Foreclosure Cleaning Business: How to Decide Which Services to Offer
Foreclosure cleanup businesses can offer a broad range of services to realtors, bankers, mortgage companies and private investors. But, just because they can, doesn’t mean they should. What is meant by this?
Every foreclosure cleaning business is different. Which services to offer depend on a lot of factors, three of which are discussed here.
Foreclosure Cleaning Companies: Factors That Help Determine Service Offerings
Startup Capital: This is perhaps the number one thing to consider when trying to decide which services to offer. As home foreclosures mount, many would-be entrepreneurs recognize the potential of this type of business and want to jump in with both feet. This is understandable.
But, much like learning to swim, you have to learn how to navigate the shallow waters before you can dive into the deep end. Otherwise you can find yourself in real trouble — ie, out of business — before you even get started good.
So, if you don’t have all the equipment necessary to open a full-service foreclosure cleanup business, start with simple trashouts. This requires little more than a vehicle and some muscle. And, you can rent a truck if you don’t have one already.
Know-How: Again, foreclosure clean out business owners need to have knowledge in a lot of different areas — ie, contract negotiation, pricing, how to hire and work with subcontractors, placing bids, etc. Every job is a learning experience. If your knowledge is limited in business, again, start small — offering one or two services — and then add on as you feel more comfortable.
Simple services like lawn maintenance and trash/debris removal are two major requirements of this industry. So, start with these services. Once you’re comfortable pricing these jobs, invoicing for them, hiring workers, etc., then you can add small repairs, then painting and on and on and on.
Location: Location is a factor in determining which services to offer in your foreclosure cleaning business for several reasons:
Cost of supplies: This goes to your startup capital. If you live in the northeast, you might find that supplies are more expensive than in the southeast. For example, do you have snow removal equipment — which may be required of some jobs in the northeast. If you started a foreclosure cleaning business in the south, you wouldn’t have to worry about that as a cost.
The Weather: Speaking of climate, it affects the busy/slow season of the foreclosure cleanup business. Hence, the amount of money you can make at any given time. There’s usually more work in this business during warmer months. If you live in a city/town where there are lots of foreclosures — and the weather is in a warmer climate year round, then you’ll probably have more work and with fewer startup costs than someone who lives in a colder climate.
As you can see, there are many factors to consider when starting a business — any kind of business. The main thing to remember about starting a business cleaning foreclosures is that it’s okay to take your time. Don’t get in over your head; build slow. For, if you do it right, you’ll have a lucrative business for years to come.