If you have a passion for cleaning and you’re good at it, you may have considered starting your own cleaning business before. As with starting any business, there are many important considerations to take into account. One of the main considerations is the startup costs of the business.
Insurance Canopy provides affordable cleaning business insurance, but we also provide business advice because we want you to succeed. Today you’ll learn the cost of starting a cleaning business to see if it’s something feasible you can do right now.
Selecting a Business Name
Estimated cost: Free
The first thing you’ll need to do when starting a cleaning business is selecting a name, so you can register it as an official business name. You’ll want to select a name that is unique and memorable, yet represents the services you provide as a company. For example, if you’re a carpet cleaning business, consider adding ‘Carpet Cleaning’ in your business name. If you need help thinking of names for your business, take a look at this Free Cleaning Business Name Generator.
Registering Your Cleaning Business
Estimated cost: $100–$800
Once you have selected a business name you love, you’ll need to register it with your state. You can register your business as a DBA (Doing Business As), or as an LLC (Limited Liability Company). Take a look at this article to learn the differences of a DBA vs an LLC. Registering your business can cost as low as $100 for a DBA, but it will depend on where you live. This link has a list of all the costs by state. Keep in mind that an LLC can cost several hundred dollars.
The next license you will have to purchase is a vendor license. A vendor license is for several reasons, and tax purposes is one of them. This license also allows you to legally own and operate your own business. Once you have selected a DBA or an LLC, you will need to get your vendor’s license issued.
If you’d like to trademark your business name, it can help prevent other companies from using your same or similar business name. If you plan on expanding your business nationally, or even internationally, you should highly consider a trademark. This can be done through the U.S. Patent and Trademark office and has a fee of $375.
EIN and Bank Account
One of the last steps in registering your cleaning business is to obtain an EIN (Employer Identification Number) from the IRS. Your EIN is required for state and federal taxes and doesn’t cost you anything to obtain. Lastly, you should open a separate bank account so you can have your business expenses separate from your personal expenses.
Creating a Website
Estimated cost: $250–$10,000
Having a professional business website is essential if you plan on running a successful cleaning business. Your website allows you to have a scheduling tool for your clients, post your services and pricing, have contact information, and more.
Before creating a website, you will have to purchase a domain name. If available, you’ll want to use your company name as your domain name. You can register a domain name on either GoDaddy or Google Domains. You can pay for this monthly or annually, but it can cost you anywhere from $9–$15 a month.
Once you have purchased a domain name, you’re ready to create a website! You can either do this yourself with templates on Wix, WordPress, GoDaddy, and Squarespace, or you can pay someone to create your website. Keep in mind that paying someone to create your website can cost anywhere from $1,000–$10,000. If you’re doing it on your own, you can look at paying anywhere from $10–$20 per month.
Purchasing Cleaning Business Insurance and Bonds
Estimated cost: $455
Having cleaning business insurance and bonds is essential when starting your own cleaning business. Insurance provides a financial safety net in case an accident occurs. If one of your employees damages a customer’s property, like breaking a window or staining carpet, your company can be held liable to pay to repair the damage. This is where insurance and bonding come in handy.
Insurance Canopy provides affordable, top-notch cleaning business insurance and bonds. You can purchase a monthly insurance policy for $26.67 per month or $320 per year. In order to purchase a janitorial bond, you will first need to purchase insurance. Bonds are available starting at $134 per year.
Gathering Your Supplies
Estimated cost: $2,000–$20,000
Without proper cleaning supplies and equipment, you wouldn’t be able to provide your services. Gathering your supplies and building up your inventory is necessary for any cleaning business. You’ll want to first start by looking at wholesale websites, so you can purchase supplies in bulk at a discounted price.
The amount you spend on cleaning supplies and equipment will depend largely on what services you provide and how many employees you plan on hiring. A window cleaner will need squeegees and buckets, and a house cleaner will need more cleaning products, like toilet cleaner and mops. When just getting started and collecting supplies, you should plan on spending $2,000–$10,000.
You will also need a vehicle to transport your supplies from location to location. In order to stay professional, we recommend having a designated company vehicle that also has the company name on it. This can cost anywhere from $5,000–$20,000.
Marketing Your Business
Estimated cost: $500–$1,000
Marketing and advertising are efforts you will constantly be focusing on. Marketing your business helps you find new customers, which helps you generate more money. Many people starting their own business can spread the word about their business by word of mouth. You can also create social media accounts for your business—be sure to create pages on at least Facebook and Instagram. Create consistent content and post regularly to generate a following and create awareness of your company.
Most small businesses spend 1% of their revenue on marketing, so if you want to make $50,000, you should plan on spending $500 on marketing. You can hire a professional to do your marketing, which may return the best results, or you can take a stab at it yourself. Take a look at this blog to get ideas on how to market your cleaning business.
Go For It!
Because cleaning is an always-needed industry, you have the opportunity to start your own business and be successful. While starting a business may be easy, the hard part is being consistent with your efforts and not being discouraged if you do not see immediate results. Stay at it, don’t give up, and you’re sure to see the results you desire.
We hope this guide is helpful in understanding the costs of starting your own cleaning business. We wish you the best of luck with all your cleaning business endeavors!
*Note: this guide does not cover every single action you need to take when starting a cleaning business. Be sure to do continued research and consult a professional for any business advice.