14. Timeless Temptations Nail Oasis
15. Exquisite Elegance Nail Gallery
16. The Nail Pavilion
17. Elegant Edge Nail Boutique
18. Polished Panache Nail Studio
19. Sovereign Styles Nail Atelier
20. Elite Nail Lounge
21. Regency Refinement Nails
22. Magnificent Manicures & More
23. Royal Ritz Nail Retreat
24. Grandiose Nail Emporium
25. Prestige & Panache Nail Studio
26. Elegant Nails

Pro Tip: Once you have the perfect cute nail salon name, consider how you will make the atmosphere a match.

30 Catchy Nail Salon Names

Unique nail salon names should stand out from the pack. Consider some of these catchy nail salon business names.

1. Glam Pop Nail Studio
2. Sparkle & Shine Nail Bar
3. Chic Flicks Nails
4. Trendy Tips & Toes
5. Sizzle & Spark Nail Lounge
6. Lush Luxe Nails
7. Bliss & Bling Nail Haven
8. Dazzle Drive Nail Emporium
9. Radiant Nail Retreat
10. Urban Edge Nail Boutique
11. Vivid Vibes Nail Palace
12. Funky Fingers & Toes
13. Groove & Glam Nail Club
14. Pizzazz & Polish Nail Spot
15. Mod Manicures & More

16. Pop & Polish
17. Hip Hop & Nails
18. Glitz & Groove Nail Junction
19. Flash Nail Studio
20. Fab Fusion Nail Oasis
21. Snazzy Nail Salon
22. Bold & Beautiful Nails
23. Verve & Vogue Nail Plaza
24. Funky Nail Chalet
25. Bounce & Bling Nail Salon
26. Snazzy Nail Lounge
27. Finesse Nail Retreat
28. Chic Clicks Nail Boutique
29. Groove & Glisten Nail Emporium
30. Trendy Tints & Tips

Pro Tip: The best nail salon names are colorful and catchy. Think about your brand identity and brand values when considering nail name ideas. Then use fun adjectives to make the name unique and memorable.

30 Cool Nail Salon Names

Owner-operator sitting at a gel manicure station and pointing to a sign that reads "Nail Palette" hovering behind her

1. Frostbite Nails
2. Rebel Polish
3. Ice Cold Tips
4. Razor’s Edge Mani
5. Urban Matrix Nails
6. Neon Pulse Nails
7. Chrome Crush Nails
8. Arctic Aura Manicures
9. Stiletto Nails
10. Electric Elegance Nails
11. Midnight Mirage Manicures
12. Thunderbolt Tips
13. Cosmic Nail Creations
14. Tropical Wave Nails
15. Nova Nail Studio

16. Quantum Quirk Nails
17. Blaze & Ice Nails
18. Cyber Chic Nails
19. Aurora Borealis Nails
20. Nail Palette
21. Eclipse Elegance Nails
22. Celestial Sleek Nails
23. Zenith Nail Pro
24. Stellar Shimmer Mani
25. Ignite & Inspire Nails
26. Enigma Nails
27. Supernova Nails
28. Matrix Manicures
29. Pulse Perfection Nails
30. Sleek Nail Story

26 Creative Nail Salon Names

1. Chromatic Nail Odyssey
2. Kaleidoscope Nail Nirvana
3. Celestial Mani Universe
4. These Whimsical Nails
5. Voyage Nail Escapade
6. Friends, Family, Nails
7. Euphoria Nail Soiree
8. Illusionist’s Nailscape
9. Artisanal Nail Fantasia
10. Surreal Salon Odyssey
11. Mirage Manicures & More
12. Ethereal Nail Adventure
13. Fantasia Fingers & Toes

14. Symphony of Style Nail Soiree
15. Divine Digits
16. Enchanted Nail Extravaganza
17. Reverie Nail Soiree
18. Mirage Magic Mani
19. Surreal Nail Nirvana
20. Artful Nail Voyage
21. Dreamy Delight Mani Adventure
22. Radiant Reverie Nail Oasis
23. Whimsy & Wonder Nail Gala
24. Celestial Canvas Nail Odyssey
25. Ethereal Essence Manicures & More
26. Surreal Nail Serenade

30 Professional Nail Salon Names

Manicurist smiling at the camera while completing a basic manicure

1. Elite Nail Creations Co.
2. Premier Nail Innovations Company
3. ProNails Solutions Inc.
4. Eminent Nail Artistry Co.
5. Signature Nail Designs Company
6. Apex Nail Studio
7. Prime Polish Pro Co.
8. Paramount Nail Solutions Company
9. Apex Artisan Nails Co.
10. Vanguard Nail Crafters Company
11. Executive Edge Nail Designs Co.
12. Noble Nail Studios Inc.
13. Precision Nail Art Co.
14. Sovereign Nail Coatings Company
15. Regal Nail Aesthetics Co.

16. Superior Nail Art Company
17. Pinnacle Nail Artistry Co.
18. Empyrean Nail Creations Company
19. Distinctive Nail Innovations Co.
20. Supreme Nail Solutions Company
21. Eminent Nail Atelier Co.
22. Vanguard Nail Artisans Company
23. Prominent Nail Crafters Co.
24. Illustrious Nail Designs Company
25. Noble Nails Co.
26. Paramount Nail Artistry Company
27. Sterling Nail Solutions Co.
28. Royal Nail Studios Inc.
29. Top Tier Nail Designs Co.
30. Premiere Nail Artisans Company

32 Personal Nail Salon Names

If you never intend for your nail business to expand beyond yourself, your name might be the best nail salon name. Alternatively, you could name your salon after a loved one or person who’s inspired you. Consider some of these examples:

1. Bella’s Lavish Nails
2. Lily’s Beauty & Nail Boutique
3. Olivia’s Elegant Nail Lounge
4. Emily’s Opulent Nail Oasis
5. Ava’s Sophisticated Nail Salon
6. Sophia’s Artistic Mani
7. Amelia’s Magnificent Manicures
8. Mia’s Artisanal Pedi
9. Artistic Nail Salon by Gloria
10. Evelyn’s Haute Nail Haven
11. Harper’s Exquisite Nail Designs
12. Chloe’s Stylish Nail Studio
13. Scarlett’s Chic Nail Creations
14. Grace’s Nail Stop
15. Nora’s Nail Retreat
16. Riley’s Noble Nails

17. Cherry’s Nail Zenith
18. Zoe’s Lush Nail Lacquer
19. Aurora’s Nail Spa
20. Kaylee’s Luxe Nail Lounge
21. Hanna’s Lavish Nail Locale
22. Bonnie’s Nail Garden
23. Violet’s Polished Toes Nook
24. Pen’s Vivid Nail Varnish
25. Hazel’s Nail Design Emporium
26. Eleanor’s Nail Hideaway
27. Luna’s Luminous Nail Nook
28. Brooke’s Stylista Nail Salon
29. Savanna’s Blissful Nail Boutique
30. Carly’s Nail Palace
31. The Nail Pallete by Muriel
32. Bobby’s Manicure Addicts

Pro Tip: Nail shop names with your first or last name in them might create an expectation that you’ll be working with all the clients. If you intend to sublet to other nail technicians, you might not want to use your own name.

30 Location-Based Nail Salon Names

Good names for nail salons can be as simple as providing a location indicator. Just be careful when choosing a name for nail business operations. If you get too specific you might have to change the name if your shop front moves to another location.

1. Central Park Nails
2. Sunset Strip Salon
3. Broadway Beauty Co.
4. Golden Gate Glamour
5. Beverly Hills Nails
6. Magnificent Mile Manicures
7. Hollywood Hills Nail Studio
8. Times Square Tips
9. Rodeo Drive Nails
10. Mile High Mani-Pedi
11. Miami Beach Manicures
12. Vegas Strip Salon
13. SoHo Chic Nails
14. Napa Valley Nail Retreat
15. Santa Monica Shoreline Salon

16. Sunset Boulevard Nails
17. Alamo City Artistry
18. Windy City Nails
19. Bourbon Street Beauty Co.
20. Silicon Valley Salon
21. Riverwalk Nail Studio
22. Music City Manicures
23. Emerald City Elegance
24. Rocky Mountain Retreat
25. Key West Kanvas
26. Palm Beach Polish Co.
27. Ocean Drive Oasis
28. Liberty Bell Nails
29. Painted Lady on the Promenade
30. Hollywood Boulevard Beauty

Pro Tip: Including the city, county, or references to local landmarks can be a good way to indicate your new nail salon is a local business. Make sure to check keyword volumes to see what people are searching for before choosing the best local indicator.

How to Register Your Nail Salon

UpFlip’s Start Your Business blog on a laptop

After you have found some unique nail business names, you’ll need to:

  1. Perform a Name Check: Check for available domain names, trademarks, and social media accounts.
  2. Get an LLC: You’ll want to register your creative name as an LLC.
  3. Get Your Business License: Your business will need a license to operate legally.

Learn more about starting a business.

Next Steps After Naming Your Nail Salon

There’s still a ton to do after brainstorming and choosing from your favorite nail names. You’ll want to make sure you’re licensed and insured, find a great location, and start marketing to your target audience.

What kind of nail name ideas do you like?


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Brandon Boushy


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Are you struggling to find new business startup loans? Don’t worry; you’re not alone. Fifty-nine percent of business owners do not have their funding needs met, but we’ll show you how to improve your odds of getting startup business loans.

Startup companies can still get loans. Lee Smith, the owner of Urbanity, was six months out of college when he wrote a 75-page business loan and got a $250K loan. Today he’s making over $1.5 million selling clothes. That’s a great return on investment, and it shows how much the right plan and funding can help you succeed.

We’ve partnered with National Business Capital (NBC), the number one online site for getting small business loans approved. They’ve helped secure over $2 billion in business loans for over 25,000 small businesses like yours. That’s an average of $80,000 for business startups.

[su_note note_color="#dbeafc"] We’ll explain:

What Is a Startup Business Loan?

A startup business loan isn’t a specific type, but a catch-all for business loans you can get to start a business. Startup business loans are one of the hardest types of business loans to get. Since the company has not built a track record, the decision is made based on how well the lender can tell the business owner thought through the business plan.

Lee Smith, the owner of Urbanity told us:

[su_quote]I sat down for two months and put together a 75-page business plan. I went and got a loan for a quarter million dollars.[/su_quote]

Check out our interview with Lee below:

[su_youtube url="https://youtu.be/_wUc28d8KkE"]

Why Is It Hard to Get a Startup Business Loan?

It’s hard to get a startup business loan because startup businesses often fail in the first five years. In those cases, a business startup loan might not be paid back, which causes lenders to be more cautious when lending to a startup business. Don’t worry! There are ways to improve your odds!

How Do Business Startup Loans Work?

A startup business loan will normally rely on the personal credit history because the business does not have the same financial records and credit length to evaluate whether the risk is worth taking. Because banks back the business owner, a business startup loan often requires a personal guarantee. You’ll want to make sure you have the following before you apply for business startup loans:

  • Personal Credit Score
  • Tax Returns
  • Bank Statements
  • Accounts Receivable
  • Credit Card Sales
  • Unpaid Invoices
  • Business Plan
  • Legal Documents

Keep reading for more about each one.

Personal Credit Score

Personal credit score assessment

You’ll want at least a 650 minimum personal credit score when applying for a business startup loan, but higher is better. A higher personal credit score improves your odds of approval and normally reduces the interest rate.

Tax Returns

You’ll need at least two years of personal and business tax returns for most lenders. National Business Credit does not normally require tax returns.

Bank Statements

You might need three months to three years of bank account statements depending on the lender. National Business Credit is typically three months. 

Accounts Receivable

These help lenders establish how much money people owe your small business and can be used to help secure financing. 

Credit Card Sales

This document is another proof of revenue. It also helps lenders calculate a commonly overlooked cost of doing business.

Unpaid Invoices

Unpaid invoices fall into two categories:

  • Money owed to the company: Invoices that a customer has not paid yet could be used to secure startup loans.
  • Invoices the company needs to pay: These invoices will negatively impact your loan because they reduce the amount you can pay towards the loan. Try to clear as many of these as possible before applying for a startup loan.

Business Plan

Be prepared with a business plan that shows lenders that you have considered how you will make your business thrive. 

Legal Documents

Remember to have copies of your business license, LLC or incorporation documents, EIN, and other documents that prove you are a legal business entity. Corporations are commonly viewed as more credit worthy because they have more reporting responsibilities that make it easier for companies like Dun & Bradstreet (D&B) to analyze your credit.

Check out our blog about how to get a business loan to learn more about D&B and other business credit-building tips.

What Are the Best Startup Small Business Loans?

The best small business startup loans are the ones you can actually get! Fortunately, National Business Credit has some loans that are really simple to get:

  • Equipment Financing
  • Asset-Based Lending
  • Small Business Administration Microloans
  • Personal Loans
  • Franchise Loans

Let’s look at each.

Equipment Financing

An equipment loan requires a 650 FICO score OR $120K in annual sales. The equipment secures the loan, so if you don’t pay the business loan, you won’t be able to operate. Find out more about NBC’s equipment loans.

Asset-Based Lending

If you have assets to bank your startup business loan, you can qualify for a business loan with three months of bank statements and a soft pull of your credit. People with higher credit scores and higher asset values are more likely to qualify for asset-backed startup loans.

Personal Loans

If you have stellar personal credit, you can qualify for a line of credit or a personal loan and use it for your startup business financing. Alternatively, you can refinance your mortgage and pull out equity for your startup business.

Franchise Loans

Screenshot of franchise directory from SBA.gov website

Franchises tend to have an easier time getting a startup business loan. If you’re considering a startup loan as a franchisee, check the SBA franchise registry to make sure the business is on the list of companies that get easier and faster approvals.

There are other business financing options that small business owners may come across, but the majority of business loans are not open to startup companies unless they have:

  1. 2 years in business
  2. $100,000 annual revenue
  3. 650 personal credit score (or 80 D&B score)

Small Business Administration Loans

The Small Business Administration is a government agency that helps small business owners succeed. They offer four main services:

  1. Business Guides: They have good overviews of how to plan, start, run, and grow businesses.
  2. Funding Programs: We’ll talk about these below.
  3. Federal Contracting Assistance: Federal contracting has a range of requirements that the SBA can help you meet.
  4. Local Assistance Centers: Every state is different so going to a Small Business Administration office can be beneficial for state-specific guidance.

Let’s look at the business loan options available from the SBA.

SBA Loans Startup Business

Two people working on laptop

A new business can apply for an SBA loan or business line of credit. There are three categories of SBA loans:

  1. 7(a) Business Loan
  2. 504 Business Loan
  3. Microloans

Let’s look at each.

7(a) Business Loan

7(a) Loans are the SBA’s most common loan program if you are buying real estate because they back loans of up to $5 million that can be used for:

  • Short- and long-term working capital 
  • Refinance current business debt 
  • Purchase furniture, fixtures, and supplies 
  • Real estate

Businesses have to meet the following qualifications to get small business loan:

[su_note note_color="#dbeafc"]
  • Must be profitable company
  • Must be operating and based in the U.S.
  • Owner must be invested in the company
  • Exhausted all other resources
  • Demonstrate the need for the loan 
  • No delinquencies to the U.S. Government
[/su_note]

If you are buying an existing business or franchise, you may need to ask the existing business owner for the following:

  • Current balance sheet 
  • Profit and loss statement
  • Three years of tax returns
  • Proposed bill of sale with full terms
  • Asking price 
  • Schedule of inventory
  • Machinery and equipment
  • Furniture and fixtures
  • Licensing agreements from franchise, Jobber, and other companies
  • Proof of equity 
  • Additional SBA forms based on the scenario

Check out the SBA for more 7(a) information.

504 Business Loan
Screenshot of 504 loans from sba.gov website

This SBA loan is for businesses to upgrade property through a Small Business Development Center as long as they have less than:

  • $15.5 million in total 504 loans
  • $15 million tangible net worth
  • $5.5 million in current needs
  • $5 million of net income based on the last two years tax returns

A 504 loan is meant to create both business and job growth through the construction or upgrading of:

  • New buildings
  • Existing buildings or land 
  • Long-term equipment and machinery 
  • Streets
  • Parking lots 
  • Utilities 
  • Landscaping

You cannot use a 504 loan to increase working capital or inventory, restructure debt, or speculate on real estate. Learn more about 504 loans.

Microloans
Screenshot of microloans from sba.gov website

These are the smallest type of startup loan you can get from the Small Business Administration. They are up to $50,000 and can be used for anything except buying real estate or restructuring debt. A microloan lasts for no more than six years and will normally have interest rates of 8% to 13%. Find a microloan lender.

How to Get Loans for Startup Business

Applying for startup business loans is simple. Just follow these seven steps:

  1. Build your credit score. 
  2. Choose a loan type.
  3. Choose a lender.
  4. Prepare your documents.
  5. Update your business plan.
  6. Apply for a startup business loan.
  7. Build for growth.

Step 1. Build your credit score

As mentioned before, you’ll want a 650+ personal credit score or an 80 business credit score from D&B. If you don't already have the necessary business and personal credit score, consider these options:

You can also use NAV to find ways to build your business credit score.

Step 2. Choose a loan type

Man and woman working on a table

You’ll need to sort through and choose the type of startup loan you want to apply for if you go through a financial institution, but lenders like National Business Capital (NBC) will discuss the best startup loan options for you. NBC will help you get better startup financing because they work with 75 business lenders. That means you get the best business startup loans for your scenario. You can choose from:

  • Term Loans
  • Equipment Loans
  • Lines of Credit
  • Asset-Based Loans
  • Invoice Financing
  • Merchant Cash Advances (MCAs)
  • SBA Loans
  • Industry Specific Financing

Find out why more people go to online lenders for startup financing than traditional financial institutions.

Step 3. Choose a lender

In this step, you’ll look for a financial institution that will help with your startup financing. You can get a startup loan from:

  • Local banks and credit unions
  • Major banks
  • Finance companies
  • Online lenders

Let’s look at each of these.

Local Bank or Credit Union

If you have a bank account with a local lender like a credit union, they are more likely to approve you than larger banks or online lenders. Unfortunately, fewer small business owners apply for bank loans from smaller banks according to the FED Small Business Survey.

Major Banks

According to the Federal Reserve Small Business Survey, most business owners go to a traditional lender like Wells Fargo, Chase, or Bank of America when they apply for business loans, but they do not offer great odds of approval. You’re better off going to almost anyone else. The table below shows what percentage of business owners apply at each location and what the odds of approval are. Finance companies and small banks are the most under-utilized.

Finance Companies

These lenders focus on activities like equipment financing. They tend to be alternatives to a traditional business loan, but they have the best approval odds because the monthly payments are secured by something other than your word and credit history. 

If you need credit, business lines from vendors can be a phenomenal way to start a business. The loan amount may not be as big, but there are benefits to running a lean startup. These may be online or in-store. Synchrony (formerly GE Finance) is a major player in this market, but you can also find plenty of other lenders on National Business Credit.

Online Lenders

Online lending tends to be more friendly to small business startup loans for bad credit. The loan amount might be lower than other business loans and the interest rate higher, but when you want funding for a business start up it makes sense to consider them. One of the nice things about National Business Credit is they bring together private lenders for business startup loans. This helps you get better credit offers and reduces the number of hits on your credit.

Step 4. Prepare your documents

Make sure you have all the documents you need to apply for a startup loan. If you don’t, they can hold up the processing time,  which for many lenders can be three to nine months. Make sure to ask about the business loan application process before you get started. That way you are fully prepared with everything you need to apply for startup capital. We discussed what you’ll need in earlier sections of the blog.

Step 5. Update your business plan

If you haven’t already, you’ll want to update your business plan with the most up-to-date information. Better information helps you be more likely to receive a line of credit or business loan. Pay special attention to the financials and the explanations, especially on how you’ll use the business line of credit.

Step 6. Apply for a startup business loan

Once you have everything ready, it’s time to apply for your small business loans. Startup companies will often be denied credit from traditional financing options unless they have a good personal credit score, business credit, and offer a personal guarantee. Online lenders tend to be more generous as long as you have a 650 credit score and are using the loan amount for something that can secure the business.

What to consider before accepting startup loans for business

Before you accept startup loans for new business ventures, you’ll want to consider:

  • Interest rates
  • Lump sum loans vs business lines of credit
  • Monthly payments
  • Impact on working capital and cash flow
  • Duration of startup loan

Let’s look at how each of these impact business success.

Payment Terms

Before you accept startup business loans with no revenue, you’ll need a plan to pay them back. The payments will be a combination of interest payment and principal. Depending on the loan, you might have:

  • Daily Payments: This arrangement is common with merchant cash advances.
  • Weekly Payments: This is also common with merchant cash advances and invoice financing.
  • Monthly Payments: As the most common type of payment arrangement, these are used by traditional bank loans, business credit cards, SBA loans, and business lines of credit.
  • Paid Upon Triggering Event: Invoice financing often reroutes the invoice payments to the lender and then they pay you. When this occurs, the triggering event is the receipt of the invoice payment.

Make sure you can afford the payments otherwise you may default on the loan or lose your business. This is especially important if you have a period of time between when you accept the startup loan and when you receive revenue. If you keep part of the loan aside to pay the loan payments, you can protect against this risk.

Interest Rates

Your interest rates are effectively a business expense. Every time you pay interest, you have less money to reinvest in your business. We created a table of common startup loans to show you how much you’ll be spending on interest for different types of loans using the SBA data and calculator.net.

 Interest for Different Loan
Type of Loan Total Interest Total Repaid Monthly Payment  Interest per Year 
 6 Year $50K Microloan 8%  $13,119.67  $63,119.67  $876.66  $2,186.61
 6 Year $50K Microloan 10%  $16,693.02  $66,693.02  $926.29  $2,782.17
 6 Year $50K Microloan 13%  $22,266.78  $72,266.78  $1,003.71  $3,711.13
 25 Year $250K Fixed Rate 9.52%  $406,315.50  $656,315.50  $2,187.72  $16,252.62
 10 Year $250K Fixed Rate 10.52%  $155,141.03  $405,141.03  $3,376.18  $15,514.10

High rates are one of the main reasons that successful small business owners discourage taking out small startup business loans with bad credit. 

Next, we’ll discuss why business lines of credit are some of the best small business loans you can get.

Term Loans vs Business Lines of Credit

Always choose a business line of credit over a term loan if you are offered it. Lines of credit are some of the best loans for startup business operations. Term loans pay you a lump sum upfront and you pay interest on the full amount. A line of credit is similar to how a business credit card works; it charges you interest on the amount of credit you use. 

Let’s look at how that can impact your payment using the 25-year loan from the example above. Pretend you only need $25K in the first month. Instead of paying $2,187.72, you’d pay 9.52% interest on $25,000 making it where your payment is only $218.77. You just saved $1,968.95.

As you pay the line of credit off, your available credit goes back up. This doesn’t happen with a traditional loan.

Impact on Working Capital and Cash Flow

A startup loan will impact your working capital and cash flow. Let’s look at a few definitions:

Working Capital = Current Assets (convert to cash in less than a year) minus Current Liabilities (must be paid within a year)

Cash Flow = Money In minus Money Out

Here’s how a loan impacts your capital and cash flow:

  1. The loan will initially provide working capital and cash flow to help with startup costs.
  2. Payments on the loan will reduce working capital and cash flow.
  3. Depending on how well you convert the investments into revenue, the working capital and cash flow may increase or decrease as you earn revenue and make the loan payments.

Duration of Startup Loan

The duration of the loan will impact the payments and interest rates. Assuming the loan amount stays the same, you’ll see the following impacts on other aspects of the loans for startup business operations.

Step 7. Build for growth

Once you get approved for a startup loan, it’s time to put your business in hyperdrive. Use the loan for the purposes you stated in the startup loan application. If you received an SBA loan, make sure you aren’t using it for items that are specifically excluded from your terms. Lee told us:

[su_quote]I spent way too much on the build-out (remodeling the business.) If I had it to do over again, I would have reduced the amount spent on bathrooms and invested in more inventory.[/su_quote]

Next, let's look at some alternatives to loans for startup businesses. 

Alternatives to New Business Startup Loans

Creativity offers a ton of ways to start a business without applying for a startup loan. Consider some of these alternatives to a startup business loan:

  • Credit Cards
  • Small Business Grants
  • Friends and Family
  • Crowdfunding
  • Equity

We’ll look at each of these below to help you with more ideas to get business funding.

Business Credit Cards

You can use business credit cards instead of a startup business loan. It’s easier to qualify for these forms of credit, but they most likely won’t cover more expensive costs like buying equipment or property. In addition, business credit cards tend to have higher interest rates than startup business loans. That means lower profits.

Small Business Grants

Startup grants are by far the best way to get money for your small business if you can get them. The Small Business Administration has grants for:

  • States to Help with Exporting: Learn more about the SBA exporting grants. Apply with your state to get exporting assistance.
  • Research and Development: Grants for developing scientific or military applications are available from the Small Business Innovation Research (SBIR) and Small Business technology Transfer programs.
  • Management and Technical Assistance: If you want to provide managerial or technical guidance to small businesses, there are grants for you too. It’s called the 7(j) program.

Check out other SBA grants.

Friends and Family

Friends and family can help you become a small business owner. They can either give you money or offer you a startup business loan. You’ll need to find a provider that offers loan servicing for individuals, but it can be done.

I financed my home through a friends and family loan that was managed by WestStar to get a lower interest rate than was available on the open market. You may want to ask if they service business loans that way too.

Crowdfunding

Business owners can also get startup funds through crowdfunding. When you use this method to start a new business, you may be committing to deliver a product in exchange for help covering business expenses. Learn how Pooch Selfie approached crowdfunding below:

[su_youtube url="https://youtu.be/TFvmb2E3-Kw"]

Equity

Selling equity requires incorporation, but business owners can raise far more money through selling equity. This method of fundraising involves selling stock, which means the business has multiple small business owners and each is entitled to part ownership. You’ll want to hire a business lawyer to help you draft the incorporation documents if you plan on taking this approach.

Build Your Business 

It’s not always easy to get loans for startup business operations, but if you can acquire one, it can help you accelerate your business growth. Just make sure you have a solid plan for how you’ll use it or you may find yourself in a worse spot than when you started.

What kind of business loans have you used?

Equipment Financing
Asset-Based Lending
SBA Microloans
Personal Loans
Credit Cards
Other: Specify

Have you ever wondered how to write a business plan step by step? Mike Andes, told us:  [su_quote]Poor planning is the number one reason I see a business fail. Being prepared is why people succeed.[/su_quote] This guide will help you write a business plan to impress investors. Throughout this process, we'll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses. He knows a thing or two about writing  business plans! We'll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey! [su_youtube url="https://www.youtube.com/watch?v=Seac5PbUZXk "]

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including:  If you aren't quite ready to create a business plan, consider starting by reading our business startup guide.

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills.  Mike told us, "The three things I suggest asking yourself when thinking about starting a business are:
  • What am I good at?
  • What would I enjoy doing?
  • What can I get paid for?"
Three adjoining circles about business opportunity If all three of these questions don't lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won't be good at it, or you won't enjoy doing it.  As Mike told us, "There's enough stress starting and running a business that if you don't like it or aren't good at it, it's hard to succeed." If you'd like to hear more about Mike's approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

An image showing product service and demand A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options. With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services.  If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it's dumb or stare at you vacantly, there's probably no market for it. You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager, you could get a feel for who would be interested in your product or service.  I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you'll have. If you did a survey, you'll be able to use that data to help define your target audience. Some considerations you'll want to consider are:
  • Location
  • Age
  • Gender
  • Other Interests
  • Marital Status
  • Do they have kids?
  • Job title
  • Income
Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau's Quick Facts Map. He told us,  "It helps you quickly evaluate what the best areas are for your business to be located."

How to Write a Business Plan

Business plan development Now that you've developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan.  Each of the following should be a section of your business plan:
  1. Business Plan Cover Page
  2. Table of Contents
  3. Executive Summary
  4. Company Description
  5. Description of Products and Services
  6. Marketing Plan
    • SWOT Analysis
    • Competitor Data
    • Competitive Analysis
    • Marketing Expenses Strategy 
    • Pricing Strategy
    • Distribution Channel Assessment
  7. Operational Plan
  8. Management and Organizational Strategy
  9. Financial Statements and/or Financial Projections
  10. Funding
We'll look into each of these. Don't forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions. A good business plan should have the following elements on a cover page:
  • Professionally designed logo
  • Company name
  • Mission or Vision Statement
  • Contact Info
Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people's attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don't have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them. A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly. Check out Canva's article about creating a table of contents. It has a ton of great information about creating easy access to each section of your business plan. Just remember that you'll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

A notepad with a written executive summary for business plan writing An executive summary is where your business plan should catch the readers interest.  It doesn't need to be long, but should be quick and easy to read. Mike told us, [su_quote]A business plan should only be a page or two unless you are trying to get investors. Banks will normally need around 40 pages of information.[/su_quote]

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches.  This can also be used for the content of emails to get readers' attention. It consists of three basic parts:
  • An introduction to you and your business.
  • What your business is about.
  • A call to action
Example of an informal executive summary 
One of the best elevator pitches I've used is: [su_quote]Hi I'm Brandon Boushy with Vintage Vest Company. We're a startup clothing line based around the tenets of Music, Freedom, and  Country.  We love your music and think you'd be a great fit to partner with our brand. We're planning to come to your show on X date and would love it if you could take about 5-10 minutes to check out what we're doing.[/su_quote] So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:
  • Introduction of yourself and company.
  • An origin story (Recognition of a problem and how you came to solution)
  • An introduction to your products or services.
  • Your unique value proposition. Make sure to include intellectual property.
  • Where you are in the business life cycle
  • Financials
  • Request and why you need it.
Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here's the interview with the owner of Urbanity:

[su_youtube url="https://www.youtube.com/watch?v=_wUc28d8KkE"]

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can't talk about revenue, profits, and expected expenditures if you haven't done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:
  • Marketing and sales processes
  • Financial statements
  • Organizational structure
  • Market analysis
These are things that people will want to know later, but they don’t hook the reader. They won't spark interest in your small business, but they'll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:
  1. Mission statement
  2. Philosophy and vision
  3. Company goals
  4. Target market
  5. Industry
  6. Legal structure
Let's take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company's main focus is. It should be no more than one or two sentences. Check out HubSpot's article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

Writing the company philosophy and vision The company philosophy is what drives your company. You'll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 
Examples of core values
One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:
  •  Prioritize communication.
  •  Never stop learning.
  •  Be transparent.
  •  Start small and grow incrementally.
These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values.

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer's lives, or even the world.
Example vision statements
The Alzheimer's Association is a great example of a vision statement:
A world without Alzheimer's Disease and other dementia.
It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy. Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.
How far in advance should a business plan?
Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.
Example of great business goals
My all time-favorite long-term company goals are included in Tesla's Master Plan, Part Deux. These goals were written in 2016 and drive the company's decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals. If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you'll be discredited (unless you're Elon Musk).

Target market

A man holding an iPad with a cup of coffee on his desk You did target market research before creating a business plan. Now it's time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources.  Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

Industry

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don't plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:
  1. What is the industry outlook long-term and short-term?
  2. How will your business take advantage of projected industry changes and trends?
  3. What might happen to your competitors and how will your business successfully compete?
Industry resources
Some helpful resources to help you establish more about your industry are:

Legal Structure

There are five basic types of legal structures that most people will utilize:
  1. Sole proprietorships
  2. Limited Liability Companies (LLC)
  3. Partnerships
  4. Corporations
  5. Franchises.
Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner. You'll have to decide which structure is best for you, but we've gathered information on each to make it easier.
Sole Proprietorship
A sole proprietorship is the easiest legal structure to set up but doesn't protect the owner's personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home. To start a sole proprietorship, fill out a special tax form called a Schedule C. Sole proprietors can also join the American Independent Business Alliance.
Limited Liability Company (LLC)
An LLC is the most common business structure used in the United States because an LLC protects the owner's personal assets. It's similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement. Each state has different requirements. Here’s a link to find your state's requirements. Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here's a blog on the top 10 states to get an LLC.
Partnerships
Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.
Corporations
Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status. Investopedia has good information corporations here.
Franchise
An iPad with colored pens on a desk There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:
  1. Unique features that differentiate your business products from competitors
  2. Intellectual property
  3. Your supply chain
  4. Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:
  • How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
  • How do you let them know they need a product?
  • How do you communicate the message?
  • How will you do transactions?
  • How much will you be selling it for?
  • How many do you think you'll sell and why?
Make sure to use the worksheet on our business plan template.

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:
  1. SWOT Analysis
  2. Competitor Data
  3. Competitive Analysis
  4. Marketing Expenses Strategy 
  5. Pricing Strategy
  6. Distribution Channel Assessment

SWOT Analysis

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them. Business owners need to do a thorough job documenting how their service or product stacks up against the competition. If proper research isn't done, investors will be able to tell that the owner hasn't researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank.
SWOT Examples
Business plan SWOT analysis   Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times. Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:
  • Adding offerings that fit with your current small business
  • Increase sales to current customers
  • Reducing costs through bulk ordering
  • Finding ways to reduce inventory
  •  And other areas you can improve
Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events. The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry. For smaller businesses, you'll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website. What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them. If you haven't already included it, Mike recommends: [su_quote]Start by providing the information from business research, surveys, observations, etc.[/su_quote] He adds, "They'll want to know about Demographics, ages, and wealth of your target market." Make sure to include the Total addressable market. The term refers to the value if you captured 100% of the market.
Advertising Strategy
You'll explain what formats of advertising you'll be using. Some possibilities are:
  • Online: Facebook and Google are the big names to work with here.
  • Print: Print can be used to reach broad groups or targeted markets. Check out this for tips.
  • Radio: iHeartMedia is one of the best ways to advertise on the radio
  • Cable television: High priced, hard to measure ROI, but here's an explanation of the process
  • Billboards: Attracting customers with billboards can be beneficial in high traffic areas.
You'll want to define how you'll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets. Mike told us "Most businesses are marketing digitally now due to Covid, but that's not always the right answer." Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines.

Pricing Strategy

An iPad with graph about pricing strategy This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run. Some common pricing strategies are:
  • Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
  • Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
  • Competition-based pricing- Pricing based on competitors’ pricing is commonly seen at gas stations.
  • Freemium services  Commonly used for software, where there is a free plan, then purchase options for more functionality.
HubSpot has a great calculator and blog on pricing strategies. Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.
Supply Chain Examples
For instance, lawn care companies  would need to cover aspects such as:
  • Suppliers for lawn care equipment and tools
  • Any chemicals or treatments needed
  • Repair parts for sprinkler systems
  • Vehicles to transport equipment and employees
  • Insurance to protect the company vehicles and people.
Examples of Supply Chains
These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:
  1. Raw materials
  2. Shipping of raw materials
  3. Converting of raw materials to thread
  4. Shipping thread to produce garments
  5. Garment producer
  6. Shipping to company
  7. Company storage
  8. Shipping to retail stores
There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions. The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process. According to BizPlanReview, a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:
  • Production
  • Quality Control
  • Location
  • Legal environment
  • Personnel
Let's look at each for some insight.

Production

Production has already been discussed in previous sections so I won't go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan. If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality Control

A wooden stamp with the words "quality control" Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations. Quality control can be anything from a standard that says "all labels on shirts can be no more than 1/16" off center" to a defined checklist of steps that should be performed and filled out for every customer. There are a variety of organizations that help define quality control including: You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets. Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

Location

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.
  • The size of your location
  • The type of building (retail, industrial, commercial, etc.)
  • Zoning restrictions – Urban Wire has a good map on how zoning works in each state
  • Accessibility – Does it meet ADA requirements?
  • Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
  • Utilities – b.e.f. has a good energy calculator.

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:
  1. Any licenses and/or permits that are needed and whether you’ve obtained them
  2. Any trademarks, copyrights, or patents that you have or are in the process of applying for
  3. The insurance coverage your business requires and how much it costs
  4. Any environmental, health, or workplace regulations affecting your business
  5. Any special regulations affecting your industry
  6. Bonding requirements, if applicable
Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Personnel

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you'll need more people. Make sure to consider and document the answers to the following questions:
  • What is the current leadership structure and what will it look like in the future?
  • What types of employees will you have? Are there any licensing or educational requirements?
  • How many employees will you need?
  • Will you ever hire freelancers or independent contractors?
  • What is each position's job description?
  • What is the pay structure (hourly, salaried, base plus commission, etc.)?
  • How do you plan to find qualified employees and contractors?
One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this: Organization chart Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let's dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years. You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal. If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:
  • Higher Revenue if expanding business
  • Lower Cost of Goods Sold if purchasing inventory with bulk discounts
  • Adding interest if utilizing financing (not equity deal)
  • Changes in expenses
  • Addition of financing information to the cash flow statement
  • Changes in Earnings per Share on the balance sheet
Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them. Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn't have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages. Mike gave the following advice in his interview: [su_quote]Provide 3-5 years of financial projections and try to be realistic. If you don't have revenue yet, guess based on industry averages. Make sure you have accurate information. Good information is important. Make sure it is well documented[/su_quote]

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, "If I get one percent of the market, it is worth $100 million." If you use this, investors are likely to file the document under bad business plan examples. Let's use custom t-shirts as an example. Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate. With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue. Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you'll get .009% of the market. Here's a table for easier viewing of that information. A table showing yearly revenue of a business The point here is to make sure your business proposal examples make sense. You'll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates. Our simple business plan templates walk you through most of these processes. If you follow them you'll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding? The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month. In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months. Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop. Not every business needs that much to start, but realistically it's a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:
  • Bootstrapping – Using your savings without external funding.
  • Taking out debt – loans, credit cards
  • Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
  • Crowdsourcing – Promising a good for funding to create the product
Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:
  • How much to get started?
  • What is the minimum viable product and how soon can you make money?
  • How will the money be spent?
Mike emphasized two aspects that should be included in every plan,  [su_quote]Include a plan for when things go wrong and make it clearly defined what the exit strategy will be. Whether it is to hand it over to your kids, sell it, or turn it into a franchise, let your investors know your intent.[/su_quote]

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline.  It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:
  • Wise Plans  Shares a lot of information on starting businesses and is a business plan writing company.
  • Optimus Business Plans  Another business plan writing company.
  • Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What's Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We've covered:
  1. The definition of a business plan
  2. Coming up with a business idea
  3. Performing market research
  4. The critical components of a business plan
  5. An example business plan
In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success. Don't forget to check out the rest of our business hub. Have you written a business plan before? How did it impact your ability to achieve your goals?
Did you know there are at least 55 types of cleaning services? When I began researching this topic, I had no idea how many cleaning business ideas I would find. It has been an unexpected adventure! We’ve covered all the businesses you’d expect like home cleaning, commercial cleaning, power washing, laundromats, and car washes. Then, some are totally surprising like laser cleaning, hoarder cleanups, and sports facility cleaning. If you have a passion, there’s probably a cleaning job that focuses on it. We’ll cover them all. Plus, we’ll provide you with a list of all the NAICS codes that involve cleaning, and a ton of resources to help you advance your career and business. Get ready to read one of the most intriguing blogs I have had the opportunity to write. I hope you enjoy it!

How many types of cleaning are there?

There are at least 55 different types of cleaning services that businesses can offer. Many are specialized cleaning types that you wouldn’t offer if you provide home cleaning services. The following sections share information on the type of cleaning services to offer.

1. Green cleaning services

Screenshot of USGBC website There is a growing trend of providing green cleaning across all types of cleaning services. Green cleaning is focused on using:
  • Environmentally friendly cleaning solution(s)
  • Eco-friendly cleaning practices
  • Reusable cleaning supplies (cloths instead of paper towels)
The U.S. Green Building Council is the leading authority on environmental stewardship in the building environment. As part of their LEED Certified Building credentials, they require a green cleaning business plan and documentation, or a commercial cleaning service contractor with certification from one of the following organizations:
  • Green Seal’s Environmental Standard for Commercial Cleaning Services (GS-42)
  • Cleaning Industry Management Standard for Green Buildings (CIMS-GB)
Both of these are intensive and require SOPs, but they are worthwhile. The General Services Administration found that LEED buildings far outperformed comparable-sized non-LEED buildings with:
  • 34% lower CO2 emissions
  • 25% less energy consumption
  • 11% less water consumption
  • 80 million tons of waste diverted from landfills.
You can apply their standards to this whole list of cleaning services offered.

2. House cleaning services

Woman cleaning a table House cleaners provide services to residential properties. Businesses offering house cleaning services may also offer a:
  • Deep cleaning service
  • Airbnb cleaning service
  • Move-in and move-out cleaning service
  • Apartment cleaning service
  • Carpet cleaning service
  • Window cleaning service
  • Maid service
Check out our blog about Queen Bee Cleaning Service to learn more about how to start a house cleaning service.

3. Deep cleaning services

A deep cleaning service focuses on basic cleaning services and more detailed tasks that don’t have to be done as frequently. A deep clean will normally include:
  • Cleaning windows, frames, curtains, and blinds
  • Washing garbage bins
  • Replacing air filters and noting the date you changed it
  • Clean baseboards
  • Washing door frames and knobs
  • Wiping light switches
  • Testing fire alarms and carbon monoxide detectors
  • Clearing out clutter 
  • Carpet cleaning
  • Standard house cleaning services like
    • Dusting
    • Sweeping
    • Mopping
These services normally charge more than standard house cleaning prices because they take longer. 

4. Airbnb cleaning services

woman arranging the pillows A cleaning service business might also want to offer cleaning for vacation rentals hosted on Airbnb and Vrbo. This service is virtually identical to a house cleaning business, but benefits from:
  • Higher rates than residential cleaning
  • More frequent cleaning schedules than residential cleaning
  • Additional revenue streams through cohosting
Find out how Christobal Mondragon makes nearly $2 million per year in our interview with him below. [su_youtube url="https://youtu.be/YcYIYdqegGA"]

5. Move-in cleaning services

These cleaning businesses focus on cleaning houses and apartments before the tenant or owner moves in. The previous owners will normally clean the property when they move out, but it’s still beneficial to get a house cleaned before moving in. People love moving into a clean home. This professional cleaning service will be identical to a deep clean, but there is less stuff in the way so you can perform a better cleaning job. Keep reading for more types of cleaning services.

6. Move-out cleaning services

Abandoned room with chair Apartment complexes are major clients for this type of cleaning business, but you can also offer move-out house cleaning to homeowners and renters when they move out. Like the move-in cleaning, this cleaning business would offer the same services as a deep cleaning service.

7. Apartment cleaning services

These cleaning businesses mostly offer services to apartment complex owners, but they can also offer professional cleaning to tenants. An apartment cleaning service can be a great way for someone without a car to start a business. For instance, within a 1-mile radius, there are over 1,000 apartments in some cities. That creates a great opportunity. For those with cars, cleaning multiple apartments in a complex reduces the cost of gas and increases your profit margins. Keep reading for more types of cleaning services

8. Maid services

Two female housekeeping staffs making bed in room Traditionally, maids were responsible for keeping the house clean regularly. A cleaning company that offers a maid service will normally provide their services to the same customer or customers frequently. They will normally provide other cleaning services like:
  • Doing laundry
  • Making beds
  • Cleaning up after pets 
This term is often used interchangeably with other types of house cleaning services, but maid services can also be nannies or live-in services with a single client. Want to learn more about cleaning businesses? Check out our free cleaning training with Christobal to learn how to make millions cleaning homes.

9. Carpet cleaning services

Cleaning carpets can be offered as a service of residential and commercial cleaning services, but many businesses clean carpets exclusively. This cleaning business can be combined with other types of cleaning like:
  • Upholstery cleaning tasks
  • Odor removal
  • Mold remediation
  • Janitorial cleaning
Check out our blog about starting a carpet cleaning business to learn more.

10. Business cleaning services

Professional cleaners offer different types of commercial cleaning services for businesses based on commercial properties’ cleaning needs. Commercial businesses need all the same types of cleaning as residential buildings, but there are unique offerings like: [su_note note_color="#dbeafc"]
  • Office spaces
  • Hotel rooms
  • Restroom cleaning
  • Janitorial services
  • Jet washer services
  • Medical cleaning
  • Hazmat cleaning
  • Data center cleaning
[/su_note] Commercial buildings will often require different types of cleaners, most with specialized tools. Without the right equipment and cleaning products, a business could cause major damage to equipment.

11. Curtain cleaning services

A curtain cleaning service specifically focuses on cleaning fabric. This isn’t normally a stand-alone cleaning but is on the cleaning services list for a carpet cleaning or upholstery cleaner. The most basic types of clean curtains can be cleaned in a washer and dryer. Some fabrics may require a dry cleaner or another professional cleaner. Keep reading for different types of cleaning services.

12. Duct cleaning services

A ventilation cleaner man at work with tool Duct cleaning is focused on improving indoor air quality. The cleaning jobs require special cleaning supplies, training, and equipment. This is mostly a service sold for residential cleaning, but commercial buildings need it sometimes, too. If you want to offer this service, I strongly suggest you get hands-on training from NADCA. Without it, you can cause damage to customers’ heating and cooling systems.

13. HVAC coil cleaning services

Evaporator-and-condenser-coil If you run a duct cleaning company, you might also want to consider offering coil cleaning services. HVAC coils require special products to clean surfaces because aluminum and copper corrode easily. Don’t get the idea to use a power washer while cleaning coils because it will bend the fins and reduce the usefulness of the HVAC equipment.

14. Window cleaning services

Window cleaners can make a great living. They use power washing tools outside to make it fast and easy to wash windows. We interviewed Martin Skarra about his window washing business and found out he makes $90K revenue per month and has nearly doubled the revenue since buying it. Find out how in our interview below: [su_youtube url="https://youtu.be/026-JhWv520"]

15. Kitchen cleaning services

Commercial cleaning services will offer kitchen cleaning to restaurants and other businesses with kitchens. Commercial kitchens have lots of specialized equipment that needs to be cleaned to maintain a healthy environment. You’ll be cleaning equipment like:
  • Commercial fryers
  • Vent hoods
  • Exhaust fans
  • Commercial grills
Be careful when working in this segment of the cleaning industry because some restaurants don’t take good care of their equipment. This could expose you to electric shock or grease burns. Commercial kitchen worker washing up at sink Keep reading for more types of cleaning services you can offer to clients.

16. Spring cleaning services

Consider offering a spring cleaning service to your regular cleaning clients, so they know at least once a year they are getting an extra thorough cleaning job done. A spring clean is like a deep clean, but you may help them eliminate unwanted items that are creating clutter in their homes.

17. Wall cleaning services

You might want to offer wall cleaning if you are a cleaning company, smoke remediation expert, or pressure washing business. People who smoke indoors leave a residue all over their walls. Check out the picture below to see how it looks when a smoker takes pictures off their walls. Commercial kitchens, daycares, and industrial structures can also have walls that could use annual scrubbing.  In addition, the building exterior can get dirty. Check out the difference between the before and after pictures from NW Softwash.

18. Gutter cleaning services

Gutter cleaning is another service that a pressure washing company should consider offering. Gutters are crucial to protecting the roof, yard, and surrounding areas when it rains. If they are clogged, you’ll eventually see signs of damage. Check out our interview with Stephen from NW Softwash Below: [su_youtube url="https://youtu.be/H99wDmpnE_g"] If you're interested in starting a pressure washing business, check out the complete guide.

19. Medical cleaning services

The healthcare environment is unique and has special cleaning needs. You will probably want to get common OSHA certifications for healthcare including:
  • OSHA #7200 – Bloodborne Pathogen Exposure Control (7 hours)
  • OSHA #7205 – Health Hazard Awareness (6 hours)
  • OSHA #7210 – Pandemic Illness Preparedness (5.5 hours)
See the full list of OSHA certifications.

20. Office cleaning services

Office spaces are high traffic buildings. Many cleaning businesses provide office cleaning services because they are high-frequency recurring services. These cleaning jobs may function during business operations or after hours on commercial property. Depending on the client, a cleaning services company may need to run background checks on employees.

21. Commercial cleaning services

We previously listed business cleaning services, but there is a slight difference between the commercial cleaning services list and business cleaning. Commercial cleaning includes both residential and commercial cleaning services. In other words, Airbnb owners and realtors would be in this category even though they are technically residential cleaning.

22. Dry cleaning services

Some materials cannot be washed with water because it destroys the fabric. Cleaning businesses will need to use high-end chemicals to treat the products that require this treatment. This is a specialized field, but you might offer it as an additional service if you run a laundromat, carpet cleaning service, or restoration business.

23. Upholstery cleaning services

Youthful woman wearing blue uniform wiping dust off the sofa Upholstery cleaning is focused on furniture cleaning. Most furniture needs periodic cleaning, but customers expect a skilled technician when they need it cleaned. The best cleaning service will be the one that understands how to work on materials like:
  • Leather
  • Cotton 
  • Silk
  • Wool
  • Linen
  • Polyester
  • Other synthetic materials
There's even a list of certs for cleaning furniture. Keep reading for more cleaning services types.

24. Leather cleaning services

Man detailing the car interior While searching for the most prolific writer on leather cleaning, I discovered Tips Bulletin, by Joan Clark. She’s written over 80 blogs about leather cleaning and is also one of the top 20 writers about cleaning according to Ahrefs.  Leather cleaning services help care for furniture, leather clothing, car interiors, and more. If you have a passion for leather, consider specializing in leather cleaning and restoration.

25. Hoarder cleaning services

Abandoned room with appliances to be junk Cleaning a house packed full of items that a person couldn’t bear to get rid of is one of the most challenging cleaning jobs a company can take. It involves going through everything, eliminating as much as possible, and hauling away the junk. Then, you can begin cleaning and decontaminating the space. The cleaning service description will need to be detailed. The good news is it can lead to a huge payday. According to Palmetto Commercial Services pricing for a 1,000 square foot space includes:
  • $50 to $125 per man hour: Deciding what to trash
  • $2,250: $50 to $75 per cubic yard (27 cubic feet) for disposing of property
  • $750 to $2,500: Cleaning and disinfecting
A two-person team could easily make $100K per year with as little as four jobs a year.

26. Sanitization services

Screenshot of Green Orchard Group website Sanitization is a step above standard cleaning services. It is the process of reducing a virus or bacteria to a safe level within a space. If you offer this cleaning service, you are most likely using a combination of sanitizer and disinfectant from the EPA’s List N Tool. Use the disinfectant finder to identify approved products. Cleaning companies can perform this task. Green Orchard Group recommends the following training to properly perform this work:
  • Environmental Health & Safety Certification
  • Biohazard Cleanup Certification (available at IJCSA)
  • Pathogen Decontamination Certification

27. Portable sanitation services

Construction sites, events, and other businesses need porta potties and portable hand washing stations regularly. Some types of cleaning services specifically focus on cleaning and maintaining portable toilets and sinks.

28. Mold remediation services

Screenshot of EPA website If mold develops in a home or business, they need someone to help remove it. Cleaning companies can perform mold remediation, but the people working on it should be properly trained. Check out the EPA’s mold home page for more information about how to test and treat mold.

29. Smoke remediation services

Cleaning companies can offer smoke remediation services for properties with smoke damage. The Institute of Inspection, Cleaning, and Restoration Certification’s Master Fire and Smoke Restorer track covers what cleaning procedures to use.

30. Environmental cleanup services

There are specialized cleaning companies that focus on environmental cleanup and restoration after oil spills. Check the EPA Cleanup Programs for ones in your area and their requirements for contractors.

31. Pressure washing services

Pressure washing, power washing, and soft washing are all cleaning services that use a pressurized stream of water to clean the outside of buildings, driveways, and cars. Check out our interview with a pressure washing company below: [su_youtube url="https://youtu.be/RlyA0H5Y4G0"]

32. Hazmat cleanup services

Hazard cleaning services work in environments that may expose people to biological or chemical materials that can cause long-term health impacts or even death. If you are going to offer this service, make sure to review the OSHA Hazardous Waste Operations page and get the proper certifications and training.

33. Junk removal services

A large number of accumulated plastic bags and plastic packaging of household waste Haul off people’s trash, appliances, and other items that garbage collectors won’t collect. If you offer this service, you can also make money by breaking down electronics and recycling them by the type of metal. It effectively gives you multiple streams of revenue from one service.

34. Laundry services

Housekeepers, laundromats, and dry cleaners should also consider offering laundry services to increase their revenue.

35. Pool cleaning services

Screenshot of IBIS World website Cleaning residential and commercial pools can be a great service to offer. You get to spend time outside, and the pool cleaning market is highly fractionalized. IBIS World considers the pool cleaning industry to be without market leaders. That means someone who does a great job and is looking to grow could do so easily.

36. Disaster cleaning services

There are companies with an entire business strategy designed to help clean up after natural disasters like hurricanes and tornadoes. This service can be highly profitable, but you’ll need to be skilled at working with government agencies like FEMA. You’ll probably also need one or more disaster cleanup certifications, but feel free to volunteer to develop some experience. 

37. Janitorial services

Janitorial team working at the office Most large commercial buildings need a janitorial team and prefer to outsource the work. Offering janitorial services requires a larger team of cleaners working with the same client daily. If you get clients like this, you can negotiate a storage closet for your equipment because your employees will be there daily. Storing equipment on site will reduce the number of company vehicles you need compared to mobile cleaners with weekly clients.

38. Car cleaning services

Mobile car detailers, chip repair companies, and interior detailers are all cleaning companies that make a great living. You can start them for a low cost, and there are plenty of opportunities to market your business economically. Learn about how Slide In Mobile Detailing makes over $100K per year from a $500 investment: [su_youtube url="https://youtu.be/OPGT6jXRZ5Y"]

39. Boat cleaning services

Powerwashing businesses can offer maritime cleaning if they live near an ocean or lake. Keeping a boat clean offers unique challenges; be sure to study up on the particulars before offering boat cleaning services. The International Detailing Association offers a boat cleaning business certification that provides online exams plus hands-on training.

40. Data center cleaning services

Cleaning data centers is a big business with specialized equipment. Stream Data Centers manage data centers for Fortune 500 companies and estimate that major data centers spend $10 million to $25 million per year in expenses. That means a single data center could be a $500K contract for a cleaning company.

41. Crime scene cleaning services

Screenshot of IBIS World website Cleaning up crime scenes is often contracted out to independent companies. It’s hard to find exact data on this segment, but forensic evidence collection and cleaning services are available. Less than 100 businesses are competing for crime scene forensic cleanups according to IBIS World Report OD4174. They split $815 million in revenue and $74.2 net income. That means the average company in this service makes nearly $750 thousand in profit annually.

42. Blind cleaning services

Just to be clear, this is cleaning window blinds, but there may be a market for cleaning blind people, too. This could be combined with basic cleaning services, window washing companies, or janitorial services. It’s mostly dusting, but you could also do installs and repainting.

43. School cleaning services

Woman cleaning the student desk Public schools spend nearly $64 billion on operations and maintenance yearly. Only a portion of that is for cleaning services, but an energy.gov study found that cleaning can save $350K in energy costs per school. Just search “cleaning” in the report to read about the cleaning services that helped the most. Make sure to include them in your bids.

44. Restroom cleaning services

This type of service might be combined with a pool cleaning service that works with apartment complexes. If you rent and clean porta potties, you might be able to expand your offerings to clean restrooms in trailers and other buildings. Residential and commercial cleaning should also include this in basic cleaning. Restroom cleaning includes:
  • Wipe down countertops
  • Clean mirrors
  • Clean dispensers for toilet paper and paper towels
  • Refill paper towels and toilet paper
  • Disinfect toilets
  • Clean sinks
  • Scrub showers
  • Vacuum and mop floors
  • Clean vacuum 
  • Take out the trash

45. Sports cleaning services

Screenshot of Palmetto Services website Stadiums and coliseums have unique needs that many places don’t. Cleaning them means cleaning:
  • Sports equipment
  • Specialized surfaces like astroturf, polished courts, or ice rinks
  • Graffiti removal
  • Escalator cleaning 
  • And anything else that a sports center might need
Palmetto Service has a great page describing all the unique needs for sporting venues.

46. Foreclosure cleaning services

A foreclosed home can be a disaster. People have often left everything behind. If you offer move-out services or work with realtors, you might want to add foreclosure cleaning to your services. You’ll need a box truck or a trailer to haul items and debris, but you can make substantial revenue from what has been left. Alternatively, you can partner with a company like Junk King to handle the removal of the junk.  Keep reading for more types of cleaning services.

47. Construction cleaning service

man sweeping dust after construction work During new construction and building renovations, piles of debris and contaminants will harm breathing. Construction cleanup crews do the cleaning tasks and waste removal for construction sites. If you already work with contaminated spaces, you might consider offering a post-construction cleaning service.

48. Street cleaning services

Major roads and freeways need to be cleaned regularly. Street sweepers and snow plows are street cleaning services that can be a business of their own or as a side gig. In Big Rapids, Michigan, practically everyone with a truck supplements their income by cleaning the streets of snow during the winter months. 

49. Food cleaning services

Screenshot of NAICS website Rice and other foods must be cleaned after they are grown. Businesses that clean and polish rice are listed under NAICS code 311212. This is a separate business from most cleaning services. There is no overlap.

50. Cleaning services supplies vendor

If you create your own cleaning products, you can also create a supply company. That’s exactly what Austin Miller did when he expanded his local cleaning company to become a nationwide supplier of cleaning products online. He’s even started selling franchises. Check out our interview with him below: [su_youtube url="https://youtu.be/E53eEcGXhSk"]

51. Gun cleaning services

I can’t talk much about this service because Google tends to downrank pages that talk about it, but there are well over 100,000 searches for the kits, solvents, and services focused on this cleaning industry.

52. Metal descaling services

Have you ever wanted to include lasers in your description of cleaning services? Maybe you should start a metal descaling company. There are over 2,400 searches per month for each of the terms “cleaning laser(s),” “laser cleaning,” and ”laser cleaner.” They mostly involve removing impurities from a metal. I had to YouTube it! [su_youtube url="https://youtu.be/Q8q3DZB_l6M"]

53. Chimney sweeping

If you like getting dirty, chimney sweeping might be the cleaning job for you. Chimneys get soot on them when a fire burns. If they aren’t clean, the soot can combust and light the entire property on fire. Cleaning chimneys exposes you to lung irritants, so make sure to wear the appropriate personal protective equipment if you offer chimney sweeping.

54. Car washes

Male worker cleaning the car These businesses are starting to become more profitable. Most charge monthly memberships with multiple levels of service. It helps them increase lifetime customer values. You can have automated services or mobile car washing. Either way, it can be highly profitable.

55. Masonry cleaning and caulking services

Masonry gets dirty, too. Power washing companies might consider offering these services. Cleaning companies can also clean showers (e.g., public campgrounds, gyms, etc.) and recaulk them. Just make sure you know what you are doing before offering the service.

What is usually included in a cleaning service?

A cleaning service normally includes two cleaners and a full house cleaning with: [su_note note_color="#dbeafc"]
  1. Dusting
  2. Mirror and window washing (interior only)
  3. Cleaning sinks
  4. Sanitizing counters
  5. Cleaning toilets
  6. Vacuuming
  7. Mopping floors
[/su_note] Some even include laundry and dishes in their normal cleaning. You might want to check out our cleaning blogs about: They'll prepare you to start taking clients.

What type of business is a cleaning service?

Cleaning businesses are classified by NAICS code. The NAICS code will vary by the type of cleaning business you operate. The most commonly used NAICS cleaning service businesses are:
  • 561720: Janitorial Services (including residential housekeeping)
  • 561740: Carpet and Upholstery Cleaning Services
  • 561790: Other Services to Buildings and Dwellings (including pressure washing)
  • 811192: Car Washes (mobile car washing, too)
You can view all the NAICS codes for cleaning in the table below, which was compiled by searching washing on NAICS.com, then gathering the NAICS code, title, and description from the 2022 NAICS codes in the U.S. Census Bureau. [su_table responsive="yes" alternate="no" fixed="yes"]
NAICS Code NAICS Title Description from US Census Bureau
115114 Postharvest Crop Activities (except Cotton Ginning) Crop harvesting and processing services including cleaning, shelling, curing, grading, cooling, sun drying, fumigating, sorting, and packing. 
115210 Support Activities for Animal Production Live stock and domestic animal breeding, breed documentation, boarding, herd improvements, (5) livestock spraying, and sheep dipping/shearing.
212114 Surface Coal Mining Companies in developing, cleaning, sizing, and screening surface mining of coal. Does not include the actual mining of coal.
213112 Support Activities for Oil and Gas Operations Companies providing support services for oil and gas operations including exploration; excavating cellars and slush pits; well surveying; cutting, running, and pulling casings, rods, and tubes; cementing and shooting wells; perforating well casings; chemically treating and acidizing wells; and cleaning out, bailing, and swabbing wells.Does not Include geophysical surveying and mapping, construction, site preparation, and transportation activities.
238140 Masonry Contractors Companies in masonry work,  bricklaying, stone setting, and other stone work. The work performed may include new work, additions, alterations, maintenance, and repairs.Includes: Bricklaying Block laying Masonry pointing, cleaning, or caulking Marble, granite, and slate, exterior, contractors Concrete block laying Foundation (e.g., brick, block, stone), building, contractors Stucco contractors
238220 Plumbing, Heating, and Air-Conditioning Contractors Companies involved in the service, installation, maintenance, cleaning, and repair of heating, ventilation, and air conditioning (HVAC). Includes:Cooling tower installation Duct work (e.g., cooling, dust collection, exhaust, heating, ventilation) installation Lawn and fire sprinkler system installation Mechanical contractors Fireplace, natural gas, installation Commercial, industrial, and scientific refrigeration system installation Furnace installation Building connections and hookups to sewers.
238290 Other Building Equipment Contractors Building contractors except electrical, plumbing, heating, cooling, or ventilation equipment. New work, additions, alterations, maintenance, and repairs of building equipment including:Machine rigging Automated and revolving door installation Millwrights Lightning rod installation Boiler and pipe insulation installation Elevator installation Commercial-type door installation Conveyor system installation Commercial or industrial revolving and overhead door installation Dismantling large-scale machinery and equipment Elevator or escalator installation Satellite TV and internet dish installation for homes Built-in vacuum system installation Installation of gas pumps
311212 Rice Milling Companies that do any of the following: mill, clean, polish, and package rice.
325612 Polish and Other Sanitation Goods Manufacturing Companies producing polish or other cleaning chemicals.
332813 Electroplating, Plating, Polishing, Anodizing, and Coloring Companies that perform the following on metal products: electroplating, plating, anodizing, coloring, buffing, polishing, cleaning, and sandblasting metals and metal products for trade work. Companies may also be in this category if they work on metal and other products.
332994 Small Arms, Ordnance, and Ordnance Accessories Manufacturing This U.S. industry comprises establishments primarily engaged in manufacturing guns (small arms), other ordnance, and/or ordnance accessories.
333111 Farm Machinery and Equipment Manufacturing Companies manufacturing agricultural, farming, turf, and ground care machinery or equipment. Includes planting, harvesting, and commercial grass mowing equipment.Types of machines manufactured in this NAICS code: Combines, harvester-threshers Cotton gins Feed processing equipment for farms Fertilizing machinery for farms Haying machines  Milking machines Planting machines for farms Plows for farms Poultry brooders, feeders, and waterers Farm tractors and attachments
333131 Mining Machinery and Equipment Manufacturing Companies manufacturing:Underground mining machinery and equipment, such as mining cars, coal breakers, core and rock drills,  and coal cutters. Mineral beneficiating machinery and equipment used in surface or underground mines.
333241 Food Product Machinery Manufacturing Companies that manufacture machines used in food and beverage manufacturing including: Dairy product machinery and equipment, like ice cream freezers, homogenizers, and pasteurizers Bakery machinery and equipment like bake ovens, dough mixers, and pastry rolling machinesMeat and poultry processing and preparation machinerySlicers, choppers, and mixers
333310 Commercial and Service Industry Machinery Manufacturing Companies manufacturing commercial and service industry machinery including:Optical instruments and lenses (except ophthalmic) Photography and photocopying equipment Vending machines Commercial laundry and drycleaning machines Office equipment Car maintenance equipment (except mechanics' handtools) Commercial cooking equipment
334510 Electromedical and Electrotherapeutic Apparatus Manufacturing Companies manufacturing:Electromedical and electrotherapeutic devices Magnetic Resonance Imaging (MRIs) equipment Ultrasound equipment Pacemakers Hearing aids Electrocardiographs Electromedical endoscopic equipment
335210 Small Electrical Appliance Manufacturing Companies manufacturing:Small electric appliances and electric housewares Household-type fans (except attic fans) Household vacuum cleaners Electric home floor care machines Examples: Residential bath fan manufacturers Home carpet and floor cleaning equipment manufacturers Residential ceiling fan  manufacturing Curling irons manufacturing Electric blankets manufacturing Portable electric space heaters manufacturers Electric portable hair dryer manufacturing Household portable cooking appliances (except microwave, convection ovens) manufacturing Portable humidification system manufacturing Electric scissor manufacturing Home ventilation and exhaust fan manufacturing
335999 All Other Miscellaneous Electrical Equipment and Component Manufacturing Companies manufacturing industrial and commercial electric apparatus and other equipment. Examples of products include: AC-to-DC and DC-AC converters Uninterruptible power supplies (UPS) Surge suppressors  Inverters  Appliance cords made from purchased insulated wire Solid-state battery chargers Electric door openers Electric bells Extension cords made from purchased insulated wire Similar equipment for industrial-type and consumer-type equipment. Does not include: Communication and energy wires and cables Relays Generators Lighting equipment Transformers Household appliances  Motors Switchgears Industrial control Control systems Batteries  Wiring devices Carbon and graphite products
339113 Surgical Appliance and Supplies Manufacturing Companies manufacturing surgical appliances and supplies including:Orthopedic devices Prosthetic appliances Surgical dressings Crutches Surgical sutures Personal industrial safety devices (except protective eyewear) Hospital beds Operating room tables.
423810 Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers Companies that are wholesale distributors of specialized machinery, equipment, and related parts generally used in construction, mining (except oil well), and logging activities including:Excavation equipment wholesalers Road maintenance and construction equipment wholesalers Forestry equipment wholesalers Scaffolding wholesalers Mining crane wholesalers
423820 Farm and Garden Machinery and Equipment Merchant Wholesalers Companies that are wholesale distributors of equipment parts used on farms, gardens, lawns, and agriculture including:Animal feeder wholesalers Lawnmower wholesalers Milking equipment wholesalers Harvesting equipment wholesalers Planting machinery wholesalers
423850 Service Establishment Equipment and Supplies Merchant Wholesalers Companies that are wholesale distributors of service company supplies and equipment including:Amusement park equipment wholesalers Beauty supply and equipment wholesalers Car wash supply and equipment wholesalers Drycleaning  supply and equipment wholesalers Voting machine wholesalers Janitorial supply and equipment wholesalers Undertakers' supply and equipment wholesalers Upholsterers' supply and equipment wholesalers (excluding fabric) Municipal water treatment equipment wholesalers Does not include supplies and equipment used in: hotels, offices, restaurants, stores, schools, photographic facilities, health and medical facilities, transportation, and construction activities.
424690 Other Chemical and Allied Products Merchant Wholesalers Companies focused on the wholesale distribution of chemicals and allied products Including:Acid wholesalers Industrial chemical wholesalers Automotive chemical wholesalers (except grease and lubricating oil) Industrial salt wholesalers Dyestuff wholesalers Rosin wholesalers Explosives wholesalers (except fireworks and ammunition) Turpentine wholesalers Excludes plastics materials, fireworks,  paints and varnishes, agricultural and medicinal chemicals, and basic forms or shapes.
488210 Support Activities for Rail Transportation Companies providing specialized services for railroad transportation, including servicing, routine repairing (except factory conversion, overhaul, or rebuilding of rolling stock), and maintaining rail cars; loading and unloading rail cars; and operating independent terminals.Cleaning rail cars and tracks
488320 Marine Cargo Handling Companies providing port-to-port transportation and other marine cargo handling services (except warehousing).This may involve cleaning.
488490 Other Support Activities for Road Transportation Companies providing services (except towing) to road users including:Bridge, tunnel, and highway operations Street cleaners Pilot car services (i.e., wide load warning services) Truck or weighing station operations Driving services, independent (e.g., automobile, truck delivery)
532490 Other Commercial and Industrial Machinery and Equipment Rental and Leasing Companies renting and leasing machinery and equipment  Companies provide products such as:Manufacturing equipment Metalworking equipment Telecommunications equipment  Motion picture and theatrical equipment Service industry machines Furniture for public buildings Automated agricultural equipment  Excludes heavy construction, transportation, mining, and forestry machinery and equipment without operators; and office machinery and equipment.
561720 Janitorial Services Companies that clean building and transportation spaces and/or windows. Most will fall into this category.Custodial services Maids Service station cleaning and degreasing services Washroom sanitation services Homekeeping services
561740 Carpet and Upholstery Cleaning Services Companies that clean and dye used rugs, carpets, and upholstery.
561790 Other Services to Buildings and Dwellings Companies providing services to buildings and dwellings including:Building exterior cleaning services (except sandblasting, window cleaning) Pool maintenance and cleaning  Chimney sweeping companies Duct cleaning companies Drain cleaning Gutter cleaning services Does not include exterminators, janitorial services, landscapers, or carpet and upholstery cleaning.
562991 Septic Tank and Related Services Companies renting, cleaning, or pumping porta potties, septic tanks, and cesspools. 
562998 All Other Miscellaneous Waste Management Services These companies provide waste management services including:Sewer cleaning and rodding services Beach cleaning and maintenance  Catch basin cleaning services storm basin or sewer cleanout services Catch basin cleaning services Commercial or industrial tank cleaning and disposal services This NAICS code does not include: remediation, waste collection, septic tank pumping and related services, waste disposal and treatment, operation of materials recovery facilities, and waste management consulting services.
811192 Car Washes These companies clean, wash, and/or wax cars, vans, trucks, and trailers. Some businesses in this section include:Car detailing shops Self-service car washes Mobile car washers and detailers Car washes
811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance These companies repair and maintain commercial and industrial machinery and equipment. The services include:Sharpening and installing industrial or commercial machinery saws  and blades General and Automotive welding repair services Agricultural  equipment repair Industrial heavy machinery and equipment on forklifts, commercial refrigeration, machine tools, construction equipment, mining machinery, and other heavy equipment.
811490 Other Personal and Household Goods Repair and Maintenance Companies that repair and service personal or household-type goods without selling new goods normally include:Repair clothing Fix watches Clean and repair jewelry Repair and clean musical instruments Work on bicycles and motorcycles Repair and maintain motorboats, canoes, sailboats, and other recreational boats. This NAICS code does not include home and garden equipment, appliances, furniture, footwear, and leather goods.
812320 Drycleaning and Laundry Services (except Coin-Operated) These companies perform one or more of the following: Drycleaning services Laundering services Provide drop-off and pick-up locations for laundry and dry cleaning services Specialty cleaning services for clothing with special cleaning requirements  Textile cleaning such as  wedding gowns, fur, hats. leather, draperies, suede, and pillows  These companies may provide service at customers locations, in a store, or outsource the work.  The following categories of laundry services are not in this category: uniform supply companies, coin-and-card-operated laundromats, carpet and upholstery cleaning companies.
[/su_table] NAICS Cleaning codes

What are the most profitable cleaning services?

All cleaning services can be highly profitable, but the businesses that offer biohazard cleanup and crime scene cleanup tend to get the most government jobs. These jobs tend to be high revenue generating options and have less competition due to the barriers to entry. Check out the Small Business Administration’s resources on government contracting to prepare for high-paying government contracts.

Which cleaning services do you offer?

I hope you found this list of cleaning offerings beneficial. There are some that you might not want, but most can be offered by standard home and office cleaning companies. After you've decided what services to offer, you'll want to create a pricing guide. Which cleaning services do you offer? Did you get inspiration for new services?

Comments

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