How to Start a Commercial Cleaning Business from Scratch

Here are the most important things and factors to consider when starting a commercial cleaning business:

1. Type of commercial cleaning — Decide and specialize in niche cleaning to stand out. Choose an option such as green cleaning, medical facilities, industrial cleaning, office cleaning, transport and hospitality cleaning, post-construction cleaning, etc.
2. Franchises — Choose a franchise for your business such as JAN-PRO, Anago Cleaning Systems, ServiceMaster Clean, or Vanguard Cleaning Systems. 
3. Equipment and cleaning supplies — Depending on the type of service you choose to offer, you will need basic cleaning supplies such as multipurpose cleaners, glass and bathroom cleaners, disinfectants, dusters, scrub brushes, sponges, microfiber cloths, mops, and buckets. Also, add a vacuum cleaner (with attachments for different surfaces), a steam cleaner, and a sturdy step ladder to your list.
4. Transportation — Look for vehicles with plenty of space and consider installing shelving units or racks to keep supplies and equipment organized and easily accessible.
5. Licenses — If your cleaning business involves the use of hazardous materials or you plan to engage in specialty cleaning services like medical waste disposal or industrial cleaning, you may need specific permits.
6. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
7. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
8. Online presence — Take your business online and build a professional website. Get listed on Google Business, Yelp, and local directories. Encourage positive reviews from your customers.
9. Scheduling — Add a scheduling and booking feature to your website, and use a scheduling app to keep your cleaning schedule manageable.
10. Learn from real entrepreneurs who run a cleaning business:

Cleanlots: A Journey from $200 to $650,000 Annually

You May Also Wonder:

Is a commercial cleaning business profitable?

Yes, commercial cleaning is a large industry, so there is money to be made. You just need to make sure that you provide outstanding services so that you retain your customers.

How do I get customers for my commercial cleaning business?

You can network with business owners on LinkedIn. You can also make direct calls to business owners.

How do I start a commercial cleaning business with no money?

You’ll at least need to purchase some cleaning equipment and a vehicle to transport it. If you need funding, you can try to obtain an SBA loan.

Is it hard to start a commercial cleaning business?

Starting a commercial cleaning business is relatively straightforward. You should do your homework, though, to be prepared for what you’re getting into.

Is commercial cleaning more profitable than residential?

You’ll generally be cleaning larger spaces with a commercial cleaning business, so you’ll make more per job. 

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a commercial cleaning business has pros and cons to consider before deciding if it’s right for you.

Commercial Cleaning Industry Trends

Industry Size and Growth

• Industry size and past growth — The US janitorial services industry is worth $93 billion after modest growth during the last five years.((https://www.ibisworld.com/united-states/market-research-reports/janitorial-services-industry/)) 
• Growth forecast — The US janitorial services industry is expected to continue growing modestly over the next five years. 
• Number of businesses — About a million janitorial services businesses are operating in the US. 
• Number of people employed — The US janitorial services industry employs about two million people. 

Trends and Challenges

Trends

• Increased demand for commercial cleaning services from the education and healthcare industries is expected to drive further market growth
• Amid the pandemic, many companies are requesting extra cleaning services to disinfect, increasing revenue for commercial cleaning businesses

Challenges

• The commercial cleaning industry has a high employee turnover rate, which is causing challenges for commercial cleaning businesses
• Commercial cleaning companies are seeing a rise in demand for eco-friendly cleaning products, which can be more expensive

Demand Hotspots

• Most popular states — The most popular states for janitors are Maine, Vermont, and New Hampshire.((https://www.zippia.com/janitor-jobs/best-states/))
• Least popular states — The least popular states for janitors are Louisiana, Alabama, and North Carolina. 

What Kind of People Work in Commercial Cleaning?

• Gender — 36.9% of janitors are female, while 63.1% are male.((https://www.zippia.com/janitor-jobs/demographics/))
• Average level of education — The average janitor is high school educated.
• Average age — The average janitor in the US is 48.9 years old.

How Much Does It Cost to Start a Commercial Cleaning Business?

Startup costs for a commercial cleaning business range from $4,000 to $10,000. Costs include a website, cleaning equipment, and a down payment on a van to transport equipment and supplies. 

You’ll need a handful of items to successfully launch your commercial cleaning business, including: 

• Vacuums
• Mops
• Buckets
• Rags
• Floor waxing machines
• Cleaning supplies
• Van or vans

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Business licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Equipment	$1,000–$3,000	$2,000
Van down payment	$1,500–$3,000	$2,250
Total	$4,050–$10,100	$7,075

How Much Can You Earn From a Commercial Cleaning Business?

Commercial cleaning businesses charge an average of $75 per hour. If you work with a crew of just you and one other person, your profit margin will be about 60%. 

In your first year or two, you could work 20 hours a week, bringing in $78,000 in annual revenue. This would mean $47,000 in profit, assuming that 60% margin. As you build up your clientele, you could have 150 hours of work a week. At this stage, you’d add equipment and vans and hire crews, reducing your profit margin to around 20%. With an annual revenue of $585,000, you’d make a healthy profit of $117,000.

What Barriers to Entry Are There?

The only barrier to entry for a commercial cleaning business is the amount of competition you’ll face.

Step 2: Hone Your Idea

Now that you know what’s involved in starting a commercial cleaning business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research commercial cleaning businesses in your area and online to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a commercial cleaning company that does window cleaning or floor waxing.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Services

Your services can include basic cleaning like dusting and vacuuming or things like window cleaning, upholstery cleaning, and floor waxing. You could also expand into single-unit home cleaning and build two brands — a house cleaning brand and a commercial cleaning brand.

How Much Should You Charge for Commercial Cleaning?

The average hourly rate for commercial cleaning is $75. You could also enter into cleaning contracts with businesses and charge a monthly fee for cleaning services. When you just have one employee, you should aim for a profit margin of about 60%. When you have full crews, your profit margin will be about 20%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember that the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market consists mainly of businesses and property managers. You can find them on LinkedIn, Google, and Yelp and reach out to them. 

Where? Choose Your Business Premises

In the early stages, you may want to run your business from home to keep costs low. As your business grows, you’ll likely need to hire more workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Cleaning Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “cleaning” or “commercial cleaning,” boosts SEO
• Name should allow for expansion, for example, “Advanced Cleaning Solutions” over “Restaurant Cleaning Services”
• A location-based name can help establish a strong connection with your local community and help with the SEO, but might hinder future expansion

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure those names are available for registration. Check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Commercial Cleaning Business Plan

Here are the key components of a business plan:

• Executive summary — A brief summary highlighting the key points of the commercial cleaning business plan, including goals, strategies, and financial projections
• Business overview — A concise description of the commercial cleaning business, its mission, vision, and the problem it aims to solve in the market
• Product and services — Details on the specific cleaning services offered, such as office cleaning, janitorial services, and specialized cleaning solutions
• Market analysis — An examination of the commercial cleaning industry, identifying target markets, trends, and potential growth opportunities
• Competitive analysis — Evaluation of competitors in the commercial cleaning sector, highlighting strengths, weaknesses, and strategies to gain a competitive edge
• Sales and marketing — Strategies for promoting and selling cleaning services, including target customer demographics, pricing, and marketing channels
• Management team — Profiles of key individuals responsible for managing and operating the commercial cleaning business, showcasing their relevant skills and experience
• Operations plan — An outline of day-to-day activities, equipment, and processes involved in delivering cleaning services efficiently
• Financial plan — A comprehensive overview of the financial aspects, including startup costs, revenue projections, and break-even analysis for the commercial cleaning business
• Appendix — Additional supporting documents and information, such as resumes of key team members, detailed market research data, or any other relevant supplementary material

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to commercial cleaning businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your commercial cleaning business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional for help with your taxes to ensure you are completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step, and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best bets, other than friends and family, for funding a commercial cleaning business. 

Step 8: Apply for Commercial Cleaning Business Licenses and Permits

Starting a commercial cleaning business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your commercial cleaning business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Jobber, connecteam, or Clean Smarts, to manage your scheduling, teams, workflows, and invoicing.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Professional branding — Ensure your branding reflects cleanliness, efficiency, and attention to detail across all elements, from logo to uniforms.
• Professional website and SEO — Develop a comprehensive website that showcases your services, certifications, and client testimonials. Implement best SEO practices on your website to achieve high rankings for commercial cleaning-related search terms, enhancing your overall online visibility.
• Social media engagement — Utilize LinkedIn for B2B connections and Facebook to display your work and share cleaning tips.
• Educational content — Publish blogs, how-to videos, and infographics to demonstrate your cleaning expertise and promote workplace health.
• Networking and trade shows — Engage in local business expos and trade shows to meet potential clients and promote your services.
• Partnerships with local businesses — Create referral programs with businesses such as real estate agencies to expand your client base.
• Client referral programs — Offer incentives to existing clients for referring new business, enhancing client acquisition.
• Loyalty discounts — Provide discounts or benefits to long-term clients to encourage retention and loyalty.
• Targeted B2B advertising — Use platforms like LinkedIn Ads to reach businesses in need of cleaning services.
• Email marketing — Maintain contact with potential and current clients by sending updates and offers through email campaigns.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today’s customers are inundated with buying options, so you’ll have a real advantage if they can quickly grasp how your commercial cleaning business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your commercial cleaning business could be:

• Top-notch cleaning for your office building
• We’ll keep your building spic and span, including floors & windows!
• Make your residential tower shine with professional cleaning 

Networking

You may not like to network or use personal connections for business gain, but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a commercial cleaning business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in commercial cleaning for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in commercial cleaning. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a commercial cleaning business include:

• Cleaners — cleaning buildings
• General manager — scheduling, accounting
• Marketing lead — SEO strategies, social media

At some point, depending on your business’s size and needs, you may need to hire all of these positions or simply a few. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Commercial Cleaning Business — Start Making Money!

Offices and apartment buildings need to stay clean, and it’s commercial cleaners that provide this crucial service, creating a large and growing industry. If you have a passion for making things shine and providing great customer service, you could create a successful business and even build your own little cleaning empire! 

You’ve learned what you need to know about business, so now it’s time to roll up your sleeves and get your commercial cleaning operation up and running.