How to Start a Cleaning Business
Let me congratulate you first.
A cleaning business is not the most attractive, nor the most respected or well-seen by others. But one thing is for sure: if you work hard, it will pay off amazingly.
Let's see how you can start a lucrative, scalable cleaning business from scratch.
The following information will be helpful whether you live in Ghana, Nigeria or any other country.
Choosing a Cleaning Business Model
Before anything else, think about your target customer and about the service you want to offer. Are you looking for business or residential customers? Will you specialize in a particular service or offer general services? The answer to these questions will define your strategy.
Choosing your Target Customer
There are three main types of target customers for a cleaning business:
- Residential cleaning customers includes services at homes, apartments, and condominiums.
- Commercial cleaning customers are businesses, offices, shops, schools, hospitals...
- Industrial cleaning customers consist of industrial facilities, factories and warehouses.
Residential customers typically need specialized cleaning services such as window cleaning, solar panel cleaning, carpet cleaning... They could hire you on a regular basis to cover those specific services. Commercial customers often need general cleaning services like dusting, mopping or vacuuming to clean their offices or businesses.
The best choice for you is...
If you enjoy working with people, then residential or commercial customers may be a good fit for you.
If you prefer working with businesses, then industrial customers may be a better choice.
Choices apart, you must have a clear understanding of what they need and expect from a cleaning service. This will help you to focus your marketing and service decisions.
Are you already aware of the pros and cons of a service-based business?
This specialized article will help you find out the must-know before you get into it.
Choosing a Cleaning Service
Once you know who your target customer is, it's important to identify the kind of service you are qualified to offer: general cleaning or specialized cleaning. The service you offer will greatly depend on your customers needs, but also in your skills and knowledge, as well as how aggressive competition is for a particular service.
General cleaning includes tasks such as dusting, vacuuming, mopping, and bathroom cleaning.
Specialized cleaning includes tasks such as carpet cleaning, window cleaning, and mold removal.
Questions that may help
What does your target customer need? What do they say they miss from a traditional service? How often do they need it? Is there a service that could report more money in less operation time? Could you specialize and become a reference in your area? Are there many competitors in your area of service?
You should also consider your own skills and experience when choosing a service. If you are not comfortable with specialized cleaning tasks, you may either learn the trade or focus on general cleaning, the most lucrative being the first.
Branding & Naming of Your Cleaning Business
Why did I choose this step as the second? Because much of your branding and naming will depend on the services you offer and who do you offer them to.
- Easy to remember, easy to pronounce.
- Relevant to your services, a self-explanatory brand.
- Visually appealing, don't use a squeegee logo if you polish floors.
Have a look at the logos of successful companies, analyze the structure, and what they try to convey with it. And if you haven't yet, please read the article on how to build a strong brand, as expert voices provide different angles to analyze when creating a brand.
Choosing the Legal Structure of Your Cleaning Business
There are several different business structures to choose from, and each structure has its own advantages and disadvantages, so you'll need to take your time to consider each option.
- Sole proprietorship is the simplest and least expensive business structure to set up. Analyze the pros and cons of solo proprietorship.
- Partnership (LP or LLP): the simplest legal structure to have associates or work with other professionals.
- LLC offers more liability protection than a sole proprietorship. It is also more complex and expensive to set up.
- Corporation offers the most liability protection of all the business structures. However, it is also the most complex and expensive to set up.
To find the best business structure for you, analyze your circumstances and needs. If you are just starting out, a sole proprietorship may be a good option, but you will miss the expertise of a partner. As your business grows, you may want to consider switching to an LLC or corporation for more liability protection. And if you are already a professional who needs a partner, think of LP or LLP as a good option.
You can expand this information reading the article from the SBA (USA) on choosing a business structure. If you don't live in USA, you may find more information in the correspondent government site, or talking with a legal expert in your area.
Obtaining the Required Permits and Licenses
The specific permits and licenses you need to operate a cleaning business will vary depending on your location. However, the following are some of the most common permits and licenses that you may need:
- Business license: This is required by most cities and counties. You can find more information about how to obtain a business license in your area by contacting your local city or county government.
- Nigeria: https://www.cac.gov.ng
- Ghana: https://rgd.gov.gh/
- USA: SBA website
- UK: https://www.gov.uk/
- India: https://services.india.gov.in/
- General liability insurance: One of the most important parts of this section. Since a cleaning business implies risks of accidents, getting a general liability insurance becomes a basic protection measurement, for both you or someone else. This will cover injuries within the facilities but also during or after services you offered.
- Workers' compensation insurance: This is a legal requirement in most states, and it is a protection for your employees since if they are injured on the job, they are covered. But it is also a protection for you, in a legal and economic way.
In addition to these basic permits and licenses, you may also need to obtain additional permits to offer specific services, in order to use certain machinery, clean commercial kitchens or use high risk products.
Tips for Obtaining Permits and Licenses
Start the process early. Obtaining all of the necessary permits and licenses may take a long time, from weeks to months.
Be prepared to provide documentation. You will need to provide so many personal and business info, as well as proof of your business registration, insurance, and other relevant information.
Be patient. The process can be complex and time-consuming, and you may find obstacles, so patience will help you through.
Setting Up Your Cleaning Business
Once you have the brand, the structure, the permits, it's time to set up the actual business.
Business Bank Account
Under no circumstances mix business finances with your personal finances. Getting a business bank account will help you to track your business expenses and income, and will allow you to track your revenue, and your own income. Not only that, it will also help you to build your business credit history.
Website
A website is a must nowadays. It's a basic for any business. Your website allows to showcase your business, reach potential local customers and provide information about your services, your contact details, and your case studies.
Although we just said "a website is a must nowadays", that's not the case everywhere around the globe. Check out the article we wrote analyzing the reasons to either have a website, or not.
Marketing Materials
Marketing is essential to reach potential customers and promote your services. You may decide to make business cards, flyers, and brochures, depending on the kind of customer you are trying to approach. You can also use social media and online paid advertising to market your business. Google is the best way to do so by means of Google Ads or SEO.
Insurance
It is highly important to obtain insurance for your cleaning business. As discussed before, this will protect you and your employees from liability in the event of an accident. Some of the types of insurance you may need include general liability insurance, workers' compensation insurance, and commercial property insurance.
Hiring Employees
Hiring employees is a big decision, and it's important to plan ahead. You need to consider the roles that the new employees will fulfill, as well as the financial implications of hiring them. It's also important to consider the economic situation in your area when making hiring decisions. If the economy is weak, it may be more difficult to find qualified candidates and retain them.
Getting Your First Clients
There are a variety of ways to get your first clients. Some common methods include networking, cold calling, and advertising.
- Networking is a great way to meet potential clients and learn about opportunities.
- Cold calling is a method of contacting potential clients who do not know you or your business.
- Advertising can be used to reach a wider audience of potential customers.
Once you understand your customers, you can choose the marketing method that will be most appealing to them. If it doesn't work, be willing to try out new methods.
Tips from Successful Cleaning Professionals
To provide even more expertise, we've consulted a few cleaning businesses owners and managers to give you some tips to start out a cleaning company. This is what we've got.
Doublecheck your territory with an established cleaner—one whose feedback you trust and who won’t feel too threatened at the thought of a new cleaner on the block.
Mariah Bliss - Cleaning & Maintenance Management (cmmonline.com)
Specialization is key to success. When you become an authority in your area with regards to a particular service, you forget about finding new customers. Becoming an expert paves the way for great things.
Aitor Garcés - CEO of Betta Limpiacristales (BettaLimpiacristales.es)
Summary
In this article we've seen how to create a cleaning business. Well, a successful cleaning business. As mentioned throughout the article, planning ahead is vital. We've also analyzed the importance of complying with local laws.
Let's review the steps and procedures:
How to Create a Cleaning Business
- Choose a business model
- Choosing your target customer
- Choosing a cleaning service
- Branding and naming for your company
- Choosing a business structure
- Obtaining permits and licenses
- Setting up your business
- Tips from successful cleaning companies
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