Do you know that the global cleaning services market size will reach $74,299 at a CAGR of 6.2% by 2022?
If these numbers are pushing towards your dream of starting a new residential cleaning business, then you’ve landed at the right place.
Do you know that starting a residential cleaning business involves some challenging tasks? Some of them are creating proper planning, selecting the list of service offerings, performing legal formalities, and marketing your business.
To overcome such challenges, we have come up with an article that mentions the essential steps on how to start a residential cleaning business from scratch.
Table of Content
Overview of Residential Cleaning Business
A residential cleaning business provides cleaning services to clean home areas like the kitchen, lounge, bathroom, and bedroom of the customer’s home. The common tasks involved in the residential cleaning business are mopping, vacuuming, dusting, polishing, and sweeping.
You need to take care of the many aspects while starting a new residential cleaning business. Just follow the steps mentioned in the next section and you are good to go with your new business.
8 Easy Steps to Start a Residential Cleaning Business
To start a house cleaning business from scratch, you need to take care of the following steps.
Step 1: Do the Cleaning Jobs By Yourself
One of the first steps that you need to take care of before starting a house cleaning business is cleaning yourself.
Maid service or house cleaning service typically involves a lot of cleaning jobs to perform. By doing most of the jobs by yourself, there exist more chances of reducing labor costs in your business.
By performing such cleaning jobs, it allows you to know the overall business aspects. So, it becomes easy to grab more customers by defining the expert services you have. You also have an option to ask friends and family to use your services.
Once you have a long list of customers, you need to hire more employees to perform the cleaning jobs to the customer’s location. Moreover, you need to focus on other aspects like quality services, workflow protection, and enhancing the brand reputation to a great extent.
Also, you need to initiate scheduling cleaning jobs based on your availability, whether it may be full-time jobs or weekend jobs.
Step 2: Identify Your Cleaning Needs and Develop a Niche
The next step is to analyze and identify your house cleaning business’s basic cleaning needs, whether it may be the customer’s homes or office buildings.
One of the best recommendations is to brainstorm and start asking your friend about the running cleaning services in the local area.
You need to include the maid services that other existing house cleaning companies lack in the business model. So, it becomes easy for you to enhance the customer base in your business.
Moreover, you have an option to include the marketing strategies to enhance customers in your business. It is possible by including more residential customers using various social media marketing techniques, word of mouth, and other advertising forms. Also, you need to decide whether you want to run your business on your own or need to opt for purchasing a cleaning franchise.
It is an ideal choice for entrepreneurs who want to jump into learning more about the cleaning industry before starting their own house cleaning company.
You must have a niche that defines your expertise level as cleaning requires different skills to get the job done with perfection. So, you need to decide on your niche that easily differentiates your business from others.
Step 3: Choose Value Proposition and Business Name
The value proposition plays a significant role in your business as it becomes easy to target customers and be on top of the competitive market.
Communication with your valuable customers becomes much better by having your company values. Also, it becomes possible to gain information on customer expectations by providing better cleaning solutions.
Your business’s value proposition entirely depends on the cleaning services you offer to your potential customers to resolve their queries and target the market.
Once perfect business values are in hand, you need to go ahead to select the best name for your business. Your business name should be chosen in such a way that it easily incorporates your business values.
In simple words, you need to make sure that the business name is easy to spell, pronounce, and less than three words.
Step 4: Get Your Business License and Insurance
Once the business name is finalized by you, it’s time to perform some legal formalities.
First of all, you need to define the business structure. Generally, the common types of business structure are:
- Sole Proprietorship: The overall business management is in the hands of business owners.
- Partnership: You have an option to include two or more members in your business to operate.
- Limited Liability Company (LLC): The best option for medium or higher-risk businesses.
Different states follow different licensing requirements. So, you need to contact the secretary of state to determine the list of required information related to a business license.
To start a cleaning business, you must have an occupational license and register as a DBA.
Next, you must have a business insurance policy. So, buying liability insurance helps you protect your business from accidents, property damage, or even employees’ injury while working.
Moreover, it becomes mandatory for customers to purchase insurance from a reputed insurance company before cleaning services start at their homes.
Additionally, it is possible to opt for bonds, which work the same as insurance, giving protection from any loss that might occur due to theft.
What happens when one of your cleaning staff is sentenced for stealing something from customers’ location? In such a case, you and your business will be accountable for performing such a fault. So, you need to be very careful about it. Otherwise, your company must be ready to pay a significant amount.
Workers’ compensation is also essential for your business. It entirely depends on your state rules and regulation for workers’ compensation.
The main aim of having workers’ compensation is to protect your staff from any injury or illness while working on the job site. If something happens, the workers are compensated for the same.
Step 5: Get Necessary Equipment and Supplies
The most crucial step to start a cleaning business is purchasing essential equipment and cleaning supplies.
You need to think about the materials and cleaning products to include in your business. On an initial level, you have an option to rent cleaning equipment or purchase used equipment working perfectly.
Generally, for any house cleaning work, the cleaning company may include the following equipment:
- Cleaning solutions
- Spray bottles
- Cleaning uniforms or aprons for cleaners
- Disposable or reusable paper towels
- Mops and brooms
- Latex gloves
- House cleaning chemicals like window cleaner
- Dusters and vacuum cleaner
You’ll come across many customers that are completely against using harsh chemicals to clean their home. In that case, you need to go for selecting the more eco-friendly cleaning agents.
Nowadays, many organic and green products are available in the market, having a negligible effect on the human body. You just have to make a habit of using such products.
During your business startup, just visit nearby supermarkets and purchase cleaning products. But as your business grows, you can purchase the necessary cleaning supplies directly from a janitorial supply center.
Step 6: Set a Residential Cleaning Business Budget
The business owners of residential cleaning businesses need to define the budget during the initial stage.
For determining the budget, various factors need to be considered. Some of them are:
- Business license, insurance, and permit fees
- Business registration fees
- Cleaning equipment and supplies
- Marketing costs
- Labor costs
The list does not end here. It depends on your business requirement.
One of the best recommendations is to start a cleaning business with less staff and with only essential services like cleaning customer homes. Once you gain complete control over your business, it becomes easy for you to add more services.
Step 7: Develop a Business Model and Define Cleaning Rates
Once your brand is ready and essential equipment is available, you need to start developing a model and defining an hourly rate or a flat fee for your services.
One of the best recommendations is to keep in mind the budget you have set for your business. Also, you need to consider the expected revenue for your business to gain profit.
The overall success of your business entirely depends upon the business model you set.
On an initial level, you have to start your business with a minimum amount. Once your business expands, you need to offer new additional services by analyzing the services that are not comprehensively used in the local market.
The next most essential thing to consider is setting an hourly rate. It depends on factors like
- Account overhead
- Labor and cleaning supply
- Equipment costs
- Cost of gas that may be used in driving to the customer’s home or business
The last thing you need to consider for the customers in selecting the appropriate payment mode. To collect money from customers, you may prefer to use cash, cheque, credit cards, and others.
Nowadays, in this technologically advanced world, smartphones, apps, websites, and other essential tools are available to generate invoices and bills for your customers with a few taps.
Step 8: Start Marketing Your New Cleaning Company
Marketing is one of the best techniques for any business to find customers. Marketing comes up with a list of activities ranging from simple word-of-mouth to running ads in local newspapers.
- Develop a responsive website: A website is a powerful tool that allows you to include your service offering, contact information, blogs, and other articles and even more chances to get customers.
- Using door hangers: You have an option to use plastic or cardboard signs to mention your business information and enhance your customer base from the get-go.
- Uniforms for cleaners on the job site: Uniform gives a professional and trusted look to your business. Without a uniform, the cleaners clean the house and leave the location. No one in the neighborhood notices the same. They must have a professional look by wearing a simple t-shirt with a company logo on it.
- Google My Business: You can even list your business on Google My Business and take feedback from your potential customers.
- Business cards: You can easily take advantage of enhancing your business by printing the business cards. The card includes basic business information, contact details, service offerings, and other details.
- Facebook and Instagram business accounts: Nowadays, Facebook and Instagram are leading in the social media industry. So, use these social media channels to promote your business to a great extent.
- Local Facebook community groups: You can efficiently market your business, provide training on cleaning certain things, and share the ideas to sweep the home.
- Advertisement: You can put an ad in the local paper including the information related to cleaning services.
- Referral programs: You can ask your potential customers to refer to their friends and family members about your business.
- Distributing fliers: Fliers are also the better option to market your business. You can easily advertise your work, services, and other essential information by sharing the local area’s fliers.
These are the standard marketing methods that you can use in your cleaning business to enhance business efficiency. After following these steps to start your house cleaning business, you are now ready to become your company’s boss.
However, if you have any questions about the house cleaning business, we have highlighted the frequently asked questions in the next section.
Want To Run An Efficient Residential Cleaning business?
FieldCamp is a field service management software solution that helps you to schedule your jobs and track important details on the go.
The costing factor typically depends on various business perspectives like initial investment, the number of employees to include in your business, purchasing license and business policies, labor, and considering the marketing strategies.
You can easily enhance the customer base in your cleaning business if you apply the following activities:
- Develop a marketing plan
- Be available in the Yellow Pages, phonebooks, or community directories
- Opt for referral programs
- Include coupons and discounts for promotional activities
- Stick to your professional image
- Build a professional network
Starting a cleaning business is completely worthy because:
- It requires minimal start-up costs
- No need to rent or buy premises
- No need to buy a company vehicle
- No Need to pay utility bills
Starting a new house cleaning business requires more hard work unless you have applied the correct strategies to make it easy.
Just follow all the essential steps mentioned in the article to gain massive success in your house cleaning business. All you need to start a cleaning company and tap into this billion industry is minimal startup funding, some essential equipment, and a spirit of entrepreneurship and willingness to work hard.
Once your business is set up, it becomes essential to automate and streamline your business operations. It is possible using FieldCamp, a field service software that helps you to manage your cleaners and business smoothly. You can easily create and manage job schedules for your cleaners and get all the real-time updates of their activities.