How To Start a Cleaning Business: 7 Easy Steps
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.
Read: How to Build A Financial Plan From Zero
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:
Shop your business structure around
Create your business plan
Conduct market research
Estimate your earning potential
Set your prices
Register your business
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.
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.
FAQ
Here are the answers to some of the most frequently asked questions about how to start a cleaning business.
Is cleaning a good business to start?
Starting a cleaning company can be a lucrative business if you want independence and sole proprietorship. Owning and operating a business isn't for everyone, so be sure that you're able and willing to tackle the challenges that await you. If you're successful, you'll have a profitable and rewarding business that also makes a difference in your customers' lives.
What are the steps to take to start a cleaning company?
Here are some steps to take if you are thinking of starting a cleaning business:
-Decide if being a cleaning company business owner is right for you.
-Conduct market research to determine who you'll serve, what cleaning products and services you'll offer and how much you'll charge.
-Document your findings in a business plan that will act as a roadmap for your business.
-Register your cleaning company and acquire all necessary tax IDs and local licenses.
-Open a business banking account so that you can accept payments.
-Find clients through word of mouth, digital marketing and referrals.
-Do a great job so you keep long-term customers.
How can I get cleaning clients fast?
You can start building a client base for your cleaning company by first reaching out to your local friends and family. By asking them to spread the word, you might get quite a few new clients. Other ways to get cleaning clients would be by marketing online and leaving your business cards at community centers, like libraries.
What is the most profitable cleaning business?
Some of the most profitable cleaning businesses are:
-Residential cleaning
-Commercial cleaning
-Window cleaning
-Pressure washing
-Carpet cleaning
Scott Jeffries contributed to the reporting for this article.
Information is accurate as of April 24, 2023.
This article originally appeared on GOBankingRates.com: How To Start a Cleaning Business: 7 Easy Steps
