How to Start a $125K/Month Cleaning Business

Starting a cleaning business can put you on the fast track to high revenue potential without a substantial up-front investment. Even a simple operation can see huge profits. We’re going to show you how to start a cleaning business.

Want proof? Look at Christopher Mondragon, the founder of the Seattle-based cleaning company Queen Bee Cleaning Service. He makes over $1.5 million in revenue annually. And don’t be fooled thinking he’s inherited a thriving family business. Chris opened Queen Bee in 2015.

That’s especially impressive because their business has doubled in the last year. Demand is on the rise, and that’s why Chris thinks you can start a cleaning business, too. Chris told us:

We interviewed Chris to find out how he started and scaled Queen Bee. His advice is invaluable, so keep reading if you’re thinking about starting a cleaning business.

Cleaning Industry Outlook

According to IBIS World, the contract cleaning industry made over $90 billion in revenue in 2022 and will grow to nearly $100 billion by 2027. If you want to scrub your way to a successful future, this guide will show you exactly how to do it. 

There are 1,163,718 cleaning companies in the U.S., so considering the revenue figure above, that means they average $77,122.63 revenue each. With wages being approximately 38.4% of revenue, that means it’s pretty easy for cleaners who want to start their own business to take home around $45K after expenses. 

Chris provided a spreadsheet of his accounts, which I modified to make his accounting match IBIS World’s database for an easy comparison. His strategies help him earn nearly double the after-tax profit and nearly 4x the take home pay of the average cleaning business owner.

I strongly suggest downloading the report from IBIS when you do market research about the type of cleaning company you want to start. Keep reading to learn how to start a cleaning business.

How to Start A Cleaning Business

We’ve outlined the process for starting a successful cleaning business in 17 steps:

1. Develop Cleaning Services Expertise
2. Dust Off Your Skills
3. Improve Your Technical Skills
4. Choose The Type Of Cleaning Business To Start
5. Write a Business Plan
6. Sign Up for “The 7-Figure Cleaning Business Blueprint”
7. Select a Small Business Name
8. Establish a Legal Structure
9. Consider Hiring A Cleaning Team
10. What Do You Need To Start A Cleaning Business?
11. Establish a Location
12. Practice Safety
13. Insurance and Risk Protection
14. How Much Does It Cost To Start a Cleaning Business?
15. Know Your Ideal Customer
16. Create a Marketing Strategy
17. Create Standard Workflows

Step 1. Develop Cleaning Services Expertise

Training and experience are helpful before starting a specific cleaning business, such as pressure cleaning, Airbnb cleaning, or move-out cleaners.

Chris told us:

Check out our interview with Chris below: 

Consider Cleaning Certifications

Completing ISSA certifications will land you a place in their database of certified professional cleaners. That’s a high-authority link to your website!

Chris has certifications from ARCSI, ISSA’s residential cleaning services leg, and IICRC. He told us:

Find out about more than 45 cleaning certifications.

You Don’t Need Cleaning Business Certifications

While official certifications show professionalism, they are not required. Any cleaning experience will serve you well when you start your own cleaning company. 

Step 2. Dust Off Your Skills

Customer service is essential in the cleaning business. All local cleaning business owners tend to have similar prices, but demonstrating your skills, being friendly, and offering helpful cleaning tips will reassure customers that they hired an exemplary cleaning service. As Christopher says:

So do I! Check out his online booking. If you want to implement this business model in your new cleaning company, check out Booking Koala.

Part of giving customers a great experience, of course, is satisfying customers—and not only in your cleaning performance. How do you make sure you’re up to snuff? Here are some tips to stand out from other cleaning services. 

Polish Your Soft Skills

Cleaning services tend to be a customer-service business, so practice your soft skills before starting a commercial or residential cleaning business. Our courses offer fantastic training.

After taking a customer service course, try working for a local commercial cleaning company. This will give you excellent first-hand experience if you want to clean offices.

Taking on cleaning jobs with a successful cleaning business will show you how other business owners manage operations, cleaning supplies, customers, hourly rates, and pricing of their cleaning services.

Step 3. Improve Your Technical Skills

Customers expect you to be the expert and trust you to work safely. Live up to their expectations by mastering your specialty. 

What technical skills does one need to be a successful cleaner?

Business owners should educate themselves about safety aspects involving cleaning supplies and should teach their cleaners about:

• Biohazards
• Flammable liquids
• Air contaminants
• First aid
• Hazardous interactions between cleaning chemicals
• Power equipment and vehicles
• Asbestos, lead, etc.
• Protective wear
• Electricity

ISSA publishes a free manual for cleaning companies called CMI Cleaning 101. Check it out!

Next, you’ll want to choose which niche you want to serve.

Step 4. Choose The Type Of Cleaning Business To Start

Research different types of cleaners and establish what is right for you. We created a list of cleaning company types and what they offer. Consider starting some of these cleaning businesses:

• Airbnb Cleaner
• Home Cleaning
• Carpet Cleaning Business
• Window Cleaning Business
• Power Washer Business
• Lawncare Business
• Laundromat

Offering a variety of services can help you reach more clients. Queen Bee Cleaning Service provides house cleaning (including Airbnb and move-out cleaning), janitorial services, carpet cleaning, and hospital-grade disinfectant services. Chris told us:

Austin, the owner of Spruse Clean, a $1 million cleaning company and sustainable cleaning supplies company, agrees. He said, 

 Check out our interview with Austin below:

An appealing middle ground can be corporate house cleaning. Cleaning homes owned by large corporations combines the ease of residential cleaning with the bankroll of corporate clients. It’s the best of both worlds!

Green Cleaning

Sustainable cleaning caters to a growing niche market. The U.S. Environmental Protection Agency (EPA) offers guidance, including the green seal products search. Whether for your own conviction about environmental protection or to appease your customer base, we recommend avoiding cleaning chemicals that are not good for the environment.

Keep reading for information on writing your own cleaning business plan.

Step 5. Write a Business Plan

Here’s the deal: You need a business plan to help guide your decision-making. It keeps you focused on how to start a cleaning business. The plan will help define your vision, target market, objectives, startup costs, and strategy to get potential clients.

It’s a living document that will help you secure financing and help you manage logistics better than other small business owners. Make sure you write one!

Check out the different types of cleaning services you can start (the link is under Step 4). Then try out our business plan templates below as you learn how to start a cleaning business. 

Templates

These business plan templates will help you prepare to get residential and commercial cleaning jobs. Want to know the best part? They’re all free!

Resources

It gets better! Here’s a list of free and low-cost resources:

Also, check out our interview with Mike regarding business plans. Mike offers lawn care services, but his advice applies to commercial cleaning services. Plus, his small business is one of the fastest-growing franchises in the country.

Step 6. Sign Up for “The 7-Figure Cleaning Business Blueprint”

This is a rare FREE opportunity to learn the exact steps for building a 7-figure cleaning business from legendary entrepreneur Chris Mondragon. Chris started his multi-million dollar cleaning company from scratch, and today it’s a $4.5 million dollar business and continues to grow!

You’ll learn all his proven “insider secrets” for launching your own 7-figure cleaning business in under one week. Many of his students started earning $10,000 per month in just 90 days! The best part? This training is 100% FREE—so don’t miss out!

Hurry and register for this FREE training.

Step 7. Select a Small Business Name

Once you have a business plan, you’ll want to come up with a memorable name. Considering each of these aspects will help you beat out your competition:

• Does it state what you do? If you wash windows, does the name or logo indicate you perform “window washing”? Don’t be too specific because businesses evolve. 
• Is it easy to remember? Potential customers will need to search your business name.
• Do names indicate the location you serve? Major cities can be too big to serve the area. Use local terms to narrow the audience and improve ranks on Google.
• Does your name communicate the brand message? Queen Bee Cleaning Service uses a company logo that is a picture of a bee with the name of the company. Simple, right?

Queen Bee does a great job as a brand because it is the hive leader (best of the local residential cleaning businesses), but it doesn’t clarify for potential customers where the service is.

Register a Dot Com

Once you have a name idea, run it by your friends and family. Test it on Google Trends. Our business name generator connects you directly to NameCheap when you click on one of the business names. There you can buy the domain name and other services.

LEARN MORE: Find out more about names for your cleaning business.

Next, you’ll want to get your business registration and business licenses. 

Step 8. Establish a Legal Structure

To establish a legal business structure, work with an attorney, accountant, tax specialist, or government official for the best results.

Licenses, Permits, and Tax Forms

Regardless of the business structure, determine if your cleaning services company requires a business license, permit, or specific tax forms to operate legally. We researched each state to create our guide to cleaning business licenses. Alternatively, you can use the SBA tool to find out what business license you need.

Sole Proprietor

A sole proprietorship is the easiest way to start a business. A sole proprietor doesn’t need separate business accounts. Business income can be put directly into a personal checking account when you run a sole proprietorship. However, it does not protect the owner’s personal assets.

You must fill out a tax form called a Schedule C. Sole proprietors can join the American Independent Business Alliance.

Limited Liability Company (LLC)

LLC is a favorite choice for cleaning businesses because the company protects the owner’s assets. It’s a partnership and corporation hybrid and requires an operating agreement document.

You might want your LLC to file taxes as an S-Corp. Check out our blog comparing S-Corp vs. LLC.

Partnerships and Corporations

Partnerships and corporations aren’t typical for cleaning services. You can learn more on Investopedia. Alternatively, you can read our blog about 11 business structures to see if there is another business structure you might want. Each has different business taxes that might benefit you.

How to Start a Cleaning Business Franchise

Many franchise opportunities exist in the cleaning industry. A franchise consists of a franchisor company and a franchisee in a joint venture to sell the franchisor’s products and services.

In essence, a franchise enables you to enter the market with a ready-made cleaning company. Well-known franchises are The Maids, ChemDry, and PuroClean. Learn more about buying a franchise.

Step 9. Consider Hiring A Cleaning Team

Imagine what it would be like to have so many referrals and so much business that you can’t handle it all yourself!

While many cleaning businesses are one-person operations, owners often find that it helps to have employees working on cleaning teams for practical and profit-based reasons. After all, you might want to take a vacation!

To learn about hiring employees for your new business, read this section.

Employer Identification Number

Obtain an Employer Identification Number (EIN) from the IRS for your company. Apply for one online or call 800-829-4933.

Tax Filing and Withholding

Federal and state tax filing requirements apply to new employers. You will need to keep records of employment taxes for at least four years, which involves unique forms and accounting for state taxes.

But don’t worry––the IRS publishes a handy guide for employers that is available here.

Unemployment Insurance Tax 

You will need to pay Unemployment Insurance Tax through the UI Program under the Social Security Tax for employers.

Federal Employment and Labor Laws

Federal labor laws are the next piece of the puzzle. All employers must display Workplace Posters that are downloadable on their website.

Other Requirements Include:

• Employment Eligibility Verification (Form I-9)
• State’s New Hire Program
• Worker’s Compensation Insurance
• Disability Insurance, as required by some states
• Occupational Safety and Health Administration (OSHA)

Compensation

Compensating employees is probably going to be your most significant expense. Let’s take a closer look.

Chris told us:

You can either pay employees an hourly rate or per task.

Chris pays an hourly rate of about $19, but local businesses can choose which works best. If you’re a busy house cleaning company with lots of customers near each other, both you and the employees can benefit from performance pay.

Other Types of Pay

Paying employees an hourly rate works fine for many house cleaning services. If your new business doesn’t require staff to double as salespeople, stick with an hourly rate or salary compensation structure.

To decide, check out this article, “How to Create a Pay Structure That Promotes Team and Company Growth.” You can also check the Bureau of Labor Statistics or Payscale to find out what local businesses pay.

There’s so much to consider when starting a cleaning business. It can be hard to keep up with everything. That’s why we’ve created a cleaning business course with information and templates you won’t find anywhere else!

Step 10. What Do You Need To Start A Cleaning Business?

Your cleaning equipment depends on the service(s) you provide. You can start by purchasing equipment including a vacuum cleaner, window cleaner, and a few microfiber towels. For more information about what cleaning equipment you’ll need for a maid service, check out our guide. It’s effectively a cleaning business starter kit!

Chris even offers a hospital-grade disinfecting service. He told us:

Arm yourself with knowledge.

Step 11. Establish a Location

Most cleaning businesses operate from home for the following reasons:

• Home-based businesses have lower startup costs.
• Equipment and supplies can be stored at home.
• A room in the home can be converted into an office.
• Work is performed on a job site or homeowners location.

Chris runs his small business from home, and his business expenses for rent and utilities are only $750 per month (and most of that is actually on-paper costs and legal accounting strategies).

Don’t forget to check the Municode Library to find the local ordinances about starting a home-based cleaning business.

Store Cleaning Supplies at Home

Keep in mind, starting a cleaning business where children and pets live can be dangerous. The cleaning materials can be toxic, and some are explosive if combined. The EPA offers guidance on handling Household Hazardous Waste (HHW). 

Step 12. Practice Safety

Most cleaners have employees work in teams because it increases the number of jobs each company vehicle can complete per day. This reduces the ongoing business expenses.

In addition, a crew member could slip on a job site and break their leg. If the crew member is the only person on the property, you could be facing a major liability. For specific safety guidance, refer to OSHA guidelines about the cleaning industry.

Step 13. Insurance and Risk Protection

A local business owner should purchase general liability insurance, especially if you serve commercial clients ( they require it). General liability insurance covers property damage and bodily injury.

Check out our blog about how to get business insurance for more information. I find Simply Business to offer the best business insurance rates.

How Much Does It Cost To Get Bonded And Insured For A Cleaning Business?

Getting bonded and insured normally costs less than $1,000 per year. Bonds are typically needed for janitorial companies because they perform work like office cleaning in property owned by other business owners. Industries want the liability protection that comes with a bond. You can purchase bonds from the same company you get insurance from. Just ask for an estimate when getting a quote.

Step 14. How Much Does It Cost To Start a Cleaning Business?

Chris started Queen Bee with less than a $5,000 budget. He estimates you can start for less than $2,800 if you have a car. You can expect around 50% of earnings to go to payroll, including your own wages. Another 30% of revenue will be spent on bookkeeping, advertising, overhead, and taxes. 

Udemy offers inexpensive courses on budgeting that are worth checking out. Many service professionals love Jobber to get the admin tasks of their business done.

Consider Funding

Ever wonder why so many people get into the cleaning business? It has a low barrier to entry. The initial investment to start a home cleaning business can be one shopping trip to a home improvement store.

Funds to start your cleaning service can come from:

• Personal funds: Personal savings, 401K, or just portions of your paycheck.
• Loan from family or friends: Sometimes friends and family are willing to help people start a business. At the very least they might hire you to clean their homes.
• Business partner: It’s easier to get twice as much done if you have a business partner. They can be an active or a silent investor.
• Government programs: Some people will qualify for SBA loans or other government grants.

Check out our article about business funding. We cover 17 ways of funding a business to help you decide which practices are best for you.

Alternatively, the SBA offers free courses on financing options and funding programs. The Hartford published the pros and cons of using personal funds to start a business.

Alternative Funding

If you want to use other sources of funding, consider:

• Crowdfunding: If your business idea is something that can be scaled to sell all over the country, crowdfunding is an option.
• Credit cards: You’ll need credit cards to pay for expenses like gas.  Each vehicle will need  a credit card too. You’ll earn some cash back and help build credit. Like a personal credit score, businesses loan rates are impacted by a credit score.
• Home equity loan: Refinancing your home loan is a great way to get startup cash. 
• Rollover for business startups (ROBS): If you start an S-Corp or C-Corp, you can move your 401K from your employer to your new corporation and buy the company stock with the 401K, giving your business an influx of cash. During operations, you can reinvest dividends into the 401K to increase the funds in it.

Don’t forget to check out our lending partners.

Starting A Cleaning Business? How Much Should You Charge?

When you start a cleaning business, there are multiple ways to charge. Chris uses a combination of time, square footage, and tasks desired to create the most accurate estimate. He also gives discounts for using subscription-based pricing. Discounts range from 10% for monthly cleanings to 20% weekly.

Any business owner who takes the “Starting a Cleaning Business Course” will get access to his pricing structure.

Charge More for the First Cleaning

The initial cleaning takes longer because a deep cleaning happens first. Make sure you allow time to find out where everything is, such as electrical outlets. The first cleaning may actually equate to a spring cleaning.

LEARN MORE: Get help pricing your cleaning services.

Step 15. Know Your Ideal Customer

First, ask yourself, who needs and can afford your service at your desired price point? Do some market research to find out where they are located, or jump right in by reading this great article on making your own customer avatar on Forbes.com. After that, make an effort to find these people!

Chris has diverse markets, which means he has multiple target markets. He uses Google local ads and posts his prices right on his website to help eliminate customers who can’t afford his pricing.

The transparency reduces quotes to people who aren’t his ideal client. He shares his Facebook ad strategy in our master course. It’s surprisingly simple, but gets a return to ad spend (ROAS) of 16-41X. Speaking about peak pricing, he told us:

Step 16. Create a Marketing Strategy

Before starting a cleaning business, make sure you research the local area to define your target market and competitors for the cleaning services you offer. Then focus your efforts in the area where you want to do business.

Chris finds local ads highly valuable, and he’s sure to be available to respond to customers at any time. He told us:

LEARN MORE: How to get clients for your cleaning business.

Market Your Business

Marketing is one of the biggest expenses in Chris’s budget. He spent an average of $4,212.50 per month on marketing, primarily on Google Local Ads, but he also spends a portion on Yelp!, Craigslist, and Facebook. He told us:

Chris has become highly ranked on Google, Yelp, Nextdoor, Houzz, Thumbtack, HomeAdvisor, and Porch. Focusing on building your business presence on highly ranked websites helps increase your site’s authority.

Digital Marketing

Digital marketing includes email newsletters, social media, and search engine optimization (SEO). Neil Patel is a renowned authority in this area. Check out his website.

Printed Materials

Printed materials include business cards, flyers, brochures, t-shirts, and even car magnets! Canva is an excellent tool for designing your own business cards.

One of Chris’s marketing strategies is putting door hangers on three houses in each direction after each cleaning.

These fliers give first-time customers discounts. Many customers who took advantage of this sale were so impressed with the service they happily joined his subscription plans.

Direct Contact

Cold call potential clients, issue coupon codes, start a referral program, and take advantage of word-of-mouth advertising!

Chris told us:

Upsell

Chris has a solid upselling strategy. As he puts it,

He uses this strategy to get more business from the interaction. Forbes.com published a great article on upselling titled “How to Upsell Any Customer” that tells you how to do it.

Find out some other great tactics Chris is using in our second interview with him:

Outshine Competitors with a Sparkling Image

In the cleaning sector, there are plenty of customers to go around. The trick is to make your cleaning company one that customers can trust. A lot of this is based on the image you present to your customers. Here are a few ideas to keep your brand as pristine and spotless as a freshly cleaned home.

Uniforms

It’s a dirty job, but don’t leave the house with messy hair, sweats, and old shoes. Get a uniform so you can be a walking advertisement for your business!

Chris suggests a two-pocket cobbler apron and a t-shirt as the uniform.

Vehicles

Brand your vehicle with a car magnet or a vehicle wrap. Just think about it: when your parked vehicle is in front of your customers’ establishments, others will see that someone hired you. It’s great advertising!

Other Brand Elements

Keep your equipment, vehicles, and language clean. Be punctual. Maintain an appropriate online presence, and use professional-looking marketing materials that are free of spelling, grammatical, and punctuation errors.

LEARN MORE: Check out our article on how to get cleaning contracts

Be Responsive 

If a customer complains, don’t ignore it. Chris advises:

Responding promptly to customer concerns and issues is a huge part of earning their trust—and securing those word-of-mouth referrals that can be crucial in building a client base.

Offer Routine Cleaning

The dirt in customers’ homes continues to pile up. So, take advantage of it! Offer routine cleaning as part of your sales strategy.

Chris reveals all these incredible tactics in his The 7-Figure Cleaning Business Blueprint course. You get to see how Chris executes all the most important techniques from the course live.

Step 17. Create Standard Workflows

Chris has tons of resources to help you start your own cleaning business. Check them out in his free training course.

He emphasizes the importance of getting every facet of your process documented to create workflows. His clients appreciate the transparency he provides with his pricing. You can be confident in your endeavors if you seek to model your business after Queen Bee. 

Ready To Start Your Own Cleaning Business?

To recap this guide on how to start a cleaning business, ask yourself the following questions:

• Do I know how to start a house cleaning business?
• Do I understand the insurance requirements for commercial cleaning?
• Is it worth it for me to start a cleaning business?
• Do I know how to start cleaning business offices?
• Will I be comfortable speaking to clients?
• Do I understand the insurance requirements for commercial cleaning?
• Am I starting a cleaning business this year?
• Why am I starting a cleaning business?
• Do I need additional help and advice?
• What will I need to feel successful?

Take the next step. Now that you know how to start a cleaning business, it doesn’t have to be complicated. Chris has a straightforward four-ingredient recipe for success:

We focus on providing the best content possible. What would you like to know about cleaning businesses?