How to Start a Cleaning Business: 10 Steps to Take Action Now
If you’re wondering how to start a cleaning business Limited Liability Company (LLC) or Corporation, cleaning technicians, janitorial services, and other housekeeping-related businesses will benefit from our article and helpful guide. Read on for steps to form your cleaning company online quickly.
MyCompanyWorks has helped cleaning companies form LLCs and Corporations since 2001. Read our startup guide and register your cleaning business with our exclusive Startup Wizard, included with all business startup packages. Find licensing requirements, business insurance, recruiting help, and more all in one place.
So You Want to Start a Cleaning Business
If you’re reading this article, you’re probably seriously considering starting a cleaning-related company. Any kind of cleaning service is an excellent starter LLC or Corporation. Once you have decided to make the commitment, there are several items you’ll need to start, manage and grow your company. Starting a business for cleaning requires a rather low initial investment and can become profitable quickly with the right marketing plan (more on that below). It can cost up to about $1,000 for equipment and supplies to get started. City, county, and state laws and regulations vary, so you will need to contact your local business authority to get specific requirements. We’ll go over the general details and share helpful links throughout this guide.
Common Cleaning Supplies and Equipment
You may find that you need specialized supplies and equipment, but here is a good list of common items to stock your cleaning service.
- Trash bags for various sizes of kitchen and office wastebaskets
- Plastic buckets for mixing and using cleaning solutions
- Rubber gloves to protect your hands from harsh cleaning chemicals
- Ventilated masks to use while working with cleaning solutions
- Floor cleaning solution for vinyl, wood, tile, and stone floors
- Cleaning supplies for bathrooms and kitchens
- Vacuum cleaner
- Brooms and dustpans
- Mops for hard surface floors
- Cleaning rags towels for dusting
- Cleaning supply cart
- Disinfecting wipes
How to Start a Cleaning Business: Some Advice from the Experts
- Study the market to determine fair pricing and services potential customers are looking for. Find a problem in your local area and design your business model to solve the problem. Perhaps your area has a lot of mold or dust that requires special products or extra cleaning. Addressing specific cleaning problems is a great way to market your business to qualified customers.
- Time management and scheduling are critical if your cleaning service is going to be profitable. When scheduling your jobs, consider where they are and how long it will take to finish the work. If you’re going to clean more than one house or building in a day, you’ll need to plan for you and/or your crew to have time to do a thorough job and finish in time for your next project. Some jobs require more staff and time, so you may not be able to clean more than one building every day. As time goes by, you’ll figure out the days and times that work best for specific cleaning jobs. You can even schedule customers who are close together on the same days to save drive time and working hours.
- Even though you own the business, you should still run it as though it’s your “job”. Keeping a regular schedule builds confidence with potential and existing clients. Most people live on a routine, so your customers want to know that you’ll show up consistently and on time. It’s especially important for new cleaning and janitorial businesses to gain trust with customers, so they continue to hire your company for their cleaning needs.
- Cheaper products aren’t always better. If you build quality cleaning products into your business model, you can use them as a marketing tool to customers who may have allergies or are just willing to pay a little more for better products to clean their homes and offices. There is a huge customer base who insist on eco-friendly products or they have allergies and require allergen-free products.
- Even if your employees have cleaning experience, you’ll save untold time and money on turnover and wasted training if you train them well – the way you want them to clean. You don’t have to micromanage your workers, but giving them thorough training when they start will help them to start strong with a clear understanding of your processes. You can also offer perks like paid time off or flex time to encourage employee morale and loyalty to your company. After all, you don’t want your investment to walk out the door after you have spent the time and money to train them.
- If you’re great at cleaning, but not so much with financial, legal, and tax details, you may want to hire an experienced assistant or even a tax professional to manage your books and taxes. All businesses are required to file annual or semi-annual state reports to keep their companies open. Late fees, penalties, and interest can be hundreds, or even thousands of dollars if your business filings aren’t completed on time. MyCompanyWorks Premium™ puts your cleaning company on auto-pilot. We’ll file your annual reports, check for business compliance, and provide over 200 business and tax forms and lots of other “freebies” to keep your business in good standing.
- High turnover, lack of proper training, lack of communication, and lack of systems to manage employees and guarantee quality for paying customers are issues that all small businesses face. Labor, training, productivity, safety, and budget can make or break a startup business. Take time to consider these factors and create a plan to address them before they become a problem. Our blog has many articles on business startup and management to help you start your entrepreneur journey.
1. Choose a Name and Business Type for Your Cleaning Business
- A good business name should be short, catchy, and easy to pronounce. You want customers to remember it and share it with friends and family.
- The name should also reflect the type of services that you offer. For example: if you are a company that specializes in window cleaning, your business name might include “Window Cleaners”. If your business performs a variety of tasks, you may want to go with a broader name like “Larry’s Top-To-Bottom Cleaning”.
- Pick a company name that will grow with your business. If you plan to start with one service, but expand later, you’ll want to use more general terms in your business name (like “Cleaning”, instead of just “Windows”).
- Decide on the right business type for your cleaning service – LLC, Corporation, or DBA.
2. Write a Business Plan for Your Cleaning Service
Why do I need a cleaning service business plan?
If you have enough cash, you may not need a business plan for financing, but you may still need one to rent space or apply for a business bank account and financing when it’s time to expand. Not only is a business plan required to apply for financing, it’s actually a great way to track your progress and update as you grow your business. This is where a business plan template can come in handy, as they’re designed to be customizable and flexible enough to fit the needs of your company. Check out our Business Planning Resources for help and more information. The templates below have plenty of information that can help you understand how to grow your business, including sections for financials, market research, industry trends, and more.
What is included in a good cleaning services business plan?
To start a cleaning service, be sure to include an executive summary, marketing strategy, and financial statements in your business plan. In the executive summary, include your mission statement as well as a description of your company and the benefits you offer. The marketing strategy is where you’ll detail how you will promote your services to potential clients. A financial section should include information such as how much money will go towards salaries. A business plan can be a vital tool for tracking goals, refining methods, and collecting resources the business will use to accomplish its objectives.
What’s included in a cleaning service business plan?
- A mission statement
- An objectives list
- Current and target markets
- Products/services
- Marketing/sales strategy
- Competitive landscape
- Financial projections
Related Articles and Resources
How to Write a Small Business Plan | Business Entity Types | Use a Checklist to Start a Business Fast
3. Apply for a Federal Tax ID – Also Known as Employer Identification Number (EIN)
The process of applying for a Federal Tax ID, also known as an Employer Identification Number (EIN), is relatively straightforward and can be completed in just a few minutes if you have a Social Security Number. International business owners must satisfy additional requirements if they don’t have a social security number.
What is an EIN?
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify a business entity. It is used for tax purposes. The EIN is used in conjunction with the company’s name and address to identify the company.
How to apply for one?
If you have a social security number, you can apply online for an EIN with the Internal Revenue Service (IRS). We can request your EIN for you with any cleaning LLC or Corporation startup package.
What are the benefits of having an EIN?
With an EIN, you can open a business bank account, hire employees and pay taxes. If you use a “Doing Business As”, or DBA, you’re only required to have an EIN if you want to hire workers. But if you don’t have an EIN, you’ll have to use your personal Social Security number on all business tax and legal documents, which can cause problems in the future. We recommend that all businesses that use DBAs should still apply for an EIN to separate business and personal matters.
4. Open a Business Bank Account
You can start with your personal bank to find out if they offer business banking solutions. If they don’t, you can contact any local or online business bank to open an account. Bank requirements vary, so you may want to interview a few to make the best decision for your cleaning service. Our banking partners can also help you find the best cleaning service business banking solutions.
5. Find a Location for Your Cleaning Service
A commercial real estate broker can help you find an office or warehouse based on budget, location, and lease terms. Any of the providers in our Vendor Network can help you find a suitable space for your cleaning operation.
6. Apply for Cleaning Service Licenses and Permits
Most businesses do not require federal licensing, but you will need to be licensed in the state where you run your company. Find out more about where to start your cleaning service here. You can either check with your county and state to find out what’s required for licensing, or you can order a business license compliance package to save time and money.
Some of the permits, disclosures, and licenses might include fire code certificates, hazardous materials disclosures to cover cleaning chemicals, and environmental permits to ensure proper waste disposal. If your professional cleaning service sells products, you’ll also have to apply for a sales tax or reseller permit with your state. Companies that only charge for services typically do not need a sales tax permit, but some states tax both products and services. You can confirm sales tax details and requirements with your state business authority.
7. Apply for Business Insurance
Cleaning industry business insurance varies by region and specific type of cleaning services you perform, but you can expect to pay anywhere from about $300 – $1,000 for a business insurance policy. You may need to purchase a surety bond to cover loss and damages related to your cleaning jobs. Other common business insurance policies include General Liability, Workers’ Compensation, and commercial vehicle insurance. Our recommended vendors Hiscox and netQuote offer free quotes and will help you get the exact policies needed for your cleaning service.
8. Set Up Accounting and Filing Systems
Your company needs a program or system to manage all your finances. Products like Quickbooks Online are very simple to set up and their support team is available 24/7 with certain plans. If you’re better at cleaning than accounting, you can also hire a professional bookkeeper or an accountant to manage your business finances for you. Many bookkeeping and accounting professionals offer a range of services, from payroll to filing your business tax returns. Visit our Vendor Network for a list of recommended and qualified financial experts in your area.
There’s a lot of paperwork that comes with running a business. Invoices, receipts, bills, tax, legal, and business documents all need to be organized and easily accessible. You can set up digital storage or just file everything in a secure filing cabinet. Choose the method that works best for you, but stick to it. It’s much easier to file and organize as you receive new documents than it is to sort through a messy pile of papers later on. Here are some categories to consider when you start your filing system:
- Tax Documents – filed tax returns, supporting documents, 1099s, etc.
- Legal Documents – business formation articles, business licenses, and permits (if licenses and permits aren’t required to be displayed)
- Employee Records – job applications, W4 forms, annual reviews, disciplinary actions, etc.
- Vendor Files – account details, contracts, invoices, payment receipts
- Customer Files – account details, contracts, invoices, customer satisfaction surveys
9. Interview and Hire Employees
How do I recruit cleaning staff?
Business is booming for janitorial services, housekeeping businesses, and commercial cleaning services. Whether you need part-time or full-time staff, you can post job ads online for free in many cases. Indeed.com, LinkedIn, and local job post sites are very popular with job seekers. Here are some things to consider before you post a job ad.
Set up an employee manual and training program
Before you start hiring, you should have an employee manual to cover orientation, employee reviews, and policies and procedures for things like employee time off, how to use cleaning equipment, and general responsibilities and safe operation. You can download free employee manual templates online and edit to fit your cleaning service.
Write a job description for cleaning staff
Make a list of all the tasks your employees will perform. Will they need to clean windows, climb ladders, or work in closed or confined spaces? When you’re writing the job description for your employment ad, you’ll want to list as many details as possible to clearly define employee roles and help job seekers decide if a cleaning job is right for them.
Post job description, interview, and hire
Even with a detailed job description, you’re likely to receive applications from job seekers who don’t have the skills required to do the job. You may receive hundreds of applications for just one job post, so be prepared to review resumes and only schedule qualified candidates for interviews. Indeed.com has a free recruitment guide download to help you recruit the right cleaning staff.
NOTE: You can expect to interview 6-10 candidates to hire one employee.
10. Market Your Cleaning Business
Website, email, and social media
Marketing is an important step in your startup journey. Using the best marketing strategies and tools to promote your services in your area can help you to establish a customer base quickly. You may not need a website to run your business, but many potential customers look for businesses on the web before calling around for housekeeping or janitorial services. If you don’t have a website, you can order one with an email and web domain as an add-on to any of our cleaning startup packages. Email marketing still works, so make sure to start a regular newsletter or email campaign to keep customers informed and give them something to forward to potential new customers. Social media outlets such as Instagram, Facebook, and Twitter are also great ways to gain a following and increase your brand awareness. You can post content about previous cleaning jobs or what you do on your website. Just be sure not to spam users so they’re not turned off by loads of insincere posts.
Find customers with lead apps
Apps like AllBetter and Tidy can help licensed cleaning technicians find qualified customers quickly. You can also post ads on your local Nextdoor page. Claim your free Nextdoor business profile here. A Google search for “cleaning business marketing ideas” can help you find other apps and tools to grow your business.
Find out how to start a business in any state and get started today with our helpful guide
Ready to start your business? Our FREE Startup Wizard is included with every business startup package. Work through the step-by-step process to start and manage your LLC or Corporation all in one place.
Conclusion and Next Steps
Starting a cleaning business can be an exciting and profitable experience. You’ll have to invest in cleaning products, equipment, licensing, insurance, and recruiting before you start to make money. But if you stick to a solid business plan, you can regain those dollars and start turning a profit rather quickly. Experts advise you to study your local market, manage time, buy quality products, and properly train your employees for success. There’s a lot that goes into forming a cleaning company, but it’s worth setting up systems and processes before you start cleaning, so you don’t get bogged down with tax and legal issues in the future. If you have read our guide and decided a cleaning business is right for you, it’s time to get started!
Cleaning service companies are fairly simple to start and manage, but if you’d rather let someone else handle the details, MyCompanyWorks can start your cleaning LLC or Corporation online. All business startup packages include our exclusive Startup Wizard and loads of forms and tools to manage your company in one place. Our blog is also full of articles, resources, and links to help you run a successful company.
How Can We Help You?
Still have questions? Our Frequently Asked Questions page answers the most common business startup questions. If you don’t find what you’re looking for, our friendly support team is standing by. Contact us by phone or chat for more information to start the cleaning business startup process today.
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