Starting a cleaning business can be an ideal way to begin your journey as an entrepreneur. Although they may seem simple, cleaning businesses have a lot going for them.
Cleaning is a service that will always be in demand, and you don't need an enormous amount of capital or any special training to get started. As a business model, cleaning will never be challenged by ecommerce, and the industry is not dominated by any major players.
Though cleaning may not be the most glamorous type of business in the world, a well-managed and marketed cleaning business can generate good profits and become a trusted part of your client’s lives. Starting up a cleaning business doesn’t have to be complicated, and in this guide we’ll cover what you need to know.
The industry breaks down...
One of the first things you’ll need to decide on is the type of cleaning business you want to run. You have a few different options:
Cleaning people’s homes and private residences
Cleaning factories, warehouses and other industrial areas
Cleaning offices and similar work spaces
Government, education and other publicly-funded facilities
Cleaning shops and other retail spaces
Cleaning that requires slightly more special attention, including medical and healthcare facilities
Other commercial areas and businesses
You can go even more detailed than this and focus on narrower areas of cleaning. This might include:
Cleaning premises that are being put up for sale or rent, or cleaning homes or apartments in preparation for move in/out
Cleaning home exteriors, driveways, and other surfaces using pressure washing and similar techniques
Removing stains and dirt from soft furnishings
Cleaning all types of window treatments and finishes
Explore the market opportunities in your area to see where you can make the most impact.
Running a cleaning business could be a good option if you:
You'll need to make sure all your employees are great at dealing with demanding clients.
The barrier to entry for cleaning businesses is very low, and there are always new entrants into the marketplace.
Cleaning isn’t an extremely well-paid job, so there can be fairly rapid employee turnover.
Cleaning is a very people-focused business, so you will constantly be interacting with customers and employees.
Your cleaners will need to clean to the very highest quality, so they will need excellent training and materials.
On any given day you will be:
Before you start your business, there are a few key areas you need to focus on. You will need to figure out whether there’s a demand for your cleaning business services, consider potential benefits and pitfalls, understand how your business finances might look and ensure everything is in order.
Before you launch your cleaning business, you need to understand if there’s a demand for what you’re selling. That means carrying out market research and “validating” your services. Here’s how to go about it:
Finally, you should put your business plan together. Business plans do vary slightly, but they should cover the following areas:
Now that you have all the background information for your cleaning business, it’s time to make it into a reality. That starts by choosing the right structure or “legal entity” for your business. In the U.S., there are four main business structures. They are:
This is the "default" business
structure and is what your
business will be if you decide
not to create a more formal
structure.
We don't
recommend this type of
business as it doesn't give
you the legal protections you need.
The most common type of business entity. An LLC is fast, simple and inexpensive to setup and maintain. It protects your personal finances and assets and is a great way to start your real estate
This is a special type of LLC entity that's only available in certain states. It allows you to create "mini" LLCs, each with their own limited liability and separate assets, under the umbrella of a master LLC.
This is a more complex type of
business and isn't generally
recommended for smaller
organization.
These are the largest and most
complex types of businesses
and are far more than the
average entrepreneur or
business owner will need.
Liability protection and insurance will both be very important for a cleaning business. Although people are careful, accidents can happen, so limiting liability and having good protections in place will be essential.
Once you've legally created your cleaning business, you’ll need to get some other things in place.
Where are you going to run your business from? Will you work from home, get an office, use a shared working space or something else? You will likely run your cleaning business from home, but spend most of your working time in other locations. Alternatively, you may have a small office or commercial space where you can keep materials, provide training and work with employees.
What equipment do you need to manage your cleaning business? You will need a laptop, computer or smartphone to communicate with clients. You will also need transportation and cleaning supplies. Don’t forget equipment like vacuum cleaners, extendable dusters, steam cleaners and the like. Make sure you understand exactly what you need to spend so you can write it off against business expenses.
You will probably need to build a website and have a brand and logo professionally designed. You should also look into local search advertising.
Think about the business processes and software that you’re going to use to run your business efficiently and effectively.
If you’re not doing all the cleaning yourself, you will need to hire employees to help you out. More on that below.
