Insuranks

How to Start a Home Cleaning Business

The Bureau of Labor Statistics estimates over 771,000 housekeeping cleaners and maids worked in the US in 2022. A house cleaner is an expert in deep cleanings that eliminate dirt and odor from a house. Are you interested in learning how to start a house cleaning business? This article will examine the steps you must follow, like choosing your name and getting the right cleaning business insurance to protect your income.

How to Start a Home Cleaning Business

Do you want to know how to start a home cleaning business? You will need to determine the direction of your business by choosing your business structure, creating a website, and more:


Select a Suitable Name

Your journey of how to start your house cleaning business starts with finding a suitable business name. You will need a business name separate from your personal name for many types of business structures. When creating a name, you will want to look at your state’s Secretary of State website to see what has already been taken. When learning how can I start my own house cleaning business, come up with a unique name that communicates the benefits of your business to customers.

 

Develop Your Brand Identity

Are you interested in learning how to start cleaning houses for money? You will need ideas to set your brand apart from other cleaning services. Why should someone use your business instead of someone else? This question is critical when answering the question of how do I start my own house cleaning business. Figure out what problems you are in a position to solve for your customers. Perhaps you have expertise in cleaning bathrooms, or you can offer higher quality services than your competition. Your brand identity should influence your business name so it communicates what benefits you can provide customers with. 


Choose a Business Structure

When researching how to start cleaning houses you must settle on a business structure. Common business structures for home cleaning businesses include:

  • Sole proprietorship: A simple business structure where you remain the sole owner. They are easy and inexpensive to start, but you have to take on the burden of business debts yourself personally. When learning how do I start a home cleaning business, you should look at sole proprietorships first. They give you flexibility and can be easily changed to another business structure later.

  • Partnership: With a partnership, you share profits and business liabilities with other owners. With more people at the helm, your business benefits from increased expertise and loan-borrowing potential.

  • Corporation: A corporation is owned by shareholders and is considered a separate legal entity. This means shareholders are protected from business liabilities. You can issue stocks to raise capital more effectively than other business structures. The downside of a corporation is that you are subject to double taxation. Corporations are taxed on both products, and the dividend payouts to shareholders.

  • Limited liability company: An LLC combines the liability protection advantages of a corporation with the pass-through tax rate of a sole proprietorship or partnership. Compared to a sole proprietorship, it is more expensive to form and maintain.


Get Your EIN

An employer identification number or EIN is an essential step in your journey of how to start a house keeping business. Without an EIN, you cannot hire employees or open a business bank account. For this reason, it is essential to get an EIN when learning how to start a home cleaning service business. You can get an EIN from the IRS for free. You can apply online, by fax, or by mail by filling out a form. This form asks you questions about your business structure and activities. It will also require you to fill out information like your address.


Open a Bank Account

Are you wondering how to start your own house cleaning business? A business bank account is an important step on this journey. With a business bank account, you can apply for loans, earn interest on profits, and process credit or debit transactions for customers. Discovering how to start a successful house cleaning business will involve setting up a bank account for your business. You need this account to appear legitimate to customers and keep your business finances separate. This allows you to have an easier time filing taxes and keeping track of business expenses.


Find Investors

Another step in learning how to start your own cleaning business from home is to find investors. With investors, you can cover the start-up costs for your business in exchange for business equity, partnership, or loan repayments. 

Your journey of how to set up house cleaning business will likely need investors unless you have saved up enough money already. 

Reach out to friends and family to contribute to your business idea. You can also contact an angel investor organization like the Angel Capital Association. Angel investors typically invest in your business for a stake of equity. Having the backing of an angel investor also grants your home cleaning business more legitimacy.


Buy Equipment

An essential part of how to start a small cleaning business from home is the equipment you use. Different rooms of a house will require specific equipment and tools to clean effectively. Once you start learning how to grow your house cleaning business, adding more equipment lets you offer additional services. Below are a few pieces of equipment you should invest in as a home cleaning business owner.

EquipmentUsed forCost
Power washerHeavy cleaning on vehicles, sidewalks, and driveways$100-$500
MopSanitizes floors from germs and makes them smooth.$20-50
BroomSweeping up dust, crumbs, and spills$20-$50
Cleaning brushUsed for scrubbing stuck on grime in kitchens, bathrooms, and other rooms$10-$40
VacuumClear cobwebs, dust, and debris from the carpet$100-$500
Spray bottlesApply different cleaning solutions to appropriate surfaces$10-$30
DusterClear dust from hard-to-reach places$10-$20
SqueegeeClean glass surfaces like windows$10-$30 
GlovesProtects your hands from chemicals and germs$5-$20
Carpet steamerRemoves stains from a carpet by using hot water vapor.$100-$300


Create a Website

Creating a website is an essential step when learning how to start a house cleaning service. Your website increases the visibility of your business and acts as a 24/7 online billboard for your services. When learning how to run a successful house cleaning business, you will want to create content that engages customers on your website. Include a description of your services and a page for frequently asked questions.

You must choose a domain name and find a web host to create a website. Without a name and a web host, people won’t be able to access your site. Then you will need to use a service like Wix to create a website for a template. Alternatively, you could design the website from scratch or hire a web designer.


Utilize Search Engine Optimization (SEO)

Search engine optimization can play a critical role when asking yourself how to start my own house cleaning business. SEO is the process where you produce content with targeted keywords to rank higher on search engines like Google or Bing. 

With a higher search ranking, you are more likely to be found by customers who need your services. Increasing your organic web traffic is essential when learning how to start your own house cleaning service. Many potential customers will search for your business name online before purchasing services. Customers are interested in finding reviews and learning whether or not your home cleaning business has credibility and legitimacy in the market.


Decide What Services to Specialize In

Part of learning how to open a house cleaning business is deciding what services to offer. There is a lot of possible cleaning that needs to be done in a house. You could choose to be a general house cleaner who cleans a large portion of the house. 

Alternatively, you could specialize in certain types of cleaning at a higher level. Deciding which services to offer and what you are good at is an important step in how to start a home cleaning company. Possible services to offer include:

  • Deep cleaning: You will disinfect and scrub germs away to create a hygienic environment

  • Pressure washing: Clean vehicles, pathways, and the house exterior with high-pressure water.

  • Carpet cleaning: Remove stains, oils, and dirt from homes with carpeted rooms

  • Pool cleaning: You will drain and vacuum the pool to remove debris and scrub the tile in the pool


Get a Vendor’s License

Are you interested in answering the question of how do i start a house cleaning business? No matter your business size, if you offer taxable services to customers, you must get a vendor’s license. A vendor’s license can be obtained through your state’s website, allowing you to pay sales tax on services you charge for. You can also obtain a vendor’s license locally by talking to someone in your local county auditor’s office. You need a vendor’s license even when learning how to start a small home cleaning business. States require that any person or business offering taxable service obtain a vendor’s license, regardless of the business size.


Research Your Customers

You cannot run a successful business without knowing what your customers want. When learning how to start a home cleaning service, you must put in the work to research who your target customers are and what they want.

What more is there to know about how to start up your own house cleaning business? One critical consideration you must make is to figure out how to address the needs of specific customer groups. For example, dual-income households often need professional cleaning services because nobody is staying home to clean during the day. Pay for surveys or focus groups to find out these customers’ thoughts on pricing and services they are likely to pay for.


Know Your Startup Costs

There are several things you must know to learn how to start your own cleaning house business? One of those things is the costs you must pay for equipment, insurance coverage, building rent, and more when starting your business.

A crucial consideration to make when researching how to start up a house cleaning business is your startup costs. You must crunch the numbers to ensure you have the capital to invest in your business's future. The typical startup cost for starting a home cleaning business ranges from a few thousand dollars up to $15,000 or more.

Home cleaning business expenseCost
Business registration$0-$1,000
Insurance coverage$300-$3,000 per year
Equipment costs$200-$2,000
Employee wages$20,000 per employee per year
Licenses and fees$25-$100
Building Rent$1,000 or more
Cargo vehicle$10,000 to $20,000


Buy Advertising

Once you start your business, you can deliver a first impression to potential customers. You can do this by employing TV, radio, or online advertising. When a customer sees a professional ad, it increases their opinion of your business's legitimacy. According to LinkedIn, 12% of all sales are driven purely by advertising.


Hire Employees

Once you have started your business and are comfortable taking on more clients, you will need employees to support you. Having additional home cleaning employees allows you to expand your operations and serve more clients. By getting more cleaning opportunities, you will increase your business's revenue stream, which lets you invest more into scaling up your business. As you expand, you will want to hire a bookkeeper to keep track of your finances and ensure you are staying on track. A business assistant can help stay organized through daily tasks, scheduling client home cleaning jobs, and answering the phone.

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How to Run a House Cleaning Business

You might be curious how to run a house cleaning business. To take your business to the next level, you should invest in social media, get house cleaning training, and promote your business as much as possible:

Establish a Social Media Presence

When learning how to start a small house cleaning business, you will want to research the benefits of a social media presence. Social media accounts aren’t just for big corporations. People are becoming increasingly active social media users, and you want your business to be part of the conversation online. Create an account on a social media site like Twitter or Facebook to interact directly with customers. You can let customers know about promotions and services. Your social media account also allows you to address customer feedback and complaints instantly.


Take Advantage of Word of Mouth

Are you interested in learning how to start a house cleaning service business? One tip for setting your business up for success is utilizing word of mouth effectively. If you focus on customer service and giving your customers a positive experience, they will naturally tell their friends and family about it. Go the extra step and leave notes to homeowners after you have cleaned their houses. Follow up and remain friendly with clients. Your business will develop a loyal customer base as you build personal connections. Loyal customers are excited about your brand and will do your advertising for you by complimenting your services.


Invest in Training

During your journey of how to start a house cleaning company will want to focus on honing your cleaning skills. You will get better at cleaning as you gain experience, but it always helps to get professional training for you and or your employees. Use a service like the Maid Training Academy or the American House Cleaners Association to take courses and get certifications so you know the best and most effective cleaning techniques. The International Sanitary Supply Association has a cleaning management institute program that helps you learn supervisor skills in the cleaning industry. Business job training is essential to take your business to the next level.


Create a Profile on Google

Next, you must create a Google listing for your business when learning how to set up a house cleaning business. When establishing your business, creating a profile on Google is crucial. Your Google business profile will help you start getting noticed by local customers when they search for cleaning services. It is a gathering place for customer reviews, business photos, and other information customers want to see. A business profile on Google is free to create.


Start an Email Campaign

How important is an email campaign when researching how to start your own house cleaning company? An email campaign can be critical for getting the word out about your business. Investing in an email marketing campaign is one of the best investments you can make when starting as a house cleaner. Email campaigns have some of the highest returns on investment of any marketing strategy. According to Forbes, the average return on investment for email marketing is $45 for every $1 spent. With email marketing, you can send personalized messages to your customers, letting them know about promotions and other topics. Customers who receive a personalized message from a business are more likely to be converted again.


A home cleaner giving a table a deep cleaning.


How Much Does a House Cleaning Business Make

When learning how to start your own home cleaning business, you should research the salary you can expect to make. According to Zippia, the average annual salary for a house cleaner is $27,996. A house cleaner's typical annual income range is between $21,000 and $36,000. You will make an average of $13.46 an hour working as a house cleaner. Below is a comparison of what you can expect to make in each state.

StateAverage Annual SalaryAverage Hourly Rate
Alabama$22,658$10.89
Alaska$25,783$12.40
Arizona$29,831$12.40
Arkansas$22,729$10.93
California$36,114$17.36
Colorado$29,060$13.97
Connecticut$31,399$15.10
Delaware$28,896$12.93
Florida$23,594$11.34
Georgia$22,639$10.88
Hawaii$37,262$17.91
Idaho$28,131$13.52
Illinois$29,248$14.06
Indiana$25,211$12.12
Iowa$23,238$11.17
Kansas$23,376$11.24
Kentucky$23,297$11.20
Louisiana$20,070$9.65
Maine$31,092$14.95
Maryland$29,770$14.31
Massachusetts$34,483$16.58
Michigan$27,890$13.41
Minnesota$31,550$15.17
Mississippi$21,729$10.45
Missouri$23,001$11.06
Montana$27,174$13.06
Nebraska$27,161$13.06
Nevada$29,539$14.20
New Hampshire$31,455$15.12
New Jersey$32,166$15.46
New Mexico$24,144$11.61
New York$36,302$17.45
North Carolina$23,043$11.08
North Dakota$26,481$12.73
Ohio$24,874$11.96
Oklahoma$22,103$10.63
Oregon$33,526$16.12
Pennsylvania$28,342$13.63
Rhode Island$34,260$16.47
South Carolina$21,570$10.37
South Dakota$25,223$12.12
Tennessee$22,619$10.87
Texas$23,250$11.18
Utah$27,206$13.08
Vermont$30,340$14.59
Virginia$24,992$12.02
Washington$33,181$15.95
West Virginia$23,153$11.13
Wisconsin$27,920$13.42
Wyoming$25,578$12.30

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Insurance Requirements for Boosting Income

Without the right business insurance, all your hard-earned income could come undone. The following policies are required to boost your take-home income and protect it from catastrophic events like lawsuits and property damage.


Business Owner’s Policy

A business owner’s policy is often considered one of the most comprehensive forms of business insurance. This is because it combines multiple coverage into one policy. Typically you get the coverage of general liability and commercial property insurance. NEXT is our recommendation for a business owner’s policy. They have a 4.7/5 rating for their customer reviews. With NEXT, you can save 10% or more when bundling multiple policies. NEXT has an A- rating from AM Best and a B+ score from the Better Business Bureau.


General Liability Insurance

A general liability policy protects your business from third-party lawsuits. Typically, it covers advertising injury, property damage, and bodily injury claims. Thimble is our recommendation for general liability insurance. They let you adjust your policy duration down to the month, day, or hour. You can get short-term general liability insurance to cover the duration of a cleaning job, so you only pay for the necessary coverage. Thimble has an A+ rating from the Better Business Bureau.

Professional Liability Insurance

Your professional liability insurance policy is necessary to cover the consequences of business mistakes like negligence and failing to provide adequate service. Hiscox is our pick for professional liability insurance. They specialize in small business insurance tailored to your needs. You can get worldwide coverage with their professional liability policy. Hiscox has an A rating from AM Best.


Commercial Property Insurance for Home Cleaning Businesses

Commercial property insurance protects your cleaning equipment and building from physically damaging events. This policy covers events like fires, theft, wind, vandalism, water damage, explosions, and lightning. CoverWallet is an insurance platform with over ten partners to choose from. They cover events related to natural disasters, equipment breakdown, construction costs, and revenue loss. CoverWallet has an A+ rating from the Better Business Bureau.


Commercial Auto Insurance for Home Cleaning Businesses

Commercial auto insurance is necessary for vehicles you utilize for business purposes, like a cleaning cargo van. The policy protects your business when your vehicles or drivers get into an accident and can help you pay for medical costs and vehicle damage. Tivly is an excellent choice for commercial auto insurance. You can get coverage for policies like gap insurance and vehicles like SUVs and cargo vans. With Tivly, you can shop policies from over 200 partners.


Workers’ Compensation Insurance for Home Cleaning Businesses

A workers’ compensation policy protects your workers when they get sick or injured on the job. It is required in most states once you start hiring. The policy pays for employees' medical treatments and can help supplement lost income. For workers’ compensation insurance, choose The Hartford. This company has over 200 years of insurance experience. With their policy, your employee's claims get managed by nurse case managers. They give your employees access to over 65,000 pharmacies nationwide for their injuries. The Hartford has a 4.8 rating in their customer reviews.



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