Duncan Ferris
Starting a cleaning business could be your opportunity to be your own boss and provide a service with strong demand in a growing industry that has low start-up costs.
Creating a budget and business plan, acquiring equipment and registering your new cleaning business can all seem daunting, but using our step-by-step guide will make the process simple enough for any budding entrepreneur.
Why start a cleaning business?
Here are some key reasons a cleaning business might suit you:
- Low start-up costs: Cleaning equipment is generally inexpensive, and some domestic cleaners will use their customers’ equipment and supplies.
- Accessible: You do not need specific qualifications or experience to start a cleaning business. Of course, it is a good idea to learn how to use equipment and cleaning chemicals, but barriers to entry are low.
- Be your own boss: With your own business, you can decide when you work, how many customers you take on and what your company’s processes and culture should be like. This can be particularly useful if you prefer to be self-employed because you need flexibility due to childcare commitments or second jobs.
Start a cleaning business in 5 steps
Here is our quick guide to all the preparation and considerations that should go into starting your cleaning business in the UK, as well as measures that are legally required.
1. Research and choose your market
Before getting down to cleaning work, market research is an essential step. The objective of this is to find out more about your potential customer base and competitors, a process which will leave you better prepared to set up your business.
You can manage this research in several ways, including conducting online research, talking to potential customers and checking out the competition.
The two most important questions are:
- Is there demand for my product or service?
- Who is my target market?
When it comes to the UK cleaning sector, there is plenty of research to do before you decide what type of cleaning business you want to run. That’s because it’s an industry that employs a huge amount of people, with nearly 1.5 million workers in the cleaning, hygiene and waste sector, according to figures from the British Cleaning Council. With so much competition, it’s important to understand where your business will fit in.
You’ll also need to decide whether you want to specialise. Different types of cleaning companies include:
- Domestic cleaning: Businesses that tackle regular domestic cleaning tasks, such as vacuuming, dusting, mopping, polishing and cleaning bathroom or kitchen fixtures and fittings. They might also do laundry and ironing, pot washing and some tidying. This is likely to be a low-cost option, as no complex equipment is required.
- Commercial cleaning: This category includes any cleaning of business premises, which could include offices, restaurants, healthcare facilities and more. Most commercial cleaning businesses will pick one of these areas to specialise in. As the spaces being cleaned are generally larger than homes, these companies tend to have industrial cleaning equipment.
- Deep cleaning: These are businesses that offer specialist domestic cleaning that takes more time and more equipment. This might be required by customers at the end of a tenancy or following a major incident, such as a flood or fire. Extra attention is paid to tasks such as cleaning behind or underneath furniture, and cleaning appliances and soft furnishings.
- Carpet cleaning: These are businesses that remove dust, dirt and allergens, and bugs from carpets. Methods include steam cleaning and dry carpet cleaning, both of which require specialist equipment.
- Oven cleaning: Removing burnt-on grime and grease is a specialism of professional oven cleaners, who aim to leave ovens, hobs and microwaves sparkling clean. As well as using specialist equipment to get rid of marks and mess, oven cleaners will often replace minor oven parts such as extractor filters, seals and lights.
Once you have done your market research and decided what type of cleaning business to run, it’s time to dig into the details with a business plan and budget.
2. Create a budget for your cleaning business
Creating a business plan and budget will give you a better idea of exactly how much money you need, as well as helping you to work out if your ideas can realistically be turned into a business. A business plan will normally also be required if you apply for a start-up loan or business loan.
For a detailed guide read our article on how to write a business plan.
A budget will also be a key part of planning your new cleaning business. It’s important to account for every potential expense, whether one-off or recurring. For a cleaning business, key costs to consider are:
- Cleaning supplies: If you need to turn up at each job equipped with cleaning products, such as bleaches, polishes and degreasers, it’s important to know how much they cost and how regularly you may need to restock. Explore whether buying products wholesale would be an effective way to save money.
- Cleaning equipment: This could range from a dustpan and brush to a £6,999 AKM80 battery-powered ride-on sweeper. Whatever the size, account for any machinery or equipment you need to purchase.
- Transport: Whether you are a domestic cleaner using public transport or a commercial cleaner in a branded van, you need to have a rough idea of how much it will cost to travel and transport your equipment from job to job. For example, you may need to take out a business car insurance policy.
- Employee salaries: If you are planning on employing a team, you will need to pay them at least the minimum wage. The average starting salary of a full-time cleaner is £17,000, but there are other costs associated with hiring an employee.
For further information on budgeting, explore our five-step guide to creating a small business budget.
As you start launching your new cleaning business, you may also want to think about how you’ll separate your personal budget from your professional one – a business bank account could help here, providing you with a separate platform to track your incoming versus outgoing costs and your income, without interfering with your living expenses.
3. Register your cleaning business
One of the first official steps you will take when starting up is choosing a business structure and then registering your cleaning business. You should take your time and research which business structure will best suit your needs:
- Sole trader: A sole trader is the exclusive owner of a business and can keep all post-tax profits. It also means there is no separation between you and your business – making you personally responsible for any losses your business makes. You will need to register for self-assessment and complete a tax return at the end of the financial year.
- Partnership: A business partnership is when two or more people are partners who share the responsibilities, risks, profits and losses of a business. The three main types of partnerships are business partnerships, limited partnerships and limited liability partnerships.
- Limited company: If you choose to incorporate your cleaning business as a limited company, you will be legally and financially distinct from your business. As a limited company, you will have shares and shareholders and can keep any post-tax profits.
If you are starting a general partnership, you will need to inform HM Revenue & Customs. To set up a limited company, limited partnership or limited liability partnership, you will need to register it at Companies House.
» MORE: Should I register as a sole trader or limited company?
4. Fund your cleaning business
Of course, most businesses need money to get started. Once you have created a budget and registered your business, you are ready to seek funding. You may need to combine the various funding options below in order to get your start up off the ground.
- Personal savings: Using personal savings to start your business will allow you to retain full ownership, but be careful not to endanger your financial health.
- Friends and family: Borrowing money from friends and family can be tricky, so it is best to draw up a written agreement in order to avoid any disagreements in the future.
- Small business grants: There are a range of non-repayable and partially repayable start up business grants across the UK, as well as those based in Scotland, Wales and Northern Ireland.
- Government business loans: Different government business loans may be available to your organisation depending on where you are in the UK.
- Business loans: A traditional small business loan might be difficult to secure as a start up, but it is not impossible. Loan providers will look at your personal credit history, your business plan and cash-flow projections, for example.
- Angel investors: Angel investors tend to be wealthy individuals looking to invest in new businesses in exchange for equity or convertible debt that will eventually become stock.
- Crowdfunding: This involves securing funding from more than one source in exchange for benefits, such as equity or early access to products. Crowdfunding often takes place through an online campaign.
5. Find your first customers to clean for
Finding your first customers can be one of the most rewarding steps in starting a new business. There are several ways to promote your cleaning business and get your name out there:
- Word of mouth: Don’t be shy about your new business. Tell friends, family, neighbours and local businesses. Some of these acquaintances could quickly become key customers.
- Business cards and flyers: Pin these on notice boards or post them through letterboxes to spread the word about your business far and wide.
- Social media: Creating a social media page can be great for lead generation. A Facebook page can build your online presence, while uploading short videos to TikTok, Instagram or YouTube could even send your business viral. This might be a long shot, but some cleaning businesses have racked up millions of views and huge followings due to the satisfying nature of their clips.
- Trade platforms: Consider joining websites, such as Checkatrade or Rated People, that allow people to connect with local tradespeople and get a quote – though you will have to pay a membership fee.
- Local listings online: For free advertising, you can list your cleaning business on local community groups such as Nextdoor. Also ensure your business is featured in local business listings, which you can do for free on sites such as Yell and Local Pages, so that potential customers searching for cleaning services can find you easily.
- Ask for reviews: Make sure satisfied customers leave positive reviews on sites such as Google Reviews and Trustpilot.
How much do cleaning businesses charge?
A key consideration is how much to charge your customers. Costs vary across the UK, but rough average figures are:
- Domestic cleaning: £10 to £20 per hour (individual), £15 to £25 (agency)
- Commercial cleaning: £15 to £20 per hour for regular cleaning
- Deep cleaning: £180 for end-of-tenancy studio apartment clean
- Carpet cleaning: £50 per small room
- Oven cleaning: £50 for a standard oven
Does a cleaning business need insurance?
While you are not legally required to have insurance, it could be wise even if you are running a small cleaning business. Getting public liability insurance will protect you against claims of property damage from customers, something that is all too possible when working with spillable chemicals in people’s homes and businesses.
Commercial cleaners may even be required to prove they have public liability insurance before being allowed to work on a customer’s premises.
You will also need to acquire employer’s liability insurance if you hire any staff. This insurance, which protects you from employees’ compensation claims, is a legal requirement and business owners can be fined for failing to obtain it.
You may also wish to insure expensive tools and equipment that are required for your business. Specialised portable equipment insurance will cover important and valuable tools, such as vacuum cleaners, floor buffers and even company smartphones against theft, loss or damage.
Finally, it is worth considering insurance against sickness or injury, particularly if you are self-employed and lacking the safety net of sick pay. This will protect you in periods where you cannot work due to ill health, either by offering a regular benefit throughout your time off work or by giving you a one-time lump sum.
Image source: Getty Images
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