How to Start a Cleaning Business in 10 Clear Steps (+3 Mistakes to Avoid)

What you need is clear, methodical, and up-to-date guidance on how to start a cleaning business that’s built for success from day one.

Below, I walk you through it all: 10 steps to launching a cleaning company today, the costs involved, and 3 mistakes to avoid in the early stages.

How to Start a Cleaning Company: A Step-by-Step Guide

Here’s how to open a cleaning business in 9 steps:

1. Decide what type of cleaning business you want to start
2. Create a business plan for your cleaning company
3. Legalize, name, and register your cleaning company
4. Get the right licenses, permits, and insurance
5. Price your cleaning services
6. Raise funds/start-up capital
7. Purchase cleaning equipment, tools, and supplies
8. Hire and train your cleaning crew
9. Create a sales and marketing plan
10. Set yourself up with the right tech

The cleaning niche you pick shapes big things like your offering, clients, and cleaning profit margins. But it also impacts the small things, such as your passion for your work, personal income, and even your work hours. For instance, a residential cleaning company likely operates during the day, while commercial jobs often happen at night.

Some popular cleaning business ideas include:

• General cleaning: Foundational cleaning services for homes or businesses, covering routine cleaning tasks and maintenance.
• Residential cleaning business: Cleaning clients’ homes, often involving close communication with clients and recurring or as-needed services. Typically operates during the day and has a lower entry barrier compared to commercial cleaning.
• House cleaning business: Focuses on maintaining quality service and building a strong reputation to attract and retain customers in the home cleaning market.
• Commercial cleaning: Services for office buildings, schools, hospitals, retail stores, and other commercial spaces, often performed outside regular business hours.
• Office buildings: Specialized cleaning for office environments, maintaining cleanliness and hygiene for businesses and their employees.
• Medical facilities: Cleaning services for healthcare environments, requiring expertise in maintaining strict hygiene and compliance with health standards.
• Retail stores: Cleaning services tailored for retail environments, helping maintain clean and inviting storefronts for customers.
• Short-term rental cleaning: Turnover cleanings for Airbnb properties and other rentals.
• Post-construction cleaning: Detailed cleanings for newly built or recently renovated properties.
• Specialized services: Niche offerings such as eco-friendly cleaning, allergen-free cleaning, post-construction cleaning, or high-end residential cleaning, which can help differentiate your business.
• Carpet cleaning: Requires specialized equipment and offers scalability and flexibility in serving both residential and commercial clients.
• Window cleaning: Usually works with commercial clients to maintain storefronts and offices, but can also serve residential customers.

When deciding what to pick, “start with what you know and build from there,” says Tim Walters, owner of Triple H Cleaning Services. “In the beginning, it’s natural to shift directions a few times as you figure out what works best.”

Ryan Knoll, founder of Tidy Casa, also suggests thinking about your existing strengths and what’s easiest to execute. “If you happen to know 20 contractors looking for construction cleaners, start there. […] You’ve got an easy in,” he tells Connecteam, adding, “What are your strengths? Work with those.”

That said, you must also research external factors. Is your cleaning business model profitable? What does the demand and competition look like? What are the latest cleaning industry trends, particularly in your area? Is your chosen business easy to run?

Chris Willatt, owner of Alpine Maids, explains that “residential has the highest margins and easiest [business-to-customer] sales but is the most difficult to manage as client expectations are high.” He continues, “Commercial is easier to manage but adds the complexity of [business-to-business] sales and cashflow management.”

Willatt also says that while managing technicians is simpler in short-term rentals, the short cleaning window makes operations more complicated.

Finally, your personal goals matter, too. For example, Pristine Beers, owner and operator at White Lilac Cleaning, knew she wanted to build a business that aligned with her ideal lifestyle. “Choosing residential work allowed me to avoid overnight shifts and weekends, giving me greater control over my time and energy,” she tells Connecteam.

Launching a successful cleaning business starts with a solid business plan. Think of your business plan as the blueprint for your cleaning company—it outlines your business goals, target market, marketing strategies, financial projections, and day-to-day operations. Whether you’re planning to offer residential cleaning, commercial cleaning, or specialized cleaning services, a well-crafted business plan will help you stay focused and organized as you grow.

Start by defining your business structure, such as a sole proprietorship, partnership, or limited liability company (LLC). This decision will impact your liability protection and how you separate your personal finances from your business finances. Next, identify the types of cleaning services you want to provide—will you focus on house cleaning services for residential clients, office cleaning for commercial properties, or offer specialized cleaning like carpet or window cleaning? Pinpointing your niche will help you stand out in the cleaning industry and attract your ideal customers.

Conduct thorough market research to understand the demand for cleaning services in your area, analyze your competition, and determine what makes your cleaning company unique. Look at what other cleaning businesses are charging, what services they offer, and where there might be gaps in the market. This research will inform your pricing strategy and help you develop a competitive edge.

Your business plan should also include detailed financial projections. Outline your expected startup costs, such as high-quality cleaning equipment, cleaning supplies, protective equipment, and marketing materials. Factor in ongoing overhead costs and estimate your average salary expenses if you plan to hire a team. If you need extra capital, consider business loans or other funding options to cover your initial expenses and ensure efficient cash flow.

Don’t forget to map out your marketing strategies. Decide how you’ll reach potential customers—through online advertising, social media, local business partnerships, or traditional marketing materials like business cards and flyers. Building a strong brand identity, including a memorable business name and logo, will help your cleaning business stand out and build trust with clients.

Finally, set up systems to manage your finances and track your progress. Open a business bank account to keep your finances organized, and use business management software to handle scheduling, invoicing, and customer communications. Monitor key performance indicators (KPIs) like customer satisfaction, repeat business, and cash flow to ensure your cleaning company stays on track.

The legal structure of your cleaning business determines your tax obligations and the level of protection if something goes wrong (like if a client sues you for property damage). It can even impact how your company is viewed by others. For example, Oakwood Commercial Cleaning LLC could appear more professional than Oakwood Commercial Cleaning.

Here’s a handy table to help you understand the types of legal structures in cleaning and who they’re best for:

Once you’ve chosen your legal structure, pick a name for your cleaning company. According to Beers, “one of the most powerful steps you can take when launching your business is choosing a name that reflects credibility, professionalism, and purpose.”

Just make sure your chosen name isn’t already taken. To check this, head to your Secretary of State’s website—for example, the Illinois Secretary of State’s Business Entity Search or California Secretary of State’s Business Entity Search. Also, run a quick search in the US Patent and Trademark Office database to ensure no one has a trademark for your chosen name.

Finally, you must register your cleaning company with the appropriate federal, state, and local authorities to establish it as a legitimate business. Business registration is essential to ensure compliance with local business and tax laws. Always check local regulations, as requirements can vary by jurisdiction and may include specific licensing or permits.

For example, in Florida, cleaning businesses do not require a state-issued license to operate, but local counties may have their own requirements. Additionally, a Business Tax Receipt (BTR) is required to operate any business within a municipality in Florida.

Check requirements with your Secretary of State, or use resources like the US Small Business Administration’s (SBA) Registration Guide. Also, make sure to get a Federal Employer Identification Number (EIN) from the IRS; you’ll need this to pay taxes.

You must have the appropriate cleaning licenses and permits in place to operate legally. Additionally, proper insurance protects your company and clients in case of major mistakes, property damage, or employee injuries that could result in lawsuits or fines. Small business owners must be aware of these insurance and licensing requirements to ensure compliance and protect their assets.

The main types of licenses, permits, and insurance to consider are:

• General business license: Allows you to legally run a cleaning business in your location. You can get this at your city or county clerk’s office.
• Doing Business As (DBA) license: Needed if you’re operating under a business name that’s different from your legally registered business name (e.g., Sarah’s Cleaning instead of SWC Cleaning LLC). You can request this from your city or county clerk’s office or the Secretary of State.
• Special licenses: Required for types of cleaning jobs. Examples include a contractor license for post-construction cleanup in California and a special permit to dispose of hazardous waste in New York. Check what you need through your state’s Department of Consumer Affairs or Attorney General’s Office, the US Environmental Protection Agency, or your local SBA office.
• Sales tax permit: Required in states like Texas, which taxes cleaning services. Apply for this via your state’s Department of Revenue.
• General liability insurance: Covers customer injuries or accidental damage while cleaning a customer’s property. You can buy this through private insurers like NEXT or The Hartford.
• Workers’ compensation insurance: Covers employee injuries on the job (think about those slippery floors!), and can also be purchased through private insurers like NEXT or The Hartford. Workers’ compensation insurance is required for cleaning businesses with four or more employees.
• Janitorial bond: Protects your clients in the event of theft by cleaning staff. It’s available through most small business insurers like Insureon.

The right pricing is key to running a successful cleaning business. Price yourself too low, and you may leave money on the table. Charge high rates without reason, and you may lose clients to competitors. 

Here are some smart ways to price your cleaning services:

Cost-plus pricing

Calculate your total costs, including labor, supplies, equipment, cleaning solutions, travel, and any other expenses. Typical fixed expenditures for a cleaning business include business licenses, insurance, tools, and cleaning solutions. Investing in effective, environmentally friendly cleaning solutions can improve your service quality, efficiency, and customer satisfaction, helping you stand out from competitors. Then, add a markup (profit margin) to get your price.

How much should this be? A cleaning business owner wrote in the r/sweatystartup subreddit that they generate “30% net income margin” when cleaning 100–150 properties per month.

Competitive pricing

It’s important to “understand what your local competition is charging and exactly what services they are providing,” Walters says. This gives you a benchmark and helps you decide if you want to match others or charge more or less than them. 

You can check out your competitors’ websites or Google Business Profiles to see their rates. Also, research online to find the average costs for your cleaning services. 

For example, the 2024 Cleanfax Carpet and Floor Cleaning Benchmarking Survey Report shows that carpet cleaners commonly charge between $0.31 and $0.40 per square foot for residential and commercial services. Meanwhile, HomeGuide estimates that Maid services charge from $25–$70 per hour or from $200–$550 per day. 

Value-based pricing 

Customers are willing to pay more for specialty jobs, such as specialized services like eco-friendly cleaning, allergen-free cleaning, biohazardous waste disposal, or post-construction cleanup, because these require specialized equipment, materials, or skills. You can learn more about how to position yourself in this excellent cleaning business pricing guide by the Cleaning Business Academy.

If you don’t already have capital ready, you’ll need to secure funding for tools and supplies, marketing, hiring, and more. 

Some funding options you can explore include the following:

• A bank loan or line of credit, where you can borrow up to a certain limit and only need to repay what you use. 
• A Small Business Administration (SBA) loan, if you’re eligible. It provides small cleaning companies with startup capital at low interest rates and flexible terms. SuperbMaids, for example, was granted an $85,000 loan by the Nevada State Development Corporation (NSDC). 
• Other government grants through your local chamber of commerce or using platforms like Hello Alice, which can connect you with private grant providers. 
• Diversity-focused grants, if you’re eligible. For instance, Amber Grants for Women awarded Alexzandra Clark, founder of The Clean Machine, $10,000 for her startup.

• Funding platforms like FundKite, which can offer funding for commercial and janitorial cleaning services.  
• Angel investors or friends and family who can help fund your company. Research shows that the cleaning market is projected to grow by 5.6% over the next five years. A strong business plan and evidence that cleaning businesses are well-valued can go a long way.  

You can’t run your business without cleaning tools and supplies. The equipment you’ll need depends on what you’re cleaning and who your clients are. For example, a post-construction job requires heavy-duty vacuums and dust extractors, while residential jobs need lighter tools.

Don’t overlook the importance of a company vehicle—having a dedicated vehicle is essential for transporting your cleaning equipment and supplies between job sites. It’s also a key consideration for legal compliance and insurance requirements, especially for mobile cleaning services.

To get a sense of your own requirements, you should:

• Ask other professionals from cleaning business networks like the International Sanitary Supply Association (ISSA) or the Household and Commercial Products Association (HCPA).
• Read online supply lists, such as Connecteam’s cleaning supplies checklist.
• Use government resources. For instance, the US Environmental Protection Agency has created a list of “Safer Choice”-certified cleaning products.
• Rely on your employees, if you have any. They can tell you what tools and supplies they’ve used in previous jobs.

When assembling your supply kit, make sure to include paper towels—they’re a versatile, disposable option for cleaning and drying surfaces in both residential and commercial settings. Alongside paper towels, stock up on essentials like microfiber cloths, a good vacuum, and a reliable all-purpose cleaner.

Importantly, don’t rush into purchases when you’re starting out. “You don’t need every gadget or a huge crew right away,” says Craig Mannella, owner at Stay Clean Long Island. “Buy solid, basic tools such as a good vacuum, microfiber cloths, a reliable all-purpose cleaner, then reinvest the profits as you grow.”

Unless you’re operating as a solo, you’ll need to hire some workers. Small cleaning businesses can start with just a handful of staff members. According to a Quora user with 20 years of experience in cleaning, you can start off with you and 2 team members, who can cover for each other when you have more than 1 job at a time.

Remember that your cleaners are the face of your business. You’re much more likely to get repeat business when they do a good job, or suffer reputational damage if they consistently mess up. 

Here are some tips to hire well:

• Hire holistically: In addition to technical skills and know-how, add soft skills and traits like trustworthiness, punctuality, and customer service skills to your cleaner job descriptions. 
• Diversify your sourcing methods: Beyond job boards like Indeed and Craigslist, look at local Facebook groups, staffing agencies, and community programs that help connect people with job opportunities. 
• Run background checks: Use platforms like Checkr to screen employees, especially if you handle residential work. 

After you’ve made hires, it’s crucial to provide new team members with good cleaning staff training. This can include:

• Technical training, such as how to use equipment like vacuum cleaners, polishers, pressure washers, and more. This training will vary depending on the types of cleaning jobs your staff will do. 
• Company-specific training, including expected workplace conduct, client interactions, and working practices. 
• Health and safety training mandated by the Occupational Safety and Health Administration (OSHA), such as training on slip, trip, and fall prevention, fire safety, and handling of chemicals.
• Specialized training for infection control in hospitals, post-construction debris handling, and similar jobs.

Lastly, ensure your training program is scalable. Willatt points out that while it’s easy to train your first few hires yourself, it’s not practical for you to train everyone as your company grows. 

You can’t run a successful cleaning business without customers. You must consider who your target clients are, how to get leads for your cleaning business, and how to stand out among competitors when selling your cleaning services. Building strong brand recognition is especially important—if you’re considering joining a franchise, an established brand can help attract customers and provide credibility in the market.

A solid cleaning marketing plan and effective sales strategy will cover all this. The marketing plan, in particular, will spell out the marketing channels you’ll use for your customers. For example, cleaning flyers, local ads, and referrals work well for homeowners, while professional cleaning websites and SEO strategies might be better for commercial clients.

Targeting other businesses, especially in the commercial sector, is a proven growth strategy—competitor research can help you identify gaps and tailor your services to meet the needs of other businesses.

Acquiring new customers should be a priority, using both online and offline marketing strategies. Building a strong online presence is crucial for attracting clients to your cleaning business. Claiming and optimizing your Google Business Profile can drive up to 50% of leads for a cleaning business in 2026.

Encourage satisfied customers to leave positive reviews to enhance your online reputation, and consider implementing a customer referral program to help retain clients and attract new ones. Maintaining a consistent brand image across all marketing materials is also vital for your cleaning business.

This helps you stay focused and spend your marketing budget wisely. Knoll tells Connecteam that this is crucial, sharing that it was a costly mistake “trying to market on every channel available all at once.”

In this day and age, the smartest business owners use tools and tech to run their cleaning business. Mannella tells Connecteam that he regrets not doing this right off the bat: “When I first started, I realized quickly that hustle alone wasn’t enough. Without a process for scheduling, training, and quality control, things got chaotic fast.”

Good software can save hours of admin work, reduce mistakes, and make your company look more professional to clients. Here are a few tools that can help cleaning businesses:

Connecteam enables you to schedule and dispatch cleaners, track their hours, and assign them tasks (which can include integrated checklists, incident report forms, and customer feedback forms). This helps you run your entire business efficiently and compliantly from one place. 

How Much Does It Cost to Start a Cleaning Company?

The cost to start a cleaning company varies depending on your niche, team size, location, and more. But to give you a reference point, here’s an estimated 1-year cost of starting a basic commercial cleaning business with 3 team members:

Minimizing Cleaning Business Start-Up Costs 

Starting a cleaning business doesn’t need to break the bank. Here are 3 ways to curb your costs:

1. Look for cleaning management software with free plans for small businesses. For instance, teams with fewer than 10 users can access all of Connecteam’s features for free, with no strings attached. 
2. Check if you’re eligible for tax credits and deductions from the IRS for your cleaning supplies, home-office expenses, travel expenses, and more.
3. Consider using an accounting software like QuickBooks or Xero, or a service like JC Castle Accounting that specializes in cleaning businesses. These can help to track expenses accurately, identify deductible costs, and optimize your taxes. 

3 Mistakes to Avoid When Starting a Cleaning Business

Watch out for these mistakes new cleaning business owners often make:

Taking every cleaning job that comes your way

You might think accepting every job means more money, but it can often lead to poor-quality work, unhappy customers, and team burnout, especially when you’re not ready to take on so much. 

Mannella shares with Connecteam that they regret taking on both cleaning and restoration jobs “for far too long.” Meanwhile, Leon Lurie, owner of Crystal Purity Commercial Cleaning, offers a warning: “Never jump too high or too far. […] You should be ready for your next step. Otherwise, it may cost you a fortune.”

Underpricing your cleaning business 

Charging too little could lead to cash flow problems and also signal low quality. According to Mannella, it’s “the number-one issue” in the cleaning industry. It’s “one of the fastest ways to burn out and stalls growth like nothing else,” they say. 

Not firing underperforming workers 

You might be afraid of losing cleaning staff early on, as the success of your business depends on labor. But bad employees can really cost your business through rework, lost customers, and poor team morale. Knoll advises “hiring people slowly and firing quickly,” especially if they’re not doing an “A+ job.”

What type of cleaning makes the most money?

The type of cleaning that tends to make the most money is specialty cleaning, such as post-construction cleaning, bio-hazardous cleanup, and large-scale commercial contracts. This is because they demand more skill, special equipment, and liability requirements.  

Can you run a cleaning business from home?

Yes, you can run a cleaning business from home rather than a dedicated office or building. Just ensure you have storage space for your materials, a business license, and the necessary licenses and insurance. 

Are cleaners profitable?

Yes, cleaning businesses can be profitable. However, you must keep your expenses in check and run your business efficiently. If you do, you can achieve cleaning business profit margins of between 10% and 25%. 

Disclaimer

This article is for general informational and educational purposes only. It is not intended as and does not constitute business, financial, or professional advice, and should not be relied upon as such. Connecteam accepts no responsibility for consequences arising from actions taken or not taken based on the information present in this article.