The projected growth rate for the global contract cleaning service market is 6.3% CAGR, starting from its estimated value of $343 billion in 2022. This expansion is fueled by an increasing demand for cleaner and healthier workplaces, driven by a growing emphasis on health and environmental consciousness. Explore our tips to help you establish and run a successful cleaning business.
What is a cleaning business?
A cleaning business refers to a service-oriented company offering a variety of cleaning services to individuals, households, and commercial entities. These services encompass regular home cleaning, deep cleaning, post-construction cleaning, office and commercial cleaning, and specialized cleaning tasks like carpet cleaning and window washing.
Cleaning businesses have the flexibility to provide services either as one-time arrangements or on a recurring basis, tailored to the specific requirements of their clients. They often offer customizable cleaning packages to accommodate diverse needs.
Entrepreneurs seeking low-cost business opportunities may find starting a cleaning business appealing due to its modest initial investment requirements. It serves as a viable option for those interested in the service industry, providing a valuable service to clients while managing operational costs effectively.
8 tips for starting a cleaning business
1. Form your Legal Business
When setting up a cleaning business, you’ll need to think about what business structure will work best, including registering your company with the appropriate authorities, both locally and nationally.
Many would-be company owners struggle to make sense of the differences among an LLC, a sole proprietorship, a partnership, and other business structures, much alone settling on one.
A company incorporation service can help you determine the best business structure for your company based on factors like the level of liability protection you require, the laws of the state in which your company will operate, tax filings requirements and the type of license you will need to legally sell your service and products.
In the case of cleaning businesses, we advise you to choose one of these legal forms:
- An LLC might have a single owner or several owners.
- A corporation
In the U.S, limited liability companies (LLCs) are favored over sole proprietorships because their owners are shielded from personal liability for corporate debts and obligations.
Naming your cleaning business
The process of naming your cleaning enterprise may be a lot of fun. Create a list of terms that best describe your company’s values and goals. Then, put those words to use in creating new, meaningful two-word and three-word combinations.
Try mixing and matching words that signify the same thing to hear what you come up with. Last but not least, check online to see whether the company name you want to use has already been taken.
2. Setup your Business Bank Account
Depending on your needs and the amount of money you want to deposit, there are different kinds of business accounts you can set up for your cleaning business including:
- Checking Accounts: The most typical form of business bank account. Opening a company checking account is simple and provides a number of advantages. Having a bank account means you may quickly and simply add or remove funds as your needs change. You may use your checking account to pay bills and vendors by writing checks.
- Savings account: With the return you may receive on your savings, it’s a terrific way to build up a rainy-day fund for your cleaning company. Savings accounts, on the other hand, may have withdrawal restrictions and provide lower interest rates than checking accounts.
Before deciding on a bank account, it’s a good idea to do a comparison of different business banks for features and fees, including FinTech banks with very competitive benefits of no monthly fees, no minimum balances and an unlimited number of transactions compared to traditional high street bank offerings.
3. Organize Your Accounting, Taxes & Credit Card reader
Setting up a reliable accounting system will allow cleaning business owners to keep tabs on all kinds of financial transactions from sales (income & invoicing), purchases (expenditure), liabilities (bank loan funding) to taxes due to the IRS or similar.
The books for your cleaning business can be organized in a few ways:
- Online accounting software, including QuickBooks and Wave, are available.
- Get a professional accountant to assist you
If you choose to handle things on your own, pick a system that is intuitive and simple to use. When your accounting system is ready, you can begin recording your earnings and spending. If you want to save money, you can now see exactly where it’s being spent meaning future budgeting is simplified as a result.
Business owners should be careful to maintain a consistent schedule of accounting maintenance. This calls for putting time in your calendar on a regular basis to check your books and make any necessary changes. While this may appear to be a lot of extra effort, it will ultimately save you time and energy.
Before you can start your own company, you have to get yourself registered for a number of different taxes, both federal and state, first. Your business has to submit an application for an EIN (Employer Identification Number), which is a simple process and is free of charge. Doing so will allow you to register for taxes.
Through the Internal Revenue Service’s website, you can obtain your EIN. There are certain taxes imposed by states that might be applicable to the operation of your firm.
Credit card readers
Cleaning businesses will of course need to take payment for the services and products they provide. Having access to a low-cost POS card machine is essential to ensure your business can take payment from your customers in a quick and easy manner.
A card reader such as the Payanywhere Smart Terminal offers a simple pricing model, next day funds in your bank account, integrates with your Quickbooks accounting software and can also provide valuable data insights into sales trends, inventory management and customer behavior.
4. Launch your cleaning website & social media
A stunning site for your fresh cleaning company can be created very easily via:
- DIY building the business website yourself using a Page Builder or
- Hiring a qualified web designer to build effective landing pages that can drive new leads for your business using high-quality photos, videos, and other visual components that are in keeping with your brand’s aesthetic.
Having a slick, mobile-optimized website has numerous benefits for any business including:
- Attracting new customers 24/7, showcasing your services and products at any time
- Credibility, making it easier to attract and retain customers
- Online presence for Google searches actively looking for cleaning services in your area
- Customer engagement by helping to engage with customers regarding business info, photos, videos, feedback forms as well as contact forms
- Branding A website can help businesses establish and reinforce their brand identity, by incorporating their logo, color scheme, and other branding elements into the design.
Marketing & Social Media
Social media including Instagram, TikTok, Facebook and Twitter are powerful tools for a cleaning business as they can increase your business visibility, ability to engage with customers, establish and reinforce brand identity, and gather valuable data insights to improve marketing strategies.
Platforms such as Instagram and Facebook alone have billions of active users, providing a cleaning business with an opportunity to increase its visibility and reach a wider audience.
Direct Marketing can also be used in the form of Facebook and Google online ads on these platforms to market services and products to potential customers. Backflow testing businesses can use targeted ads to reach specific demographics and interests and use the campaign data to make informed decisions about your next marketing campaigns to drive more sales.
5. Create a Brand Identity for your cleaning business
To differentiate your company from your competitors, you’ll need to take some time to prepare and concentrate on how you want your consumers to feel & develop a unique personality for your cleaning business. From the logo’s design to the brand’s color scheme, there is a lot to think about.
A unique and memorable logo for your business can be professionally created by a talented Graphic Designer from a Logo Design service.
Hiring a logo design service can save a business time and money by eliminating the need to spend hours researching and creating a logo and a high-quality logo can be designed quickly and efficiently.
The steps to think about include:
- 1). Establish the vision and values that guide your cleaning company. What are you hoping to accomplish with your company? When people consider your cleaning brand, what do you want them to feel?
- 2). Go with a color palette that conveys who you are as a business. Colors say a lot regarding a product or service. If you’re stuck for inspiration, research competing products in your field to discover what colors they’re using.
- 3). Create a distinctive logo for your cleaning line. This is the first thing that customers will associate with your brand, therefore it has to be striking. Get in touch with an expert designer to develop a logo that captures the essence of your company while also looking great.
- 4). Make sure your branding is the same across all platforms. This should include your website banners to your business cards, your logo and color palette are always consistent with your brand. As a result, your brand’s identity will be strengthened and your company’s name recognition will increase.
Making a name for your cleaning company is unlikely to be as difficult as you would think. Creating a brand that sticks with consumers requires zeroing down on the company’s raison d’etre and core principles. A distinct identity for your cleaning business may be developed with some forethought and imagination.
6. Develop a Business Plan for your new cleaning
A well-developed business plan is a crucial tool for any entrepreneur looking to start a successful business. The plan should include your cleaning company’s mission and vision, target audience, product offerings, marketing and sales strategies, and financial projections.
The business plan should be regularly reviewed and updated to ensure that the business is on track to meet its goals.
A business strategy should cover the following:
- Market Analysis: An in-depth look at how the market for bricklayers is doing now and how it could grow.
- Business Summary: A description of your new cleaning business, including its purpose, goods or services, and target market.
- Business Strategy: A thorough plan that explains how the business is going to reach its goals.
- Financial Strategy: How much money you expect to make, spend, and need for cash.
- Marketing Plan: How the business will sell itself and what strategies and methods will be used.
- Operations: This is an account of the business’s working methods and practices.
7. Get Financing for your cleaning business
For your cleaning business, you can use personal savings or decide to use financing solutions for your new venture and you’ll have different options to consider which may work best: A bank loan, crowdfunding, investors or something different.
A clear, detailed, and comprehensive business and financial strategy is usually expected by banks or other partners from whom you seek for funding. To launch a firm, you could require funding from a bank, credit union, or the Small Firm Administration (SBA).
A home-based cleaning business can be started with as little as $1,000 to $2,000, while a larger operation with employees and more equipment may require a start-up cost of $10,000 or more.
The cost of a franchise can range from $10,000 to $100,000 or more, depending on the brand and the services offered. It’s important to have a solid business plan and budget in place before starting a cleaning business, to ensure that all expenses are accounted for and the business can remain profitable.
The start-up costs for a cleaning business can vary depending on the scale of the operation and the services provided. Generally, the expenses can be divided into two categories: equipment and supplies, and business expenses. The equipment and supplies needed include cleaning products, tools, and equipment such as vacuum cleaners and mops. Business expenses include costs such as licensing and permits, insurance, marketing, and legal fees.
8. Business setup essentials
There are a number of different considerations which cleaning businesses should keep in mind when setting up including:
- Finding a Niche: Determine specific cleaning services, research competitors, identify your ideal client, and establish a unique selling proposition (USP).
- Permits: Obtain necessary permits, licenses, and registrations to operate legally, complying with state, city, and county regulations.
- Insurance: Obtain general liability insurance, workers’ compensation insurance, and commercial auto insurance to protect against liabilities.
- Cleaning Supplies and Equipment: Acquire appropriate cleaning supplies and equipment to ensure efficient and effective services.
- Transportation: Arrange reliable transportation, either company-owned or personal vehicles, to facilitate mobile services.
- Staffing: Build a team of qualified staff, either as employees or independent contractors, with proper screening and training.
- Marketing: Develop a robust marketing strategy, including creating a website, establishing a social media presence, and networking with potential clients.
- Safety Protocols: Establish and adhere to safety protocols for chemical usage, equipment safety, and emergency response plans.
- Customer Service: Prioritize excellent customer service through clear communication, prompt issue resolution, and follow-up to ensure client satisfaction and encourage referrals.
Training needed to open a cleaning business?
To ensure the success of your cleaning business, it is crucial to possess knowledge about diverse cleaning methods, equipment, and chemicals. Additionally, training on handling different surfaces, stains, and contaminants is essential. Numerous resources can aid in obtaining the necessary training and certification in the cleaning industry, including:
- Industry Associations: Renowned associations like the International Sanitary Supply Association (ISSA) and the Building Service Contractors Association International (BSCAI) offer comprehensive training and certification programs for cleaning professionals.
- Manufacturer Training: Many manufacturers of cleaning products and equipment provide specialized training programs tailored to their specific products.
- Online Courses: An array of online courses is available for cleaning professionals, covering topics such as effective cleaning techniques, safety protocols, and customer service skills.
By leveraging these resources, you can enhance your expertise, stay updated with industry standards, and deliver top-notch services to your clients. Ongoing training and certification not only demonstrate your commitment to excellence but also contribute to the growth and reputation of your cleaning business.
Regulations for opening a cleaning business?
Cleaning businesses are subject to various regulations that differ based on the location and type of services provided. Here are key regulations for cleaning business owners to be aware of:
- Business License: Obtain a valid business license as required by the city or state where your cleaning business operates.
- Insurance: Acquire liability insurance to safeguard against accidents and damages that may occur during cleaning operations.
- Labor Laws: Comply with labor laws pertaining to minimum wage, overtime pay, and proper classification of employees.
- Environmental Regulations: Adhere to regulations governing the proper disposal of cleaning chemicals and waste to protect the environment.
- Safety Regulations: Ensure compliance with Occupational Safety and Health Administration (OSHA) regulations, providing a safe workplace for employees and offering appropriate training on equipment and cleaning chemical usage.
- Tax Laws: Abide by federal, state, and local tax laws, including registering for the necessary tax identification numbers and fulfilling tax obligations.
Is cleaning a good business to start?
Cleaning business can be profitable with low startup costs, high demand, and margins of 10-30% based on location, services, pricing, and competition.
How do I set up a cleaning business?
Establish your cleaning business by defining your niche, obtaining licenses and insurance, acquiring equipment and supplies, setting prices, hiring staff, and formulating a marketing strategy.
What cleaning business niches are there?
Cleaning business niches encompass residential, commercial, specialized services (carpet, window), green cleaning, and post-construction cleaning.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.