Whether you’re eager to mop up homes, tidy up offices, or specialize in spotless solutions, starting a cleaning business can be your ticket to entrepreneurial success. But before you dive into the suds, let’s scrub through the essentials. From low start-up costs to high demand for cleanliness, here’s how to start a cleaning business from scratch and make every corner shine.
Why Start a Cleaning Business?
Thinking about starting a cleaning business but not sure if it’s right for you? Here are a few reasons why it could be a great opportunity.
Market Demand
People always need cleaning services, making it a viable and profitable business venture. Whether it’s cleaning homes, offices, or special jobs like carpet or window cleaning, there will always be a need for professional cleaners. With busy schedules and a growing focus on cleanliness and sanitation, many individuals and businesses are turning to cleaning services to help maintain their spaces. After all, dust bunnies and grime monsters don’t take vacations!
Low Start-Up Costs
One of the biggest advantages of starting a cleaning business is the relatively low start-up costs compared to other businesses. You don’t necessarily need a physical storefront, expensive equipment, or a large inventory to get started. In fact, you can start a cleaning business with just a few essential cleaning supplies and a reliable mode of transportation. Think of it as the Cinderella story of businesses—minus the fairy godmother.
You can also start small and grow your services as your business gets bigger. This way, you can expand at your own pace and offer services that your customers really need.
How to Start a Cleaning Service From Scratch in 7 Steps
Now that you have a good idea of why you should consider getting started, we’ll walk you through seven steps on how to start a cleaning service, ensuring you’re ready to sweep away the competition.
Step 1: Conduct Market Research
Before diving into your cleaning business, you need to understand the market.
Identify Your Niche
The first step in how to start a cleaning business from scratch is to ask yourself whether you want to focus on residential cleaning, commercial spaces, or maybe specialized services like carpet or window cleaning. Finding your niche helps you stand out and become the go-to expert in your chosen area.
To narrow down your business ideas, ask yourself: What type of cleaning service is lacking in your current area? Which services are oversaturated in your market? Who will your target customers be? What cleaning services or solutions are they already using?
Analyze the Competition
Get out your detective hat and look at what other cleaning businesses are doing. Check their prices, services, and customer reviews. You can also consider completing an audit of all your competitors’ operations. What is their pricing structure, and how much do they charge? How is their service rated online? Is it easy to book their service online or over the phone? Anything, from how you brand yourself to how you collect payments, can be a distinct advantage in differentiating yourself from the other businesses in your area.
It’s all about learning what works and what doesn’t, so you can polish your own business plan.
Step 2: Create a Business Plan
A business plan is an important document for every entrepreneur. It will require you to think through each step of how to start your cleaning business and show lenders you’re prepared, organized, and deserving of a loan. You’ll refer to your business plan repeatedly; it’s a resource you may edit and adjust as time goes on. Think of it as the blueprint for your business—like a cleaning checklist that keeps you on track.
Unfamiliar with business plans? The Small Business Administration breaks down the two most common types of business plans and what to include in each.
Step 3: Register Your Business
It’s time to make it official!
Choose a Business Name
Pick a name that shines as brightly as a freshly cleaned window. Make it memorable and reflective of your services.
Choose Your Legal Business Entity
Determining the type of business you’ll create is important because each entity comes with distinct pros and cons. We recommend this article from the U.S. Chamber of Commerce. It offers an in-depth explanation of each entity. Before you file any paperwork, it’s a good idea to consult an attorney about which entity will work best for your situation. Here are the three most common types of legal entities for cleaning businesses:
- Sole proprietorship – Legally, you and your business are the same, with no separate legal entity for your business.
- Partnership – A sole proprietorship comprising two or more people.
- LLC – or a “Limited Liability Company.” A hybrid entity between a sole proprietorship and a corporation, LLCs provide the liability protection of a corporation yet aren’t subject to double taxation as the profits go through your personal tax return.
For more information, check out our guide on how to register a cleaning business.
Obtain Necessary Licenses and Permits
Before you launch your cleaning business, you’ll also need to obtain proper licensing. Because business requirements vary by state, you’ll have to research your state, county, and city regulations to understand what you need before applying. In some cases, your state may require getting a contractor’s license and bonding. Here’s a great online resource from Self-Employed HouseCleaner on business start-up laws per state. It’s an excellent place to start your research.
Getting Covered with Insurance
Obtaining cleaning business insurance is an important next step after registering or licensing your business if you want to protect yourself or your family from financial risks. At Insurance Canopy, we’ve simplified the insurance buying process by allowing you to purchase your policy completely online.
Not only does insurance protect you, but it reassures your clients. When you protect your business with us, you have exclusive access to our insurance badge. Many business owners feature the insurance badge on their website to advertise to clients that they are a trusted professional in the industry.
Step 4: Secure Funding
Since we’re talking about how to start a cleaning business from scratch, consider that it might require some initial investment.
Explore Funding Options
Start-up funds are a necessary expense to get your business off the ground. Suppose you don’t have savings to cover your initial expenses, or would prefer not to dip into them. In that case, small business loans are an effective and low-risk way to secure funding for marketing materials, supplies, equipment, vehicles, retail or commercial space, and more.
Budgeting and Financial Planning
Create a budget that covers all your start-up costs and operational expenses. It’s like planning your cleaning routine—detailed and efficient.
Step 5: Purchase Equipment and Supplies
Now, it’s time to get the tools of the trade.
Essential Cleaning Tools
Invest in high-quality cleaning tools and supplies. A good mop, vacuum, and eco-friendly cleaning solutions are must-haves. For a more detailed list, check out our cleaning supply checklist!
Equipment and Supply Costs
Calculate the costs of your equipment and supplies to avoid any financial surprises. Think of this step as knowing how much cleaning solution you need to tackle the toughest stains.
Step 6: Defining Your Prices
To kickstart your business, figure out your pricing for cleaning services and then market your affordability, reliability, and efficiency to the right people.
How to Set Your Rates
Depending on the cleaning business you’re running (maid services, janitorial cleaning, window cleaning, etc.), your options for rates will vary. Below are just some of the ways current cleaning businesses charge their customers:
- Flat Rate: Offering a flat rate for standard cleaning services provides transparency and predictability for your clients. It simplifies the pricing process and helps build trust.
- Hourly: Hourly rates can be beneficial for clients who require flexible cleaning schedules or have varying cleaning needs.
- Square Footage: Charging based on the square footage of the area to be cleaned allows for pricing that reflects the actual size and complexity of the job.
- A La Carte: Provide customizable cleaning packages where clients can choose specific services they need, allowing for personalized pricing and catering to individual preferences.
Scheduling Appointments
Implement a system for scheduling cleaning appointments that is convenient for you and your clients. Consider using scheduling software to manage appointments efficiently. We collected our top choices below to give you an idea of what’s out there:
- Square Appointments: This tool lets customers book their cleaning appointments online and automatically syncs them to your calendar. You can also send reminder texts or emails to your clients and keep them updated with any appointment changes.
- Time Tap: With Time Tap, you can organize your appointments, set up recurring appointments, accept payment, and more.
- Setmore: This online tool takes appointment setting to a new level. You can send email and text reminders, give your employees their login to manage the calendar, accept payments, and give your customers access to book their own appointments.
Step 7: Market Your Business
Now, let’s get the word out with cleaning business marketing.
Online Marketing
Establish a strong online presence to reach potential clients. Online marketing includes:
- Website: Don’t forget to include all the information a future customer of yours would want to know on your website—the services you offer, your pricing, past customer reviews, and where they can schedule an appointment. If you haven’t created a site yet, don’t fret. With options like Squarespace, WordPress, and Wix, you can build and customize your online presence without a pro.
- Google My Business: To increase visibility for your business, create and optimize a free Google Business profile for your cleaning company. It’s quick and easy to do and can dramatically boost your presence on online searches. Here is some helpful information on improving your profile.
- Social Media: You should have a Facebook page for your business to increase visibility in your area. Your Facebook business page will allow you to post job listings, access business page insights, check how your posts perform, launch paid ads, and more. Once you have established a following, branch out to other social media platforms and expand your audience. You can keep track of your posts and schedule them ahead of time using Buffer or Hootsuite.
- Online Reviews: Independent review sites like Yelp or Google help your clients decide whether they should hire you (or someone else). Always ask satisfied customers to leave you a review. Make it easy by emailing them a direct link after one of your cleaning appointments. If you ask, most clients are happy to review a small business they like and use.
Offline Marketing
Promote your cleaning business locally. Traditional marketing can include:
- Leaving Your Business Card: Visit your local shopping centers and restaurants to see if they have an advertisement wall. If they do, ask the owner or an associate if you can pin your business card there. Better yet, go to a community center where they’re bound to have a place where you can advertise your business. You never know where your next customer will be!
- Canvasing Surrounding Neighborhoods: Check out your local neighborhoods and leave flyers about your cleaning business. You may run into a potential customer who is moving in or out of their home and needs cleaning services. It’s a great way to build your network and gain potential leads.
- Attending City-sponsored Events: Purchase booth space and interact with your community at a city-sponsored event. You can network with fellow small business owners and discuss future advertising collaborations.
- Creating a Referral Program: The best way to gain new clients is through your existing clients! Encourage your clients to recommend your business to their friends and family. To incentivize them, offer a discount on their next cleaning for each person they refer! It’s a simple but effective way many cleaning businesses market.
How Much Money Will It Take for Me to Start a Cleaning Business?
Now that you have an idea how to start a cleaning service, it’s time to find out how much it’ll cost. Startup costs for a cleaning service can vary, but on average, you’re looking at a range between $2,000 and $6,000. This covers essential equipment and supplies to labor costs, legal protections, liability insurance, and marketing strategies. Ready to dive into the details? Let’s break it down.
Equipment and Supplies
First things first: you’ll need the tools. Vacuums, mops, and eco-friendly cleaning solutions—they’re your bread and butter.
Licenses and Insurance
To legally operate, you’ll need more than just elbow grease. Depending on where you set up shop, licensing fees and permits could be on the table. Don’t forget about liability insurance—because accidents happen, even in squeaky-clean businesses.
Marketing and Advertising
A snazzy website, memorable business cards, and maybe a splash of social media glitter. Budget wisely—investing in marketing can help your business in a crowded market.
Transportation
If you’re going places (literally), factor in transport costs. Whether it’s gas money or keeping a van sparkling, getting from A to B adds up.
Employee Costs
Thinking of expanding? Employees mean wages, benefits, and training. Plan your payroll carefully—it’s an investment in your cleaning crew and your business’s future.
FAQs on How to Start a Cleaning Service
How profitable is owning a cleaning business?
Owning a cleaning business can scrub up some serious profits, depending on factors like your location, clientele, and the services you offer. Reports show that the average cleaning service can rake in annual revenues ranging from $50,000 to $70,000. But for those who really know how to buff their business model, six-figure incomes are within reach. To keep those profits gleaming, it’s all about offering specialized services, keeping customers loyal, and managing expenses.
What is the best type of cleaning business to start?
When it comes to cleaning businesses, the best fit depends on your preferences. Whether it’s dusting off homes, polishing up offices, or tackling grime with eco-friendly flair, there’s a niche for every mop jockey. Before you dive in, scope out the demand in your area and find a cleaning specialty that matches your passion and goals.
Is it hard to start up a cleaning business?
Starting a cleaning business isn’t exactly a walk in the park, but with a bit of elbow grease and strategy, it’s totally doable. From drafting a business plan to snagging the right licenses and insurance, every step plays a role in your success. Sure, there might be some bumps in the carpet along the way—like wooing clients and keeping operations spick and span—but with dedication and a customer-first mindset, you can buff out those challenges and build a flourishing business.
Ready to Sweep Away Your Worries? Get Covered Today!
Now that you’ve learned how to start a cleaning business from scratch, it’s time to put your plan into action. Remember, success in the cleaning industry hinges on preparation, persistence, and a passion for pristine spaces.
Ready to sweep away your worries and protect your business? Ensure your journey to success stays spotless with comprehensive cleaning business insurance from Insurance Canopy. Get covered today and watch your cleaning business shine brighter than ever!
