As a cleaning business owner, you need to focus on many things before starting a new business. But, the first question that comes up in your mind is how much money do you need?
The biggest challenge that you face is to run your business in a manner that allows you to maximize your profits. So, it is essential to cover all the costing factors that affect your business budget.
In this article, we’ll focus on the overall costs required to run a cleaning business, and you’ll get an answer to your question: how much does it cost to start a cleaning business?
Table of Contents
Factors That Affects Cleaning Business Expenses
You need to keep in mind various factors related to expenses that usually occur in your cleaning business. All the information mentioned in this section is taken from the US Small Business Administration.
The essential costing factor is the business registration process. But, again, it entirely depends upon the business structure you select.
You just need to visit the local County Clerk’s office to register your business. If you are using:
- Sole Proprietorship: It costs between $30 – $60 per year
- A Limited Liability Company (LLC): The costs range from $100 – $500
Opening a Business Bank Account
Once your business registration completes, you need to opt for opening a bank account for your cleaning business.
For account opening, you need to consider the cost of a deposit of around $100. It is a refundable amount and gets back to you on account closure.
Purchasing Business Licence and Insurance
Find out if you need any special licences or if a standard “Service Contractor’s License” will suffice. Also, to avoid any legal issues, make sure you have all of the essential permits.
Having liability insurance is the essential thing you need to perform after registering your business and opening a bank account.
Generally, insurance costs around $550 – $3,500 per year. But, it entirely depends upon the state where you live or your business location. Also, you can pay monthly insurance bills, so you do not have to worry about the insurance costs during the whole year.
Workers’ compensation coverage may be required when your business grows and you hire cleaners.
Purchasing Equipment and Product
Initially, you will find several items directly from your home when starting a small cleaning business—additional items like chemicals and other supplies you can purchase from nearby supermarkets.
It depends upon your business requirements to include the number of supplies you need for your cleaning service offerings. Also, costs may vary depending on various equipment.
Some of the standard cleaning supplies you use in your daily home usage include sponges, disinfectants, paper towels, and mops. You do not need to consider the costs for it.
For your cleaning business to start, there are a few expensive types of equipment like a vacuum cleaner that you will use for cleaning the customer’s home or office. On average, it will cost around $300 – $500.
Never make the mistake of purchasing expensive equipment all at once unless and until you get your first customer at the doorstep. The main disadvantage is that buying in bulk saves money, but you can do this once you have steady revenue and a loyal clientele.
One of the professional ways to market your cleaning business is to use business cards and flyers. You just have to provide your cards to your customers as it covers all the essential business information.
Getting a few thousand cards printed costs around $40 – $150. The amount of cards to print is determined by you and your company’s needs.
Your employees are also the best way to grow your business. Do you know how?
You can use their uniform or aprons with a business name and logo. It will cost around $100 – $200.
Summary of Cost to Start a Cleaning Business
|Key Expenses||Essentials||Average Cost||Total Cost|
|Licensing & Insurance||Registering a company||$40-$60||$665 – $3,985|
|Insurance policies||$550 – $3,500|
|Insurance policies||$550 – $3,500|
|Product & Equipment||Cleaning supplies||$100 – $200||$5,400 – $35,700|
|Cleaning equipment||$300 – $500|
|Van/truck||$5,000 – $35,000|
|Labor Costs||Housekeeper rate||$25 – $45||$25 – $45|
|Marketing Investment||Logo||$20 – $100||$635 – $20,650|
|Business cards||$40 – $150|
|Flyers/brochure||$65 – $300|
|Sponsored content on social media||$10 – $100|
|Website||$500 – $20,000|
Considering all these metrics, it costs around $6,725 – $60,380, excluding some taxes, to start your own business.
8 Essential Tips For Cut Down On My Cleaning Business Expenses
As a small business owner, do you want to make more money from your cleaning business?
The key is to keep your costs as minimal as possible. Your cost-cutting initiatives, of course, should not result in a reduction in the quality of your work.
So, how can you increase your earnings while keeping your expenses low? Here are the best tips that you can follow to lower down your costs.
When Purchasing Cleaning Goods, Shop Around for the Most Excellent Prices
In this competitive market, it’s better to purchase in bulk as it saves both your time and money. However, you need to get enough space to store anything you buy to get this into action.
Nowadays, various online apps and websites are available where you have an option to compare the different metrics of the products before you purchase. Thus, it gives you an overall idea of which product is the best for your business needs.
By purchasing the products from a cost-saving website makes a lot of difference in your budgeting constraints. Don’t forget to add shipping pricing when making a comparison.
Invest in Instruments That Can Be Used on a Variety of Surfaces
Before purchasing new equipment, you need to start searching for cost-effective instruments to clean any type of surface.
See if you can find equipment that can clean both hard surfaces and carpets, for example.
This method may save you money, even if the cost is high. This is because you will only be purchasing one machine rather than two.
Hire Part-Time Cleaners
For your new business, it’s a good idea to include part-time cleaners to provide cleaning services to your customers.
But as your business grows, it becomes essential to include more employees to gain more income.
You need to start with the hiring process to get the cleaners for your business. Moreover, you must check whether they are able to deal with both residential cleaning and commercial cleaning services.
You can rehire them when you plan for your next job offerings. You can consider hiring permanent employees once your cleaning service has a large enough number of regular customers.
Keep Your Equipment in Good Working Condition
It is a must for cleaning business owners to take care of the equipment. It is better to check the instructions provided by the equipment manufacturers before operating them.
Knowing operating equipment brings insurance that your equipment performs to its maximum potential. It will also extend the life of the item.
Apart from this, your employees must be given proper training on using the equipment. If something unusual happens, like a breakdown or requires costly maintenance, they must be ready to overcome such challenges.
Number of Employees
The number of employees you hire will have a significant influence on your budget. However, keep in mind that charges vary depending on your employees’ position.
So, you need to decide on whether you need a full-time employee, part-time employee, or independent contractor.
Keep in mind that if part-time employees or independent contractors are essential to your business, you may not be able to hire them in some areas.
Make a Plan for Dealing with Circumstances Where a Worker Fails to Show Up
What are your alternative plans if one of your employees does not show up for work? Absenteeism could create a delay in the completion of the assignment.
Make it a habit to keep a list of personnel on hand who can assist you on short notice. You will be able to save your obligations if you do this.
Make Sure You Have Qualified and Experienced Employees
If you have inexperienced employees in your business, you need to train them from scratch. So, it’s a better idea to have qualified and experienced employees as they can deal with any type of cleaning service.
You must organize the on-the-job training for your employees as it makes them ready to provide the best services to the customers.
Make a Habit To Use Green Chemicals
Nowadays, in this technological world, you have numerous innovative options for cleaning stocks to explore.
So, rather than using such traditional methods, the best option is to adopt green chemicals. The primary reason behind it is that customers demand more to use green chemicals to keep them safe and healthy.
By doing so, you will be able to set yourself apart from the competitors. In addition, it could help you save money.
These are the standard essential tips that help overcome the challenges you face when dealing with the costing factors. However, if you have any queries related to such costing factors, we have come up with frequently asked questions in the next section.
Simplify The Way You Manage Your Cleaning Business
FieldCamp makes it easy to create professional-looking estimates, create job schedules, keep track of customer details and other information.
Yes, of course. Following are the possible reasons why it is worth starting a cleaning business:
- Lower initial capital need
- Deal with stable janitorial industry
- To spend a bit of cash every week
- Purchasing equipment in advance
- Fewer labor pricing
- No previous experience or education required
For starting a cleaning business from scratch, you need to make sure the following steps are considered.
- Be specific about the budget you set for your business
- Be ready with a list of cleaning equipment and supplies
- Give the best branding name to your cleaning business
- Perform all the legal formalities like license and insurance
- Market your cleaning business
- Adopt cleaning scheduling software in your business
To obtain a license for your cleaning business, you need to follow the essential steps as mentioned below:
- First, you need to consult your local government to analyze what process to follow.
- Fill the essential forms to register your business
- You need to decide whether you want to go for sole proprietorship or franchise
- Apply for your business license
Based on your business requirements, the initial investment required for a cleaning business ranges between $6,725 – $60,380.
This figure includes legalities, insurance policies, equipment, supplies, labor, and marketing. As a result, the initial capital needed is considerably lower when compared to other industries or companies.
Along with the costing parameters, it is better to start your new business and streamline business operations. FieldCamp is a one-stop solution that allows you to create and manage job schedules for your cleaners and enhance customer satisfaction.