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You might consider targeting a niche market by specializing in a certain aspect of your industry such as closet organization.
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Written by: Carolyn Young
Carolyn Young has over 25 years of experience in business in various roles, including bank management, marketing management, and business education.
Published on January 5, 2022
Updated on September 23, 2022
Investment range
$2,050 - $5,500
Revenue potential
$78,000 - $260,000 p.a.
Time to build
0 – 3 months
Profit potential
$70,000 - $234,000 p.a.
Industry trend
Growing
Commitment
Flexible
People like to have nice things – a lot of things. So much so that for many people, those things get out of control, and clutter takes over their homes. Professional organizing is a service that solves that problem for consumers. If you are a meticulous person who knows how to control clutter, a professional organizing business is a great opportunity to build a profitable company.
Launching a professional organizing business will have its challenges, and will take time, preparation, and knowledge. This step-by-step guide is full of information and insight to put you on your way to organizing your new entrepreneurial home.
Starting a professional organizing business has pros and cons you should consider before deciding if it’s right for you.
Trends in professional organizing include:
Some challenges also exist in the professional organizing industry including:
Startup costs for a professional organizing business range from about $2,000 to $5,000. The largest expenses are for a website set up and an initial marketing budget. The high end also includes professional organizing classes which are not required but can add to your credibility. You can take classes through the National Association of Productivity & Organizing Professionals (NAPO).
Start-up Costs | Ballpark Range | Average |
---|---|---|
Setting up a business name and corportation | $150 - $200 | $175 |
Licenses and permits | $100 - $300 | $200 |
Insurance | $100 - $300 | $200 |
Business cards and brochures | $200 - $300 | $250 |
Website setup | $1,000 - $3,000 | $2,000 |
Professional organizing courses | $0 - $400 | $200 |
Initial marketing budget | $500 - $1,000 | $750 |
Total | $2,050 - $5,500 | $3,775 |
The average price that customers pay for an organizing job is about $500. The price will vary based on the size of the job and the time that it takes. Your profit margin should be around 90%.
In your first year or two, you could do 3 organizing jobs per week, bringing in $78,000 in annual revenue. This would mean $70,000 in profit, assuming that 90% margin. As your brand gains recognition, sales could climb to 10 jobs per week. With expected annual revenue of $260,000, you would make about $234,000.
There are a few barriers to entry for a professional organizing business. Your biggest challenges will be:
Now that you know what’s involved in starting a professional organizing business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Research professional organizing businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a professional business organizer.
You might consider targeting a niche market by specializing in a certain aspect of your industry such as closet organization.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You need to determine what types of organizing services you will do. You could specialize in something like closets, or you could organize a variety of things including:
Prices for organizing jobs range from $250 to $800 and average about $500. You should determine your prices based on the time that the job takes you. Prices should work out to an average of $50 to $100 per hour. Your ongoing expenses should be limited to fuel and marketing so you should aim for a profit margin of about 90%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.
Your target market will be broad, although the people that will be willing and able to pay for your services are probably more established. You can find them on sites like Facebook and LinkedIn.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer on Fiverr to create a professional business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to professional organizing businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your professional organizing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
For a professional organizing business you probably won’t need any outside financing and can just use your personal funds since startup costs are low.
Starting a professional organizing business requires obtaining a number of licenses and permits from local, state, and federal governments. You can become a certified professional organizer through NAPO to add credibility to your business.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. You could also check this SBA guide for your state’s requirements.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
For peace of mind and to save time, we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state, and provide them to you to make sure you’re fully compliant.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account. Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your professional organizing business as a sole proprietorship.
Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You can use industry-specific software, such as SMM Ware, to manage your sales, scheduling, quotes, and billing.
Some of your business will come from the casual online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:
Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your professional organizing business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your professional organizing business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a professional organizing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in professional organizing for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in professional organizing. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you might want to hire an assistant to help you with organizing jobs.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
In a busy world, people need to stay organized to have time to do all there is to do. Professional organizers have expertise that can help to streamline people’s lives. Organizing has also risen in demand because people want their spaces to look nice, as well as be utilitarian, and they are willing to pay for a professional’s help.
By starting a professional organizing business, you can capitalize on that demand and make a healthy profit. Now that you have all the knowledge that you need, you’re ready to start organizing your entrepreneurial plan and launch a successful business!
You can start a professional organizing business for as little as $2,000. Your biggest expenses will be for a website setup and your initial marketing costs.
Absolutely! The average organizing job costs $500, so even if you just have 3 clients a week, you can make a healthy profit. Your ongoing expenses are very low, so most of what you make will stay in your pocket.
A professional organizing business needs licenses just like any other business. Licenses and permits may be required at the state and local levels, so check with your local governments for requirements.
Training is not required, but it can certainly add to your credibility, particularly if you are trained by a professional association. You can take classes through the National Association of Productivity & Organizing Professionals (NAPO).
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