How to start a cleaning business

Step 1: Market research

The first step in learning how to start a cleaning company involves having a good look around the local area. Review the different types of cleaning services offered, the size of cleaning companies offering them, and the markets they serve.

If it looks like businesses work in the same market, look carefully at both their pricing and the range of services they offer. Research what makes each of them different by asking questions, such as:

• Are there extra services that can be provided?
• Are there opportunities for more competitive pricing or otherwise persuade people to switch providers?
• How do the cleaning companies present themselves – corporate, friendly, professional? Is there a way that a new business could establish itself by appearing different?
• Are there any specialist services, or opportunities to provide specialist services to clients in a niche market?

Read reviews posted online to better understand what customers love about their cleaning service, and what causes friction.

Step 2: Select your services

With market research in place, you may have a better grasp of what type of cleaning services have the most opportunity in the local area. Start by considering whether specializing in commercial or residential cleaning has the most potential.

It’s important to assess which sector has the highest demand and where the highest competition is.

In addition to residential and commercial cleaning service opportunities, there may be demand for specialty cleaning services in the area.

Commercial cleaning businesses

First, it’s important to understand the commercial cleaning meaning. Whereas residential cleaning focuses on cleaning homes, apartments, condos, and other private spaces, commercial cleaning focuses on spaces like offices, hospitals, schools, warehouses, and retail stores.

Such large spaces may require specialized equipment and can entail working overnight to reduce disruption to business operations. Commercial cleaning equipment can range from powerful sweepers and scrubbers, to heavy-duty vacuums, pressure washers, or machinery that can handle chemical or biohazard materials.

Many employers ask for evidence of specialist certifications and training, particularly when working where there may be biohazards or the need for sterile environments. For example, a commercial cleaning service may be required to obtain a biohazard handling certification, such as a GBAC-STAR® certification offered through the Global Biorisk Advisory Council (GBAC).¹ This demonstrates the cleaning service has received proper training on handling biohazardous materials.

It’s more than likely a team of cleaners will need to be in place given the large spaces that require attention from the commercial cleaning businesses

Residential cleaning businesses

Residential cleaning companies focus on keeping private spaces (such as homes and apartments) clean, tidy, and hygienic. The tasks vary depending on what customer’s request, but can include vacuuming, dusting, mopping, and wiping down surfaces. The equipment needs may be more basic compared to commercial cleaning though.

Cleaners working in people’s homes may be more likely to get more direction from clients because the cleaning they carry out is in a personal space. Customers may request a daily, weekly, bi-monthly, or other cleaning schedule cadence. This means there must be a degree of flexibility, since tasks may shift each week. It may also require staffing multiple cleaners to accommodate the customer’s schedule.

Niche services

Another possibility when you’re considering how to start a cleaning company is looking at a specialty cleaning option. Within each type of business, you can select to offer niche cleaning services.

For instance, you may want to target schools in the local area. Those working in homes may decide to focus their services on families with children or offer add-ons.

Niche services can include:

• Carpet cleaning
• Pool cleaning
• Ceiling and wall cleaning
• Blinds cleaning
• Curtain cleaning
• Office cleaning
• Window cleaning

Another way to set a new business apart is by focusing on locality. Think about other cleaning services in the local area and look for districts or neighborhoods that currently appear under-served.

Step 3: Create a business plan

A business plan typically outlines your business goals, financial projects, marketing strategies, and customer research, but many potential business owners may ask how do you create a business plan and what should it include? In general, the business plan should include:

• Executive summary: Provides an overview of the cleaning services offered, target market, financial projections, and funding requirements.
• Company description: Describes the cleaning company’s mission statement and values. A mission statement’s meaning is the action of how your business will achieve its overall vision for the company.
• Market analysis: Specifies changing trends, local market, competition, and target customer demographics.
• Services offered: Identifies what will be provided by the cleaning service.
• Marketing and sales strategies: Lays out inbound or outbound marketing opportunities, a pricing strategy, and the sales forecast.
• Operational plan: Outlines staffing requirements (roles, responsibilities) and equipment/supplies required.
• Financial plan: Details projected revenue, cash flow, costs, and funding needs.

Step 4: Get the business set up legally

Once you’ve learned how to start a cleaning company, another -important step of getting established is setting the business set up so it complies with all local, state, and federal laws. Not only does this establish your business’s credibility, it may offer legal protections and benefits you may not have access to as an individual.³

Business structure and license

The next crucial step is establishing which business structure your business operates under. A business structure impacts the taxes for your company, whether you’re personally liable for damages in case of a lawsuit or bankruptcy, and what paperwork needs filing.³ Here’s a quick overview of some of the most common types of business structures available:

• Sole proprietorship: The owner is responsible for all aspects of their business, including its debts and liabilities.
• Partnership: Two or more people share the risks and rewards of running a business. There are variations of partnerships available, including a limited partnerships (LP) and limited liability partnerships (LLP), which impact the taxes and liabilities of each of the partners.
• LLC (limited liability company): Owners have limited liability for business debts and obligations. If your business operates as an LLC, it means your personal assets, such as personal savings accounts, a home, or a vehicle aren’t impacted if the business files bankruptcy or faces a lawsuit. While you won’t face a corporate tax, LLC members are still required to pay self-employment tax contributions.

Before selecting a business structure and pursuing any licensing requirements, check to see if the state you’re located in requires a business registration.⁴

Once you register your business, you can apply for a Tax ID or EIN (employer identification number) on the IRS website. There is more information on the process and importance of acquiring a business license here.

Other licenses and permits

Your location and services offered may also require additional licenses and business permits to operate legally. These could include permits required for certain cleaning services, such as hazardous waste disposal. Start by contacting your local government resources, such as the Department of Inspections in the county, to find out what local permits and the specific types of business licenses required for a cleaning service.

Insurance

In addition to these licenses and permits many businesses opt for insurance policies. While you should research the option(s) that are right for your business, common business insurance options include general liability, professional liability, and commercial vehicle insurance. Your state may also require workers’ compensation, depending on the number of employees you have.5 Consider any employee insurance options you’d like to offer too, such as health, dental, vision, or life insurance.

Business funding

If you need funds after you learn how to start your cleaning company, then consider what funding options you may have. Common business funding options include:

• Small business loans: Lending from banks or financial institutions for initial startup costs and operational expenses, typically loaned as a singular lump sum.
• Business lines of credit: Funding offering flexibility for ongoing expenses or unexpected costs that allows you to withdraw funds as needed, instead of receiving one upfront lump sum
• Business equipment finance for purchasing cleaning equipment, like industrial-grade vacuums, steam cleaners, and supplies.
• Vehicle financing for purchasing vans or vehicles that may be essential for transporting equipment and staff to various cleaning locations.

For more detailed information on business funding options, loans, and equipment financing, learn more about business loans and business equipment financing.

Step 5: Promote your cleaning business

As you establish your cleaning business, you’ll need to market your services to your target audience. The good news is, there are multiple channels you can leverage for promotion. Consider these tactics:

• Local SEO techniques: First, understand how Local Search Engine Optimization can establish new businesses in your area. This means optimizing your company website for local search terms and directories, which helps propel your business to the top of local search pages. It’s critical you keep consistent NAP (Name, Address, Phone Number) across all online listings and encourage positive customer reviews on platforms.
• Social media marketing campaigns: Start by promoting your services on social media – and test the channel(s) that are most effective for your business. Try engaging customers through targeted social media ads showcasing the company services. Cleaning services should also create compelling visual content (such as before-and-after photos) to highlight the service provided.
• Content marketing (blogging): Including helpful content on your company website can help establish you as a cleaning authority. Feature a blog on your website with cleaning tips, industry insights, and customer testimonials. You can also ask customers to provide reviews that can be used in blogs or published on sites like Google Business Profiles and Trustpilot.
• Networking with local businesses: Forging collaborations or partnerships with real estate agencies, property management firms, or local businesses that can promote your cleaning service to their clients can become a major advantage. Consider offering a referral program to incentivize other businesses to offer recommendations. You can join local business networking groups to get in front of other local businesses.
• Special promotions and discounts: Try running seasonal promotions or discounts for new clients or recurring services, which can create greater customer loyalty. Another promotion idea is a referral program where existing clients receive rewards for referring new customers.