How to Start a Home Cleaning Business | 2024 Guide

March 21, 2024
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13 Minutes
Modified on:
March 21, 2024
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Written by:
Swati Bucha
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Most people might disagree, but people do not enjoy cleaning their houses. When you open your cleaning business, you are tapping into a wide market in the cleaning industry that requires assistance to help people keep their houses in tip-top condition. 

Starting a cleaning business requires fairly low capital investment, making it a great option for start-up entrepreneurs with limited resources. Once the business is initiated and a good amount of clientele is achieved, it can be made big gradually since it is highly scalable. 

If you think opening a cleaning business might be easy, you will require a few helping hands, top-class equipment, and a van. However, that's not it. It is a complex process that starts from finding a suitable business name and creating a business and operational plan to creating a marketing and promotion strategy and building a website to set up your online presence. 

Does the process of how to start a cleaning business seem confusing to you? Then, do not worry; this guide explains how to open your home cleaning business. 

Types of Cleaning Services (Residential or Commercial)

Given the versatile nature of the cleaning business, the services provided under this could be broadly categorized as either commercial or consumer. A company can offer any or both cleaning services based on their operational capacity. 

Residential Cleaning Services

Residential cleaning deals with providing cleaning services directly to individuals or households to meet the needs of residential properties. This includes : 

1. Home Cleaning Services

It includes cleaning services such as vacuuming, dusting, and mopping the bedrooms, living rooms, kitchen, and bathrooms. It also includes window and cabinet cleaning. 

2. Deep Cleaning

It includes thoroughly cleaning the houses, sanitizing, and dusting every nook and corner. After the COVID-19 pandemic, people have become more cautious about keeping their surroundings clean and hygienic and often opt for deep cleaning once or twice a week. 

3. Move-In or Move-Out Cleaning

This service is handy for people moving in or out of a house or apartment. The service providers ensure the spaces are spotless and ready for the new occupants.  

Commercial Cleaning Services 

Commercial cleaning includes cleaning offices, factories, warehouses, and large event spaces. Maintaining cleanliness and hygiene in commercial space is necessary to ensure a healthy work environment for the employees and to make an impression on customers. Providing cleaning services to commercial spaces includes day-to-day work and cleaning space for or after an event. Commercial cleaning services include the following types of services:

1. Office Cleaning 

The service includes a daily cleanliness check of the workspaces, toilets, corridors, inventories, and eateries to maintain a healthy work environment. This also includes janitorial services to keep the office's outer surroundings clean. A janitor must restock cleaning supplies and remove and recycle trash generated daily. 

2. Construction Cleaning 

The debris after construction work is completed or otherwise clearing an area for construction projects is handled by cleaning service providers. The project managers can directly contact cleaning companies and initiate the cleaning processes. 

3. Medical Cleaning 

Medical services at hospitals and clinics generate biohazard waste that cannot be disposed of and cleaned casually. They require specific cleaning techniques that might include chemical treatment before disposal. Also, hygiene is always the top priority of medical facilities. A clean place prevents the spread of diseases that people come with for treatment. This is why hospitals and clinics need to be cleaned around the clock. 

Starting Your Own Home or Residential Cleaning Business

Starting a home cleaning business involves providing services to clean a customer's home when they are present or unavailable. Many residential homes are willing to spend money on hiring expert services to clean their homes instead of cleaning the entire home. The residential cleaning industry is expected to grow at a 6.2% CAGR from 2020 to 2027, and it generated revenue of a whopping $943 million in the US. 

Here are some things that you can keep in mind while opening up your cleaning business: 

  1. Analyze Your Team.

Analyze whether you want to start a family business or you will likely hire employees to help you complete the business chores. 

  1. Consider Your Offerings.

Figure out what home cleaning services your brand will offer potential clients. Regular cleaning services include kitchen, room, bathroom, tidying, and vacuuming. However, you can also consider offering deep cleaning services, move-in/move-out cleaning, post-construction cleaning, eco-friendly cleaning, and others. 

  1. Think about Equipment. 

While considering your offerings, analyze whether you will use your equipment to clean the house or utilize the client's equipment to deliver the service. It will significantly affect the business costs. 

  1. Calculate the Cost. 

Before starting your business, analyze and calculate the cost of starting a home cleaning business. Consider business setup costs, equipment and supplies, staffing and training, operational expenses, business permits and certifications, marketing and advertisement, and client acquisition.  

How to Start Your Home Cleaning Business?

Now, let's look into how to set up your own home cleaning business from scratch: 

Step 1. Research and Know Your Market.

The first step is to conduct research and analyze the demands of the consumers. It is essential to know the gaps and then devise a plan to bridge them to build your customer base. Besides, if you are targetting a particular area, find your potential competitors and analyze their services. This analysis is important to stand out from the competition. Normally, businesses offer regular home cleaning services, but your business can offer different services, like carpet cleaning, window cleaning, pool cleaning, or pressure washing. 

Besides, analyze whether you will operate the entire business or hire employees. Decide which areas you'll be catering to in the starting phase and the frequency of delivery, such as full-time, only on weekdays or weekends, or 24x7. 

Step 2. Name Your Business. 

Now that you have decided what services to offer, the key USPs (unique service points), and other important things, it is time to decide your business name. Do not get over this step quickly because naming a business is difficult. There are many things to consider, such as whether it should be unique, whether it should give away what service you are offering easily, whether it should not be registered or trademarked by any other business, and many other points. 

Besides, you need to develop a name whose domain name is easily available. You will have to create a domain name for your website, so it is better not to have the same name website as your competitors or other businesses. You can utilize business name generators to come up with a name. Here are some examples that you can consider: 

  • Allure Cleaning Services
  • Azure Cleaning Solutions
  • Camellia Cleaning
  • Capella Cleaners
  • Citrine Housekeeping
  • Clean Living
  • Crown Cleaning Company
  • Crystal Clear Cleaners
  • Dazzle Cleaning Services
  • Rhapsody Housekeeping
  • Rosewater Cleaning Company
  • Royal Cleaning Services
  • Ruby Cleaning Solutions
  • Sandalwood Cleaners
  • Sapphire Cleaning Co.
  • Shimmer Housekeeping

Step 3. Think About the Prices

After selecting your services, it is time to decide prices. First, you will have to consider the pricing structure. Usually, a home cleaning business chooses from the following types of pricing structures: 

  • Hourly rate
  • Flat rate
  • Room rate
  • Square foot rate
  • Specialty service rate

Using the structure, you can easily calculate the price by calculating the following things:  

  • Labor hours
  • Labor cost using a cleaner salary
  • Payroll expenses, overhead, and other fees
  • Profit margin
  • Any required taxes

It is best to build an entire cleaning package that contains a group of services that perfectly complement each other. Utilize the professional-looking template to showcase the cleaning packages, giving clients a good impression of your business.

Step 4. Create Your Business Plan. 

A business plan is essential to start your journey of starting a home cleaning business. A business plan comprises different financial, operational, and go-to-market strategies. So, whatever you have decided about your business needs to be properly written down with a strategy. 

Write a business plan that includes what type of cleaning services you will provide, your target audience, your cleaning package, and the operational budget.  

Step 5. Complete the Initial Business Set-up Requirements.

The next step is to complete the business set-up requirement. If you have decided on your business name, then it is essential to trademark it and register your domain name to ensure no one else can use it. 

After this, you have to decide the business structure. There are different types of business ownership structures:

  • Sole proprietorship: if you are thinking of becoming the sole owner of the business,
  • Partnership: if two individuals are coming together to manage the business. 
  • Limited liability company: if you are considering opening a medium-sized or higher-risk business. 

If you are considering hiring employees, you must register for the Employer Identification Number (EIN). Getting a business license is part of the business registration process. You will also require cleaning business insurance because cleaning a house without insurance can be a risky game. The last thing you want is to accidentally damage your client's home and pay the repairing cost from your pockets. In such cases, insurance comes to the rescue, and there are different types of it: 

  • General liability insurance
  • Health insurance
  • Vehicle insurance
  • Business owners’ policy
  • Workers’ compensation
  • Employment practices liability

After all this:

  1. Open up a bank account where you can accept your payments and monitor the cash flow of your business.
  2. Create an expense budget and consider your paycheck as well.
  3. Set up an automatic bi-weekly payout to pay yourself and your employees from the profits. 

Keep track of all income and expenses so it is easy to report them when filing taxes with the IRS (Internal Revenue Service). 

Step 6. Get all the Essential Equipment.

Now, it is time to get your hands on high-quality equipment to provide top-notch services to your clients. Here's the list of the essential tools and equipments you will require: 

  1. Cleaning solutions, like all-purpose cleaners, glass cleaners, bathroom cleaners, and disinfectants,
  2. A vacuum cleaner with strong suction power and different attachments to clean different surfaces, 
  3. Spray bottles, 
  4. Sponges and scrubbers, 
  5. Protective gloves, 
  6. Disposable or reusable towels, 
  7. Mops and brooms, 
  8. Trash bags, 
  9. Microfiber clothes,
  10. Dusting tools, like dusters and feather dusters, 
  11. Floor cleaning supplies, floor cleaners, floor polish, and floor wax, 
  12. Ladders and step stools, 
  13. Face masks, and
  14. Soap scum removal cleaner. 

Step 7. Create a Marketing Strategy. 

Marketing is essential to promote your business and reach your target audience. Besides telling your friends and relatives, designing flyers, and developing other marketing strategies, focus on digital marketing. With digital marketing, you tap into a vast potential of attracting potential leads and clients from your target geographic area. 

First, build your website. Start with a one-page website that displays everything about your services and features an email-integrated form and Appointment Scheduling feature. Next, promote your business through email marketing campaigns. Build a segmented list and send lucrative emails offering discounts or coupons, attracting organic traffic to your website. With the Neo platform, you do not have to look separately for a website and email hosting provider. Neo is a one-stop platform with myriad capabilities to simplify marketing operations. 

Set up your Google My Business or Google Business Profile with the correct information, as Google will show your profile when customers look for your business in Google. Ensure that your happy customers leave a five-star review. Also, list your business in local business directories and lead generation websites where your business can get exposure and become visible to customers looking for home cleaning services. 

Step 8. Get an Invoicing Software. 

Invest in invoicing software to create strategic payment collection processes and check in with clients who haven't paid the invoice. Based on your payment software, choose the payment options you will offer customers, such as credit card, cash, check, or electronic transfer. 

Use a clean invoice template to create an invoice you will email to the client after you finish the cleaning service. You will also have to send payment reminders to clients for missed or failed payments. 

Step 9. Make Customer Service Your Priority. 

Make your customers a priority by addressing their queries and handling their problems. Your customer service will make your service different from your competitors. The ultimate goal of your home cleaning business should be keeping customers happy. Follow all the essential protocols to complete the service and respond to their queries immediately. Also, give them multiple channels to contact you: email, phone calls, social media handles, and a website. 

Wrapping up, 

Starting a cleaning business requires meticulous planning and attention to various aspects, from legal obligations to marketing. This entrepreneurial journey demands a comprehensive understanding of the types of cleaning businesses and all the legal procedures for business registration. Besides, it is essential to ensure compliance with legal requirements and obtain necessary documentation, including business licenses, permits, insurance, and any paperwork to make the business legally operational. 

Choosing a unique name is impactful in differentiating the company from other businesses. Finally, investing in online marketing channels is indispensable in today’s digital age. Creating a strong online presence through websites, social media platforms, and digital advertising helps reach and engage potential customers effectively. 

Frequently Asked Questions

1. What are some of the best types of cleaning businesses besides home cleaning?

Here's a list of some of the best types of cleaning businesses: 

  • Pressure washing, 
  • Chimney cleaning, 
  • Air duct and dryer vent cleaning, 
  • Carpet cleaning, and 
  • Window cleaning. 

2. Is a license required to start a cleaning business?

Yes! Whether you are considering opening a home or commercial cleaning business, you'll require a license. A license adds credibility and shows you follow all regulatory protocols to deliver top-notch services. 

3. How long does it take to get a business license?

States and cities have different application processing and reviewing procedures, and the time may vary. It may take a few weeks to a month to get the license.

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