Cleaning is very hard strenuous work.
Research all the aspects of the cleaning service business. From customer service to advertising, taxes, employees, insurance and bonding, what to charge and how to clean a home professionally. Cleaning your own home and cleaning professionally is totally different.
Getting those first clients takes time, persistence and patience.
Obtaining Those First Clients The hardest part of starting your own cleaning service is obtaining those first clients. Clients love to see confidence.
Door Hangers: Door hangers are a great way to get new clients.
Business Cards: Start passing out your business cards to friends and family members. A lot of working women will shop for services while at work. It shows clients that you are serious about your business and allows them research your business in their own time.
Cleaning Products: By using all natrual products, you can offer your clients a healthy cleaning experience and protect ourselves against harsh chemicals. Clients love the natural cleaning products with essential oils. Wear gloves when cleaning bathrooms. Cleaning is hard work, charge what you are worth. Cleaning homes is very hard physical work and you didn’t get into this business to work for nothing.
New Construction Cleaning If you decide to do this type of work you will need more equipment. New construction cleaning requires a lot more cleaning. After you acquire a few cleaning positions ask the clients if you can use them for a reference.
Gross working capital refers to working capital as the total of current assets. That is to say, Gross working capital = Total current assets.Net working capital refers to working capital as excess of current assets over current liabilities. In other words net working capital refers to current assets financed by long term funds or capital employed of the business.
;Accordingly, Net working capital = Current assets – Current liabilities
The net working capital position of the firm is an imperative contemplation, as this will determine the firm’s profitability and risk. The operating cycle is the length of time required for conversion of non-cash assets into cash. This operating cycle refers to the time taken for the conversion of cash into raw material, raw materials into work-in-progress, work-in-progress into finished goods, finished into receivables into cash and this cycle repeats.
The operating cycle length differs from firm to firm. If a firm has lengthy production process or a firm has liberal credit policy the length of operating cycle will be more. 0% Intro rates.
- Raw materials storage period(RMSP)
- Work in process period; (WIPP)
- Finished goods storage period;(FGP)
FACTORS INFLUENCING WORKING CAPITAL NEEDS:
A firm should have neither low nor high working capital. Low working capital involves more risk and more returns, high working capital involves less risk and less returns.
- Nature of Business: The working capital requirement of a firm depends on the nature of the business.If the product of the firm has a seasonal demand like refrigerators, the firms need high working capital in the periods of summer, as the demand for the refrigerators is more and the firm needs low working capital in the periods of winter, as the demand for the product is low.
;Production Cycle:
The term production cycle refers to the time involved in the manufacture of goods.
4.Production Policy:
The quantum of working capital is also determined by production policy. If the firm has production policy to produce only when there is a demand then the firm needs low working capital during the slack season and high working capital during season.
Credit Policy:
If the firm has a liberal credit policy, then the firm needs high working capital and the firm needs low working capital if the company’s credit policy does not allow it to extend credit to the buyers.
This needs higher working capital requirements. If there is ready availability of raw materials and spares, a firm can maintain minimum inventory and need less working capital.
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