Mop up the Competition: How to Start a Successful Cleaning Business

Mop up the Competition: How to Start a Successful Cleaning Business

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Are you the type of person who hates seeing a mess? Do you obsessively clean your home? If you’re looking to break from the 9-to-5 lifestyle and become an entrepreneur, consider starting a cleaning business.

The cleaning industry is worth $78 billion. The cleaning industry is profitable for many reasons; businesses need a clean space and many people don’t have time to clean their homes.

Continue reading to discover how to start a cleaning business.

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Choose Your Business Structure and Apply

Before you begin cleaning homes, you must establish your business with your state. There are many business structures, here’s a breakdown of each:

    • Sole proprietorship
    • Limited liability company (LLC)
    • Partnership
    • S-Corp
  • C-Corp

Most cleaning businesses opt for a sole proprietorship or an LLC. A sole proprietorship is the best structure for beginning businesses. There’s little paperwork involved — just report your structure to the IRS on your taxes.

As your cleaning business grows, you’ll want to register for an LLC. You can separate your business assets from your personal assets. You can also qualify for more tax write-offs and other benefits such as business funding.

Once you decide which business structure you want, you’ll also have to choose a business name. You should have this information before you apply in case you trademark your name or logo.

Take careful consideration when choosing a business name; this is the name of your customers and the public will know you by.

Start Budgeting

Fortunately, you don’t need a lot of money to start a cleaning business. But you will need to create a budget for the necessary expenses you’ll face. Here are some examples of necessary cleaning business examples.

Insurance

Expect to spend $500 – $3,500 per month, depending on the number of employees. It’s best you only employ yourself and maybe one other person at first, to ensure you can afford the insurance.

Labor

Speaking of employees, you have to pay them. Start them at $11/hr or $12/hr. You can only employ them part-time or seasonally if you can’t afford a full-time employee at these rates.

Licenses and permits

The amount you spend depends on your business structure. $30 – $60 for sole proprietor and $100 – $500 for LLC.

Advertising

Both online and print advertising can cost between $100 – $200 or more, depending on how often you invest in it. If you outsource your advertising, many firms may charge you a monthly rate.

Cleaning Equipment and Products

This depends on the type of tools and products you need. For example, if you’re focused on commercial clients, you’ll need to get janitorial equipment as well as basic cleaning supplies. In short, expect to spend between $300 and $600.

Buy Cleaning Equipment

Before you start marketing your business, ensure you have the necessary cleaning equipment.

This includes:

    • Cleaners (all-purpose cleaner, glass cleaner, wood cleaner, etc.)
    • Cloths/paper towels
    • Scrubbing brushes
    • Latex gloves
    • Sponges
    • Dusters
  • Disinfectants

While there are commercial cleaning products available, you may want to diversify your inventory.

Many people have sensitivities to harsh smells and have allergies to common ingredients such as bleach. It’s best to offer allergy-free and unscented cleaning products to these customers.

Some homeowners prefer eco-friendly cleaning products.

Purchase Insurance and Licenses

Each state requires a cleaning business to purchase specific types of insurance and licenses.

This can include:

    • Bond
    • Liability insurance
    • Worker’s compensation
  • Business insurance

Some other common types of insurance include janitorial insurance. This insurance covers risks specifically to commercial cleaning and covers any injuries or accidents that happen while you’re on the job.

Market Your Cleaning Business

The only way people will discover your business is if you get the word out.

The best way to do this is with marketing. There are two main types of marketing — digital marketing and print marketing. It’s best for cleaning businesses to utilize both.

Online marketing is effective because most people spend their time online. Online marketing helps connect you to those in your local community, thanks to tools such as Google My Business and local search.

Print marketing is still effective. Create brochures and flyers and send them to potential customers as mailers. You can also ask friends and family to spread these prints around and you can drop them off at other local businesses.

While it’s best to outsource a marketing firm, you can handle the basic tools yourself. Create social media accounts and start posting on them. If you have the budget, make a website with all of your information.

Set Your Rates

From here, set your rates. You have a few options to choose from:

    • Flat rate
    • Hourly rate
  • Square footage

Regardless of the pricing structure, you decide, take a look at what your competitors charge. If you can, reduce your prices slightly.

Others pricing factors to consider include your clientele, your location, the condition of the home or business, and the size of the location.

For example, if you target luxurious homes in an expensive part of town, you’ll want to increase your prices.

Advice to Remember

As you gain success in your cleaning business, you’ll run into some problems. Remember this advice to better prepare yourself.

You May Not Profit At First

Your cleaning business can profit as short as six months or it may take several years to make your ROI. Some factors to take into consideration include your advertising, location, and how satisfied your customers are with your work.

But there are other courses of action you should take, including:

Minimize Expenses

In your first few years of business, stick to basic expenses. Don’t overhire or overspend. Always shop around for the best deal and buy your supplies in bulk.

Practice Your Skills First

In order to please customers early, practice your cleaning skills. A great cleaning professional has incredible attention to detail. Practice by cleaning your own house and even offering to clean your loved ones’ houses.

You’ll also have to have great customer service and communication skills. It’s worth it to do your research or work a temporary customer-facing job before you begin cleaning houses.

Now You Know How to Start a Cleaning Business

Starting a cleaning business is easier than you think! Now that you know how to start a cleaning business, it’s time to launch your business!

Need more help with your cleaning business or another type of business? Continue reading our blog! We offer advice for small businesses and startups.

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