How to Start a Cleaning Business

The cleaning business industry in numbers

Businesses with employees in this Census category average $1,066,121 a year, but the category includes large commercial janitorial contractors, so it is not a target for a new small business.

How to start a cleaning business, step by step

1. Choose residential, commercial or both

   Home cleaning sells on trust and recurring schedules; commercial cleaning sells on contracts, reliability and insurance. Starting with one keeps your marketing, pricing and equipment simple.

2. Set prices from your costs, not a guess

   Work out what a visit costs you in time, supplies and travel, then price to cover it with margin. Recurring weekly or biweekly clients are worth a lower rate than one-time deep cleans because they fill your calendar.

3. Register the business and get insured

   Form your business entity, get a federal EIN, and check whether your city or county requires a business license. General liability insurance and a janitorial bond are often what clients ask to see first.

4. Buy equipment for the work you will actually do

   Start with a reliable vacuum, microfiber, and products for the surfaces you clean most. Commercial jobs may need floor machines; buy those when a contract justifies them.

5. Write the plan

   A plan with your price per visit, visits per day and monthly costs shows how many clients you need and when you can afford help.

6. Win the first ten clients

   Neighbors, local social groups, real-estate agents and property managers are the fastest early sources. Ask every happy client for a review and a referral.

7. Build a schedule that minimizes driving

   Group clients by neighborhood and day. Travel time is unpaid time, and it is the quiet killer of cleaning margins.

8. Hire when your calendar is full, not before

   Your first hire should free you to sell and manage. Check your state’s rules for payroll and workers compensation before you take on staff.

What it costs to open

Our worked example comes to $4,610; real budgets typically run $2,000–$13,000. Each line shows the range we found in published prices and cost data — see every source. Replace each with your own quotes in the calculator below.

Running costs and break-even

With these assumptions, costs that rise with sales take about 14% of revenue, and fixed costs and an example loan payment come to $420 a month. That puts break-even at about $488 in monthly sales — roughly 1 cleaning visit per week.

This example is an owner-only business, so break-even covers the business’s costs but not your own pay. Add what you need to live on to see when it supports you — the break-even calculator does both.

Licenses and permits to line up

Requirements and fees differ by state, county and city. Confirm each item with your local offices before you sign a lease or buy equipment.

• Business license from your city or county
• Business registration with your Secretary of State, plus a federal EIN
• General liability insurance and a janitorial bond (many clients ask for proof)
• Workers compensation insurance once you hire (rules vary by state)
• Sales tax registration where your state taxes cleaning services

Where cleaning businesses are concentrated

States ranked by employer cleaning businesses per 100,000 residents (2023). A high count means proven demand — and more competition for the best locations and customers.

“—” means the Census Bureau did not publish the figure for that state, usually to protect the confidentiality of individual businesses.

Run the numbers for your town

Pick your city to see local competitors, average sales and wages, and your own startup cost and break-even.

Related

• Cleaning Business Plan
• How Much Does It Cost to Start a Cleaning Business?