How to Start a Commercial Cleaning Business—12 Practical Steps

1. Plan your commercial cleaning business

It’s always a good idea to start with a solid business plan (even if you don’t plan to apply for a business loan). A business plan clarifies your goals, helps you make strategic business decisions, and defines your brand.

Your commercial cleaning business plan should include the following elements:

• Cover page and table of contents for easy reading
• Executive summary or “elevator pitch,” which includes how much funding you need 
• Overview that summarizes your business model for commercial clients
• Services list and pricing strategy, illustrating which commercial cleaning services you’ll offer at specific price points
• Market analysis showing how many potential clients are in your service area, what problems you can solve for them, and how much they’re willing to pay for cleaning
• Competitive analysis that outlines competing commercial cleaning businesses and what sets your business apart
• Marketing plan to reach potential clients, including channels and costs 
• Employee planning that describes whether you’ll work alone, add partners, or hire a team of cleaners
• Timeline for growth, including estimates for expanding labor and operational costs
• Financial projections, including how much you think you’ll make in the first year, how many cleaning contracts you need to stay running, and what you plan to pay yourself

READ MORE:Unique cleaning business ideas to kickstart your company

2. Choose between franchising or operating independently

Future entrepreneurs have two options to consider when starting a new business: franchising or operating independently. There are pros and cons to each option. Let’s take a closer look at when each model could be the best fit.

Franchise model

Franchises usually get more name recognition upon launch, because customers and clients may have already heard of them. 

Franchise owners also have marketing support from a head office, and they’ll benefit from a tried-and-true business model that’s been proven to work. 

Possible downsides include paying franchise fees and having to closely follow the parent company’s business operation requirements.

Who it’s best for: The franchise model is best for entrepreneurs who have some investment money already, want to launch quickly, or those who want a “business in a box” experience when first starting out.

Independent model

Independent businesses cost less to run, and owners get full control over every single operational detail—from branding decisions to customer acquisition tactics. However, starting from the ground up can be a challenge. Expect to learn how to run a cleaning business on your own, with trial and error along the way.

Who it’s best for: The independent model is ideal for scrappy entrepreneurs who are willing to put in the work and who want full control over decisions. There’s more freedom and potential, and you can take your business and branding anywhere you want to go.

3. Get proper training to develop your cleaning skills

You don’t need special training or certifications to start a commercial cleaning business. This means you can easily get the experience you need to confidently offer services and run your business.

If you don’t already have some general cleaning skills, however, it’s a good idea to work alongside a local commercial cleaning company for a bit of hands-on exposure. You can also pursue training at a community college or trade school, or pursue ISSA, OSHA, or IICRC certification.

Remember—while you don’t need an elaborate degree, training and work experience can give you an advantage over competitors. It’ll also teach you how to safely use cleaning equipment, apply the correct cleaning chemicals, and provide the best results to clients.

4. Pick a legal business structure

Next, make sure that your new venture is set up according to legal standards. That means you need to choose a business structure and form a legal entity. Although this process can change based on where you live, you’ll most likely pick from the following options:

• Sole proprietorship: In the U.S., you can register as a sole proprietor, which gives you complete control over your business entity. Sole proprietors assume responsibility for the business assets and debts.
  
• Partnership: If you’re going into business with two or more people, you can register as a partnership. Because there are different types of partnerships, it’s best to check with your legal representative or within your jurisdiction for specific partner benefits.
  
• Limited liability company (LLC): If your business is medium or high-risk, or if you want to limit your personal liability, consider forming an LLC. You can also manage liability (and protect your personal assets) by forming an S-corporation.

READ MORE: Should I incorporate my small business?

5. Choose a commercial cleaning business name

Choose a cleaning business name that sounds professional, stands out from competitors, is easy to say and remember, and isn’t already in use. Here are a few ideas to get you started:

6. Register your commercial business 

Once you have a name, register it with your local registry for business tax purposes. You can also sign up for an official business license to operate in your town, city, or state. 

Always check with local governments to make sure you’re compliant with their requirements:

• United States: Check to see if anyone else in your state is using the same name, then trademark your small business name and register your domain name.

• Canada: Register your trade name and trademark it to protect your brand. If your business entity has the same name as you, you don’t need to register it.
  
• United Kingdom: Register as a sole trader or business partnership, make sure your name is available and not trademarked, and register your company name.
  
• Australia: Register your business name through the Business Registration Service, ASIC, or a private service provider. You don’t have to register if your business operates under your personal name.

Your city or state might require you to have an employment identification number (EIN), too. If you don’t know local regulations, just Google “YOUR CITY NAME + business laws”.

7. Open a small business bank account

Next, open a business bank account to keep business payments and cash flow separate from personal expenses. This step also makes your business look more legitimate to clients, and it makes your financial reporting easier at tax filing time.

Here’s what you need to set up a business checking account:

• The business’s name and address
• Your legal name, birth date, and address
• Your business’s EIN (or your SSN/SIN)
• Valid government-issued personal ID

While you’re at it, you can also apply for a new business credit card to start building credit history and securing startup materials. Choose a card with a low interest rate that offers rewards for every dollar you spend.

What other financial steps are helpful?

You can also get additional funding for your commercial cleaning company through a personal or business loan, government funding, business financing, or a small business grant.

Additionally, it’s helpful to find an accountant and invest in accounting software like QuickBooks Online. Track income and expenses so you can file taxes with the Internal Revenue Service (U.S.), Canada Revenue Agency (CA), Companies House (UK), or Australian Taxation Office (AU).

READ MORE: 30 small business tax deductions to save money when filing

8. Decide which cleaning services to offer

Determine the types of cleaning services you’ll provide to commercial clients, along with pricing for each. You can offer commercial and industrial cleaning services such as:

9. Get commercial cleaning business insurance

Entering a client’s business during off hours can be high-risk. Sometimes, those risks fall directly on you. If you accidentally damage the client’s property or an employee is injured on the job, the cost comes out of your own pocket.

Commercial cleaning insurance can reduce this burden, and policies start around $450/year. At minimum, a business owner’s policy should include:

• General liability insurance in case of property damage or bodily harm
• Commercial property insurance for damage to your equipment or place of business
• Business income insurance to keep cash flowing after an incident or disaster

You can also add extra coverage to your small business insurance policy to cover the following:

• Commercial auto insurance if you drive a company car or truck
• Workers’ compensation insurance in case an employee is injured on the job
• Professional liability insurance for claims and lawsuits over professional mistakes
• Employment practices liability insurance for employee-related claims
• Crime insurance in case of criminal activity like theft or vandalism
• Cyber liability insurance in case of a security breach or data leak
• Key person insurance to keep the business going if you physically can’t work anymore
• Commercial umbrella insurance for extra coverage on top of your other policies

Your business should also be bonded, which protects you if an employee steals or damages client property. Many clients prefer to work with bonded cleaning companies, making it a worthwhile expense.

10. Buy cleaning supplies and equipment

Running a successful commercial cleaning company requires the right tools, supplies, and equipment. Plan to spend $500+ (USD) on commercial cleaning business supplies like:

11. Create a commercial cleaning marketing strategy

To start building your list of potential commercial cleaning clients, put together a marketing plan to promote your cleaning business. If you’re starting from scratch, use these tips:

• Build a cleaning website that lists your services and lets your new clients easily book online.
• Set up social media accounts on Facebook and Instagram, and post content that educates or entertains your followers.
• Run cleaning ads on social media, or use Google Local Services Ads, which promote local businesses to likely clients.
• Hand out business cards with your name, business name, and contact details. You can do the same with cleaning flyers, door hangers, postcards, and fridge magnets.
• Set up business directory listings on Google Business and lead generation websites like Thumbtack or Taskrabbit.
• Build relationships with realtors, property managers, and other business owners in your community. You can network, offer special savings, or ask for referrals.
• Start a referral program that rewards current clients for referring a new client. Then, ask satisfied clients to leave positive reviews on your social media.

12. Hire cleaners to grow your business

When you first start a commercial cleaning business, you’ll probably start on your own. That means, on top of cleaning, you’re also responsible for quoting, scheduling, invoicing, and marketing. As you expand, consider adding more staff to free up your time or to build a bigger operation.

Here are a few roles you can think about hiring for when you’re ready to expand:

• Cleaners: More cleaners can help you accept more new cleaning jobs and opportunities. From there, you can keep hiring cleaners and growing your cleaning staff.
  
• Site supervisor: When you have enough cleaners, get a supervisor who’s responsible for training cleaners, scheduling teams, and dealing with on-site issues.
  
• Office manager: An office manager handles paperwork, client relationships, invoices for completed work, payroll processes.
  
• Marketing specialist: A social media specialist or ads expert can be helpful for outsourcing marketing needs and helping your business grow.
  
• Sales agent: A sales rep is responsible for finding and bringing in new clients, winning new contracts, and renewing contracts with current clients.