How to Start a Cleaning Business: An Intro

How to start a cleaning business

To improve your chances of success when starting a cleaning business, consider following these steps:

1. Research the industry

Get to know the cleaning sector and current market conditions in your area by:

Calling established cleaning businesses to inquire about services and pricing
Joining an industry group such as the International Sanitary Supply Association (ISSA) for access to resources and reports about market conditions
Interviewing cleaning business owners outside your area
Exploring franchise options, which may streamline the cleaning business start-up process

Knowledge of the local cleaning industry can help you make smart, informed choices as you learn how to start a cleaning business.

2. Assess your skills

Evaluate your cleaning skills to ensure you can provide exceptional customer service. To start, you might offer free cleanings to relatives and friends in return for an honest review. Their feedback can help you identify areas for improvement.

If you’re new to professional cleaning, consider taking a part-time or temporary job as a cleaner. Gaining professional experience can help you gain valuable insights and develop skills quickly.

3. Get to know your target market

Research the people or organizations you intend to serve. Why do they hire cleaning businesses? What problems are they looking to solve? What are their values? How much can they afford to spend on your services? Understanding your target market helps your cleaning business meet potential customers’ needs and preferences.

4. Choose the right business structure

Consider consulting with an attorney to align your business structure with your financial situation. Two common options include sole proprietorship and limited liability company (LLC).

5. Name your cleaning business

Choose a business name that reflects your brand, niche, company values and the services you offer. An online business name generator can help you brainstorm ideas. Before choosing a name, review searchable online databases to verify name availability.

Next, consider checking if the domain name and social media handles are available. If another company uses the exact match or a close variation, you might choose another option to avoid confusing customers.

6. Register your cleaning business

Registering your business with the right federal, state and local agencies can give you personal liability protection and other legal and tax benefits:

Register your business name with state and local governments.
Apply for an Employer Identification Number (EIN) through the Internal Revenue Service (IRS).
Register with state and local agencies to get a “doing business as” (DBA) name and a state tax ID number, if needed.

7. Open up a business bank account

Once you receive your federal EIN, consider opening a business bank account to separate your business transactions from your personal finances. A business account also typically lets you accept credit card payments from customers, keep records of income and expenses and organize your taxes.

8. Get the right insurance coverage

Consider purchasing insurance to protect yourself, your employees and your business.

General liability insurance protects your cleaning business against financial loss. For example, this coverage can be essential if a customer is injured or if property is accidentally damaged during a job.
Surety bonds compensate your customers if anything is stolen while their home is cleaned.
Workers’ compensation insurance covers medical expenses and a portion of lost wages if an employee is injured on the job.
Auto insurance protects your vehicle and employees’ vehicles on the drive to and from job sites.

9. Purchase your equipment and supplies

Before shopping, check local, state and federal health and safety regulations. You may need to buy certain personal protective equipment or avoid using specific chemicals to comply with residential and commercial cleaning laws.

Purchase basic supplies, including mops, dusters, microfiber cloths, toilet brushes, dustpans and brooms, general or all-purpose cleaners, sponges, squeegees, trash bags, bleach, air fresheners, disinfectant wipes, paper towels, floor cleaner, gloves and masks. You can often save money by buying in bulk online or from wholesalers.

Keep your niche in mind. For example, if you want to start a sustainable cleaning business, purchase non-toxic, environmentally friendly supplies.

When it comes to frequently used equipment, such as vacuum cleaners, it’s generally worthwhile to invest in durable, high-quality models. You can always rent more expensive equipment, such as carpet steamers.

10. Hire employees

Hiring cleaners is essential to expand your business—and your profits. Start by writing a cleaner job description to attract high-quality candidates. Consider looking for interpersonal and communication skills, the ability to work without direct supervision and knowledge of cleaning supplies and techniques.

When interviewing candidates, ask interview questions for cleaners. Research the average hourly pay rate for cleaners in your area to make competitive offers. Consider what type of employee benefits package you’d like to provide.

11. Choose a pricing model to charge for cleaning

Determine how to price your services. There are three popular pricing models for cleaning businesses:

Hourly: Establish an hourly rate similar to other cleaning businesses in the area. Since your competitors have already done the research, they may know how much to charge to make a profit while factoring in overhead expenses and other costs.
Flat fee: Many customers prefer flat fees because they know what to pay upfront. To set the fee, estimate the time it should take to clean a client’s house based on the number of bedrooms and bathrooms.
Square feet: Charge clients a set rate per square foot. For example, you might charge five cents per square foot for a routine cleaning and ten cents per square foot for a deep cleaning. This pricing model allows you to charge more for larger homes. If you normally charge $30 per hour for basic cleaning, you could use the square-foot model to increase the rate for homes over 2,000 square feet.

You may also offer add-ons for an extra fee. This could include laundry services, refrigerator or oven cleanings, wall washing, window cleanings, deep cleaning or move-out cleaning.

How much cash you need for a cleaning business start-up

Cleaning business startup costs can vary, but you might budget for the following expenses:

Licenses and permits: Specific license and permit requirements vary by state, county and city. Fees could range from $30 to $500, depending on if you register as a sole proprietor or LLC.
Insurance: Protecting your business with general liability insurance, surety bonds and workers’ compensation insurance can help manage potential risks. These policies generally cost between $2,000 and $4,000 per year.
Supplies: High-quality vacuums cost around $300 to $700, but most cleaning supplies are generally cheaper. You might expect to spend between $200 and $500 per month on items such as mops, dusters, trash bags and protective gloves.
Employees: You can run a cleaning business alone initially, but hiring a small cleaning crew can help build your business faster. Depending on your location and employees’ expertise, hiring cleaners may cost you $11 to $15 per person per hour.
Transportation: Company vehicles have certain tax advantages and upfront costs of approximately $10,000 to $30,000. If you employ cleaners, plan to cover mileage reimbursement as well.
Marketing and advertising: Expect to spend at least $200 per month for offline and online marketing. This could also include a company uniform or branded T-shirt, which usually costs $100 or less per employee.

Choosing a specialty and niche for your cleaning business

There are two main types of cleaning businesses:

Residential: Residential cleaning services specialize in cleaning homes, apartments and condos.
Commercial: Commercial cleaning businesses focus on commercial spaces, including offices, hotels and retail stores. They may require specialized equipment.

After choosing the type of cleaning business you want to build, you can focus on your niche. For example, if you live in a popular tourist destination, consider specializing in vacation rental cleaning. Other options include eco-friendly cleaning, carpet cleaning, move-in/move-out cleaning or deep cleaning.

Best ways to market your cleaning business and find clients

Now, it’s time to increase brand awareness and attract customers. To reach the right people, use a mix of offline marketing and more affordable online marketing.

Offline marketing ideas for your cleaning business

Design a logo that reflects your name and niche. Your logo may be used across your website, social media, flyers, invoices and uniforms. Consider hiring a graphic designer to develop a professional design.
Create flyers, brochures and business cards to distribute in your area. You can also advertise in local newspapers and magazines.
Advertise your business. Effective advertising builds brand recognition, helps potential customers remember your services when they need them and allows you to showcase what makes your business unique.
Encourage ratings and reviews. Online reviews can build credibility for a new cleaning business start-up. Consider sending follow-up emails to customers and include a direct link to the review form on your Google business profile.
Offer special deals to first-time customers: To encourage people to try your services, you could provide a coupon for 10% off their first cleaning.
Foster word-of-mouth marketing. Start a referral program to encourage satisfied customers to refer their friends and families. Offer a large one-time discount or a smaller ongoing discount for each referred client.

Online marketing ideas for your cleaning business

Develop a business website to establish your online presence. Include a description of your services, prices and your contact information. Use search engine optimization (SEO) techniques to help your website appear at the top of search results for cleaning services in your area.
Set up social media accounts on Facebook, X (Twitter) and/or Instagram so people can find your business online. Consider purchasing targeted ads based on location, demographics and interests to reach more people.
Register with Google. Another simple (and free) way to show up in online search results is to register your business with Google. This allows people to leave Google reviews and see your website, phone number and business hours. It also increases your chances of appearing in Google Maps.
Establish yourself as an expert in cleaning by creating blog content for your website or videos for YouTube, Instagram or TikTok. High-quality content could go viral and reach potential customers in your area.

FAQs about how to start a cleaning business

How do I get funding for my cleaning business start-up?

Finding funding is one of the most important parts of starting a cleaning business. Potential sources of funding include:

Personal savings
Crowdfunding
Angel investors
Business loans
Personal loans
Venture capital

Do you need a business plan when starting a cleaning business?

A business plan isn’t strictly necessary, but it can help you stay organized and comes with other benefits. It can also help you find funding. Banks and investors may require a copy of your business plan before they offer a loan or other funding.

How to Start a Cleaning Business: An Intro

Key Takeaways