How to Start a Cleaning Business in 5 Easy Steps

Before you begin operations, you need to research the market demand in your area. This will help you assess the competition, choose the best location for getting business, and identify your target customers.

For example, you’re likely to get more residential cleaning clients if you offer your services in an area with more homes, such as a suburb or an apartment complex. In contrast, you’ll find more commercial clients if you operate near office buildings or an industrial area.

Once you’ve pinpointed where your ideal operation zone is, take a look at local listings to see whether there are competing cleaning services in your area. Searching local cleaning services online will show you what your competition is offering, and you’ll find out whether there are gaps in the services offered that you can fill.

What does running a cleaning business involve?

Cleaning businesses are exactly what they sound like: companies that offer cleaning services for hire to anyone looking to have a space cleaned. You can have a house cleaning business or an office cleaning business. Both are great options for a side hustle because of the relatively low upfront costs and barriers to entry, meaning that you can get started quickly.

Providing cleaning services as a side hustle often means that you’ll start off working alone. Doing most of the work yourself means that you’ll learn the ins and outs of the business while also controlling your business image and reputation. You can keep costs low at the beginning, and then if/when you’re ready to expand, you can hire more staff and take on a higher workload.

Types of cleaning businesses you can start

As the owner of a cleaning business, you can choose between a few different types of cleaning services:

• Commercial cleaning: Provide janitorial services to businesses, such as office spaces, retail and commercial outlets, factories, restaurants, and warehouses.
• Residential cleaning: Serve residential spaces by cleaning houses and apartments.
• Specialized cleaning: Instead of exclusively targeting residential or commercial spaces, distinguish yourself by offering unique services, such as deep cleaning, pressure washing, upholstery cleaning, event cleaning, or move-in and move-out cleaning.

These different types of cleaning have different requirements in terms of clients, materials, and marketing. For this reason, it’s important to decide which type of cleaning services you want to offer before you hammer out all the other details about your business.

Once you have all the necessary knowledge to start your cleaning business, it’s time to iron out all the details, from writing up a business plan to legally registering and naming your cleaning business.

Creating a business plan

You business plan should outline everything an outsider needs to know about your cleaning business. Ultimately, it fulfils two main functions: ensuring that you know your business inside out and providing a foundation to enter into a partnership or get funding later down the line.

Your business plan should answer the following questions:

• What kind of cleaning services will you offer?
• What are your operating hours?
• What is your cleaning routine?
• What kind of equipment and cleaning supplies will you need?
• What kind of transportation do you need?
• What kind of training and expertise will be required to operate?
• What kind of health and safety standards do you need to comply with?
• Will you run your business as a solo operation or hire employees?
• How much are your estimated business expenses, including cleaning supplies, transportation, and employee compensation?
• What are your rates?
• How many clients do you need to be profitable?
• What kind of payment methods will you use?
• Who are your business competitors?
• What are your goals for the business?

Choosing a business structure

In addition to drafting a business plan, you’ll also need to decide on a business structure for your cleaning company. The type of structure you choose will have implications for what tax and legal requirements you need to meet.

You have three main options:

• Sole proprietorship: You’re running a small cleaning business all on your own without a partner or employees.
• Partnership: You’re teaming up with another cleaner, and the cleaning business is going to be under both of your names.
• Limited liability company (LLC): You want the option to grow and expand your cleaning business by hiring employees, or you just want some extra legal protection for your company.

Sole proprietorships and partnerships are cheaper and easier to establish, but your assets will be at risk if your business isn’t profitable. By contrast, limited liability corporations cost more and involve more paperwork, but because they constitute a legal entity that is separate from you, they protect you from personal liability.

Naming and registering your cleaning business

One of the most exciting parts of setting up a business is choosing a business name. You can either operate under your own name or pick a different name for your business. This is the name you’ll operate under, and you’ll use it when you apply for a company license with your local business registry.

While this is a good chance to get creative and have a bit of fun, make sure whatever name you use is descriptive enough to clearly convey that you offer cleaning services. It should be unique, not already in use, and easy to spell and remember.

You’ll need to register your business name to keep others from using it. According to the Small Business Administration (SBA), there are four separate ways you can register your business name: 1

• Entity name: Protects you at the state level.
• Trademark: Protects you at the federal level.
• Doing business as (DBA): Doesn’t offer any legal protection but, it’s required in most states.
• Domain name: Protects your business website address.

In most cases, you’ll at least need to register a DBA name for your cleaning business. Even if you’re not legally required to do so, it’s a good idea.

Getting a business license and insurance

Different states, counties, and cities have their own rules and regulations for businesses, and it’s important to do your homework before you get your cleaning business up and running to avoid getting into legal trouble.

In most cases, you’ll need a business license to start up a cleaning company or any other type of business. You don’t need a federal business license for a cleaning company, but you may need a state, city, or county license.

Depending on where you live, you may also be required to have protections like business insurance, errors and omissions insurance, worker’s compensation insurance, commercial auto insurance, or general liability insurance before you operate.

Ticking these boxes is important for providing cleaning services legally. If you’re feeling unsure about what you need, get help from a business accountant, business lawyer, or government official to make sure you cover all your bases.

You should also take into account any regulations that might apply to your cleaning services, such as Occupational Safety and Health Administration (OSHA) regulations, local business laws, and homeowners association (HOA) rules. Complying with these will ensure smooth operations free of penalties.

Taxes

If you have a business partner or any employees working for your cleaning business, you’ll need to get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number identifies your cleaning company as a business for tax purposes, and you need it to file your taxes or open a business bank account.

You’ll need to pay taxes on the income that you get from your cleaning business if you pass a certain threshold, and you may need to pay additional taxes depending on your business structure, such as self-employment or employment tax. Be sure to check the IRS website to find out exactly what your tax obligations are to avoid getting into legal trouble.

The financial side of running a business can be intimidating, but it’s a key factor influencing how much money you make as a professional cleaner and ultimately how successful your business becomes.

Create a budget

If you budget effectively and put thought into your pricing, you can maximize earnings from your cleaning company. Figure out how much you need to spend upfront to get the supplies and equipment you need for your cleaning business, and then create a realistic budget for how much you want to spend each month on new cleaning supplies, transportation, marketing, and other expenses.

According to Angi, a service that offers house cleaning jobs, most pro house cleaners spend $40–$50 per month on cleaning supplies. 2 If you plan on providing special services, you may need to spend more on cleaning equipment.

Set your cleaning rates

Many cleaners offer different cleaning packages depending on the extent of cleaning required. Research how much similar cleaning services cost in your area and use these prices as guidance for setting your cleaning rates. Most pro house cleaners charge $30–$50 per hour, whereas most pro office cleaners charge $20–$80 per hour. 2 3

However, you can charge more if you’re providing a special service, such as deep cleaning. It’s also up to you whether you charge by the hour or charge a flat fee based on the size of the property or type/extent of services you’re providing.

Set up a payment system

You could just accept cash payments, but this is only a feasible option if you’re running a small house cleaning business rather than a big company or office cleaning business. Commercial companies generally need to keep expenses on the books, so they may not hire you if you don’t have some kind of payment processor or online payment system set up.

You could use PayPal, Stripe, Square, or another payment processor of your choosing. Ideally, you should ensure that funds are going into a special business bank account that’s separate from your own personal bank account.

Document your finances

Establishing a paper trail won’t just help you keep on top of your financials as a solo cleaner—it’s also crucial if you decide to hire employees. In this case, you’ll need to develop a timesheet, payroll system, client processing checklist, and inventory list.

In your first few months running your cleaning business, pay careful attention to your income and expenses. If you find that you’re losing money or your current financial strategy isn’t sustainable, make adjustments until you find a good balance.

When you’re ready to begin offering cleaning services, you’ll need to buy or source the items and equipment necessary to get your cleaning business off the ground.

Here’s a checklist to start off with:

• Face mask
• Gloves
• Sponges
• Cleaning cloths
• Trash bags
• Sponges
• Paper towels
• Dusters
• Vacuum cleaner
• Mops
• Buckets
• Brooms
• Dustpans
• Bleach
• All-purpose cleaners
• Dishwashing soap
• Toilet cleaner
• Spray bottles
• Glass cleaners
• Extendable pole
• Safety goggles

You’ll also need some kind of vehicle to travel to different locations. Plenty of professional cleaners use a van for this purpose, but you can also use a car. Just be sure that it’s big enough to transport everything you need. As mentioned, make sure to keep track of how much each item costs and document all your purchases.

Every business needs to establish a brand, and cleaning businesses are no different. Because you’ll be cleaning properties and spaces locally, you have several options for getting the word out about your cleaning services.

Building an online presence

Even though cleaning is a physical process you do in person, don’t discount the power of the internet. Creating an online presence is low cost and will make it much easier for clients to find you.

Start by creating a website for your cleaning business. Next, add business listings and social media pages. You can also participate in online forums and offer your services on localized service platforms.

Advertising

You have a few different options for advertising your cleaning services:

• Online ads: You can pay to take out targeted ads online. For example, if you sign up for Google Ads, Google will display your business website when someone in your city searches a term like “cleaning services near me” online.
• Physical ads: Hand out business cards, distribute flyers, or make a post on a local community bulletin board, or even rent a billboard if you have the budget for it.
• Media ads: Commission a slot with your local news network or radio station or run an ad in your local newspaper.
• Branding: Create a logo and add it to vehicle wrapping or stickers for your business vehicle or even a simple business T-shirt you wear while working.

There are plenty of ways you can reach out to clients—the key is to create a solid plan that’s flexible and adaptable to your needs. While casting a wide net is great for marketing, it’s also important to make sure you can keep up with the clients that come your way as a result.

Expanding your client base

As a cleaner, you’re demanding a certain amount of trust from clients by going into their homes or being left alone with sensitive office equipment. As such, solidifying a stellar reputation is absolutely essential for succeeding in the cleaning industry and beating out competitors who have years of experience to back them up.

Prioritize customer satisfaction

A cleaning business involves many moving parts, especially if you have employees working with clients on your behalf. It’s important to maintain clarity and transparency with customers, communicate effectively, and leave your customers happy with your cleaning job. Ultimately, customer satisfaction is what will make or break your business.

Regular check-ins with customers and employees alike are great for making sure that everything is going well. As a rule of thumb, it’s best to communicate three times: before, during, and after the cleaning service gig.

Checking in before the cleaning engagement allows you to ask if the client has any special requests or considerations, while a check-in during will give everyone a chance to address any unexpected issues that might’ve cropped up.

The post-service check-in is the most important since this is where you’ll get feedback from clients. You can convert positive feedback into reviews to boost your business reputation and use negative feedback to improve the quality of your services.

Gather positive reviews and testimonials

Offering exemplary customer service can help you attract more customers by leading to positive reviews. Positive word of mouth can be an incredibly effective and hands-off way to grow your cleaning business. Satisfied customers are more willing to refer you to other people they know, and you can sweeten the deal by offering referral coupons and discounts.

Once you’ve snagged a couple of repeat customers, you can also ask them for testimonials to put on your website. This will allow prospective customers to see the positives that people have to say about your cleaning business.

Providing cleaning services is a great side hustle if you have professional cleaning experience or access to some of the starting equipment you’d need. However, if you’re starting completely from scratch, you should weigh the pros and cons before you get your hands dirty.

Pros of starting a cleaning business

Starting a cleaning business has several attractive benefits:

• Full control: As an independent contractor, you can decide which clients to take, what services to provide, when to work, and where to work. This makes a cleaning business a relatively easy gig to fit in alongside other scheduling commitments.
• Accessibility: You don’t need a degree, a certification, or experience to be a professional cleaner. As long as you’re physically capable of doing the work and you have access to the proper tools and equipment, there’s nothing standing in your way.
• No profit cap: There’s always a demand for cleaning services—depending on your niche, your abilities, and your availability, the income you can get from this side hustle has room to grow.

Cons of starting a cleaning business

Despite the perks, managing a cleaning business has its disadvantages:

• No guaranteed gigs: Depending on the needs of the clients in your area, there may be busy seasons and slow seasons for cleaning engagements.
• Wear and tear on your equipment and your body: Cleaning is hard work—you may find yourself with aches and pains if you’re not used to the workload, and your equipment maintenance bills will add up over time.
• High insurance costs: Since cleaning is a high-liability service, it may cost you a lot of money to get appropriate insurance coverage. You may also have to pay for equipment rentals, parking, transportation, and other consumable expenses.
• Strong stomach required: Let’s not sugarcoat it; cleaning is not always pleasant. If you don’t like getting down and dirty, this side hustle is not for you.

In a nutshell, starting a cleaning business requires a lot of responsibility, paperwork, and sensitivity to customers—however, it’s a great side hustle if you have some elbow grease to spare.