How Much Does It Cost to Start a Cleaning Business

You have finally decided to start your own cleaning business and dive into the adventures of entrepreneurship?

This is a very lucrative venture in today’s economy, but firstly you need to understand financial aspects. Questions like “How much does it cost to start a cleaning business?” and “what is the average cost to start a cleaning business?” arise.

Luckily for you, in this article we’ll break down initial expenses, such as the cleaning business start-up cost, cleaning business license cost, and overall cost to start a cleaning business.

Keep reading and find out how to efficiently manage start-up expenses!

Initial Cleaning Company Start-up Costs

What are your options for loans and financing?

If you want to start a cleaning business, you first need to explore various financing options. Small business loans, credit lines, or personal savings are a good way to start.

The U.S. Small Business Administration (SBA) offers multiple loan programs that can help cover your cleaning business start-up costs, which are suitable for various purposes such as buying equipment. These loans have federal government backing, which means better terms and less risk for lenders.

To apply for these loans, you’ll need to prepare a detailed business plan, financial statements and possibly personal financial information. Lenders will evaluate your creditworthiness, business model, and potential for repayment. Make sure to understand all specific loan requirements and prepare the necessary documentation.

Check out SBA’s guide to loans for a comprehensive overview of available SBA loans and application tips.

What licenses do you need and what is their cost?

Before you start cleaning, you should obtain a business license. It’s not very smart to operate without one – it is illegal in most states, and is considered fraudulent.

Cleaning business license costs depend on your location, whether you are a commercial cleaner, or a house cleaner, and many other factors.

These are the usual costs of a cleaning business license:

General business license – from $50 to a few hundred dollars
“Doing Business As” (DBA) registration – between $10 and $100
Specialized permits – from less than $100 to a few hundred dollars
Bonds – a few hundred dollars annually
Insurance – from a few hundred dollars to over a thousand annually
Renewal fees – can sometimes be lower than the initial application fee

Check out our comprehensive guide on cleaning business licenses and their costs. You’ll find a detailed list of licenses you need, how to obtain them, and their price range.

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What equipment and supplies are necessary and how much does it cost?

Buying equipment will set you back between $300 and $600. However, these costs can increase significantly if you need specialized tools.

The basic equipment you need include:

Vacuum cleaners
Mops
Brooms
Dusters
Scrub brushes
Various cleaning solutions tailored to different tasks

For tasks like carpet or upholstery cleaning, you’ll need specialized equipment such as carpet cleaners, upholstery tools, and squeegees.

If you buy high-quality equipment, you’ll have a higher upfront cost, but over time it can prove more cost-effective – safeguarding you from frequent replacements and maintenance. For example, professional-grade vacuum cleaners and floor polishers are essential for keeping operations efficient and maintaining high cleanliness standards.

Additionally, it’s important to choose good cleaning chemicals. Getting eco-friendly or specialized cleaning products can meet specific client needs and industry standards, but they often cost more. The price of all-purpose cleaners, disinfectants, and specialty cleaners for different surfaces depends on the quality and quantity, but a start-up cleaning business might spend between $300 and $600 on initial supplies.

A well-prepared cleaning business should also have personal protective equipment (PPE) and first aid supplies to keep operations safe.

Ongoing Cleaning Business Start-up Cost

Office space and utilities

Depending on your business’s scale and administrative needs, you might opt for renting an office. Costs can significantly vary depending on location, size and the office’s condition.

You can consider using shared office spaces, which will significantly reduce costs. They provide essential amenities for a lower price. Another option is operating from home, which will even further cut initial expenses.

Marketing and advertising

Offline marketing

You need to invest in marketing and advertising to establish a professional image and attract new clients.

Initial branding costs might include hiring a graphic designer to create a unique logo and consistent branding across your business materials, such as business cards, brochures, cleaning service flyers, and promotional items. Try looking for a graphic designer on freelance websites, or Facebook groups. This can drastically lower your branding costs.

Look at some cleaning service business card designs to spark up your inspiration!

Traditional advertising methods could include placing ads in local newspapers, attending community events, or securing listings in local directories.

On average, start-up marketing costs can range from $135 to $650, depending on the scale and methods chosen.

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Online marketing

Creating an online presence is equally important. This includes setting up a professional website, buying a domain name, and possibly hiring a web developer to ensure the site is user-friendly.

The cost of setting up an online presence can vary widely, with DIY website builders offering a range of pricing options, typically starting from as low as $2.99 per month to around $500 annually, which includes hosting and domain. In contrast, professional web design services can cost anywhere from $1,000 to over $5,000, depending on the complexity of the design.

Digital campaigns might involve strategies like social media advertising and paid search ads, which can vary widely in cost but often provide quick results. Social media platforms can be a cost-effective method to engage potential clients and expand your reach.

Don’t forget to read our blog post on how to advertise your cleaning business where we have thoroughly explained every detail of advertising and getting new clients with the help of marketing!

Cleaning service software

Can cleaning service scheduling software simplify your marketing efforts?

Trafft surely can!

In its essence, Trafft is a booking software that simplifies the booking and payment processes for your clients. But it can also help you tidy up (pun intended) your marketing processes!

Here’s how Trafft helps you market your cleaning services:

Reserve with Google: Allows clients to book your cleaning services directly through Google Search and Maps, increasing your visibility and accessibility.
Facebook Pixel: Implement Facebook Pixel to track conversions from Facebook ads, optimize ads based on collected data, and build targeted audiences for future ads.
Google Analytics: Use Google Analytics integration to track and analyze the traffic on your booking page, understand customer behavior and optimize your marketing strategies.
Mailchimp: Advanced integration with Mailchimp allows you to send targeted email campaigns to your clients, manage subscriptions, and track the effectiveness of your emails.

Besides, Trafft’s secure online payments allow your clients to pay in just a few clicks and ensure all transactions are safe and reliable. You can also easily send invoices and manage taxes, all from your Trafft dashboard!

But how much does Trafft cost?

That’s the best part, it’s FREE for up to 5 users!

Try out Trafft’s demos and secure easy bookings today!

Employee wages

If you’re planning to employ workers, you have to think about their wages. It’s important to offer competitive salaries to attract and retain employees. The current average hourly pay for cleaners is $16.66.

Compliance with local labor laws regarding minimum wage and overtime is mandatory. Additionally, account for hiring expenses such as job advertisements, background checks, and interviewing, as well as regular payroll expenses which may include salaries, wages, and overtime pay.

Benefits like health insurance, paid time off, and retirement plans greatly increase staffing costs and must be included in the budget.

Insurance and cost implications

You need insurance to protect your business from liabilities and accidents. Essential policies include general liability insurance ($42 a month, or $504 a year), which covers property damage and injuries, and workers’ compensation insurance, which covers their medical costs and lost wages from work-related injuries.

It’s wise to consider insurance for tools and equipment, income protection, employer’s liability, and vehicle insurance. Speaking with a licensed insurance broker can help ensure you have the right coverage.

Insurance costs will vary depending on your coverage needs, business size, and the services you offer.

Maintenance costs and supply upkeep

Regular maintenance of cleaning equipment and restocking supplies are crucial to prevent service interruptions.

Set aside part of your budget for these costs. To save money, think about buying in bulk or setting up long-term contracts with suppliers. Also, include staff training expenses in your budget to ensure they meet industry standards and perform their jobs well. This includes costs for training materials, instructor fees, and the time staff spend in training sessions.

What’s the Average Cost to Start a Cleaning Business?

The average cost to start a cleaning business can vary anywhere from $2,000 to $10,000.

Here are the initial and ongoing expenses:

Expense Category	Details	Cost Estimate
Initial Expenses
Equipment and Supplies	Essential items like vacuums, mops, brooms, and cleaning solutions. Specialized tools if needed.	$300 – $600
Licensing and Permits	General business license, specialized permits, bonds, and insurance.	$50 – Several hundred dollars annually
Marketing and Advertising	Branding, online and offline advertising strategies.	$135 – $650
Office Space and Utilities	Costs vary by location and size. Shared spaces or home setups as cheaper alternatives.	Variable
Ongoing Expenses
Cleaning Service Software	Manages bookings, customer info, and finances.	Trafft is free for up to 5 users
Employee Wages	Average pay for cleaners, plus benefits, payroll expenses, and legal compliance.	$15.87 per hour average
Insurance	General liability, workers’ compensation, equipment, and vehicle insurance.	$42 per month for general liability
Maintenance Costs	Regular upkeep of equipment and supplies, potential bulk purchases.	Variable

What factors influence the total cost?

Location

The cost of starting and operating a cleaning business can greatly depend on the region. Urban areas have higher costs for rent wages, and supplies compared to rural areas. Still, urban areas call for higher cleaning prices. Don’t forget to read our detailed guide on how much to charge for house cleaning!

The scale of the business

The size of your business will impact your initial and ongoing costs. Solo operators typically have lower overhead costs but can handle fewer large jobs, while franchises often need more initial investment but gain from well-known branding and support.

Services offered

The type of cleaning service you offer can also influence costs. Standard cleaning services may require less specialized tools, while industrial cleaning or biohazard cleanup requires specialized equipment, more training and certification, which significantly increases start-up and operational costs.

How to Minimize Cleaning Company Start-up Costs?

Cost-saving tips for starting a cleaning business

Owning a cleaning business calls for financial management right from the start. Try some of these tips:

To reduce some of the costs, try buying gently used equipment or high-quality refurbished items.
Bulk purchasing of cleaning supplies can also reduce expenses.
Try optimizing travel routes for your cleaning jobs to save on fuel and vehicle maintenance.

Negotiate deals with suppliers

Another effective strategy is to negotiate with suppliers to reduce costs. Research market prices to ensure you’re getting competitive rates. Don’t hesitate to ask for discounts or better terms, especially if you’re buying in bulk or plan on signing a long-term contract. Building good relationships with suppliers can lead to better prices and special deals, helping you cut costs significantly.

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Utilize cost-effective marketing strategies

Another way to cut cleaning business start-up costs is to focus on strategies that yield high impact at low expenses. You can use the full power of social media, post engaging and useful content, and interact with your followers. This way, you can build trust with potential clients, and also increase your visibility.

In addition, having Trafft’s dedicated booking page can significantly decrease the cost of building a website. You don’t need to pay for the website at the very beginning of opening your business, a dedicated booking page will be enough to show your clients who you are, and what you’re doing, and simplify the booking process!

So, How Much Does It Cost to Start a Cleaning Business?

It involves various costs, but if you are strategic with planning and smart with management from the beginning, these costs can be effectively controlled.

There is no upper limit, you can spend all the money in the world on starting a cleaning business. But, the minimum is somewhere around $2,000.

No matter what your budget is, adopt cost-saving measures – negotiate with supply dealers, use economical marketing techniques, and don’t forget to implement booking software to streamline your operations!

Good luck with your new cleaning business!

Looking for More Cleaning Business Resources?

For more tips and tricks on how to start, manage, and grow your cleaning business, check out the following articles: