How Much Does it Cost to Start a Cleaning Business?

It’s no secret that the cleaning industry is a lucrative one. Wondering the startup costs for a cleaning business? According to Starter Story, here’s how much it costs to start a cleaning business:

• The minimum startup costs for a cleaning business: $62
• The maximum startup costs for a cleaning business: $25,573
• The average startup costs for a cleaning business: $13,492

In this post, we will break down the startup costs for a cleaning business, broken down to 5 core components. At the end of this post, you will also learn how you can start a cleaning business with just $200.

Startup costs for a cleaning business

Based on our calculations, starting a cleaning business costs between $1,050 to $24,000. These numbers are based on 5 key components: equipment and supplies; legal expenses; staff expenses; office space, software, and website; and advertising and marketing. Let’s break it down.

1. Equipment and supplies ($300 to $1,000)

Cleaning equipment and supplies can cost anywhere from $300 to $1,000, depending on the kind of equipment you buy. However, some items will be one-time purchases. For example, you’ll need to buy a vacuum cleaner only once. Cleaning supplies, on the other hand, will need to be replenished regularly.

You cannot start a cleaning business without cleaning equipment and supplies. We won’t be mentioning each item right here, but if you are interested, here’s the complete list of things needed to start a cleaning business.

2. Legal expenses ($550 to $2,000)

Legal expenses are the costs associated with forming your business entity, such as setting up an LLC, getting a business license and setting up insurance. The legal expenses of starting a cleaning business range between $550 to $2,000. According to Fit Small Business, there are 4 things you need:

• Business License - It’s likely your state won’t need a license for a cleaning business. To confirm, search on your state’s business regulation website. To obtain the general business license, visit your city’s official government website. A business license costs $50 to $500.
• General Liability Insurance - The general liability (GL) insurance will cover bodily and property damage. You will want to buy GL insurance at the minimum and will cost around $300 per year.
• Janitorial Bond - A janitorial bond (surety bond) protects the homeowner’s assets in the event of a theft. While it is optional, new cleaning companies may need a bond so that a significant expense from a theft doesn’t sink the business. A janitorial bond will cost around $200 per year.
• Worker’s Compensation Insurance - If you are hiring employees, you’ll also need workers’ compensation insurance. This insurance provides payments for medical bills, rehab costs, and lost wages for employees who get injured on the job. It costs around $450 per employee per year.

3. Staff expenses ($0 to $3,840)

Staff expenses are a bit more fluid, depending on how many employees you start with and their hourly rate. In the beginning, you may be doing most of the work yourself without anyone’s help to save money.

According to ZipRecruiter, the average cleaning employee makes $12 per hour. Assuming the employee works 40 hours per week, that equals to $480/week or $1,920/month. In the beginning, you may start with 2 employees, which means your labor costs for starting your cleaning business is around $3,840 per month.

Alternatively, you can hire temporary workers only when you need additional help. This can be a huge money saver, especially if your cleaning business is new. When you get a new job, you can rehire them.

Once you have enough regular customers, you can think about scaling your cleaning business and employing permanent staff. Until then, it’s best to bootstrap and do most of the work yourself.

4. Office space, software, and website expenses ($200 to $14,000)

An office space is not mandatory. In fact, you can start your business from home. However, you do need a website and it’s worth marketing your cleaning services online to get a head start and reach a large audience.

Having a website and establishing your presence online will help you advertise your cleaning business effectively. Speaking of advertising, let’s move on to the next part (advertising and marketing).

5. Advertising and marketing ($0 to $3,500)

Believe it or not, promoting your cleaning business does not have to be pricey. In fact, there are plenty of free ways to advertise your new cleaning business. If you have some budget, here’s quick rundown of expenses:

The traditional method of email proposals is not only quick but also effective. If you have a prospective client list, you can email them using this template to quickly book an appointment without being too intrusive.

It's possible to start a cleaning business with just $200

A house cleaning business can make you rich. If you’re stuck at a dead-end job, bored with your career, out of work, or just looking to make some extra money to clear debt, then starting a residential house cleaning business could be your ticket to freedom and a better life.

The above breakdown of startup costs for a cleaning business is just a general estimate. But the truth is, a residential cleaning business is one of the most affordable businesses you can start.

In fact, you can start a cleaning business on a shoe-string budget. The low startup costs is one of the reasons why most people are interested in starting a cleaning business in the first place. However, you will need a proven blueprint from an industry expert to avoid wasting money on unnecessary expenses.

If you are new to the residential cleaning business, then we highly recommend the House Cleaning University course. Inside, the founder (Lilian) will teach you how to make $2,000 per week, have you up and running in just 7 days, without spending no more than $200 to start with.