How to Start a Cleaning Business In 7 Steps

Starting a new business with low costs, no major operating expenses, and steady demand can be a great opportunity. Here is the guide to start a cleaning business in 7 simple steps. 

The cleaning industry is experiencing strong demand, with the residential cleaning sector growing by 20% each year. By 2024, it is expected that 80% of households with two incomes will use house cleaning services.

Cleaning services usually require less money to start compared to other businesses. It is one of the few businesses that can begin quickly with little investment, as long as there is a willingness to work hard for a modest profit that grows over time.

Apart from a few specialised cleaning products and equipment, most cleaning tasks involve the same supplies used for household chores. Formal training or certificates are not needed for regular home and office cleaning. However, that does not mean the job is easy. If cleaning were simple, there would not be such a big demand for professional cleaners. That said, those with a strong work ethic and good customer service skills can build a successful and rewarding business.

First research everything about the industry

When planning how to start a cleaning business, it is important to ensure that the service is good enough for people to pay for. Begin by offering free cleaning to family or friends in exchange for honest feedback and cleaning supplies. Another option is to work alongside an experienced cleaner for a day to understand what the job involves. The main goal is to check whether personal cleaning standards match customer expectations. The best way to find out is by doing a job for someone else.

It is also necessary to decide on the type of cleaning service to offer. Cleaning businesses vary in size from individuals working alone to national companies. The services offered can also range from basic home cleaning to specialised cleaning, such as pressure washing or industrial carpet cleaning. Those with experience in window cleaning or another specific service should consider focusing on their existing skills and available resources.

Independent cleaners typically work in private homes for a small number of customers. This type of cleaning business requires lower costs. Some cleaners schedule weekly appointments with the same clients, while others take one-time jobs paid by the hour or day.

Another option is to buy a franchise from an existing cleaning company. While this requires a larger upfront investment, it provides an easier way to get started with a proven business model.

How to start a cleaning business in 7 steps

Cleaning businesses range from solo home cleaners to specialist industrial services. When setting up a cleaning business, it is important to decide on the type of service early, as this affects costs, team size, equipment, and pricing. A larger business with several workers needs more organisation than a one-person cleaning service.

Once a target market is identified, details such as a business plan, transport, and cleaning supplies can be arranged. Advertising the service should begin as soon as clients are ready to be accepted. The first customers might come from friends or acquaintances, before expanding to a wider audience through online marketing and promotion.

Step 1: Secure funding

Starting a business can be expensive, and cleaning services are no exception. Many new business owners borrow money from friends or family, apply for a loan, or use credit cards. However, compared to other businesses, a cleaning service has relatively low startup costs. This means it is possible to avoid heavy debt at the start and gradually grow the business as revenue increases.

Initial expenses for a cleaning business typically include cleaning supplies, advertising, business insurance, and necessary licences or permits. Supplies can be purchased at low prices from major retailers. Most cleaning businesses use common products such as mops, window cleaner, gloves, paper towels, and brushes. Once the business is well established, supplies can be bought directly from manufacturers for better deals.

Step 2: Choose a market

The type of customers and services offered should depend on local demand, personal skills, and transportation. For those who need to walk to jobs, it is important to focus on nearby areas. Those with a car or access to public transport have more flexibility and can check online for similar businesses.

Researching competitors is a key part of business planning. When studying how to start a cleaning business, it helps to look at other cleaning companies in the area and find services they do not offer.

Residential cleaning is generally easier to enter than commercial cleaning. Large janitorial companies usually dominate the commercial sector and have more resources. Within the residential sector, services can be further specialised, such as cleaning apartments or houses.

Since most new cleaners start alone, it is important to choose jobs wisely. Large properties can be time-consuming, so starting with smaller homes might be more practical. Working alone also keeps costs low and allows flexibility in scheduling.

Step 3: Pick a speciality

The success of a cleaning business depends on the quality of service. This could involve expertise in certain cleaning techniques or providing efficient and friendly service. Specialised equipment and services should only be offered if experience and resources are already available. Otherwise, training and equipment costs could be higher than the business income.

Once the business is ready to specialise, possible services include eco-friendly cleaning, kitchen cleaning, and tile and grout cleaning.

Step 4: Set a budget

The main costs of running a cleaning business are supplies and transport. Expenses vary based on the services offered, from minimal costs for a solo cleaner to higher costs for a team with a company vehicle.

• Transport: Reliable transport is essential for a mobile business like cleaning. Most cleaners travel to and from jobs, so transport arrangements should be well planned.
• Supplies: The number of supplies needed depends on the size of the business. Small operations can buy bulk supplies from retailers, while larger businesses might need wholesale suppliers.
• Equipment: Specialised cleaning machines can be expensive. Renting equipment could be a better option at first until the business becomes more stable.

Step 5: Register the business

Cleaning services run by individuals might not require formal registration, especially if payments are informal. However, once a business makes significant income, it must be legally registered and income reported for tax purposes.

A cleaning business can operate as a sole trader, partnership, or limited company. Some cleaners also buy a franchise from an established cleaning company, which offers brand recognition but less control over the business.

If working with corporate clients, it is important to have proper tax documents and business registration, as companies need to follow legal requirements when hiring services.

Step 6: Set up proper licensing

When choosing a name for a cleaning business, it is important to register it to prevent others from using it without permission. The rules for registration can vary depending on state and local laws, so it is advisable to check the specific requirements to ensure compliance.

Is a licence needed to start a house cleaning business? It depends. A licence and possibly permits may be required, especially if the business operates under a name different from the owner's legal name. State laws and local regulations may require an application for a business licence, along with a fee.

Two common options for a business licence are a limited liability company (LLC) and a sole proprietorship. An LLC reduces personal financial risk by limiting liability to the company’s assets. A sole proprietorship is usually cheaper to set up and allows full control over the business. However, it can put personal assets at risk if the business does not perform well.

If a brand name is chosen for the cleaning company, filing for a DBA (Doing Business As) licence is necessary. This licence legally registers the business name and ensures it operates properly under the law.

It is also important to check whether local laws require business insurance, liability insurance, or other protections. Since working in clients’ homes involves some risks, having business insurance and liability insurance can help safeguard both the business owner and clients in case of any problems.

Step 7: Find and keep clients

Online platforms and word-of-mouth recommendations help new cleaning businesses find customers. Happy clients can be encouraged to leave reviews or refer others.

• References: Providing contact details of satisfied customers can help attract new clients.
• Referrals: Existing customers might recommend services to their friends and family.
• Pricing: Cleaning prices vary based on location, competition, and services offered. Prices can be set per hour, per square metre, or as a flat rate.

Step 8: Advertise and grow

An online presence helps a business in the long run. A business Facebook page with updated contact details allows potential customers to find the service easily. Printing business cards can be useful for offline networking.

FAQs

Q.1. How do I get clients for my cleaning business?
Ans. The first step is to decide who your ideal clients are. Once you know your target customers, think about the best ways to reach them. You can advertise through newspaper ads, distribute flyers to homes, or market digitally.

Q.2. Is starting a cleaning business worth it?
Ans. Starting a cleaning business can be a rewarding choice. The demand for cleaning services is steady, and it offers the chance to be your own boss. However, it requires hard work, good planning, and a focus on providing excellent customer service. If you are organised, detail-oriented, and enjoy making spaces clean, this type of business might be a good fit.

Q.3. What is the most profitable type of cleaning business?
Ans. Here are some of the most profitable cleaning business types, based on factors that contribute to their success:

• Carpet and upholstery cleaning: Deep cleaning carpets and upholstery needs special equipment and expertise, allowing for premium pricing.
• Window cleaning: Cleaning large windows, especially on high-rise buildings or in commercial settings, can be very profitable, especially with long-term contracts.
• Pressure washing: Pressure washing services for driveways, patios, and building exteriors are efficient and can bring in good profits.
• Post-construction cleaning: Cleaning after construction projects usually involves tough cleaning jobs, which allows you to charge higher prices.
• Specialty cleaning: Services like cleaning medical facilities, biohazard cleaning, or duct cleaning target specific needs and can command premium prices.
• Commercial cleaning: Regular contracts to clean offices, buildings, or retail spaces offer steady income and opportunities for business growth.

Janitorial services: Offering daily or nightly cleaning for businesses can provide high volume and recurring revenue.