How to Start a Cleaning Business with 10 step for Merchant

Starting a cleaning business is an exciting opportunity for entrepreneurs looking to enter a high-demand, scalable industry with low startup costs. In this article, NextSky provides a detailed guide on how to start a cleaning business and offers unique insights to help you stand out in a competitive market.

Step 1: Research the market and identify your niche

To kickstart your success, begin by researching the cleaning market in your area and pinpointing your target customers. This is the cornerstone of shaping your business strategy and ensuring sustainable growth.

Understand the local market

• Research competitors: Search “cleaning services near me” on Google to analyze competitors’ websites, services, pricing, and customer reviews.
• Gather feedback: Talk to homeowners, businesses, or property managers in your area to understand their cleaning needs and challenges. For example, are they seeking affordable basic cleaning or premium deep-cleaning services?
• Define your audience: To grow sustainably, identify a core customer segment to tailor your strategy, optimize resources, and deliver meaningful value to your target market.

Choose your niche

To succeed in the cleaning industry, select services that align with market trends and leverage your unique strengths. Popular niches include:

• Residential cleaning: Offer recurring house cleaning, maid services, or comprehensive move-in/move-out cleaning for tidy, comfortable homes.
• Commercial cleaning: Target offices, retail stores, or medical facilities that demand professional standards, strict processes, and high safety.
• Specialized cleaning: Provide services like carpet cleaning, window washing, upholstery cleaning, or high-pressure washing to meet niche needs that standard services can’t.
• Green cleaning: Use eco-friendly, non-toxic products to attract health-conscious and sustainability-focused customers.

Expert tip: Start with a few core services to maintain quality and build expertise. For example, offering eco-friendly cleaning can set you apart, appealing to customers who prioritize health and sustainability.

Read more: How to Start a Business in 14 Simple Steps to Success

Step 2: Create a business plan

A business plan serves as your roadmap, defining clear goals, outlining effective strategies, and providing accurate financial projections.

• Executive summary: Summarize your business goals, target market, and key competitive advantages.
• Services offered: Clearly list your cleaning services and appropriate pricing strategies.
• Market analysis: Detail your target customers, main competitors, and untapped market gaps to position your business effectively and seize opportunities.
• Marketing strategy: Describe methods to reach and attract customers, such as digital marketing, traditional flyers, or referral programs to build credibility.
• Financial plan: Outline startup costs, monthly operating budget, revenue projections, and break-even analysis to provide a clear long-term financial picture for investors and yourself.
• Growth strategy: Plan for future expansion, including hiring staff, adding new services, or expanding your operational network.

Read more: Successful Business Plan with the Secret from A to Z

Step 3: Register your business legally

Legally registering your business is a strategic step to build credibility with partners, customers, and investors while protecting your company’s assets in the long term.

Choose the right legal structure

• Sole proprietorship: Ideal for quick, solo startups. However, personal assets are tied to the business, meaning you risk losing personal property like your home or car if the business fails.
• Partnership: A collaborative model where founders share profits, benefits, and risks. A clear, transparent contract is essential to avoid disputes.
• Limited Liability Company (LLC): A “shield” that separates personal and business assets, offering high safety and relatively simple setup, making it a popular choice.
• Corporation: Provides the most comprehensive owner protection but involves complex procedures, strict regulations, and higher setup costs. Best for large-scale businesses with long-term growth goals.

Steps to register your business

• Check and register your business name: Ensure the name is unique, then register it with your state or local authorities.
• Obtain an Employer Identification Number (EIN): Required by the IRS if you plan to hire employees or form an LLC/corporation.
• File a DBA (Doing Business As): Necessary if you operate under a name different from your personal name.
• Secure business licenses and permits: Research local city or county regulations, as requirements vary. Use online tools to quickly check name availability and streamline registration. In the U.S., visit your state’s Secretary of State website for detailed guidance.

Read more: Discover 7 Types of Businesses to Start a Successful Business

Step 4: Secure licenses and insurance

Business licenses

All businesses need a license to operate legally. Contact your city or county government to understand specific requirements.

• In Florida, residential cleaners may not need a state license, but commercial cleaners require a sales tax permit.
• Fees typically range from $50–$400 annually, depending on the locality.

Insurance

Insurance is critical to protect your business from unforeseen risks. Consider these options:

• General liability insurance: Covers costs for customer injuries or property damage.
• Workers’ compensation insurance: Mandatory if you hire employees, protecting you and workers from workplace injuries.
• Business Owner’s Policy (BOP): A comprehensive package combining liability and property coverage, ideal for cost-effective protection.

Expert tip: Compare providers like Next Insurance or Thimble to find affordable plans. Highlight your insurance coverage to clients to build trust and demonstrate professionalism.

Step 5: Invest in equipment and supplies

One major advantage of the cleaning industry is the low initial investment. With basic tools and supplies, you can operate professionally.

• Basic tools: Microfiber cloths, sponges, mops, brooms, dusters, vacuums, gloves, and trash bags streamline cleaning tasks.
• Cleaning solutions: All-purpose cleaners, glass cleaners, disinfectants, toilet bowl cleaners, and soap scum removers ensure spotless, germ-free spaces.
• Green solutions: Vinegar, baking soda, castile soap, or Green Seal-certified products appeal to eco-conscious clients and promote sustainability.
• Reasonable budget: $100–$200 can cover a full set of reusable, high-quality supplies. Shop at discount stores or specialized suppliers for the best deals.

Step 6: Set competitive pricing

Pricing is the key to balancing profitability with customer satisfaction, fostering trust and long-term loyalty.

Popular pricing strategies

• Hourly rates: $25–$50/hour for residential cleaning, suitable for small, short-term jobs.
• Flat rates: $100–$300 per job, ideal for consistent pricing on larger projects.
• Per square foot: $0.10–$0.20 per square foot, often used for commercial cleaning.
• Green service surcharge: Add 10–20% for eco-friendly products, which have higher material costs.

How to price effectively

• Survey and compare competitors’ rates in your area.
• Account for labor, supplies, travel, and operational costs.
• Ensure a minimum 15–20% profit margin for sustainability.
• Use cost calculators or quote templates for accurate, transparent pricing. Expert tip: Offer introductory discounts or bundled packages, like “deep cleaning + window washing,” to save customers money while increasing order value.

Step 7: Market your cleaning business

Effective marketing spreads your brand to the right customers quickly, helping you build a strong presence.

Low-cost marketing ideas

• Leverage personal networks: Ask friends and family to spread the word or become your first clients.
• Distribute flyers: Leave door hangers or flyers in neighborhoods or local businesses.
• Business cards: Share cards at community events or networking groups.
• Vehicle advertising: Add wraps or magnetic signs to your vehicle for mobile promotion.

Digital marketing strategies

• Build a website: Create a professional site with booking forms, service lists, and customer reviews. Use NextSky’s Shopify themes for user-friendly, SEO-optimized designs.
• Set up a Google Business Profile: Appear in local search results and encourage 5-star reviews.
• Social media: Share before-and-after photos, cleaning tips, or client testimonials on Instagram, Facebook, or TikTok.
• Local SEO: Optimize your website with keywords like “cleaning services near me” or “house cleaning in [your city].” Unique angle: Create short videos showcasing your cleaning process or eco-friendly methods. Videos are engaging and boost your social media presence.

Step 8: Use technology to streamline operations

Technology optimizes operations and delivers a professional customer experience. Consider these tools:

• Scheduling software: Use Jobber or Simpro to manage appointments and clients online.
• Invoicing software: Automate billing and payments with QuickBooks or Square.
• CRM systems: Store client details, track job history, and send automated reminders.

Step 9: Hire and train your team

As your business grows, hiring cleaners allows you to scale and serve more clients. A clear strategy ensures you find and retain the right talent.

Hiring tips

• Write clear job descriptions detailing responsibilities and requirements.
• Post openings on platforms like Indeed or LinkedIn.
• Conduct paid trial shifts to assess candidates’ skills.
• Start with contractors to avoid complex employee paperwork.

Best training practices

• Create checklists to ensure consistent service quality.
• Train staff on safe chemical use and cross-contamination prevention.
• Emphasize customer service to build client loyalty. Expert tip: Foster a positive work culture with regular feedback and incentives to retain top talent.

Step 10: Focus on growth and sustainability

To grow sustainably and scale, focus on three core pillars: reputation, efficiency, and innovation. Mastering these builds profitability and a strong market position.

Growth strategies

• Expand services: Add niche offerings like carpet cleaning or pressure washing as capital grows.
• Build partnerships: Collaborate with real estate agents or property managers for move-in/move-out contracts.
• Invest in marketing: Experiment with Google Local Service Ads or social media ads for broader reach.
• Prioritize reviews: Encourage satisfied clients to leave reviews on Google or Yelp to boost credibility.

Sustainability tips

• Use eco-friendly products to attract environmentally conscious customers.
• Donate a portion of profits to local environmental organizations to enhance your brand’s reputation.
• Regularly review processes to improve efficiency and cut costs. Unique angle: Offer subscription-based cleaning packages (e.g., weekly or biweekly) for recurring revenue and customer retention.

Learning how to start a cleaning business can open the door to a rewarding venture with significant growth and profit potential. With NextSky’s steps above, you can build a thriving cleaning company.