How To Start A Commercial Cleaning Business

Starting a commercial cleaning business can be a rewarding and profitable venture. Whether you want to be your own boss, achieve financial independence, or meet a growing market need, this industry offers numerous opportunities.

Why Start A Cleaning Company?

Starting a commercial cleaning business offers several advantages. There is a constant demand for cleaning services across various sectors, including offices, healthcare facilities, schools, and industrial spaces. As businesses and organizations prioritize cleanliness and hygiene, the need for professional cleaning services continues to grow.

Moreover, the commercial cleaning business has a relatively low barrier to entry compared to other industries. With the right planning and execution, you can start with minimal upfront investment and scale your operations over time.

This business model also allows for flexibility, enabling you to start part-time and gradually transition to full-time as your client base expands.

Embarking on this journey requires dedication, hard work, and a willingness to learn. Remember, every successful business starts with a single step.

Understanding the Differences Between Commercial and Residential Cleaning Businesses

Starting a cleaning business can take you down various paths, but the two most common are commercial cleaning and residential cleaning. Understanding the differences between these two can help you make informed decisions and strategize effectively for your new venture.

Commercial Cleaning vs. Residential Cleaning

Scope of Work

• Commercial Cleaning:
  • Clients: Typically include office buildings, healthcare facilities, schools, industrial spaces, and retail environments.
  • Tasks: Tasks often include cleaning large floor areas, restrooms, kitchens, and sometimes specialized cleanings such as window washing, carpet cleaning, and sanitization services.
  • Schedule: Generally performed outside of regular business hours, such as evenings or weekends, to avoid disrupting normal operations.
  • Frequency: Often involves contracts for regular services, such as daily, weekly, or monthly cleaning schedules.
• Residential Cleaning:
  • Clients: Individual homeowners or tenants.
  • Tasks: Tasks include dusting, vacuuming, mopping floors, cleaning bathrooms and kitchens, and sometimes organizing or deep cleaning projects.
  • Schedule: Usually done during the day when homeowners are at work or school, and often involves one-time or periodic cleanings rather than ongoing contracts.
  • Frequency: Typically, services are rendered on a weekly, bi-weekly, or monthly basis, but also include one-time cleanings for move-ins, move-outs, or special occasions.

Requirements and Regulations

• Commercial Cleaning:
  • Regulations: Often requires compliance with industry-specific regulations, especially in healthcare and food service environments. This includes specialized training and certification.
  • Insurance: Higher levels of insurance and bonding are generally required due to the nature of the clients and potential risks involved.
  • Equipment: Requires more specialized and industrial-grade equipment to handle larger spaces and more demanding tasks.
• Residential Cleaning:
  • Regulations: Fewer regulatory requirements compared to commercial cleaning, but still must adhere to local laws and regulations regarding business operations and worker safety.
  • Insurance: While insurance is still necessary, the coverage requirements are typically lower than those for commercial cleaning.
  • Equipment: Requires more common household cleaning supplies, although professional-grade equipment can still be beneficial.

Tackling Both Industries

Some companies choose to offer both commercial and residential cleaning services. This approach can diversify your client base and increase revenue streams. However, it comes with its own set of challenges, especially for new businesses.

Pros:

• Diversified Income: Offering both services can help stabilize income, as the demand for one may compensate for slow periods in the other.
• Market Reach: Expands your market reach and allows you to tap into different customer segments.

Cons:

• Complex Operations: Managing both types of services requires a more complex operational setup, including scheduling, staffing, and equipment management.
• Brand Positioning: It can be challenging to position your brand as a specialist in both areas, which might affect your market credibility.
• Resource Allocation: New businesses might struggle with the allocation of resources, as each type of service may require different sets of equipment and skills.

Is It Advisable for New Businesses?

For new businesses, focusing on one niche—either commercial or residential—can be more advantageous. Here’s why:

• Focused Marketing: You can tailor your marketing efforts to a specific audience, making it easier to build a strong brand and attract clients.
• Specialization: Specializing in one area allows you to develop expertise, which can lead to higher quality service and better client retention.
• Simplified Operations: Managing a single type of cleaning service simplifies operations, from staffing and training to equipment management and scheduling.
• Risk Management: Starting with one focus reduces financial risk and allows you to understand the business dynamics better before expanding into other areas.

However, once your business is established and you have a solid understanding of the industry, expanding into the other sector can be a strategic move for growth.

Deciding between commercial and residential cleaning depends on your goals, resources, and market demand in your area. 

In this article, we will focus on starting a commercial cleaning business.  In the next blog, we will create a how-to guide for people who want to start a residential cleaning service.

Getting Organized with a Business Plan

A well-crafted business plan is the foundation of any successful business, and starting a commercial cleaning business is no exception. A business plan not only helps you stay organized but also serves as a roadmap for your business’s future. It outlines your goals, strategies, and the steps necessary to achieve them.

Key Components of a Business Plan

1. 

   Executive Summary:

   • A brief overview of your business, including your mission statement, business goals, and the products or services you offer.
2. Business Description:
   • Detailed information about your business, including the nature of your commercial cleaning services, your target market, and the unique value proposition you offer.
3. Market Analysis:
   • An analysis of your target market, including market size, trends, and competition. This section should also outline your marketing strategies and how you plan to attract and retain clients.
4. Organization and Management:
   • An overview of your business’s organizational structure, including the roles and responsibilities of your management team and staff.
5. Services or Product Line:
   • A description of the services you offer, including any specialized cleaning services and the equipment you will use.
6. Marketing and Sales Strategy:
   • Your marketing plan, including how you will promote your business and attract clients. This should also cover your sales strategy and client retention plans.
7. Funding Request:
   • If you’re seeking financing, this section should outline your funding requirements, potential funding sources, and how you plan to use the funds.
8. Financial Projections:
   • Detailed financial projections, including income statements, cash flow statements, and balance sheets for the next three to five years.
9. Appendix:
   • Any additional information that supports your business plan, such as resumes, permits, lease agreements, and legal documentation.

Creating a Business Plan

While creating a business plan might seem daunting, several resources can help you get started. You can choose to write your business plan yourself using templates and guides available online, or you can hire professionals to assist you.

DIY Business Plan Resources:

• Templates and Software: Many websites offer free or paid business plan templates and software that guide you through the process step-by-step.
• Books and Online Courses: There are numerous books and online courses dedicated to writing business plans, providing you with detailed instructions and examples.

Professional Services:

• Business Plan Writing Services: You can hire companies that specialize in writing business plans. These services often include market research, financial projections, and comprehensive business strategy development.
• Consultants: Business consultants can provide personalized guidance and expertise, helping you create a detailed and tailored business plan. They can also offer ongoing support as you launch and grow your business.

Recommended Services:

• LivePlan: A user-friendly business plan software that offers step-by-step guidance, templates, and financial forecasting tools.
• Wise Business Plans: A professional service that provides custom business plans tailored to your specific needs and industry.
• SCORE: A nonprofit organization that offers free business mentoring and workshops, including assistance with business plan development.

Funding and Startup Costs for a Commercial Cleaning Business

Starting a commercial cleaning business requires a clear understanding of the initial investment and ongoing operational costs. Knowing these costs upfront helps you plan your finances and determine the best funding options for your business.

Typical Startup Costs

The initial costs for starting a commercial cleaning business can vary based on the size and scope of your operations. Below are the primary expenses you should anticipate:

1. Business Registration and Licensing:
   • Business License: The cost of registering your business varies by location but typically ranges from $50 to $400.
   • Legal Fees: If you hire an attorney to help with business formation, expect to pay between $500 and $1,000.
2. Insurance and Bonding:
   • General Liability Insurance: Essential to protect your business from potential lawsuits, costing between $300 and $1,000 per year.
   • Bonding: Often required for commercial cleaning contracts, typically costing $100 to $600 per year.
3. Equipment and Supplies:
   • Basic Cleaning Equipment: Vacuum cleaners, mops, brooms, and dusters, costing around $500 to $2,000.
   • Specialized Equipment: Floor buffers, carpet cleaners, and pressure washers, costing $1,000 to $5,000.
   • Cleaning Supplies: Chemicals, detergents, gloves, and disposable items, costing $300 to $1,000 initially.
4. Marketing and Advertising:
   • Branding Materials: Business cards, flyers, and brochures, costing around $200 to $500.
   • Online Marketing: Website development, social media marketing, and search engine optimization (SEO), costing $500 to $2,000.
5. Office Space and Utilities:
   • Office Rent: Depending on your location, office space can cost between $300 and $1,500 per month.
   • Utilities and Office Supplies: Monthly costs for utilities, internet, and office supplies can range from $100 to $300.
6. Employee Salaries and Training:
   • Wages: Initially, you may start with a small team, costing around $10 to $20 per hour per employee.
   • Training Programs: Initial training for employees can cost around $100 to $500.
7. Transportation:
   • Vehicle Purchase/Lease: A reliable vehicle for transporting equipment and staff can cost between $5,000 and $20,000, or a monthly lease of $200 to $500.
   • Fuel and Maintenance: Monthly costs for fuel and vehicle maintenance can range from $200 to $500.

In total, the typical startup costs for a commercial cleaning business can range from $10,000 to $30,000, depending on the scale and specific requirements of your operations.

Funding Options

Securing the necessary funds to cover your startup costs is a crucial step in launching your business. Here are several funding options to consider:

1. Personal Savings:
   • Using your own savings is often the simplest and most straightforward way to fund your business. It avoids the need for loans and keeps you free from debt.
2. Small Business Loans:
   • Traditional Bank Loans: Banks offer small business loans with varying interest rates and repayment terms. You will need a solid business plan and good credit history.
   • SBA Loans: The Small Business Administration (SBA) offers loans specifically designed for small businesses, often with favorable terms.
3. Equipment Financing:
   • Specialized Loans: Equipment financing loans are designed to help you purchase necessary equipment. The equipment itself often serves as collateral, making it easier to obtain financing.
   • Leasing: Leasing equipment can reduce upfront costs and provide flexibility.  There are leasing companies that even specialize in financing startup businesses and bad credit business owners.
4. Grants and Subsidies:
   • Government Grants: Various government programs offer grants to small businesses, especially those owned by minorities, women, or veterans.
   • Local Subsidies: Check with local government offices and business development centers for any available subsidies or support programs.
5. Investors:
   • Angel Investors: Individual investors who provide capital in exchange for equity or convertible debt.
   • Venture Capitalists: Firms that invest in businesses with high growth potential in exchange for equity. This option is less common for cleaning businesses but worth exploring if you have an innovative approach.
6. Crowdfunding:
   • Some platforms allow you to raise small amounts of money from a large number of people. Successful crowdfunding campaigns often rely on compelling stories and solid marketing efforts.

Equipment Leasing Programs

Given the importance of having the right equipment, many business owners opt for equipment leasing programs. These programs can help you obtain the necessary tools without depleting your cash reserves.

Benefits of Equipment Leasing:

• Preserves Working Capital: Allows you to keep cash available for other operational needs.
• Flexible Payment Terms: Offers manageable monthly payments tailored to your budget.
• Tax Advantages: In some cases, the lease payment can be written off as a tax deduction.

How to Apply for Equipment Leasing:

1. Fill out our online application form
2. Prepare Documentation: Gather 3 months’ bank statements,  and tax returns if they are requested.  If you are a startup business submit statements from where you will be pulling your financing from.  You want to show the leasing bank that you have the money to make your monthly payments.
3. Explain Credit Problems: If you have credit problems, submit a detailed explanation.  You want to include the information/proof that you are no longer experiencing financial problems and will be able to make your payments on time.
4. Finalize Agreement: Once approved, finalize the agreement and arrange for the purchase and delivery of your equipment.

Understanding the typical startup costs and exploring various funding options are critical steps in launching your cleaning company.

By planning your finances carefully and securing the necessary funding, you can ensure your business is well-equipped and positioned for success.

The Importance of the Right Equipment

One of the critical factors in the success of your commercial cleaning business is having the right equipment. The right tools can significantly impact the quality and efficiency of your work, helping you meet and exceed client expectations.

Proper equipment ensures you can handle various cleaning tasks efficiently and effectively, which is crucial for building a strong reputation and growing your client base.

Essential Equipment for a Commercial Cleaning Business

The right equipment is crucial for the success of your commercial cleaning business. It not only enhances the quality of your services but also improves efficiency, enabling you to handle more clients and increase revenue.

Let’s go over the essential equipment needed to start a commercial cleaning business and the specialized equipment that can help you tap into lucrative niches and see higher returns.

Essential Equipment 

1. Basic Cleaning Tools:
   • Vacuum Cleaners: High-quality commercial vacuums are essential for cleaning carpets and floors in office buildings and other commercial spaces.
   • Mops and Buckets: Invest in durable, commercial-grade mops and buckets. Microfiber mops are particularly effective for various floor types.
   • Brooms and Dustpans: For quick cleanups and areas where vacuuming isn’t feasible.
   • Dusting Tools: Extendable dusters and microfiber cloths to clean surfaces and hard-to-reach places.
   • Trash Bags and Liners: Various sizes to fit different trash receptacles.
2. Cleaning Chemicals and Solutions:
   • All-Purpose Cleaners: Suitable for a variety of surfaces.
   • Glass Cleaners: For streak-free windows and mirrors.
   • Disinfectants: Essential for sanitizing high-touch surfaces.
   • Floor Cleaners: Specific solutions for hardwood, tile, and carpeted floors.
   • Bathroom Cleaners: For cleaning and sanitizing toilets, sinks, and showers.
3. Specialized Cleaning Tools:
   • Carpet Cleaners: Machines for deep-cleaning carpets, such as steam cleaners and extractors.
   • Floor Buffers: For polishing and maintaining hard floors.
   • Pressure Washers: Useful for exterior cleaning, including building facades, sidewalks, and parking lots.
   • Window Cleaning Kits: Squeegees, extension poles, and cleaning solutions for professional window cleaning.
4. Protective Gear:
   • Gloves: Disposable and reusable gloves to protect hands from chemicals and dirt.
   • Masks and Respirators: For protection against dust, fumes, and cleaning chemicals.
   • Uniforms: Professional attire that includes protective clothing and branding for your business.
5. Transportation:
   • Reliable Vehicle: A van or truck for transporting equipment and supplies to various job sites. And vehicle insurance that covers you and your employees.
6. Office Supplies:
   • Business Cards and Brochures: For marketing and networking.
   • Scheduling Software: To manage appointments and track client information.

Specialist Equipment for Increased Revenue

Specialty service equals increased revenues and a way for you to expand your brand. If you want to stand out, you need to provide a specialized service.  Investing in specialized equipment allows you to offer niche services, which can command higher rates and attract more clients. Here are some advanced tools and the specialized services they enable:

1. Electrostatic Sprayers:
   • Service: Disinfection services for healthcare facilities, schools, and offices.
   • Revenue Potential: High demand for sanitization services, especially during flu seasons and health crises.
2. Green Cleaning Equipment:
   • Service: Eco-friendly cleaning services using biodegradable products and energy-efficient equipment.
   • Revenue Potential:  Using natural products is HUGE in todays market.   This attracts environmentally conscious clients willing to pay a premium for green cleaning solutions.
3. Steam Cleaners:
   • Service: Deep-cleaning and sanitizing carpets, upholstery, and hard surfaces without chemicals.
   • Revenue Potential: High demand in healthcare, hospitality, and residential sectors for chemical-free cleaning.
4. Floor Scrubbers:
   • Service: Deep cleaning of large floor areas in industrial settings, warehouses, and retail spaces.
   • Revenue Potential: Contracts with large facilities that require regular, intensive cleaning.
5. High-Reach Window Cleaning Equipment:
   • Service: Cleaning windows of multi-story buildings.
   • Revenue Potential: Lucrative contracts with commercial office buildings, hotels, and high-rise residential complexes.
6. Tile and Grout Cleaning Machines:
   • Service: Specialized cleaning for tiled floors and surfaces in commercial kitchens, bathrooms, and healthcare facilities.
   • Revenue Potential: High-paying clients in the food service and healthcare industries.
7. Water-Fed Pole Systems:
   • Service: Exterior window cleaning for tall buildings.
   • Revenue Potential: High-end clients requiring regular exterior maintenance.
8. HVAC Cleaning Equipment:
   • Service: Cleaning HVAC systems to improve air quality and system efficiency.
   • Revenue Potential: Ongoing maintenance contracts with commercial buildings and residential complexes.

Investing in the right equipment is vital for starting and growing a successful commercial cleaning business. Begin with the essential tools to cover basic cleaning tasks, and as your business grows, consider acquiring specialized equipment to offer niche services.

These advanced services not only help you stand out in a competitive market but also allow you to command higher rates and increase your revenue.

In addition to the right equipment, having a steady supply of cleaning materials is crucial for the smooth operation of your cleaning company.

To meet your client’s expectations, and avoid interruptions in service, you must have the necessary supplies on hand.

1. Cleaning Solutions:
   • All-Purpose Cleaners: Versatile cleaners suitable for various surfaces. Stock enough to last at least a month, as these are used frequently.
   • Disinfectants: Essential for sanitizing high-touch surfaces. Keep a 2-3 week supply, as these are crucial for many clients, especially in healthcare and office environments.
   • Glass Cleaners: For windows and mirrors. A month’s supply is generally sufficient.
   • Floor Cleaners: Specific solutions for different floor types (hardwood, tile, carpet). Ensure a month’s supply for each type you service.
   • Bathroom Cleaners: For toilets, sinks, and showers. Stock enough for 3-4 weeks, as bathrooms are cleaned regularly.
   • Specialty Cleaners: Such as stainless steel polish, wood polish, and degreasers. Keep a small, steady supply based on client needs.
2. Cleaning Tools:
   • Microfiber Cloths: For dusting and wiping surfaces. These should be washed and reused, so keep a dozen or more on hand.
   • Mops and Mop Heads: Have several mop heads available to switch out regularly. Stock at least a month’s worth.
   • Brooms and Dustpans: Typically don’t need frequent replacement, but having a few backups is wise.
   • Sponges and Scrubbers: Stock enough for several weeks, considering their usage rate.
3. Paper Products:
   • Paper Towels: Essential for various cleaning tasks. Stock a couple of weeks’ worth.
   • Toilet Paper and Hand Towels: If you provide these for client facilities, ensure a 2-3 week supply.
4. Trash Bags and Liners:
   • Various Sizes: Stock a variety of sizes to fit different trash receptacles. Ensure a month’s supply, as these are used daily.
5. Personal Protective Equipment (PPE):
   • Gloves: Both disposable and reusable gloves. Stock a month’s supply of disposable gloves and have several pairs of reusable gloves.
   • Masks and Respirators: Essential for protection against dust and fumes. Keep a couple of weeks’ supply of disposable masks and several reusable ones.
   • Eye Protection and Aprons: Have a few on hand for protection against splashes and harmful substances.
6. Miscellaneous Supplies:
   • Buckets and Spray Bottles: Have enough to rotate through cleaning tasks. A dozen or so should be sufficient.
   • Vacuum Bags and Filters: Stock replacements to ensure your vacuums remain effective. Keep a month’s supply of bags and filters.
   • Laundry Detergent: For washing reusable cloths and mop heads. A couple of weeks’ supply should suffice.

Starting and running a successful commercial cleaning business involves careful planning, strategic decision-making, and a commitment to quality service.

Starting a business is a challenging yet rewarding journey.  As you move forward, keep these motivational words in mind:

“You were born to win, but to be a winner you must plan to win, prepare to win, and expect to win” – Zig Ziglar.

Let this mindset guide you as you embark on the path to building a thriving commercial cleaning business.