Learn about starting a domestic, commercial or specialist cleaning business, including start-up costs, hiring staff, finding customers and the kinds of insurance your business will need.
Starting a business in the cleaning sector means tapping into a growing cleaning market opens in new window in the UK that’s worth over £55.5bn.
Indeed, the cleaning industry employs five percent of the UK workforce and is firmly in the top ten UK industries for employment..
It’s an expanding sector as busy home owners turn to domestic cleaning services to take on chores at home, and more businesses look to outsource cleaning services opens in new window to third-party providers.
The same growth can be seen in the domestic sector with one in three UK homes now employing the services of a cleaner, according to research by British Cleaning Council.
Starting a business in this area has plenty of advantages.
Start-up costs opens in new window are generally low, and you can start small.
Staff costs opens in new window, materials and overheads tend to be lower and it requires a less skilled workforce.
Win a few contracts or a host of regular domestic customers opens in new window and your business is relatively easy to scale too.
However, you’ll need to robustly adhere to health and safety rules and there’s lots of competition from other businesses – but get it right and the payback can be rewarding.
We’ve put together a handy guide to starting your own business but it’s always a good idea to seek independent specialist advice before embarking on any new business venture.
Starting a business doesn’t come with a set of instructions.
We know that understanding the many different types of financial product in the marketplace can be difficult.
Our Making business finance work for you guide is designed to help you make an informed choice about accessing the right type of finance for you and your business.
Decide what type of cleaning business to start
Setting up a cleaning service isn’t simply a case of buying cleaning products and hiring staff opens in new window – you’ll need to develop a clear strategy on the type of business you want to run and which customers it will serve opens in new window.
In general, there are three types of cleaning- focused business:
- Domestic cleaning involves cleaning people’s homes, often while they’re at work or cleaning the homes of elderly customers who need additional help around the home. Duties may include dusting, vacuuming, cleaning surfaces, mopping floors, doing laundry and ironing. In many cases, you use the client’s cleaning products and home equipment, though you can supply your own at an additional cost. With a hands-on approach, this is a low-cost way to start a business, with the opportunity to take on staff opens in new window as you build your client base and grow by word of mouth and local advertising.
- Commercial cleaning involves cleaning large private and public spaces such as offices opens in new window, schools, banks, hospitals, retail stores to supermarkets and shopping centres. Working during off-peak hours when premises aren’t in use, you’ll need a team of cleaners and specialist equipment. Your role as the boss will typically involve managing your team, dealing with clients and promoting your business opens in new window. Business is usually contract-based, where you’ll agree to deliver cleaning services for a set period and fee.
- Specialised cleaning businesses run the gamut from carpet and oven cleaning services to window cleaning and car washing.
What skills do I need to start a cleaning service?
Running a domestic or specialist cleaning service will suit anyone who is hard working and happy doing physical, repetitive tasks.
A detailed approach is important – clients will expect sparkling results so it pays to be motivated about keeping things clean.
You’ll typically work alone when starting out – though teams of cleaners are needed for commercial work – and sometimes you’ll work unsociable hours.
You’ll need to be responsible and trustworthy, as you often hold keys to a person’s house or to business premises.
Getting started is relatively straightforward, depending on the type of cleaning service you want to run:
- Starting a domestic cleaning service requires no specific skills or training aside from what you’ve gained looking after your own home. Some basic business skills such as bookkeeping opens in new window are important.
- To start a commercial cleaning business, it’s a good idea to spend time learning some general business skills for running your business, including business strategy opens in new window and marketing to managing staff and bookkeeping.
- With specialist cleaning, you’ll need to have experience in your chosen area, such as oven or carpet cleaning. You may also need to invest in specialist equipment and products.
- Both specialist and commercial cleaning operators may wish to join professional bodies such as The British Institute of Cleaning Science which offers accredited training.
Research the cleaning market
Cleaning is highly competitive, with thousands of small cleaning businesses vying for customers opens in new window.
You’ll need to make sure your cleaning service stands out by carefully researching the market opens in new window to learn about potential customers, existing competitors opens in new window, and the types of prices being paid opens in new window for a range of services you want to offer.
Knowing what price to charge is vital when starting a domestic cleaning service.
Domestic cleaners typically charge an hourly rate.
It’s best to keep your prices fairly similar or either slightly lower to attract new business.
If you choose to charge a higher rate, focus on the high-quality service or extras you offer.
Remember to establish whether your fee includes cleaning products or if will you use those supplied by the client.
Commercial cleaning is equally competitive, and you’ll face competition from established companies all chasing contracts.
Decide on the type of premises you want to focus on, such as large offices or small retail locations, and develop your business so it specializes in these areas.
Calculate costs based on how many hours and staff are required for each space so you can remain competitive, and look for tendering opportunities from local councils or businesses.
How much money do I need to start a cleaning service?
The size of your start-up budget opens in new window will vary greatly on the size of your cleaning business and the sector you work in.
Setting up a domestic cleaning business on your own requires minimal investment, especially if you use the client’s cleaning products and equipment.
Your initial costs will be limited to fuel or transportation, a website opens in new window and possibly printed flyers to promote your services.
You may need to invest in a small van and protective clothing.
Commercial cleaning firms cost more to get started, primarily investing in industrial equipment such as trolleys, carpet cleaners, floor polishers, professional vacuum cleaners as well as a larger van.
You’ll also be paying salaries for a cleaning team opens in new window and you’ll need a larger marketing budget, such as paying for advertising in trade press opens in new window.
If starting from scratch seems daunting, consider buying a franchise in the cleaning industry.
In domestic cleaning, franchise prices start from around £1,500 up to £17,000 for well-established national brands such as Molly Maid.
In addition, you’ll need working capital opens in new window in the region of £5,000 to £10,000.
With a franchise you’re buying the rights to an established brand name opens in new window.
You may get training and advice in running the business along with access to an exclusive territory, branded uniforms and vehicles with logos.
However, attracting customers will still be your responsibility.
Watch this: Want to learn more about what it’s like to operate a cleaning franchise such as Molly Maid? This video talks to a Molly Maid franchise owner:
For more information on how franchises work read our free guide to What is a franchise? opens in new window and How much does a franchise cost? opens in new window
Create a business plan for a cleaning service
As with any business, creating a business plan opens in new window will provide a roadmap for your fledging cleaning venture.
Having a clear idea of your services and pricing, your local area opens in new window and competition and how you can promote and grow your business opens in new window will help you start out on the right foot – even if just setting up as an individual domestic cleaner opens in new window.
Once you start trading, you’ll need to register your business with HMRC opens in new window so you can pay the correct amount of tax opens in new window and National Insurance (NICs).
Before you register, you need to decide if you should set up as a sole trader, partnership opens in new window or limited company opens in new window and you should seek independent specialist advice to determine which type of business is best for you and your start-up.
- Sole trader opens in new window – this is the most popular way to form a cleaning service that’s owned by a single person. It costs nothing to set up with no running costs. However, the owner is personally liable for all business debts and is responsible for paying tax and National Insurance.
- Partnership opens in new window – if starting the business with another person, you may want to form a partnership. This means the partners share all aspects of the business in accordance to a written agreement.
- Limited company opens in new window – setting up as a limited company protects your personal assets should the business fail, but there are more regulations and legal requirements to deal with.
Does my cleaning service need insurance?
A cleaning service needs insurance cover opens in new window, especially as you’ll be operating on customers’ premises and dealing with potentially toxic materials.
The three main insurance policies you’ll need are:
• Professional indemnity insurance covers, amongst others, unpaid client bills, costs involved in rectifying mistakes, and protection against invalid claims from unhappy clients. It also offers protection against dishonest staff, defamation, infringement of intellectual property rights opens in new window, negligent misrepresentation and loss of documents or data opens in new window.
• Public liability insurance covers your business opens in new window should it cause death or injury to someone or damage their personal property.
• Employer’s liability insurance covers the compensation payable should an employee be injured or become ill because of the work they do for you.
Employing cleaning staff
Finding cleaning staff isn’t difficult – but hiring the right staff opens in new window takes more work.
Look for hard-working, trustworthy staff who will help your business succeed, and get references before allowing staff into people’s houses, business premises or have responsibility for keys.
Cleaning work is typically low paid but you need to be aware of charges to the UK minimum wage or you could face a fine or even prosecution.
As an employer, you must comply with various legal obligations and responsibilities opens in new window when hiring staff.
You must also register with HMRC as an employer and collect tax and national insurance for you employees via a payroll system.
How to market a cleaning business
Once your cleaning service is up and running, you’ll need to build your brand opens in new window.
Personal recommendations and referrals opens in new window are your best form of marketing in the early days.
Encourage existing clients to sign up their friends by offering discounted services for the first month of cleaning.
Advertise your domestic services locally with cards in a newsagent’s shop window and flyers through people’s letter boxes.
Getting new business is tougher for commercial cleaning companies.
Start by contacting the firms and organisations to find out who manages the cleaning contract, and then write to them by name to introduce your business.
It’s likely that another cleaning firm currently holds the contract, but ask when it’s up for renewal and see if you can quote nearer the time.
It’s worth keeping in regular contact, and find out who the competitor firm is to see what services and prices they charge.
Becoming a member of a professional cleaning body may help you market your business, and inspire more confidence in your services.
The British Cleaning Council opens in new window
Federation of Master Cleaners opens in new window
The British Institute of Cleaning Science opens in new window
Domestic Cleaning Alliance opens in new window
What should I charge?
Your pricing structure could be crucial to your success.
Some cleaners charge by the hour, some charge a flat fee, some charge by the level of work required (so a fee per room, office or home).
You might also need to be flexible and fit around the preference of your client so it may well be worth thinking of an hourly and flat fee rate to be able to quote.
Thinking of starting a business? Check out our free online courses in partnership with the Open University on being an entrepreneur.
Our free Learn with Start Up Loans courses opens in new window include:
- Entrepreneurship – from ideas to reality
- First steps in innovation and entrepreneurship opens in new window
- Entrepreneurial behaviour opens in new window
Plus free courses on finance and accounting, project management, and leadership.
Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.