How Much Money Do I Need to Start a Cleaning Business?
Cleaning businesses offer a wide variety of services in an array of settings: Homes, office buildings, medical facilities, commercial residential buildings, and more. In each of these spaces, there's plenty of work to be done: Disinfecting, vacuuming, dusting, mopping, waxing, carpet cleaning, and more.
Owning a cleaning business not only gives you the opportunity to create the life you've always imagined, build your own schedule, and be your own boss, but it also makes people feel good.
It's a chance to provide your clients with a sparkling clean, fresh space at home and/or at work—which also provides them with peace of mind and more free time.
But starting a cleaning business requires some forethought—and some money upfront to get your business going. Here's what you need to know about starting your own cleaning business.
Residential or Commercial Cleaning?
Your startup costs (and your business plan) will vary greatly based on the kind of cleaning you plan to do. Typically, a residential cleaning business will cost less to start up, but the potential to earn more money is higher with commercial cleaning, which can be more lucrative thanks to add-on services like:
- Floor waxing and floor care
- Window washing
- Deep disinfecting
- Daily janitorial services
Cleaning companies can charge more for these kinds of services, but they also require special tools, which can increase your initial costs.
Also, there's less competition in the residential space, since there are more available customers. Residential cleaning is typically done during the day, and commercial cleaning is more often executed at night. What you decide is really based on what kind of budget you can put together and the lifestyle you want to create for yourself.
Investing in a Cleaning Franchise
Cleaning franchises are a popular solution, and with well over a dozen brands to choose from, there are just as many price points when it comes to startup costs. Some even offer you the option to start from home or work part-time while you get your business off the ground.
According to Fit Small Business, some cleaning business franchises start as low as $3,500 in startup costs, while others can soar as high as $200,000, and come with vehicles, a location, and all kinds of advanced equipment.
The benefit of some franchises? They offer business and industry training for how to run a business and the ins and outs of effective, efficient cleaning practices.
Startup Costs
Reports show that the average cleaning or janitorial service will spend $3500 on startup costs. So, what all is factored into the price tag? For a low-cost cleaning business, you can expect to pay for the following:
- Licenses and permits can cost between $100 and $500 to register as a limited liability company
- Cleaning equipment and cleaning products can cost anywhere from $300 to $600 in startup costs, depending on the kind of equipment you select. This can include:
- A high-quality vacuum, which can cost between $200 and $300
- $10 each for multiple cleaning solutions
- $10 for a broom
- $20 for a mop
- $20 for dusting supplies
- Advertising is essential to gain momentum and earn clients and will run between $100 and $200 for print and online marketing.
- Labor costs are a bit more fluid, depending on the hourly rate you plan to pay and how many employees you'll start with. There's a lot of discussion about a $15 per hour minimum wage to keep up with the rising cost of living expenses.
If you are interested in starting a cleaning company, you should also plan to pay to be fully bonded and insured. Janitorial insurance can range from $350 per year to $8,000 per year to pay for general liability for a small housekeeping business. And to add workers' compensation if you or an employee is injured (a wise idea), you might plan to pay another $2,000 per year.
Larger commercial janitorial businesses can expect to pay between $8,000 and $12,000 for full insurance and bonding each year.
The Cost of Bonding and Insurance
It may be tempting to pass on insurance for your cleaning company, but insurance is critical to keeping you protected if something goes wrong. It helps lower your risks and can even help you grow your business—customers want to work with cleaning companies that are bonded and insured; it makes them feel secure in their business decision.
Chances are if you're just starting out, you have a limited budget to spend on things like bonds and insurance protection. It's still a good idea to crunch the numbers and see how much your business can afford to pay for coverage.
The right cleaning company insurance and bonding protection will likely involve choosing from several options to cover a broad range of risks that may come up as you are cleaning for clients. While you might think it's a good idea to get the minimum for insurance protection, that could harm your business—and your company's reputation—in the long run.
When weighing the costs for insurance as you start your cleaning company, you should factor in things like:
- Third-party property damage
- Client injuries
- Employee injuries or illness
- Business vehicle accidents
- Employee theft
Based on the size of your company when you're just starting, you may find that some of these factors aren't relevant, or on the other hand, might be essential to keeping your business up and running when the unthinkable happens. Either way, the biggest variable in your startup costs will be what you decide to invest in your insurance and bonding.
The Janitorial Store: Everything You Need to Get Started
As you embark on your journey to business ownership and becoming your own boss, The Janitorial Store will be there for you. We're an all-inclusive, educational resource center, and we'll offer you the support you need to get your cleaning business off the ground. The Janitorial Store will be there for you when you get started, and when you're ready to scale up your operations and grow your company.
Do You Need Help with Growing and Running Your Cleaning Business?
The Janitorial Store is a private, members-only resource for those serious about starting, improving and growing a profitable cleaning business.
As 30 year veterans of the cleaning industry, we know that the business of cleaning can be incredibly challenging. The competition is fierce and the margins are low. It's a demanding business and it's tough to grow it and make it successful. Within the private members-only area, you'll find a huge selection of in-depth information that you won't find anywhere else on the Internet.
You can struggle or succeed. The decision is obvious... Join Today!
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