How to Start a Cleaning Business: Complete Guide

With the janitorial services industry currently valued at $93¹ billion, starting a cleaning business can be a profitable venture, whether you’re looking into residential or commercial cleaning services. In this guide, we cover the essential steps and low-cost strategies to help you launch your cleaning business on a budget.

You can also download our complete guide to starting a business, which you can reference later:

Step 1: Research your market and competition

Before launching your cleaning business, understanding your target market and local competition will help you position your services effectively and set competitive pricing.

Identify your ideal clients

Who will your cleaning business serve — homeowners, property managers, offices, or industrial facilities? Residential cleaning typically involves recurring jobs, while commercial cleaning may offer larger contracts but require more staff and equipment.

Defining your target market early on will guide key business decisions, from pricing and equipment to marketing strategies. Most cleaning businesses specialize in residential or commercial services since each has unique requirements. Choosing a clear focus will help you streamline operations and attract the right clients.

Research local competitors and pricing models

Knowing who your competitors are and how they price their services will help you stand out and set competitive rates.

• Find your competitors. Search online, check local directories, and browse social media to see which cleaning businesses operate in your area. Look at their websites, services, pricing, and customer reviews. Pay attention to their strengths and weaknesses — this will help you find opportunities to differentiate your business.
• Compare pricing models. Cleaning businesses typically charge in three ways:
  • Hourly: Best for small, unpredictable jobs or first-time clients
  • Flat rate: Common for residential cleaning, where pricing is based on home size or number of rooms
  • Per job: Often used for commercial contracts and deep cleaning services and charges for a fixed amount for an entire cleaning task, regardless of size
  • Per square foot: Common in commercial cleaning, this model charges based on the total area cleaned

If most competitors in your area use one model, consider whether adopting a different structure could make your business more attractive. You also want to determine if clients in your region expect bundled services, contracts, or one-time cleanings.

• Position your pricing. Your rates should reflect the quality of your service and your operating costs while remaining competitive. Consider offering introductory discounts, package deals, or premium add-ons like eco-friendly cleaning to stand out. Understanding how competitors price their services helps you find the right balance between affordability and profitability.

Understand local regulations and licensing requirements

Before taking on clients, ensure your cleaning business meets all legal requirements in your area. Operating without the proper licenses or insurance can result in fines — or, worse, legal trouble.

Ensure your cleaning business meets all legal requirements to avoid fines or legal issues. Most cleaning businesses need:

• Business licenses or permits: The specific paperwork you need depends on your state and city regulations ($40-$500 per year)
• General liability insurance: Covers damages and accidents in a customer’s home ($500–$3,500 per year)
• Workers’ compensation insurance: Required if you have employees to cover workplace injuries (varies by state, around $500-$3,000 per year).
• Janitorial bond: Covers theft or damage caused by employees ($100-$600 annually).

Assess demand in your area

Is there a strong demand for cleaning services in your city? Consider factors like population size, income levels, and the number of businesses or rental properties. A well-researched market gives you a better chance of long-term success.

Once you have a clear picture of your market, you’ll be ready to define your services and start planning your business structure.

Step 2: Define your business scope and services

Once you understand your market and competition, it’s time to define the specifics of your cleaning business.

Choose your market

Decide whether your business will focus on residential or commercial cleaning. Your choice will impact your equipment needs, staffing requirements, pricing structure, and marketing approach.

Residential vs commercial cleaning business

A residential cleaning service specializes in homes, while a commercial cleaning business specializes in businesses. But it gets more complicated. Typically, the residential cleaning business is lower-cost to start (primarily because of simpler equipment needs); however, commercial cleaning can be very lucrative because of the add-on services, such as floor waxing, window washing, and deep disinfecting.

Generally, residential cleaners earn a slightly lower hourly wage than cleaners who provide services to businesses, government buildings, schools and universities, and other commercial clients. However, there are more residential cleaners than commercial ones, suggesting a higher demand for those services.

Also consider that residential cleaning is done during the day, and commercial is done during the night. Also, residential cleaning is more detail-oriented because the homeowner is more likely to inspect your work and be particular about how you perform certain tasks, such as arranging pillows and blankets. Commercial covers more square feet, so you’ll have to work faster and be less detail-oriented than residential.

From a business perspective, the residential space has more customers available. Overall, your choice between residential and commercial depends on your budget for equipment and lifestyle.

Select your business model

There are multiple ways to structure your cleaning business. Consider which model best fits your financial goals and operational capabilities.

• Independent Business: You start from scratch, set your own pricing, and build your brand. This offers full control but requires strong marketing and customer acquisition efforts.

• Franchise: Buying into a cleaning franchise gives you brand recognition, training, and marketing support. However, you’ll need to pay franchise fees and follow their business model.

• Subcontracting: Working as a subcontractor for an established cleaning company can provide steady work without the need for direct client acquisition, though your earnings may be lower than running your own business.

Here are the top cleaning franchises to consider:

Define your services

Cleaning businesses offer a range of services. When choosing which to provide, consider your market research from Step 1, including local demand and competitor offerings.

• Basic Cleaning: Routine dusting, vacuuming, mopping, and sanitizing surfaces; ideal for recurring residential or office cleaning.
• Deep Cleaning: More intensive cleaning, including scrubbing grout, washing walls, and detailed appliance cleaning; common for move-in/move-out cleanings
• Specialized Services: Offer niche cleaning services to differentiate your business:
  • Eco-friendly cleaning (using non-toxic, biodegradable products)
  • Post-construction cleaning (removing debris and dust from new builds)
  • Carpet and upholstery cleaning (using steam or dry-cleaning techniques)
  • Medical or industrial cleaning (requiring special sanitation and compliance measures)

Consider bundling services into packages to provide more value and attract different types of clients.

Set your service area

Where will you offer your cleaning services? Defining your service area helps you manage operations efficiently and target the right customers.

• Local focus: Best for small businesses looking to dominate a specific city or neighborhood.
• Regional expansion: Covers multiple cities or a metro area, requiring more staff and logistical planning.
• Niche-focused: Specializes in certain properties, like luxury homes, medical offices, or high-rises.

A well-defined service area reduces travel time, streamlines scheduling, and makes marketing more effective. It also helps you set competitive pricing based on local demand and competition.

Step 3: Plan your finances and legal setup

Before you start booking clients, you’ll need a solid financial and legal foundation. A well-thought-out business plan, proper licensing, and a clear budget will help you avoid costly mistakes and set your cleaning business up for long-term success. Here’s how to get started:

Write a business plan

A solid business plan helps set up your cleaning business for success. It doesn’t have to be complicated — start with the basics:

• Create a one-page business plan: Jot down your goals, strategy, and operations in a quick, structured outline. It should be simple enough to complete in 15 minutes.

Here’s a free template you can use:

• Set up a budget: Estimate your startup costs, monthly expenses, and projected income. Factor in essentials like equipment, insurance, labor, and marketing. Here are some common expenses for a low-cost cleaning business:
  • Licenses and permits: $35-$500 to register as a limited liability company (LLC).
  • Insurance: Average of $8,951 annually for single coverage, depending on number of employees. Expect to pay a few hundred dollars per month.
  • Cleaning equipment and products: $300-$600 depending on the type of tools.
  • Marketing: $100-$200 for flyers, online ads, and business cards to attract clients.
  • Technology & Software: $20–$50 per month for scheduling, invoicing, and customer management tools.
  • Operating Costs: Includes transportation, employee wages ($7-$20 per hour), insurance ($500-$3,500 annually), and business registration ($100-$500).

Total startup costs can range from $1,000 to $5,000, depending on your business size and the services offered.

Materials & Equipment to Start a Cleaning Business

Here’s a list of some things you need to start a cleaning business on a budget:

• Cleaning uniform or apron
• Paper towels
• Microfiber cloths
• Latex gloves
• Scrubbing brushes
• Toilet brush
• Grout brush
• All-purpose cleaner
• Window cleaner
• Wood cleaner
• Tile and grout cleaner
• Extendable duster
• Sponge
• Disinfectants
• Vacuum
• Bucket
• Mop
• Trash bags

• Establish your cleaning rates: Once you have your expenses estimated, you need to determine your rates. Decide whether to charge by the hour, flat rate, or per job. Use the competitor research you did in Step 1 and consider adding premium add-ons. Consider these options when determining your rates:
  • Hourly rate: $30-$90 per hour. The hourly rate is the most common billing method.
  • Flat rate: $120-$150 for a single-family home. Determine this rate by estimating how long it will take to clean a particular house. Customers may prefer this rate because they know the exact amount to pay every month.
  • Per job rate: $150-$500 per project. This pricing model is typically used for deep cleaning, move-in/move-out services, or specialized cleaning jobs where the scope is clearly defined upfront.
  • Square foot rate: $0.05-$0.20 per square foot. It’s common in the commercial cleaning business to charge a square foot rate.
• Determine your net income: Figure out your net income by subtracting expenses from your revenue, then see how long it’ll take to break even. For example, if you spend $4,000 to start and have $1,000 in monthly expenses, cleaning 20 homes at $120 each brings in $2,400. That leaves you with $1,400 profit per month, meaning you’d break even in about four months—though it might take longer to build up your client base.

Secure funding

Ideally, you’ll want to use personal funds to start the business so you can avoid debt. That may not be possible if you’re starting a cleaning business with vehicles or a physical location. Whatever type of business you’re opening, remember you’ll still have to pay back the debt if the company fails.

Consider the following funding options to start your cleaning business:

• Personal funds: Before using any of your personal funds to start the biz, transfer the money into a business bank account.
• Crowdfunding: Many new cleaning businesses may overlook this option. Crowdfunding can be used to raise funds from potential customers, such as family and friends, before opening. Use the funds to purchase equipment and then perform the prepaid services.
• Credit cards: We don’t recommend taking on a substantial amount of debt to start your first business. However, if you choose to take on debt, a credit card is an option. If you have good credit, you can get a 0% introductory APR for 12 to 18 months.
• Personal loan: Generally, we recommended you don’t take out a personal loan to start a cleaning business. The interest rate is relatively high (above 12%) because the loan isn’t secured to collateral.
• Home equity loan: If you have equity in your home, you can take out a loan to start your business. Because this loan is tied to your home as collateral, the interest rate will be lower.
• Rollover for business startups (ROBS): A ROBS is when you use 401(k) money to open a business — it is complicated and potentially risky, so carefully consider it. It is also only available for entities organized as a C corporation (C-corp).

Until you have at least a three-year history of income and expenses, or paid off equipment such as vehicles, don’t apply for a traditional bank loan or Small Business Administration (SBA) loan. Typically, banks don’t lend to startups.

If you’re franchising, a bank loan or franchise financing could be an option. The franchise may have a relationship with a bank and can organize funding for you. A bank may be open to financing a franchise if the overall failure rate is low.

Register your business and get licensed

Once you have the funds to start your cleaning business, it’s time to get your legal paperwork in order. You’ll need to choose a legal structure for your business, get an employer identification number, and get the necessary licenses, permits, and insurance.

Tip: Don’t try to save money by skipping this step! A cleaning business carries risk — you’re using chemicals in your customers’ homes. If, for example, you ruined or broke something in a customer’s home, they could sue you for damages. Without a legal entity, your personal assets are at risk to cover damages.

• Choose a legal structure: Decide how to legally structure your business. All cleaning business owners need to register their business as a legal entity. Registering as a legal entity protects personal assets if a lawsuit were to ever occur against the business. Depending on your state, the cost to register a business is anywhere from $40 to $500.
  • Sole proprietorship: This is the default business structure if you don’t register your business as a legal entity. There are no legal protections with a sole proprietorship.
  • Limited liability company (LLC): An LLC is the legal entity you’ll most likely choose for your cleaning company. It’s easy to set up and takes little maintenance every year.
  • C corporation: A C-corporation is more complicated to set up than an LLC. Often, business owners hire an attorney to assist in the process. C-corporations are typically for larger companies with multiple investors.
  • S corporation: Technically, the S-corp isn’t a legal entity—it’s a tax designation. Congress created the S-corp so that small businesses could get tax advantages similar to those of corporations. You can use a custom calculator to determine if designating your LLC as an S-corp will save tax money.
• Get an EIN: The employer identification number (EIN) is provided by the federal government to identify small businesses. You’ll use this number when filing taxes, opening a bank account, or getting a loan. You can get an EIN for free through the IRS. The entire process takes about 15 minutes.
• Obtain necessary licenses & permits: Requirements vary by state and city but may include a business license, a seller’s permit (if selling cleaning products), and environmental or industry-specific permits. Check with your local government for compliance.
• Get business insurance: Recall your research in Step 1 on business insurance and bonding. At a minimum, you’ll need general liability insurance to cover accidental property damage or injuries. If you have employees, workers’ compensation insurance is typically required. Adding a janitorial bond can provide extra protection against employee theft.

Step 4: Develop your brand and marketing strategy

Building a strong brand and an effective marketing strategy is essential for attracting and standing out from competitors. Focus on creating a consistent and professional image across all channels. Here are some marketing tips for cleaning businesses:

Choose a business name and logo

• Select a unique, memorable name that reflects your cleaning business and is easy to pronounce.
• Design a professional logo that visually represents cleanliness and trustworthiness. Consider symbols like brooms, mops, or sparkling surfaces.
• Ensure your business name and logo are consistent across uniforms, business cards, and all marketing materials.

Build an online presence

Website

• Invest in a professional website that showcases your cleaning services, pricing, service areas, and contact details.
• Optimize it for mobile users and ensure fast loading speeds.
• Implement local SEO best practices, such as including location-based keywords and registering on Google Business Profile.
• Include customer testimonials, before-and-after photos, or a blog with cleaning tips to establish credibility.

Social Media & Local Listing

• Set up business profiles on platforms like Facebook, Instagram, LinkedIn, and Google Business Profile.
• Regularly post engaging content, such as cleaning hacks, customer success stories, and promotions.
• Encourage satisfied clients to leave reviews and respond to all feedback professionally.
• Register your business on directories like Yelp, Angi, and HomeAdvisor to improve local visibility.

Create marketing materials

Digital Marketing

• Optimize your website with SEO strategies to rank higher in search engine results for cleaning services in your area.
• Run targeted paid ads on Google and social media to attract local homeowners or businesses needing cleaning services.
• Use email marketing to offer cleaning tips, seasonal promotions, and loyalty discounts.
• Engage with your audience through informative content like cleaning tutorials, before-and-after transformations, and behind-the-scenes videos.

Physical Marketing

• Design and distribute high-quality business cards, flyers, and door hangers in your service area.
• Brand your company vehicles with eye-catching graphics, contact information, and a professional slogan.
• Offer free cleaning demonstrations at local community events, home expos, or business fairs.

Develop a customer acquisition strategy

Networking and partnerships

• Build relationships with real estate agents, property managers, and office administrators who may need recurring cleaning services.
• Attend local networking events and business meetups to connect with potential clients.
• Partner with complementary businesses, such as carpet cleaners or home organizers, for cross-promotions.

Offer Promotions or Discounts

• Provide special discounts for first-time customers to encourage trial.
• Implement referral programs that reward existing customers with discounts for bringing in new business.
• Offer seasonal promotions, such as deep cleaning specials for spring or move-in/move-out cleaning packages.
• Create loyalty programs that provide discounts or free services after a set number of bookings.

Step 5: Test and refine your operations

Before launching at full scale, it’s a good idea to test your cleaning services, work out any kinks, and fine-tune your processes. This will help you deliver top-quality service from day one and set a strong foundation for customer satisfaction.

Perform test runs and offer free trials

Before officially launching, run test cleanings for family, friends, or a few small clients in exchange for feedback. This hands-on experience helps you fine-tune your cleaning techniques, test your products, and get comfortable with your workflow.

Time yourself on each job to set realistic expectations for different property sizes and take note of any challenges — like stubborn stains, high-traffic areas, or delicate surfaces — so you can adjust your approach.

Free trial cleanings are also a great way to build credibility while gathering real-world feedback. Encourage test customers to share honest opinions on your cleaning quality, professionalism, and overall service. Customer testimonials can be used on your website and social media to attract new clients.

You may also start noticing common preferences, such as requests for eco-friendly products or specific deep-cleaning services, which can help you refine your offerings before officially launching.

Refine and document Standard Operating Procedures (SOPs)

To keep things consistent and efficient, create a detailed checklist for different types of cleaning jobs — whether it’s residential, commercial, deep cleaning, or move-in/move-out services. Develop a standardized cleaning routine that ensures high-quality results every time, such as cleaning from top to bottom and using the right products for different surfaces.

If you plan to hire cleaning employees down the road, these SOPs will make training much easier. You should also put a system in place for tracking supplies so you never run out of essential cleaning materials.

Step 6: Launch and scale your business

Now that you’ve tested your operations and fine-tuned your processes, it’s time to officially open your cleaning business! A strong launch will help you attract customers and build momentum, while continuous improvements will keep your business growing.

Officially open for business

Before you start booking jobs, double-check that all the legal and financial details are in order. Make sure your business is registered, licenses and permits are secured, and your bank account is set up. If you haven’t already, get liability insurance to protect yourself in case of accidents or damages.

Once everything is squared away, spread the word! Announce your launch on social media, send out press releases, and participate in local events. You might even want to offer a special discount for first-time customers to generate buzz and get your first bookings.

Start taking clients and deliver excellent service

Now comes the fun part — serving your first customers! Whether it’s a small residential job or a commercial contract, focus on providing top-notch service. Show up on time, be professional, and go the extra mile to make sure your clients are happy.

A little attention to detail can turn a one-time customer into a loyal client who refers you to others. Ask for reviews on Google, Yelp, and social media—positive feedback builds trust and helps attract more business.

Monitor, improve, and expand

As your client list grows, keep an eye on what’s working and what needs improvement. Are customers consistently requesting a certain service? Are there any recurring issues that need fixing?

Pay attention to feedback and adjust accordingly. If demand picks up, you might consider hiring extra hands or expanding your service area. A customer relationship management (CRM) system can help with scheduling, invoicing, and keeping track of repeat customers. And if you’re ready to scale, think about offering specialized services like deep cleaning, move-out cleaning, or eco-friendly options.

Launching a business is just the beginning — the key to long-term success is constantly improving and staying ahead of customer needs. Keep refining your services, and soon, your cleaning business will be thriving!

Frequently asked questions (FAQs)

Click through the sections below to read common questions on how to start a cleaning business:

How profitable is owning a cleaning business?

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Is cleaning a good business to start?

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What type of cleaning makes the most money?

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What is the highest-paid cleaning job?

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What is the most profitable cleaning niche?

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Bottom line

We’ve discussed the necessary steps and several low-cost strategies to get your cleaning business up and running. If you’re a first-time business owner, consider starting a low-cost franchise to get the training and support you need. Once you have your first customers, you need to do great work — a clean home or office is your best marketing.

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¹ IBISWorld