How Do You Start a Cleaning Business in the USA?

Is Starting a Cleaning Business a Profitable Idea?

In the United States, the market for commercial cleaning services has grown by 6.6% every year since 2011, and a sizable portion of the workforce will continue to work in this sector. According to a report by Statista, the revenue for cleaning services is projected to grow to $50 billion in 2024.

By 2024, 80% of households are expected to use residential cleaning services. This implies that it might be the right business choice if you’re already considering it, and that it certainly can be profitable. The essence of this guide is to support you and offer you guidance on how to start a cleaning business.

The amount of money a cleaning company makes in a year varies based on the niche in which they operate and the level of competition in their local area. A single-person cleaning business can earn up to $50,000 per year. Some of the largest commercial cleaning companies, with many staff, can earn millions.

If you clean six homes weekly for a year at a flat charge of $125-150 per home, your residential cleaning service might earn $39,000–$46,800 before insurance, taxes, and other deductions.

This figure will rise if you charge per hour at a higher rate, offer add-ons, or hire more house cleaners. The more experience you have as an entrepreneur and the better the quality of your work, the more you can charge when you start a cleaning business.

Benefits of starting a cleaning business

The cleaning business is excellent for first-time entrepreneurs since they offer a simple concept that can be grown out forever with proper planning. A cleaning service may be a lucrative enterprise for small business owners starting in their neighborhood.

Here are four benefits of why starting a cleaning business can be lucrative:

• Low start-up costs: You don't need a lot of capital to launch a cleaning company. For a start, it's unlikely that you'll need to get a space or pay energy bills to launch your business with little financial worry.
• Work from home: You can conduct your business at the convenience of your home since no office, shop floor, or warehouse is necessary.
• You’re your own boss: Starting a cleaning business will allow you to choose the jobs you want, establish your own hours, and control your expenses.
• No experience required: Starting a cleaning business doesn't require special training, certification, or prior experience. You only need to work hard and be consistent to succeed.

Qualities an entrepreneur will need in this sector

It's good to note that the cleaning business isn't a quick-win business. However, there are some qualities an entrepreneur should possess to thrive in the industry.

Effective Communication

Being an effective communicator will help you inform your clients on short notice in case of tight schedules. You must also be able to discuss your client's expectations, compensation modifications, scheduling, and criticisms.

Integrity

Inviting someone inside one's home is a big deal. Hence, word of mouth and positive reviews go a long way in how people can confidently trust your business.

Knowledge

A competent cleaning business knows the proper cleaning methods and tools to employ in every residence. However, you must be open to your clients' recommendations based on their satisfactory results.

Attention to Details

Whether a general or deep cleaning service, you must be meticulous in delivering your services. And when done, your business must be known for being observant enough to place items back in their proper places, perhaps more attractive.

Bonded and Insured

A good commercial cleaning service will be fully bonded, insured, and able to provide the documentation of their most recent general liability insurance.

How to Set Up Your Own Cleaning Business

Now that you know this business venture is realistic, let’s run through the nuances of starting a cleaning business from the ground up.

How much does it cost to start a cleaning company?

The exact start-up cost will depend on the type of cleaning business you want to start, including its scale of operations.

It will cost you approximately $3,500 to start a small cleaning business. For a much larger cleaning service, start-up costs can bump up to approximately $200,000, which includes vehicle, insurance, and equipment expenses.

Industry research and your target market

Understanding your ideal consumer and target market is vital if you want to start a cleaning business. It will aid in the development of an efficient cleaning business marketing plan. Hence, it’s essential to know the type of cleaning service you can render.

Residential cleaning services

Residential cleaning (also known as household or domestic cleaning) is cleaning a home while your clients are away. Clients who spend their money on domestic help tend to have more time with their families rather than fussing over household duties.

Commercial cleaning services

Commercial cleaning services provide services for commercial facilities, such as schools, offices, and community centers. Cleaning can be scheduled during working hours or after closing hours.

Janitorial cleaning service

Although most individuals confuses janitorial and commercial cleaning services, they are different. It includes routine checking and cleaning of buildings such as offices, factories, and schools.

Laundry and dry-cleaning services

Although they may sound similar, laundry and dry cleaning are different. While laundry employs detergents, soaps, and softeners to clean clothes, dry cleaning uses high-end chemicals to remove stubborn stains and grease.

Green cleaning services

Green cleaning service is all about cleaning more with fewer chemicals. Supporting it can help businesses fit their customers' ideals and show a sense of social responsibility. Most governments and commercial businesses believe green cleaning services are worthwhile only when properly accredited. The most prominent certifications are Green Seal and ISSA.

Pressure washing services

This is about cleaning dirt-ridden carpets, moldy buildings, muddied vehicles, and other typically difficult-to-clean surfaces with powerful water flow from a high-pressure water spray.

Do you need any training or qualifications to start a cleaning business?

Unless your state has certification requirements, you do not need professional training to start a cleaning business. However, you need to educate yourself on how to clean professionally and understand how to avoid cross-contamination from one location to the next.

Cleaning certification classes are available from the AHCA to assist you in learning all about cleaning.

Your cleaning business plan

As per creating a business plan to start a cleaning business, the following are essential components of creating one:

Executive summary

Your mission statement is the most significant section of your business plan and should be clear and concise. Include information about your present financial situation and your plans for winning clients.

Detailed business description

This portion describes what your company does, the clients it serves, and how it exceeds consumer expectations. Details such as your legal structure, ownership and management information, services offered, and marketing plans may be included.

Market analysis data

This addresses your local area's economic conditions, targeted market share, pricing and how it matches with target clients and industries, and any related information about your competition that you can locate.

Financial information

Banks, investors, and insurance companies will want to see your company's financials, so include details on your financial history and estimates based on market research.

Equipment you will need to start a cleaning business

You should create a house cleaning supply list to stay organized and effective while starting a cleaning business.

Here is a list of the cleaning supplies I use when cleaning houses:

• Tile brush
• Cleaning bucket
• Microfiber scrub pads
• Plastic scrapers
• Powder Bon-Ami
• Backpacks or tote bags
• Pumice stone stick
• Toilet bowl brush
• Disinfectant and glass cleaners
• Soap scum remover
• Chemical trigger sprayers
• Cleaning apron
• 3M light-duty scrub pads and holder
• Toothbrushes
• Vacuum cleaner for carpets and hard floors
• Microfiber mops and dusters
• Knee pads and shoe covers
• Disposable nitrile cleaning gloves

Register your business

After deciding on your business structure, you'll need to register your business name with your local register of deeds office or with the Secretary of State's office.

If you want to hire staff or do not want your firm to be associated with your social security number on your taxes, you must get an Employer Identification Number (EIN) from the IRS.

You should also check with your local town or county to see if your business requires a license or a zoning permit. The SBA has provided a list of state business license offices where you can get this information.

Invest in a CRM tool

As a cleaning firm, you must efficiently manage your workforce, cultivate long-term client connections, and consistently deliver services on time. You need a CRM tool that improves client interactions and provides employee management features.

A shortlist of what you need in no particular order is:

• Zoho CRM
• Efficy
• SugarCRM
• TeamLeader
• HubSpot

How to Fund the Start of Your Cleaning Business

When it comes to raising funds for starting a cleaning business, you have a variety of possibilities aside from traditional funding. Here are some ideas:

Use your own resources

People typically have more assets than they realize. Make a detailed inventory of your assets. You can sell assets for cash or use them as collateral for a loan.

Family and friends

Approach family and friends who believe in you and want to see you succeed. Be cautious when making these agreements; regardless of how close you are, present everything in writing, and ensure they can afford to accept the risk of investing in your business.

Government initiatives

Take advantage of local, state, and federal loans and grants to assist small businesses, like the Small Business Administration.

Our resources on funding

Our guide on loans to buy a business will educate you on how to apply for loans for your cleaning business. While it does focus on funding to acquire an existing business, it is still relevant and helpful to entrepreneurs seeking funding.

Also, our small business grant guide will help you learn more about grant options available to you.

How to Market Your Cleaning Business

A good marketing plan can help you figure out how to tell potential customers about your business effectively and where to get information to determine which methods work best.

To make a good marketing plan for cleaning services, you need to build your brand, show it to the public, and keep the promises you make. Understanding useful marketing tips will help you grow your network and business.

Create a conversion-orientated website

Include your services and your contact information. When starting a new cleaning business, getting website visitors' email addresses and other contact information is crucial. Visitors who are added to your email or newsletter list are more likely to become repeat buyers.

You can use WordPress, Wix, or Squarespace to achieve this.

Make use of social media

Knowing how different social media networks work will help you market your cleaning business more effectively. Consider the operations of Facebook, LinkedIn, Twitter, and Instagram.

Growing your cleaning business involves significant effort, dedication, and customers. A little research and diligence will help you build a solid client base and present you with choices you may not have considered.

It's essential to think about long-term growth. Hence, here are a few ideas for growing your cleaning business.

Improve your network skills

You can improve your network connections by attending trade shows, joining a community association such as ARCI and attending their events. A strong network is essential for any cleaning business, as most of your work revolves around people.

Create a referral program

A client referral program is a great way to grow your customer base. While it may appear costly in the short term, it is a great long-term plan for expanding your client base. A CRM solution may be handy if you want to keep track of your referral customers.

Build partnerships with other businesses

A partnership with other service providers could be a great way to build a mutually beneficial business relationship. You save them the time and trouble of looking for and hiring someone to undertake extra duties.

It will, in turn, increase the value of your service to your customer, and you can vouch for your partner companies, giving your customers peace of mind.

Starting a Cleaning Business Is Not Your Only Option

Not everyone wants to go through the process of starting a cleaning business from scratch. There are other options available to attain business ownership that you can consider.

Investing in a cleaning franchise

Primary reasons many people prefer to invest in cleaning franchises are low overhead costs, high demand, and consistent year-to-year operations.

You can look into our cleaning franchise opportunities to look at different brands that fit your ideals, investment capabilities and business goals.

Buying a cleaning business

Investing in an existing cleaning service may appear complicated, but it all boils down to asking the right questions. You need to know about the company's clients, finances, supplies and equipment, and opportunities for business growth.

Know that the reason for buying a cleaning business is to develop it. You can view existing domestic cleaning or commercial/industrial cleaning businesses for sale on our site.

You can look into our guide to buying a business to learn more about the nuances, challenges and opportunities of buying an existing business.

It is true that the entrepreneurial journey isn't always rosy and dandy. Hence, it’s pertinent that you have a clear goal before starting a cleaning business and go all out to ensure you achieve it. Count the cost it takes to pursue your venture and be ready to tackle difficult challenges along the way.

You can connect with us if you need help at any point. We're always happy to offer you support, and we wish you tremendous success in your business journey!