How To Start a Cleaning Business: 7 Easy Steps

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There are many reasons why people decide to take on a side hustle or even go into business for themselves. Some want to escape the 9-to-5 office culture. Others want to be their own boss and make their own rules. A cleaning company can be a fulfilling and profitable business for the right individual. Keep reading to find out how to start a cleaning business.

How To Start a Cleaning Business in 7 Steps

Starting a cleaning business entails planning, some financial decisions and completing legal steps. This guide will walk you through all the steps necessary to start a cleaning business in 2023. Here are seven steps you can take to start a residential cleaning business or commercial cleaning business today:

1. Shop your business structure around
2. Create your business plan
3. Conduct market research
4. Estimate your earning potential
5. Set your prices
6. Register your business
7. Build your customer base

1. Shop Your Business Structure Around

When you are thinking about how to start a cleaning business, the first step should be a bit of self-reflection. Starting and operating a business can be hard work, and it requires patience and perseverance. You might have to work long hours, including nights and weekends, to get your business off the ground. 

If you think you are ready but are still a bit overwhelmed, shop the idea around to friends, family and people you already know in the industry. It can really help you figure out how to move forward. You can even reach out to someone that runs a cleaning company to interview them over lunch. You can ask them for advice on how to start a cleaning business and what tips they have. Better yet, try to work part-time for a few shifts so you can get a better idea of the details.

2. Create Your Business Plan

Choosing a business that is right for you and following up with careful planning is essential to success. There are many factors to consider before applying for a business license. Consider what kind of cleaning jobs you’ll take on, what cleaning equipment you’ll need and what your business plan might look like. 

Plan Your Business Out in Writing

If you’re thinking about getting outside investment for your company, a business plan is essential. This plan is a written document that describes in detail how your business will operate. Consider including the following in your business plan:

• Business activities
• The products and services you offer
• Marketing strategy
• Your financial plan

Even if you’re self-funding or bootstrapping it, it will be beneficial to spend time thinking through each section and writing it down. You’ll be able to hit the ground running with a roadmap for success.

3. Conduct Market Research

Identifying the right target market is an essential part of any business plan. In this step, you should determine what the current demand is for home cleaning and what potential customers are your demographic. You can conduct internet searches or talk to people you know who work in the industry. Below are some questions you should answer for your new business.

Questions To Ask For Your Marketing Plan

• Do you want to do residential cleaning? Commercial? Both?
• What are the demographics of your desired location?
• How much disposable income do they have?
• What competitors are already operating in your preferred area? What services are they offering? How much are they charging?
• What’s the total reachable market size? What percentage do you think you can capture?
• How easy will it be to acquire new customers?
• What areas or services will you offer?
• Is the area easy to get around?
• What cleaning products and equipment will you need to buy?

4. Estimate Your Earning Potential

Of course, making money is the ultimate goal of any business. But how much can you earn with a cleaning business? 

If you’re thinking of a standard residential cleaning company, there are several factors to consider. The mean annual income for a house cleaner in 2023 is $29,580. That’s about $14.22 an hour, working 40 hours a week. Additionally, your clients may tip you, but that’ll depend on your work and how much they’re willing to give.

But you don’t just want to be a house cleaner. You want to be the business owner, although you might have to do a lot of the cleaning work until you’re ready or able to hire cleaners. 

5. Set Your Prices

Cleaning companies charge anywhere from $25 to $90 per hour, depending on the home’s location, service and condition. If you’re in an upscale area providing a luxurious cleaning service, you might be able to charge more than standard house cleaning in a lower-income neighborhood.

If you charge $50 an hour for your service, that means you can make $400 to $500 per day per cleaner on your staff. This will, of course, depend on the type of cleaning and how many hours per day they work. So one cleaner could bring in over $100,000 per year if you can keep them busy.

If you had a team of three to five cleaners, you’re talking about annual revenues of $300,000 to $500,000 or more. When setting your prices also make sure to factor in costs of cleaning supplies, equipment, labor and overhead.

6. Register Your Business

Before you engage in any business activity, order business cards or even secure a business loan, you’ll want to make sure you complete all the necessary legal steps. This includes:

• Registering your business with your state
• Applying for relevant federal and state tax identification numbers
• Getting any local licenses
• Checking local ordinances
• Opening a business bank account to make and receive payments

You will likely need an Employer Identification Number, or EIN, from the IRS so you can file the relevant tax forms for your company.

7. Build Your Customer Base

After you’ve written your plan and registered your cleaning business, you’re ready to get to work. The next step is finding clients. Friends and family are great places to start. 

You can also advertise your cleaning services on social media. You might create a blog or newsletter to discuss your benefits and promote your company. Once you’ve gotten your first few customers, you may also ask them for referrals.

Final Take To GO

There are many reasons why you might want to consider starting a cleaning business. For example, it’s one with low overhead, little to no operating costs and reliable demand. With low up-front costs compared to other businesses, it’s easy to start a cleaning business if you know where to begin.

Scott Jeffries contributed to the reporting for this article.

Information is accurate as of April 24, 2023. 

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