How to Start a Cleaning Service Business: Step-by-Step Guide + Free Business Plan

Starting a cleaning business in the US can be a great way to enter a growing market. Whether you want to focus on homes, offices, or special cleaning services, there’s a lot of potential in this industry. But to succeed, you need to follow the right steps from the very beginning. A solid janitorial service business plan, the right legal structure, and a strong team are key to running things smoothly.

This guide will help you understand how to start your cleaning business and create a financial plan for a cleaning service.

Expert Guidance on Creating a Cleaning Business Plan

Want to start a cleaning business but don’t know where to begin? OGS Capital is here to help. We specialize in making strategic plans that work. Whether you focus on home cleaning or office cleaning, we can help you build a cleaning service business plan that stands out. From market research to financial planning, we’ve got everything covered.

With years of experience, our team will guide you through every step. We’ll help you create a solid business plan for a house cleaning service, attract investors, and avoid expensive mistakes. Let us help you turn your cleaning business idea into reality!

How to Start a Cleaning Business?

Starting a cleaning business in the US requires planning and following certain steps. Here’s a simple guide to help you get started. We’ve broken it down into easy steps so you won’t miss anything important.

Step 1. Make a Outline

First, you need a plan. Decide what cleaning services you’ll offer. Are you doing house cleaning, office cleaning, or both? Will you offer extra services like window washing or duct cleaning?

Your cleaning service business plan template should include:

• The services you’ll offer.
• Who your customers will be (homeowners, offices, etc.).
• How much you’ll charge for each service.
• How you’ll promote your business.
• What tools and supplies you’ll need.
• Your estimated start-up costs.

If you don’t know how to create a plan, look at some cleaning service business plan examples. You can also check out our pressure washing business plan if you plan to offer that service too.

Step 2. Pick a Business Name and Location

Choose a name for your business. Before you register it, make sure no one else is using that name in your state. You can check on your state’s Secretary of State website or your local county clerk’s site.

Immigration business plan

Document for passing government compliance requirements for immigration to the US, Canada, or the UK.

Step 3. Decide on a Business Structure

You’ll need to pick a legal structure for your business. Will you run it by yourself (sole proprietorship), with a partner (partnership), or as a Limited Liability Company (LLC)? Most cleaning businesses go with an LLC for personal protection.

To form an LLC, you need to file “Articles of Organization” with your state. This step makes your business official. Filing fees vary by state, usually between $50 and $500.

You’ll need:

• Articles of Organization
• Proof of LLC filing fee payment
• State operating agreement (if required in your state)

Step 4. Get an EIN (Employer Identification Number)

An EIN is a number you need from the IRS to pay taxes. You’ll need it even if you don’t hire workers. You can apply for it free on the IRS website and get it right away. Your EIN is also necessary for opening business bank accounts, paying taxes, and handling payroll if you hire employees.

Step 5. Register Your DBA (Doing Business As)

If you want to use a name other than your legal name or LLC name, you need to file for a DBA. You can do this with your county clerk or state office, depending on where you live.

You’ll need:

• The legal name of your business
• Your EIN
• Your Social Security number
• The DBA name you want to use

If you want to trademark your business name or logo, you can do that through the US Patent and Trademark Office once you’ve registered your business.

Step 6. Get Business Licenses and Permits

Every state and local area has different rules about licenses and permits. Check with your local government to find out which ones you need for your cleaning business.

We have listed some essential certifications for starting a cleaning service business in the US in the later part of this article.

Step 7. Get Business Insurance

Step 8. Open a Business Bank Account

Step 9. Set Up Accounting and Invoicing Systems

Step 10. Purchase Cleaning Equipment and Supplies

By following these steps, you’ll have a solid foundation to run your cleaning service smoothly. But to truly kickstart your business, you’ll need to secure financial backing to cover your initial costs.

Secure Loans and Financial Support for a Cleaning Service Business

Before you look for loans or financial help, it’s good to know how much it costs to start a cleaning service business.

Starting costs for cleaning services in the US can vary a lot, depending on what type of service you want to offer. For example, if you plan to start a basic residential cleaning service, the average startup cost is about $5,750. If you’re thinking of offering commercial cleaning services, the costs can go up to around $140,000.

Here’s a breakdown of average costs for starting both residential and commercial cleaning services.

Startup Costs Breakdown for a Cleaning Service Business

Note: If you’re planning to offer specialized cleaning services, like carpet cleaning, costs may be higher due to specialized equipment. For more details, check out our carpet cleaning business plan.

How to Get Loans and Funding for Your Cleaning Business

1. Small Business Administration (SBA) Loans

The SBA helps small businesses get loans. They don’t lend money themselves but work with lenders to make loans easier to get. Here are common SBA loan programs for a cleaning business:

• SBA 7(a) Loan: For general needs like equipment and working capital.
• SBA Microloan: Up to $50,000, great for small startups.
• SBA CDC/504 Loan: For big purchases like real estate or large cleaning equipment, up to $5.5 million.
• SBA Express Loan: Quick loans for up to $500,000.

Make sure to check your SBA 7(a) Loan eligibility criteria and SBA 504 Loan eligibility criteria beforehand.

2. Traditional Bank Loans

Banks and credit unions offer business loans, but approval can be hard for new businesses. You’ll need:

• A strong bank loan business plan.
• A credit score of 680+.
• Collateral (something valuable like assets).

3. Online Lenders

Online lenders are usually more flexible than banks. They offer faster approval and less paperwork. Platforms like OnDeck or BlueVine offer small business loans, but always research before applying.

4. Crowdfunding

Crowdfunding lets you raise money from the public directly. Platforms like Kickstarter or GoFundMe allow you to offer rewards or services in exchange for donations.

5. Angel Investors or Venture Capital

Angel investors put money into startups in exchange for a share of your business based on your investors business plan. They will expect a return on their investment and may have input on how your business runs.

Other funding options include:

• Business line of credit
• Business credit cards
• Equipment financing
• Grants or local government programs
• Peer-to-peer lending

These options can help you secure the funds you need to start and grow your cleaning service business.

Essential Certifications for Starting a Cleaning Service Business in the U.S.

If you’re starting a cleaning service business, getting the right certifications is really important. These help you run your business legally and show your clients that you are professional. Here are the main certifications you’ll need:

• General Business License – Use the SBA’s Local Assistance Finder to locate your local licensing office.
• Employer Identification Number (EIN) – This is needed for tax purposes and hiring employees.
• Sales Tax Permit (if needed) – Apply for this from your state’s Department of Revenue. For example, in California, you would go to the California Department of Tax and Fee Administration.
• OSHA Certification – This ensures safety standards are met.
• Green Cleaning Certification (optional but useful) – For example, you can get a Green Seal Commercial Cleaning Service Certification.
• Cleaning Technician Certification (optional) – For example, the IICRC House Cleaning Technician (HCT) certification can help prove your skills to your clients.
• Hazardous Materials Certification (if offering special services) – You might need this if dealing with dangerous materials, like the DOT HAZMAT certification.

Be sure to check the rules in your state and city, as they may differ. These certifications will make your business more trustworthy and help things run smoothly.

Cleaning Service Company Business Plan

Starting a cleaning service business, whether for homes or offices, is a growing industry. According to a report, the US Commercial and Residential Cleaning Services Market is expected to grow by $36.81 billion, with a growth rate of 6.05% from 2023 to 2028.

But it’s not easy. As of 2023, there are already 1,085,385 cleaning businesses in the US. That’s a lot of competition.

With so many companies, being just “another cleaning service” won’t cut it. You need to stand out. A business plan for cleaning service can help you do just that.

Investors won’t give money just because you have a good idea. You need to show them that you know the market, understand the costs, and can handle both home and office cleaning. A clear plan can explain why your business will succeed where others might fail.

Here are the key parts your business plan for a cleaning company should cover:

1. Cover Page
2. Executive Summary
3. Company Description
4. Services Offered
5. Industry Analysis
6. Marketing Plan
7. Operations Plan
8. Management and Organization
9. Financial Plan
10. Funding Request (if needed)
11. Appendix (optional)

A home cleaning business plan isn’t only for banks or investors. It helps you stay on track too. It will guide you in handling both home and office cleaning, show your strengths, and explain how you’ll grow. Let’s go over these key sections in more detail below.

1. Cover Page

The Cover Page is the first thing an investor or lender will notice when they see your cleaning service business plan. It should clearly show what your business does. Keep it simple and strong. Start with your business name at the top, bold and easy to read. If you have a tagline that describes what makes your business special, like “Eco-Friendly Home Cleaning” or “Specialized Commercial Cleaning,” include that too.

Add your logo, but make sure it looks neat and professional. Include key contact details like your phone number, email, and website. You can also add a simple graphic or icon related to cleaning, like a vacuum or a clean house, to make the page look better without being too much. Keep everything clean and easy to read so it makes a good first impression.

What the Cover Page Should Include?

• Business name
• Logo
• Tagline
• Your name
• Contact information (phone, email, website)
• Date
• Title of the document

2. Executive Summary

The executive summary is a short, simple overview of your entire document. It highlights the main points of your cleaning service. Keep it short, but include enough detail for the reader to understand what your business is about. Think of it as a quick answer to what your company does, why it exists, and how it works.

Executive summary is important because many investors and lenders might only glance at it. It needs to grab their attention quickly. If you’re looking for a loan or investment, the executive summary can make a big difference. Be clear and direct, showing why your cleaning service will succeed.

What should the Executive Summary include?

• Business Overview
• Mission Statement
• Market Opportunity
• Competitive Advantage
• Financial Summary
• Business Goals
• Owner’s Information

Make sure your executive summary is short, clear, and gives the reader all they need to know to get interested in your business.

3. Company Description

The company description tells readers who you are and what your cleaning business does. It gives a clear picture of your business, the services you offer, and why you started. It shows what your company is all about and why it’s different from others in the market.

A good company description helps investors and lenders understand why your business is important. It covers the basics of your services, how your business works, and what makes your cleaning service special. It also builds trust by showing why your business has the potential to succeed.

What should the Company Description include?

• Business name and legal structure (LLC, sole proprietorship, etc.)
• Mission statement
• Services offered (residential, commercial, specialized cleaning, etc.)
• Target market (homeowners, offices, retail stores, etc.)
• Company location and service area
• Business goals and objectives
• Unique selling points (what makes your service stand out)
• Company history or startup details
• Management and key staff details (if applicable)
• Future growth plans

This information helps explain your business and shows why it can succeed. Make sure to include these points in your sample business plan for cleaning service to give a complete view of your cleaning company.

4. Services

The services section explains what cleaning services your business provides. Do you specialize in residential cleaning, commercial cleaning, or both? Will you offer any extras like window cleaning business plan or deep cleaning?

This section is important for investors, banks, or lenders because it shows them what your business does, your business model, and if your services meet market demand. For you, it helps focus on the main services you want to offer, making it clear to everyone what value you bring to your customers.

For investors, understanding your services shows them how your business can make money. They want to know if your cleaning services meet the needs of your target market. For your company, this section helps define your service offerings, so you stay focused on what you do best. A clear list of services will also help you build a strong pricing strategy.

What the Services Section Should Include?

• Types of cleaning services
• Specialized services
• Service packages
• Pricing strategy
• Target clients
• Geographic area
• Competitive advantage

Make sure you have all the certifications required for the services and products you plan to offer. For example, if you plan to create your own cleaning products, you’ll need extra certifications like EPA Safer Choice or USDA Organic. For more details, check out our cleaning products business plan where we go over these requirements in detail.

5. Industry Analysis

The industry analysis explains the current state of the cleaning service market. This part is important because it shows that you have studied the industry well. It helps you understand the trends, challenges, and opportunities in the market. It also shows investors, banks, or lenders that you know what you’re doing.

For your business, this section helps you see where your company fits in. You’ll know how to compete and succeed. Investors and lenders want to know if there’s enough demand for your cleaning services and if you can meet that demand. This analysis will also guide your business decisions, helping you spot opportunities and avoid problems.

What to Include in the Industry Analysis?

• Market size
• Growth trends
• Key players
• Market segments
• Customer demand
• Challenges
• Opportunities

6. Business Strategy

The business strategy explains how your cleaning service will succeed. It covers your plans for growth, marketing, operations, and getting new customers. This section is important for investors, banks, or lenders because it shows them how you will compete, expand, and make money. For you, it’s a guide to keep your business on track.

For investors and lenders, this section shows how you will handle competition, attract clients, and stay profitable. It proves you have a strong and realistic plan. For your business, it gives you clear steps to follow to grow and expand. A good business strategy helps you avoid risks and makes decisions easier.

What the Business Strategy Should Include?

• Growth Plan
• Marketing Plan
• Operational Plan
• Customer Acquisition
• Competitive Advantage
• Pricing Strategy
• Revenue Goals

7. Management

The management section tells who runs the cleaning service and how it’s set up. Banks, investors, or lenders want to know who’s in charge and if they are qualified. This part shows that your business has good leadership, which helps build trust. For your company, it clears up roles and makes sure everyone knows their job.

Investors also use this section to feel confident in your team’s ability to manage and grow the business. They want to see that you have experienced and skilled people in place. For your business, it ensures the right people are running different parts, which helps keep things running smoothly.

What the Management Section Should Include?

• Ownership structure
• Management team
• Background and qualifications
• Responsibilities
• Organizational chart
• Advisors or consultants
• Hiring plans

8. Financial Plan

The financial plan shows how your cleaning service will handle money. It explains how you will make money, what your costs will be, and how you will manage cash flow. This plan helps you keep track of income, expenses, and profits so that you can stick to your budget and reach your financial goals.

Investors and lenders need clear financial information to decide if your business is worth investing in. They want to know how much money you need and when your cleaning service will start making a profit. For you, the financial plan helps control spending and spot any risks early.

What the Financial Plan Should Include?

• Revenue Projections
• Expense Forecasts
• Profit and Loss Statement
• Cash Flow Statement
• Break-Even Analysis
• Funding Requirements
• Financial Goals

This section is important because it shows where your money comes from and where it goes.

Why Choose OGS Capital for Your Cleaning Startup?

At OGS Capital, we’ve been providing business consulting for over 17 years. Our team knows how to help your business stand out. We handle every detail, from setting up your business legally to creating strong marketing strategies. With our guidance, your cleaning business will have a clear path to success.

When you pick OGS Capital, you’re choosing experts who understand the cleaning industry. We’ll help you avoid costly mistakes and set you up for long-term success. Whether you need a housekeeping or a commercial cleaning service business plan, OGS Capital is here to help your cleaning business grow.

Frequently Asked Questions About Starting a Cleaning Business

Q: How profitable is a cleaning business?

Residential cleaning is a good choice for beginners. Starting costs are usually around $6,000. The residential cleaning market is growing at 6.2% each year, so it’s a good option.

If you’re more experienced, commercial cleaning can make more money. Startup costs are higher, around $140,000, but it offers bigger contracts and steady income through long-term deals.

Q: What kind of cleaning business is best to start?

Cleaning businesses can be very profitable. Residential cleaners make between $36,000 and $100,000 per year. Commercial cleaners can earn up to $585,000 annually. Profit margins are usually around 6.6%. Our janitorial services business plan breaks down the profits clearly for you to understand better.

Download Сleaning Service Business Plan Sample pdf