You don’t need a world-changing idea to start a successful company. And if you’re looking for something in demand, look no further than residential and commercial cleaning businesses.
With residential cleaning, you can take deposits and get paid the same day. Commercial cleaning businesses take longer to build, but the profits add up as your business grows.
It can feel overwhelming to think of all the work involved in setting up your business in the beginning. But the good news is, you don’t need much to get started. I should know because I started my cleaning business with $0 and scaled it to over six figures in its first year. I’ve operated my business for over seven years and have helped thousands of cleaning business operators with their growth.
In this article, I’ll walk you through the essential steps you need to start a cleaning business from scratch. I’ll share what you absolutely need and what you can skip in the early days of your business.
Why start a cleaning business?
Before we cover the steps involved in starting a cleaning business, here are a few reasons why you should start one:
1. Low barrier to entry
Compared to other home service verticals like plumbing, electrical, or HVAC, you don’t need special licenses — you can just start.
For larger commercial projects, it may help you to get commercial cleaning certifications like:
- OSHA Safety and Health Certification for workplace safety
- Cleaning Industry Management Standard, or CIMS, certification
However, these certifications aren’t must-haves when you’re just getting started with your business. They don’t apply to residential cleaning jobs, either.
2. Consistent demand
If there’s one industry with customers willing to pay for professional services, it’s the cleaning industry. It’s an essential service for both homeowners and business owners.
And sure: AI may be automating industries like software engineering. But cleaning still requires human beings to do the work.
If you’re worried about your job being replaced by AI, starting a cleaning company can give you peace of mind.
3. Minimal overhead expenses
Starting a cleaning business doesn’t require much capital, even if you’re starting alone.
To start one on your own, I recommend a minimum startup cost of about $1,000. That covers your initial business formation expenses, cleaning supplies, and initial ad spend.
If you’re planning to hire full-time employees, I recommend starting with $2,000. That covers the above expenses, plus a week or two of payroll.
I prefer starting with contractors because you don’t need to spend as much of your budget when you’re just getting started. You’re connecting contractors with jobs and splitting your revenue with them.
4. Repeat business
The reason cleaning services have consistent demand is that it’s a recurring need.
Think about services like annual auto maintenance or dental visits. These typically happen once or twice a year.
But cleaning kitchens and bathrooms happens more often. This is especially true in commercial or government buildings, which may be legally required to keep certain spaces clean. The result is a lot of potential clients who consistently and repeatedly need help.
So, even as a young cleaning business, you can find new customers and build a loyal customer base quickly.
Start a cleaning business in 5 steps
Now that you know why cleaning businesses are a lucrative path for entrepreneurs, here’s how you can start your own cleaning business.
1. Research your local market
First things first: investigate your target market. What does demand look like? What types of cleaning businesses already exist? And are there gaps in the market you’d be able to fill?
I recommend starting with a Google search for cleaning services in your area and the surrounding region. This should include both residential and commercial cleaning services. Then, call them and ask for their cleaning rates. This will help you understand how to price your services.
Make sure to ask about every service and add-on that local businesses offer, including:
- Deep cleaning
- Move-in/move-out cleaning
- Stove, fridge, and window cleaning
That way, you have a reference for pricing your own services.
Pro Tip: Start with residential and commercial cleaning jobs if you can
New cleaning business owners assume it’s harder to land commercial jobs when they’re just getting started. But that’s not true at all. Cleaning offices is actually a lot easier than cleaning homes. Plus, a single commercial account can be worth thousands a year.
In my opinion, commercial should be the main focus for a cleaning business. This is especially relevant in the economy we’re currently in.
The overall lifetime value of a commercial client is higher because they’re usually willing to sign up for year-long contracts. This stays the same even during difficult economic times. We saw during COVID how office cleaning doesn’t go away.
If cash is your biggest priority, then, target home cleaning. But if you have more time to build a business, I’d suggest doing residential and commercial cleaning.
2. File your business paperwork
Next, it’s time to set up your cleaning business by filing the necessary paperwork.
Choose a business structure
There are several business structures available to new businesses:
- Sole proprietorship. This is the default starting point for most businesses, as it requires no formal registration, minimal paperwork, and low setup costs. A huge downside to keep in mind: sole proprietors carry full personal liability for business debts or lawsuits.
- Limited liability company, or LLC. This structure creates a legal separation between you and your business. It protects your personal assets from liabilities like defaulted business loans or legal disputes.It requires more money and paperwork up front, but it provides more protection and a lower tax burden.
- Partnership. This is a business owned by two or more people who share income, debts, and responsibilities according to a partnership agreement. There are two major types: limited partnerships and limited liability partnerships. You may also share legal or tax liabilities equally, depending on your structure.
- S corporation, or S corp. This is a special IRS tax status that lets you pay yourself a salary and take additional profits as distributions. This can help cut back on your self-employment taxes. But it also requires more paperwork and fees.
I don’t tell people which business structure to choose, as I’m not an accountant or financial advisor. I recommend speaking to a CPA if you’re not sure which one would be best for you.
Select a unique business name and file your trademark
Once you’ve selected a business structure, you can name your business.
First, pick a company name that isn’t similar to cleaning businesses in your area. This prevents confusion among potential customers. You also avoid starting on the wrong foot with more established businesses in your area.
Then, make sure you file a trademark for your name. This ensures it’s exclusive to you.
The process of registering a trademark depends on where you live. But if you’re located in the US, you can apply online through the USPTO Trademark Center.
Get a business license
Cleaning businesses may not need special certifications to run. But they may still need a local business license to operate.
You can find out if you need a business license by Googling “business license requirements” followed by your city or state. If it’s required, you can usually file for it online or over the phone.
Get an Employer Identification Number, or EIN
You need an EIN to file taxes for your business, open a bank account, and process payroll for employees.
The good news is, getting an EIN is free. Register for an EIN with the IRS.
File for your sales tax certificate
If you’re collecting sales tax for your cleaning services, you’ll need to apply for a sales tax certificate.
This depends on the state and city you live in.
Just Google “sales tax certificate” and your location to find the right resources for your area.
3. Get a business bank account and insurance
Next, you’ll need to set up a business bank account and business insurance to manage your operations professionally.
Your insurance needs mostly depend on whether you plan to hire employees. At the very least, you should file for general liability insurance. This liability protection will defend you against property damage or injury claims from customers when you’re on the job. If you have employees, you should also look into workers’ compensation. This protects employees in the event of on-the-job injuries or illnesses.
Do you plan to use a vehicle for business purposes? If so, consider commercial auto insurance. These commercial plans typically offer more protection than personal auto insurance. But they may also cost more, so be sure to compare quotes.
4. Purchase your essential cleaning supplies
For house cleaning, you need essential cleaning supplies like:
- A high duster
- Glass cleaner
- Trash bags
- All-purpose cleaner
- A floor cleaning agent
- Microfiber cloths
- Paper towels
- Gloves
- A mop and bucket
- A vacuum cleaner
For commercial cleaning, you need a vacuum, a mop, and a bucket. You’ll also need industrial cleaning products. These are different from standard home cleaning supplies and are typically sold in hardware stores or janitorial supply stores.
Other supplies include:
- Paper towels
- Microfiber cloths
- All-purpose disinfectant cleaner
- Carpet cleaner
- Glass cleaner
- A neutral pH floor cleaner
- Bathroom cleaner
What about eco-friendly products, you ask? This depends on your client’s preferences.
Eco-friendly cleaning is easier to implement for commercial clients. That’s because many commercial products are manufactured with eco-friendliness in mind.
For house cleaning, it’s still great to offer. But it may take longer and require more effort. Your everyday eco-friendly product can’t cut the grease like Scrubbing Bubbles, for example. So offer it if you want, but make sure to charge more, since the products are expensive and it extends your cleaning time.
Pro Tip: Underrated vs overrated cleaning supplies
Underrated: Dawn dish soap. It’s like an all-in-one purpose cleaner. If you have nothing else but that and a rag, you can clean anything — floors, windows, everything.
Overrated: Bleach. It’s not good for your health, it ruins clothing, and we don’t need it for most jobs.
5. Set up your business’s tech stack
The final step to starting your cleaning business is setting up a basic tech stack: your business phone, website, and Google profile. I’ll break down each of these, so you have a better idea of how to get started quickly.
As a first-time business owner, you’ll learn about a lot of different cleaning business software tools. But make sure you focus on learning and setting up one thing at a time. If you need a business phone number, for example, complete that task before moving on to the next one.
I see far too many people trying to learn QuickBooks, BookingKoala, a phone system, and web design all at once. That’s a lot to manage, especially for a small business owner. No wonder you feel like you’re not making progress!Also, be sure to consider whether each tool is a real need right now. You don’t necessarily need every tool to get started. As you grow, you can acquire more platforms, like how to use AI for cleaning services.
Get a business phone
Getting a business phone number early on helps you separate work from personal calls. You can easily see when a customer is calling, versus a personal call you can handle later.
Another advantage is that you appear more professional to your customers. Prioritize this on day one, so you can present yourself as a larger, polished business.
Other features to keep in mind:
- Set up an interactive voice response system, or IVR. This is sometimes referred to as a phone menu. Do this, and nobody will know it’s just you who’s cleaning properties. For example, one time, I was literally cleaning toilets and got a call. Since I had an IVR, my team was able to pick up and sound very professional to the client. It’s a big wow factor.
- 24/7 AI voice agent. With an AI cleaning answering service like Sona, you can handle incoming calls 24/7. Sona can answer routine questions, collect contact information, and qualify new clients. For example, Sona can ask questions about the square footage of a potential client’s property.
You can also let Sona send texts to clients on live calls. This could be URLs to booking links or janitorial services like window cleaning. It’s like having your own personal assistant for when you can’t pick up the phone. - Business hours and after-hours call routing VoIP phone services like Quo, formerly OpenPhone, help you set up automatic call routing for your incoming calls. You can choose how your team receives incoming calls at any time of day. For after-hours calls, you can set up call forwarding to a backup number, to Sona, or to a voicemail. You have full control over your customer experience on the phone.
As you scale and add more people to your team, a business phone system like Quo can help you collaborate more effectively.
Quo helps split responsibility for incoming calls and texts with shared phone numbers. That way, you can review customer requests in a shared inbox. You can also tag-team on responses with internal threads and mentions.
See why Quo is one of the best phone systems for cleaning companies. Sign up today for a seven-day free trial.
Create a website for your business
A website is a must for any modern business.
To get started quickly, use tools like Squarespace or Wix. Both of these offer drag-and-drop tools so you can easily set up an online presence.
Other business management platforms, like BookingKoala and Jobber, offer website creation tools. These can be helpful if you want to keep costs low. Plus, they offer features for more than just lead generation. BookingKoala, for example, can help with setting appointments. Jobber can help you organize clients in a dedicated CRM.
Set up your Google My Business profile
Customers need to know that your business is legitimate. With a Google My Business profile, also known as GMB, you can easily show up in local search results. It helps collect reviews from your customers, so you don’t have to rely solely on word of mouth.
Keep in mind that a GMB profile is also needed to run Google Local Services Ads. These ads can generate your first set of leads.
But don’t get held up in the minutia. All you truly need to start a cleaning business is:
- A professional phone system
- A professional email
Even without a website or a booking form, those two things will make you instantly look more professional.
Get started with your cleaning business today
Starting a cleaning business from scratch is often much easier than it sounds. If you do your research, get insurance, and build a solid business structure, you’ll already be off to an excellent start even as a solo cleaner.
The make-or-break moment for your business comes down to your tech stack. Surround yourself with quality business tools, particularly a business phone system, to stand out right away. This will help you present yourself as a polished professional so you can command the price point you deserve.
Ready to dive deeper? Here are more resources to help grow your cleaning business:
- How to get cleaning clients. Learn the exact strategies I used to grow my cleaning business. We’ll cover Google My Business, posting in local Facebook groups, building a customer referral program, and more.
- How to price cleaning services. Find out how to price your cleaning jobs. Learn why you should start with per-hour versus flat-rate pricing, when to revisit rates, how to communicate increases, and more.
- Is a cleaning business profitable? Understand where cleaning businesses make mistakes with managing cash flow and profit margins. I’ll point out common traps to avoid and how you can prevent scope creep with your customers.
