How to start a cleaning business

Step 1: Market research

It’s important to have a good look around the local area and review the different types of cleaning services on offer, the size of cleaning companies offering them, and the markets they serve.

If it looks like businesses work in the same market, look carefully at both their pricing and the range of services they offer.

• Are there extra services that can be provided?
• Are there opportunities to price more competitively or otherwise persuade people to switch providers?
• How do they present themselves – corporate, friendly, professional? Is there a way that a new business could establish itself by appearing different?
• Are there any specialist services, or opportunities to provide specialist services to clients that are currently underserved?

Read reviews posted online to better understand what customers love about their cleaning service, and what causes friction.

Step 2: Select your services

This market research can help you decide where the focus of a new business should be.

The main distinction in cleaning is between commercial and residential cleaning, although we will outline some other specialist options below.

It is important to assess which sector has the highest demand and also where the highest competition is.

Commercial cleaning businesses

A commercial cleaning business services spaces like offices, hospitals, schools, and retail stores. Such large spaces may require specialized equipment and can entail working overnight to minimize disruption to business operations.

Many employers ask for evidence of specialist certifications and training, particularly when working where there may be biohazards or sterile environments.

It is more than likely that a team of cleaners will need to be in place given the large spaces that require attention.

Residential cleaning services

Cleaners working in people’s homes may be more likely to get more direction from clients because the cleaning they carry out is in a personal space. This means there must be a degree of flexibility as required tasks may shift each week.

Niche services

Within in type of business, you can select to offer niche services.

For instance, you may want to target schools in the local area. Those working in homes may decide to focus their services on families with children or offer add-ons.

Niche services can include:

• Carpet cleaning
• Pool cleaning
• Ceiling and wall cleaning
• Blinds cleaning
• Curtain cleaning
• Office cleaning
• Window cleaning

Another way to set a new business apart is by focusing on locality. Think about other cleaners offering services in the local area and look for districts or neighborhoods that seem to be under-served.

Step 3: Create a business plan

A business plan typically outlines your business goals, financial projects, marketing strategies, and customer research. Your business plan may include:

• Executive summary provides an overview of the services offered, target market, financial projections, and funding requirements.
• Company description includes a mission statement and values.
• Market analysis details changing trends, local market, competition, and target customer demographics.
• Services offered identifies what will be provided.
• Marketing and sales strategies may include inbound or outbound marketing opportunities, a pricing strategy, and the sales forecast.
• Operational plan describes staffing requirements (roles, responsibilities) and equipment/supplies required.
• Financial plan projects revenue, cash flow, costs, and funding needs.

Step 4: Get the business set up legally

Business structure and license

Once you register your business, you can apply for a Tax ID or EIN (Employer Identification Number) on the IRS website.

Here is a quick overview of some of the different business structure options available:

• Sole proprietorship – the owner is responsible for all aspects of their business, including its debts and liabilities.
• Partnership – two or more people share the risks and rewards of running a business.
• LLC (Limited Liability Company) – owners have limited liability for business debts and obligations. If the LLC becomes insolvent, the partners’ personal finances and assets are protected.

There is more information on the process and importance of acquiring a business license here.

Other licenses and permits

The business may also require additional licenses and permits to operate, these could include permits required for certain cleaning services, such as hazardous waste disposal.

Insurance

In addition to these licenses and permits many businesses opt for insurance policies. Research the option(s) that are right for your business.

Business funding

If you’ll need funding to start your cleaning business, options include:

• Small business loans from banks or financial institutions for initial startup costs and operational expenses.

• Business lines of credit offering flexible funding for ongoing expenses or unexpected costs.

• Business equipment finance for purchasing cleaning equipment, like industrial-grade vacuums, steam cleaners, and supplies.

• Vehicle financing for purchasing vans or vehicles that may be essential for transporting equipment and staff to various cleaning locations.

For more detailed information on business funding options, loans, and equipment financing, learn more about business loans and business equipment financing.

Step 5: Promote your cleaning business

As you establish your cleaning business, you’ll need to market your services to your target audience.

There are many channels that can be leveraged.

Consider these tactics:

Local SEO techniques

• Understand how Local Search Engine Optimization can establish new businesses in your area.
• Optimize the company website for local search terms and directories.
• Ensure consistent NAP (Name, Address, Phone Number) across all online listings.
• Encourage positive customer reviews on platforms like Google My Business.

Social media marketing campaigns

Promote your services on social media – and test the channel(s) that are most effective for your business.

• Engage customers through targeted social media ads showcasing the company.
• Create compelling visual content (before-and-after photos) to highlight the service provided.

Content marketing (blogging)

• Maintain a blog on the company’s website with cleaning tips, industry insights, and customer testimonials.
• Ask customers to provide reviews that can be used in blogs or published on sites like Google My Business and Trustpilot.

Networking with local businesses

• Forge collaborations partnerships with real estate agencies, property management firms, or local businesses that can promote the business to their clients.
• Offer referral programs to incentivize other businesses to offer recommendations.

Special promotions and discounts

• Run seasonal promotions or discounts for new clients or recurring services.
• Create referral programs where existing clients receive rewards for referring new customers.

Here’s to your cleaning business

This guide shows the steps you can take to start a cleaning company. It explains how to research the market, select a niche, create a business plan, review the legal requirements and secure the funding you need.

State and industry regulations and requirements will differ. This is not an exhaustive or personalized list, so business owners must always be sure to research the rules and regulations required for their specific circumstances.

Learn how to start and grow your business with a PayPal business account.