Starting a cleaning company can be a rewarding venture, blending a keen eye for detail with smart business sense. The industry pulls in billions of dollars annually, fueled by a steady demand for cleaning services from residential homes, commercial offices, and retail spaces.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary permits, and acquiring equipment to help you launch a successful cleaning company in the U.S.
Step 1: Plan your business and validate your idea
First, research your local market to confirm demand. Use U.S. Census Bureau data to find neighborhoods with higher household incomes. You can also browse platforms like Thumbtack and Nextdoor to see what services people request and what they are willing to pay.
Once you have a feel for the market, analyze your direct competitors. Use Google Maps and Yelp to find local cleaning companies. Review their websites, service lists, and customer reviews. A frequent misstep is to underprice your services just to win jobs. Instead, look for a service gap to fill.
Estimate your startup costs
Your initial investment will likely range from $750 to $3,200. Business registration as an LLC typically costs between $50 and $500. General liability insurance, a must-have, runs about $50 to $200 per month. Expect to spend $500 to $1,500 on quality supplies.
This initial supply budget covers a commercial vacuum, microfiber cloths, mops, and professional-grade cleaning solutions. You should also set aside $200 to $1,000 for basic marketing materials like a simple website and business cards to get your first clients.
Here are 3 immediate steps to take:
- Use Google Maps to identify three local cleaning services and note their offerings.
- Create a simple spreadsheet to budget for initial costs like insurance and supplies.
- Visit your state's Secretary of State website to find the LLC registration fee.
Step 2: Set up your legal structure and get licensed
With your business plan ready, it is time to make it official. You might consider forming a Limited Liability Company (LLC). This structure protects your personal assets if the business faces a lawsuit. Many new owners skip this to save money but risk their personal finances.
An LLC also offers pass-through taxation, so you report business profits on your personal tax return. This avoids the double taxation that corporations face. You can register your LLC through your state's Secretary of State website for a fee of $50 to $500.
Next, you will need an Employer Identification Number (EIN) from the IRS. It is free and you can apply online. An EIN is necessary to open a business bank account and hire employees. Also, check with your city or county clerk for a local business license.
While most areas do not require cleaning-specific permits, you must follow Occupational Safety and Health Administration (OSHA) standards for chemical safety. These guidelines ensure a safe work environment for you and your team.
Here are 3 immediate steps to take:
- Register your business as an LLC on your Secretary of State's website.
- Apply for a free Employer Identification Number (EIN) through the IRS.
- Visit your city hall's website to find the application for a local business license.
Step 3: Secure insurance and manage risk
With your legal structure in place, the next move is to protect your business. Insurance shields you from financial loss due to accidents, property damage, or employee injuries. This is a key part of your financial plan.
You will want to start with two main policies. General liability insurance covers accidents, like a client who slips on a wet floor. A janitorial bond protects your clients from employee theft, and many commercial accounts require it.
For general liability, a $1 million policy is standard and costs about $500 to $1,200 annually. A $10,000 janitorial bond is often just $100 to $250 per year. A frequent mistake is to skip the bond to save money, which can lock you out of lucrative jobs.
Once you hire your first employee, you will need workers' compensation. This is mandatory in most states. Also, if you use a vehicle for work, a commercial auto policy is necessary as personal insurance will not cover business use.
You can get quotes from providers that focus on small businesses. Companies like Next Insurance, Hiscox, and The Hartford understand the risks for cleaners and offer packages that fit your needs. A general agent might not find the best rates.
Here are 3 immediate steps to take:
- Get a quote for a $1 million general liability policy from a provider like Hiscox or Next Insurance.
- Research the cost of a $10,000 janitorial bond for your business.
- Visit your state's Department of Labor website to review workers' compensation rules.
Step 4: Set up your workspace and buy equipment
Find your base of operations
You can often run the business from home when you start. Check your city’s website for local home-based business rules. You will need a dedicated storage area, about 100-150 square feet, to keep supplies organized and look professional.
A garage or a secure shed works well. If you opt for a commercial space, try to negotiate a short-term lease of one to two years. This provides flexibility without a long commitment if your needs change quickly.
Purchase your starting equipment
Once your space is ready, you can purchase your gear. Many new owners are tempted to buy residential equipment to save money, but it often breaks under daily use. Invest in commercial-grade items for reliability and a longer lifespan.
You can find these supplies at a local janitorial supply house or through online vendors like Uline. Your initial equipment budget will likely fall between $900 and $1,800. A good starting list includes:
- Commercial backpack vacuum: $400 - $800
- Supply caddy or cart: $50 - $150
- Commercial mop and bucket system: $100 - $200
- Microfiber cloth bundle (50-pack): $40 - $60
- Initial supply of cleaning chemicals: $300 - $500
Here are 3 immediate steps to take:
- Review your city’s regulations for home-based businesses.
- Create a shopping list and price a commercial vacuum from a vendor like Uline.
- Find a local janitorial supply store to compare prices on bulk chemicals.
Step 5: Set up your payment system
For residential clients, payment is usually due upon service completion. For commercial contracts, Net 15 or Net 30 terms are common. You might ask for a 25-50% deposit for large one-time jobs or for the first service with a new client.
While some clients still use cash or checks, most prefer cards. A mistake many new owners make is to only accept cash to avoid fees. This can appear unprofessional and cause payment delays. You need a reliable way to process cards.
When you look for a payment solution, focus on transaction fees. Many providers charge between 2.5% and 3.5% per sale and may require you to buy special card readers. These costs add up and reduce your profit on every job.
For cleaning companies that need to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful when you collect payment right after a residential cleaning. It is easy to get started.
- Get Started: Download JIM app for iOS
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers
Here are 3 immediate steps to take:
- Decide on your payment terms for residential versus commercial clients.
- Compare the 1.99% transaction fee from JIM with other processors.
- Download the JIM app to see how it works on your phone.
Step 6: Fund your business and manage finances
Secure your startup capital
You might not need a large bank loan. Consider an SBA Microloan, which offers up to $50,000. Interest rates typically range from 8% to 13%. Lenders will want to see a solid business plan and a personal credit score above 620.
A business credit card is another option for initial equipment purchases. Some cards offer 0% introductory APR. This can give you breathing room, but be sure to pay the balance before the promotional period ends to avoid high interest charges.
Manage your cash flow
Once you have funding, open a dedicated business bank account. Many new owners mix personal and business funds, which creates a mess at tax time. This simple separation makes bookkeeping much easier and protects your personal assets if you are an LLC.
You should plan for about $6,000 to $12,000 in working capital to cover your first six months. This buffer pays for insurance, marketing, and supplies while you build your client base. Underestimating this figure is a frequent misstep that can sink a new business.
Here are 3 immediate steps to take:
- Research SBA Microloan lenders in your area and review their requirements.
- Open a separate business checking account at your local bank or credit union.
- Calculate your estimated six-month operating expenses to determine your working capital needs.
Step 7: Hire your team and set up operations
Find your first employees
You might want to hire one or two part-time Cleaning Technicians to start. This role handles the day-to-day cleaning tasks. Depending on your market, you can expect to pay an hourly wage between $15 and $25.
Some new owners hire friends, but this can get complicated. It is better to conduct interviews and check references for every candidate to keep the relationship professional. This also ensures you find people with the right attitude and work ethic.
Streamline your daily workflow
Juggling appointments manually gets messy fast. You can use scheduling software like Jobber, Housecall Pro, or ZenMaid to organize jobs and dispatch your team. These platforms often include client communication and invoicing features, with plans starting around $49 per month.
As you set prices, keep an eye on your numbers. A good target is to have your labor costs make up no more than 55% of your revenue. This benchmark helps ensure your business stays profitable as it grows.
You must also train your team on safety. Review OSHA's Hazard Communication Standard with every new hire so they know how to handle cleaning chemicals properly. This protects them and your business from accidents.
Here are 3 immediate steps to take:
- Draft a job description for a Cleaning Technician with a competitive local wage.
- Compare the features of scheduling software like Jobber and Housecall Pro.
- Bookmark the OSHA Hazard Communication Standard page for employee training.
Step 8: Market your business and get clients
Build your online presence
Start by creating a Google Business Profile. It is free and puts you on Google Maps. Upload high-quality photos of your work and list all your services. Ask your first few happy clients to leave reviews, as this builds trust with prospects.
Many new owners neglect their online profile, which makes it hard for local customers to find them. Also, create a simple Facebook page to share before-and-after pictures. You can join local community groups to offer your services, but check the group rules first.
Use offline marketing tactics
Do not underestimate old-school methods. Print professional flyers and distribute them in neighborhoods you want to target. A weekend spent distributing 500 flyers can land your first few residential jobs. This is a direct way to reach potential clients.
You might also want to connect with real estate agents and property managers. They often need reliable cleaners for move-in and move-out jobs. A single partnership can provide a steady stream of work. Offer them a small referral fee for each client they send your way.
Track where every new client comes from. If you spend $100 on Facebook ads and get two clients, your Customer Acquisition Cost (CAC) is $50. Knowing this number helps you decide where to invest your marketing budget for the best return.
Here are 3 immediate steps to take:
- Create and fully populate your Google Business Profile.
- Design and print 500 professional flyers for a target neighborhood.
- Identify three local real estate agents to contact for potential partnerships.
Step 9: Price your services and create packages
Choose your pricing model
You have three main options for pricing. An hourly rate, typically $30 to $50 per cleaner, works for jobs with unknown variables. However, you can lose profit if your team works slowly. A flat rate is better for standard residential jobs and rewards efficiency.
For example, you might charge a flat $150 for a 3-bedroom, 2-bathroom home. A frequent error is to give a flat rate without seeing the property. Always do a walkthrough or ask detailed questions to avoid underbidding a job that requires extra work.
For commercial spaces, pricing per square foot is standard. Rates can range from $0.05 to $0.20, depending on the frequency and scope of cleaning. This model provides predictable revenue for contract work.
Set your profit margin
Aim to keep your labor costs at or below 55% of the job's price. After you account for supplies, insurance, and marketing, you should target a net profit margin of 15-25%. This ensures your business is sustainable and can grow.
You can also create tiered service packages. This clarifies what is included and gives you an opportunity to upsell. For instance, offer a "Basic Clean" and a "Deep Clean" with different checklists and price points.
Here are 3 immediate steps to take:
- Call three local competitors to get a quote for a standard 3-bedroom house clean.
- Calculate a flat-rate price for a basic clean based on a 55% labor cost target.
- Outline three service packages (e.g., Basic, Deep, Move-Out) with clear checklists for each.
Step 10: Maintain quality and scale your operations
As you grow, keeping every clean consistent is the main challenge. You can solve this with a detailed cleaning checklist for each service. This list becomes your internal quality standard and guides every technician to deliver the same great results.
Track your callback rate, which is the percentage of jobs that need a return visit. A good target to aim for is below 5%. You can also send a simple one-question survey after each job asking clients to rate the service from 1 to 5.
Know when to grow
Many owners wait too long to hire, trying to do it all themselves. Once you spend over half your week on cleaning tasks instead of management, it is time for help. If you must turn down jobs due to a full schedule, that is another clear sign.
With a larger team, software like Swept or CleanTelligent can help you run inspections and manage communication. This maintains quality as you expand. When you have a steady profit margin of 15-20%, you can consider adding services or expanding your territory.
Here are 3 immediate steps to take:
- Create a detailed cleaning checklist for your basic service package.
- Set a target callback rate of less than 5% for your first quarter.
- Research a quality management software like Swept to see its features.
You have the roadmap to launch your cleaning company. Remember, your consistency is what builds trust and secures repeat clients. Every clean is a chance to prove your value. Now, go turn that plan into a business.
And when it comes to payments, keep it simple. A solution like JIM turns your phone into a card reader, so you can accept payments on the spot for a flat 1.99% fee. Download JIM and you are ready to go.
