How to Start a Home Cleaning Business

Starting a home cleaning business doesn’t need to be complicated, but you need to know what are the exact steps to take.

Home cleaning business can be quite profitable, with more dual-income families opting for cleaning services, due to lack of time for cleaning, and more income for outsourced house maintenance service (Grand View Research).

Let’s dive into details on how to start a home cleaning business without headaches and significant upfront expenses!

Table of Contents

Research Your Targeted Demographic

First of all, when starting a home cleaning business, you need to think about what type of residential homes you’re targeting.

Later on, your whole branding might depend on this decision.

For example, younger, busy professionals might value speed and convenience, including online booking options and flexible scheduling. On the other hand, higher-income neighborhoods might prefer premium services, such as personalized cleaning plans and dedicated cleaners.

In addition, if you wish to help the elderly who can’t keep their homes tidy anymore, due to medical conditions or age, you will form more affordable services, offer deep cleanings, and focus on creating a comfortable and safe environment for your clients. This could involve using gentle cleaning products, ensuring all cleaners are trained to handle the specific needs of the elderly, and even providing additional services such as organizing.

Research the demand in the area you want to target, what is their age, occupation, and income level. This way, you will know exactly what your clients need, and what your home cleaning business can do to help them.

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Choose a Business Structure

When starting a home cleaning business, it’s important to choose the appropriate legal structure, as it impacts everything from liability to tax obligations. Here are the options you have:

Sole proprietorship: This is the simplest form of business structure, making it a popular choice for individuals who are just starting out in the cleaning industry. As a sole proprietor, you maintain complete control over your business decisions and profits. It’s important to note that there are no legal distinctions between you and your business – you are personally liable for all debts and legal actions taken against your company.

Partnership: This business structure is appropriate if you plan to operate your cleaning business with one or more partners. Partnerships allow two or more people to share ownership, which includes responsibilities, profits, and losses. These are the types of partnerships to consider:

General Partnerships (GP) involve all partners equally in the management and liabilities of the business.
Limited Partnerships (LP) have at least one general partner with unlimited liability and one or more limited partners whose liability is restricted to their investment in the business.
Limited Liability Partnerships (LLP) provide each partner protection from some or all of the debts against the partnership, meaning they are not personally liable for the actions of other partners.

LLC combines some benefits of corporations and partnerships. It protects your personal assets, like your house and savings, from business debts. This means if your business runs into financial troubles, your personal property is usually safe. Additionally, LLCs can provide additional flexibility and financial benefits. For instance, forming a Michigan LLC provides these protections while also offering the advantage of relatively straightforward filing requirements and flexible management structures, making it a solid choice for home cleaning businesses operating in the state.

Learn what business licenses you need to obtain

For a successful start of a home cleaning business, you need to obtain a required license. It is not advised to operate without one, because you can face penalties and fines, and arrest in a worst-case scenario.

These are the legal requirements for operating a home cleaning business:

Registering your business: Choose the type of business structure such as sole proprietorship, partnership, LLC, or corporation.
Licenses and permits: Acquire the necessary licenses, which might include a general business license, a vendor’s license, or a specific cleaning business license, depending on local regulations.
Insurance coverage: Obtain liability insurance for protection against damages or accidents, and worker’s compensation insurance if you employ others.
Health and safety compliance: Ensure compliance with OSHA standards for the safe handling of chemicals and proper training of employees.
Labor laws: Follow employment laws that enforce fair labor practices, minimum wage, anti-discrimination measures, and maintain accurate employment records.
Tax compliance: Secure an Employer Identification Number (EIN) from the IRS for tax purposes.

Check out our blog post on what licenses are needed to start a cleaning business for a detailed guide on required licenses and their costs.

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Define Your Home Cleaning Service Offers

When starting out a home cleaning business, you need to clearly define the range of services you will provide. This way, potential clients will know exactly what to expect from you. Here are a few cleaning services you might consider offering:

Deep cleaning: This service is thorough and detailed, targeting areas that don’t get regular attention. It typically includes cleaning under furniture, washing all windows, and deep scrubbing of kitchens and bathrooms. Deep cleaning is often requested for special occasions or as a seasonal service.
Routine maintenance: This is the bread and butter of many cleaning services. Routine maintenance includes regular tasks like dusting, vacuuming, mopping, and general tidying. These services are typically scheduled weekly, bi-weekly, or monthly, depending on the client’s needs.
Eco-friendly cleaning: As consumers become more environmentally conscious, offering eco-friendly cleaning services can set your business apart. This involves using products that are biodegradable, non-toxic, and safe for both the environment and your clients’ homes.
Specialized services: You can also offer specialized services tailored to specific needs. This might include carpet cleaning, window washing, or organizing services. Offering these additional services can help increase your marketability and allow you to cater to a broader range of client needs.

Define Pricing Strategies for Your Cleaning Business

Forming your prices is crucial to attract clients while ensuring profitability. That’s why you need to think about a few factors when determining your cleaning prices:

Understand your costs: Calculate your total costs, including supplies, labor, transportation, and overhead. Knowing your expenses ensures that your pricing covers costs while remaining competitive.
Research the market: Research local market rates for cleaning services. Prices can vary depending on the geographic location, the economy, and the demand of the services. Align your prices with competitors to ensure you are neither overcharging nor undercharging.

There are a few pricing structures you can offer:

Flat rate: Charge a set amount for specific types of cleaning services, regardless of the time it takes. This is straightforward for clients to understand and appreciate.
Hourly rate: Charge based on the amount of time spent cleaning. This can be beneficial for jobs that might vary in scope.
Square footage: Some services charge based on the size of the area being cleaned, which is common for commercial spaces but can be adapted for residential services.

To make your services even more appealing to potential clients, incorporate packages, seasonal discounts and promotions, and coupons. All of these can help you successfully upsell and cross-sell your services, thereby increasing both revenue and customer satisfaction.

Don’t forget to check out how much to charge for house cleaning for a comprehensive guide on how to form your prices!

Don’t Forget to Advertise

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To get new clients for your cleaning business, you need to take action to actually let people know your services exist. How do you do this? Through online and offline advertising!

Online marketing

Social media: The easiest first step to online marketing are social media networks. Facebook, Instagram, and even TikTok can greatly increase your visibility and attract new clients. Post useful and engaging content, before and after photos, and even some advice on cleaning.

Website: A website is like a central hub where potential customers learn more about your services and prices, as well as read testimonials from satisfied customers. Make sure your website is easy to navigate, user-friendly, and responsive for both desktop and mobile users. A website is like your online business card, so make sure it contains all relevant information!

Online directories and platforms: Yelp, Home Advisor, Angi, Thumbtack, and similar platforms help customers directly connect with you, read reviews, and build trust before making a commitment. Listing your business on these platforms can significantly enhance your visibility and credibility. Make sure to maintain an updated profile with detailed service descriptions, clear pricing, and high-quality images.

Offline marketing

Don’t underestimate the power of traditional advertising methods. Cleaning service flyers, business cards (check out cleaning service business card ideas for inspiration), and local newspaper ads can effectively spread the word about your cleaning business in your community.

Participating in local events and sponsoring community activities can also increase your brand visibility and credibility. Additionally, consider offering special promotions or discounts to first-time customers who mention your ad, which can help convert inquiries into loyal clients.

Let Cleaning Business Software Help You

Yes, there is cleaning business software that can help you manage bookings, employees, payments, and much more!

Its name is Trafft.

Scheduling software that helps you automate your business and save your time.

How can Trafft help you?

Creates a dedicated booking page (or integrates into your website), where clients can simply choose services, extras, time and date and book a service
Simplifies the billing process by automatically generating invoices once a booking is completed.
Allows clients to securely pay online at the time of booking. This feature supports various payment gateways, such as Authorize.net, Mollie, Stripe, and PayPal.
Boosts your marketing with integrations like Google Analytics to track and analyze website traffic and customer behavior. The Reserve with Google feature also allows clients to book your services directly from Google Search and Maps.
Provides tools to manage your team effectively. You can assign tasks, and manage schedules – all from one platform.
Reminds clients with automated SMS and email notifications, to reduce no-shows.

Trafft’s job is to take all that boring management off your shoulders, so don’t forget to check out all of its awesome features!

Plus, Trafft is free for up to five users!

Closing Thoughts on How to Start a Home Cleaning Business

Starting a home cleaning business can be a profitable venture, but you need to implement thorough and strategic planning. Getting to know your clients, the market, advertising strategies, and legal requirements will set a strong foundation for success.

Let Trafft help you on this journey! With features that enhance client satisfaction and simplify administrative tasks, Trafft supports your growth every step of the way!

Happy bookings!