On This Page:
- 15 Steps To Start a Cleaning Business
- How Big is the Cleaning Industry?
- What are the Key Segments of the Cleaning Industry?
- What External Factors Affect the Cleaning Industry?
- Who are the Key Competitors in the Cleaning Market?
- What are the Key Customer Segments in the Cleaning Market?
- What are the Typical Startup Costs for a New Cleaning Business?
- Is Owning a Cleaning Company Profitable?
- How to Start a Cleaning Business FAQs
- Additional Resources
Are you interested in starting your own cleaning business? If so, you’ve come to the right place. Below you’ll learn the key steps to start your own cleaning business and how to make it a success.
Importantly, a critical step in starting a cleaning service business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Cleaning Service Business Plan Template here.
15 Steps To Start a Cleaning Business:
Starting a cleaning business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful cleaning business.
1. Choose the Name for Your Cleaning Business
The first step to starting a cleaning business is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your cleaning business:
- Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available.
- Keep it simple. The best names are usually ones that are easy to remember, pronounce, and spell.
- Think about marketing. Come up with a name that reflects the desired brand and/or focus of your cleaning business.
2. Determine the Type of Cleaning Business You Will Launch
When launching a cleaning business, you have several options to consider. The type of cleaning business you choose should align with your skills, resources, and target market.
Here are some types of cleaning businesses you can launch:
- Residential Cleaning Service: Offer cleaning services to homeowners and renters. This may include regular cleaning, deep cleaning, move-in/move-out cleaning, or specialized services like carpet cleaning or window washing.
- Commercial Cleaning Service: Focus on cleaning commercial spaces such as offices, retail stores, restaurants, and healthcare facilities. Commercial cleaning often involves evening or overnight hours when businesses are closed.
- Janitorial Service: Specialize in providing ongoing cleaning and maintenance services for commercial properties, schools, and government buildings. Janitorial services may include daily or weekly cleaning tasks.
- Construction Cleanup: Focus on post-construction cleaning, removing debris, dust, and construction residue from newly built or renovated properties. This often involves heavy-duty cleaning.
- Green Cleaning: Offer environmentally friendly cleaning services using eco-friendly products and practices. This type of cleaning business appeals to clients with a focus on sustainability.
3. Develop Your Cleaning Business Plan
One of the most important steps in starting a cleaning business is to develop your cleaning service business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.
To enhance your planning process, incorporating insights from a sample cleaning service business plan can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.
Your business plan should include the following sections:
- Executive Summary: This section should summarize your entire business plan so readers can quickly understand the key details of your cleaning business.
- Company Overview: This section tells the reader about the history of your cleaning business and what type of cleaning business you operate. For example, are you a residential cleaning, commercial cleaning, or janitorial cleaning business.
- Industry Analysis: Here you will document key information about the cleaning industry. Conduct market research and document how big the industry is and what trends are affecting it.
- Customer Analysis: In this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
- Competitive Analysis: Here you will document the key direct and indirect competitors you will face and how you will build a competitive advantage.
- Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
- Product: Determine and document what products/services you will offer
- Prices: Document the prices of your products/services
- Place: Where will your business be located and how will that location help you increase sales?
- Promotions: What promotional methods will you use to attract customers to your cleaning business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization, and/or social media marketing.
- Operations Plan: Here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
- Management Team: This section details the background of your company’s management team.
- Financial Plan – finally, the financial plan answers questions including the following:
- What startup costs will you incur?
- How will your cleaning business make money?
- What are your projected sales and expenses for the next five years?
- Do you need to raise funding to launch your business?
Finish Your Business Plan Today!
If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours.
4. Choose the Legal Structure for Your Cleaning Business
Next you need to choose a legal structure for your cleaning business and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
1) Sole Proprietorship
A sole proprietorship is a business entity in which the owner of the cleaning business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
2) Partnerships
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a cleaning business together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
3) Limited Liability Company (LLC)
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a cleaning business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
4) C Corporation
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a cleaning business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
5) S Corporation
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations, including the number of shareholders they can have among others.
Once you register your cleaning business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
Incorporate Your Business at the Guaranteed Lowest Price
We are proud to have partnered with Business Rocket to help you incorporate your business at the lowest price, guaranteed.
Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.
Incorporate with BusinessRocket at the guaranteed lowest price now.
5. Secure Startup Funding for Your Cleaning Business (If Needed)
In developing your cleaning business plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a cleaning business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a cleaning business that they believe has high potential for growth.
6. Secure a Location for Your Business
Having the right space can be important for your cleaning business, particularly if you’d like to meet clients there.
To find the right space, consider:
- Driving around to find the right areas while looking for “for lease” signs
- Contacting a commercial real estate agent
- Doing commercial real estate searches online
- Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space
7. Register Your Cleaning Business with the IRS
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
8. Open a Business Bank Account
It is important to establish a bank account in your cleaning business’ name. This process is fairly simple and involves the following steps:
- Identify and contact the bank you want to use
- Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
- Complete the bank’s application form and provide all relevant information
- Meet with a banker to discuss your business needs and establish a relationship with them
9. Get a Business Credit Card
You should get a business credit card for your cleaning business to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
10. Get the Required Business Licenses and Permits
Starting a cleaning business typically requires obtaining the necessary licenses and permits to operate legally in your area. The specific licenses and permits you need can vary based on your location and the type of cleaning services you offer.
Here are some common licenses and permits to consider for your cleaning business:
- Business License: This is a general requirement for operating any business legally. It may be issued by your city, county, or state government. Check with your local government office to determine the specific requirements and fees for obtaining a business license.
- Trade Name Registration: If you plan to operate your cleaning business under a name other than your own legal name, you may need to register your trade name (also known as a “doing business as” or DBA name) with the appropriate government agency.
- Federal Employer Identification Number (EIN): If you have employees or plan to operate your cleaning business as a corporation or partnership, you’ll need to obtain an EIN from the IRS. This is also known as a federal tax identification number.
- Sales Tax Permit: If your state imposes sales tax on cleaning services, you may need to obtain a sales tax permit or license. This allows you to collect and remit sales tax on taxable services.
- Health Department Permits: In some cases, cleaning businesses that provide services to healthcare facilities or food service establishments may require health department permits to ensure compliance with hygiene and sanitation standards.
- Home Occupation Permit: If you operate your cleaning business from your home, check if you need a home occupation permit or zoning clearance. Some residential areas have restrictions on home-based businesses.
Depending on the type of cleaning business you launch, you will have to obtain the necessary state, county and/or city licenses.
11. Get Business Insurance for Your Cleaning Business
Other business insurance policies that you should consider for your cleaning business include:
- General Liability Insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
- Auto Insurance: If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
- Workers’ Compensation Insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
- Commercial Property Insurance: This covers damage to your property caused by fire, theft, or vandalism.
- Business Interruption Insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
- Professional Liability Insurance: This protects your business against claims of professional negligence.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
12. Buy or Lease the Right Cleaning Business Equipment
Running a cleaning business requires a variety of equipment and supplies to ensure that you can provide efficient and effective cleaning services to your clients.
Here’s a list of essential equipment and supplies you’ll need:
- All-purpose cleaners
- Disinfectants
- Glass and window cleaners
- Bathroom cleaners
- Floor cleaners (appropriate for different flooring types)
- Stainless steel cleaners (if applicable)
- Wood polish (if applicable)
- Toilet bowl cleaner
- Cleaning cloths and microfiber towels
- Sponges and scrub brushes
- Mops and mop buckets
- Brooms and dustpans
- Vacuum cleaner with attachments for various surfaces
- Dusters
Remember that the specific equipment and supplies you need may vary depending on the type of cleaning services you offer and the scale of your business. It’s essential to invest in quality products and maintain your equipment regularly to provide the best service to your clients and ensure the success of your cleaning business.
13. Develop Your Cleaning Business Marketing Materials
Marketing materials will be required to attract and retain customers to your cleaning business.
The key marketing materials you will need are as follows:
- Logo: Spend some time developing a good logo for your cleaning business. Your logo will be printed on company stationery, business cards, marketing materials, and so forth. The right logo can increase customer trust and awareness of your brand.
- Website: Likewise, a professional cleaning business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
- Social Media Accounts: Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn, and/or other social media networks will help customers and others find and interact with your cleaning business.
14. Purchase and Setup the Software Needed to Run Your Cleaning Business
Most cleaning businesses need accounting software and customer relationship management (CRM) software.
While there are many different software options available, some of the most popular programs for accounting include QuickBooks and Xero. Some of the most popular CRM programs include Salesforce, and Zoho.
Research the software that best suits your needs, purchase it, and set it up.
15. Open for Business
You are now ready to open your cleaning business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.
Finish Your Business Plan Today!
If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours.
How Big is the Cleaning Industry?
The global cleaning industry was most recently valued at $60.25 billion and is anticipated to develop at a CAGR of 6.3% to $88.9 billion in the next 5 years.
What are the Key Segments of the Cleaning Industry?
The cleaning industry is one of the most popular service industries. The industry itself provides services directly to consumers and/or businesses. There are two main segments in the cleaning industry:
Residential Cleaning Services
The residential cleaning business segment is mostly composed of home-based business owners who are in charge of cleaning homes or serving as housekeepers for residential communities or private homes. These households are generally serviced either once every week or twice per month depending on what the client specifies.
Janitorial & Commercial Cleaning Services
This industry makes up about 70% of the cleaning industry.
This segment is known for its high level of professionalism and expertise. Janitorial and commercial cleaners in this sector are called on to maintain the cleanliness of public buildings, facilities, or common areas. Services include restrooms at shopping malls, airports, churches, banks, restaurants, trains/subways stations, etc. Cleaning includes tasks such as sweeping, mopping, dusting, polishing, scrubbing, sanitizing, etc.
These services usually come in the form of regular scheduled cleans, for which the pricing structure is based on time and/or frequency of service.
What External Factors Affect the Cleaning Industry?
The cleaning industry is affected by a number of external factors. These external factors include:
Economic Sector
The cleaning industry depends on consumer spending to drive revenue. When consumers are more confident about their economic position, they tend to spend more on services such as residential cleaning. As income levels rise, people tend to buy higher quality products and seek out services like cleaning.
Generally speaking, when an economy goes into recession, spending falls across all sectors of the economy, including the cleaning sector. People tend to cut costs where they can during difficult economic times. The cleaning industry has not been immune to this effect in the past.
The cleaning industry is also impacted by the global economy through changes in interest rates, employment levels, and consumer spending. The market largely operates under an international umbrella these days; thus external factors like interest rate fluctuations can also affect the market.
Wage Rates
Wage rates are important drivers for the cleaning industry because it affects revenue for business owners. The cost of labor (including benefits), a major expense for cleaning companies, is directly affected by wage rates. When the minimum wage goes up, so do the direct costs of hiring employees at higher wage rates.
The cleaning industry directly competes with other service industries like the retail and food services industry. When these industries see higher wage pressure, cleaning companies also need to increase wages to attract and retain good employees.
Population Data
Businesses that perform cleaning services on a regular basis are largely dependent on population levels in various geographic areas.
Population growth/decline has an impact on the cleaning market because if there are more consumers, then that means cleaning services demand will go up over time. As populations decline, it could have a deflationary effect on the cleaning market because demand for cleaning falls at the same time as population decline. The cleaning business will also see deflationary pressures on service costs as companies need to decrease cleaning prices in order to become more competitive.
Location
The cleaning market is impacted by geographic location factors like the proximity of the available services to consumers. It is geographically segmented and the location of cleaning providers impacts their ability to serve potential clients within a given area.
The cleaning market faces competition from local businesses who provide the same/similar type of services, the proximity of these companies and their targeted area plays an important role in determining pricing levels for your services.
Competition
The strength of competition varies between sectors within the cleaning industry. Some segments like commercial cleaning or cleaning up services are highly competitive, whereas other cleaning segments like residential cleaning services are less intense. The cleaning market segments vary by type of cleaning business, target market location, demand for services, etc.
Cleaning business owners need to adapt their business strategies based on the competitive environment in which they operate. Businesses who take a low-cost approach to delivering services will find it challenging competing effectively against high costs with small benefits.
Who are the Key Competitors in the Cleaning Market?
The cleaning industry is one of the most popular and competitive markets of today. Cleaning businesses face tough competition from three major competitors:
Large cleaning franchises such as Merry Maids offer high-quality services often at a substantially higher price than small companies. They often have a major advantage of having a large amount of capital, which allows them to purchase expensive equipment and tools. Cleaning supplies are also bought in bulk at a discounted price.
Small cleaning businesses are usually run locally, typically by one worker or a family. These companies usually work with other local businesses but some do have the resources to expand across certain regions. At times, these companies don’t offer the same quality services as the larger franchises but do cost less. They tend to focus on a certain neighborhood or home type, while larger franchises tend to focus on commercial or janitorial services.
Home-based cleaners are more familiar to customers and therefore tend to receive more repeat business than either of the other competitor segments. However, home-based cleaning business owners typically don’t have the capital to compete with the larger franchise or have the marketing plan of the smaller businesses.
Another important competitor is the customers themselves, who sometimes choose to clean houses themselves rather than hire cleaners to do it for them.
What are the Key Customer Segments in the Cleaning Market?
Small Businesses
Cleaning services are often used by small businesses when they need help with cleaning. These services can help businesses be more efficient and it saves time for small business owners.
Homeowners
Services are also used by homeowners who want to save time and not deal with the hassle of cleaning. It helps keep homes clean and sanitary, which is especially helpful for those who have allergies or those who use their home as a business space. These services can be a time saver and a sanity saver for working professionals, parents, and other homeowners.
Seniors & Retirees
Cleaning services are a popular choice for retirees who have a limited amount of time or mobility to clean their homes. Cleaning can help reduce stress and senior citizens can enjoy more free time doing the things they love. In most cases, services also fit nicely into a fixed income.
Large Corporations
Cleaning services are also used by large corporations that have employees working long hours. These services can provide a way for employees to have a clean and sanitary work environment where germs and bacteria will not spread. They can help large corporations save money and time.
Finish Your Business Plan Today!
If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Cleaning Business Plan Template and complete your plan and financial model in hours.
What are the Typical Startup Costs for a New Cleaning Business?
According to the Cleaning Industry Association, the average startup cost for a cleaning service is between $2,000 and $6,000. This number can be as high as $100,000 or as low as $1,000 depending on the number of supplies and equipment needed to purchase.
Startups that rent equipment and supplies will obviously have a higher cost than those cleaning businesses that use their own equipment and supplies.
If you want to run a cleaning service as a side-hustle, you will have fewer fixed costs and can probably get going for less than $1,000. If you want to run a cleaning company as your main income, you may need as much as $50,000 or more to cover the costs of hiring staff and buying equipment.
Here is an overview of the largest expenses for a cleaning company:
Storefront Lease
A cleaning business typically rents a storefront or office to run the business. Rent can vary from $500 to several thousand dollars depending on where you are located and the size of the premises.
Cleaning Equipment
Cleaning businesses typically buy a range of equipment including mops, buckets, brushes, brooms, vacuum cleaners, cleaning chemicals, brooms, and a pressure washer. Businesses typically spend between $1,000 and $10,000 on equipment depending on their size and whether or not they have employees.
Staff
Cleaning business owners typically hire staff at day rates that vary but average $15 per hour. Full-time staff may also require benefits. Typically, a cleaning business owner needs to retain a ratio of one cleaner for every four regular clients.
Is Owning a Cleaning Company Profitable?
Yes, owning a cleaning service business can be very profitable. To improve the success and profitability of a cleaning service you need to do your research and ensure that you set rates that are profitable. Your rates must be competitive and reflect the value you offer to customers.
Even small differences in price can make a huge difference when it comes to attracting and keeping customers, so ensure that the prices you charge reflect the time and expertise of your staff. You can also increase your profitability by offering additional services such as laundry and ironing, gardening and pest control.
How to Finish Your Cleaning Service Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your cleaning business plan?
With Growthink’s Ultimate Cleaning Service Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your cleaning business plan today.
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how a Growthink professional business planner can create your business plan for you.
How to Start a Cleaning Business FAQs
How many employees do I need to hire for my cleaning business?
When deciding how many people to hire for your cleaning service business, keep in mind that there are often some general rules of thumb. Start with the requirement that each person does a specific task, so you don't end up with two people trying to tackle one job on their own. The more cleaning tasks you have - dusting, laundry service on-site for mats or towels, work outside of office hours, etc.—the more agents you will need.
The number of cleaners starts at 1 on smaller contracts and jumps up to 2-4 cleaners on larger contracts where the workload cannot be handled by one cleaner alone. Managers are always recommended if the budget allows for it because they can provide oversight flowing through all departments including training future cleaners and cleaning services.
How do I start a cleaning business from scratch or with no money?
It can be difficult to start a cleaning business from scratch with little or no money. Services that cost the least amount of money to start will likely be those with low liability and high demand.
Cleaning services like these might include:
- Clean up after holiday dinners
- Clean up after a major house fire
- Clean out homes for those who are moving
- Clean out garages or sheds
- Clean out vacant apartments
Alternatively, you could start a cleaning business doing tasks such as:
- Dusting furniture and removing cobwebs from walls
- Cleaning bathrooms and kitchens
- Vacuuming and mopping floors
What is the best way to find customers for my cleaning business?
There are a few ways to find potential customers for your cleaning company. One is to decide what niche market you want to specialize in. Niches are usually very profitable, so it's best to have a narrow focus. Cleaning companies typically fall into the following niches:
- Residential House Cleaning Service: Offers residential house cleaning services
- Commercial Cleaning Service: Offers office or commercial facility cleaning services
- Disaster Cleaning Service: Offers clean up or disaster relief services
- Home Helper Service: Offers elderly or disabled person around-the-home care
Another way to find potential customers is through networking with other cleaning business owners. For example, you could attend a cleaning industry conference or join an online forum where local owners share their experiences and advice.
You also have the option of running print or online ads to promote your business. Make sure that you track where your customers are coming from so you can determine which marketing strategies are working best for your target market.
What employees should I hire for my cleaning business?
A cleaning company can employ various types of staff including an office manager, receptionist(s), and cleaning associates.
The office manager is responsible for the daily operations of the business. They typically handle hiring and firing associates, training, payroll paperwork, monitoring associate performance, marketing strategies, product sourcing, and dispensing supplies.
The receptionist(s) for your business will be responsible for answering the phone, answering potential client questions, and scheduling cleaning services. They may also assist in other administrative or clerical duties to support the office manager.
Cleaning associates are the employees who actually carry out the services provided by your company. Business owners should also hire independent contractors or contract with another specialized local business for customer inquiries for professional services including air duct, chimney, and window cleaning.
What are some basic cleaning supplies that I should use for my cleaning company?
The following are some basic supplies that a cleaning company may use:
- Cleaning rags (old clothes or cloth)
- Cleaning chemicals (e.g., bleach, pine oil)
- Green cleaning supplies (e.g. fragrance and chemical-free cleaning products)
- Sponges
- Cleaning fluids (those used in steam cleaners)
- Cleaning solutions (those made for specific surfaces like granite countertops)
- Cleaning tools like brooms or scrubbing brushes
- Clean masks or safety masks
How to Start a Cleaning Business in Michigan
With Michigan's growing economy, there are many potential customers who are looking for professional cleaning services. The steps to start a cleaning business in Michigan specifically include:
- Determine Your Business Structure- The first step in starting a cleaning business is to determine the legal structure of your business. You can choose between a sole proprietorship, partnership, LLC, or corporation. Each of these has its own benefits and drawbacks, so it's important to do some research and choose the one that is best suited for your business needs.
- Get a Business License and Permit- Once you've determined your business structure, the next step is to obtain a business license and permit. In Michigan, all businesses must register with the Michigan Department of Licensing and Regulatory Affairs (LARA). You will also need to obtain a tax identification number from the state's Department of Treasury and register with the Michigan Department of Labor and Economic Opportunity.
- Purchase Insurance- It's essential that you have adequate insurance coverage for your cleaning business. General liability insurance and workers' compensation insurance are two types of insurance that you should consider purchasing. These types of insurance will protect your business and employees in case of accidents or injuries on the job.
- Hire Employees and Purchase Cleaning Equipment- As you grow your business, you may want to consider hiring employees to help with the workload. You'll also need to purchase cleaning equipment such as vacuums, mops, and cleaning supplies. It's a good idea to invest in quality equipment to ensure that you provide the best service possible to your customers.
- Develop a Marketing Plan- Once your cleaning business is up and running, it's important to develop a marketing plan to attract new customers. You can use various marketing strategies such as word-of-mouth referrals, social media advertising, and print advertising. You should also focus on building relationships with your current customers to encourage repeat business.
Starting a cleaning business in Michigan can be a lucrative business opportunity if you do it right. By following the essential steps outlined in this article, you can ensure that you start your business on the right foot. Remember to take your time, do your research, and invest in quality equipment and marketing strategies. With hard work and dedication, you can build a successful cleaning business in Michigan.
Cleaning Service Business Plan Example PDF
Download our cleaning service business plan pdf here. This is a free cleaning service business plan example to help you get started on your own cleaning business plan.
Additional Resources
Resources for Cleaning Companies
Cleaning Business Supplies Checklist