Starting Strong: A Complete Guide to Launching Your Commercial Cleaning Business

According to recent data, commercial cleaning business owners have seen a net profit margin between 10% and 28% year-over-year, with consistent profits across the industry of well over 6%. In an industry that has made over $93 billion dollars in profit and has been growing since COVID, now is the perfect time to take advantage of the growth and profitability of the commercial cleaning industry.

There remain high opportunities for new entrepreneurs who are looking to provide things like large-scale and small-scale cleaning services, environmentally friendly cleaning products, and niche cleaning services. But how is it done?

Planning Your Commercial Cleaning Business

Knowing how to start a small commercial cleaning business means conducting market research, developing your business plan, picking the business structure, and launching. 

Step 1: Conducting Market Research

Knowing how to start a commercial cleaning business starts with conducting your market research. With cleaning services, commercial business market research applies to your physical offices, the competition in your area, and where you might offer specialty services. 

  • Offices: You need to start your research on both the type of retail spaces or offices you will need and what is available in your area. This also extends to what businesses are in the area, including retail spaces or medical facilities that might have a need for commercial cleaning services. 

  • Competition: You need to understand who else is currently servicing those offices or spaces and what your local competition is. The local competition will tell you things like what their pricing structure or specialty is and whether they are overextended in terms of employees/businesses in need. 

A big part of your market research is evaluating the need for cleaning services in your chosen area. Don't overlook this. If you do market research and find there are five cleaning companies in your small town, but one in a town twenty minutes away, then opening a new business in your small town wouldn't make sense as there isn't any demand. 

Moreover, depending on the location of the town twenty minutes away, you may need to shift where you focus your marketing efforts; don't forget that just because there isn't heavy competition in one area doesn't mean there is a missed opportunity. It might mean there are only farms and small homes, but no retail spaces or offices. 

Step 2: Developing a Business Plan

From there, a successful commercial cleaning business needs a business plan, something that sets the framework of the structure, pricing, and services. 

With cleaning services, commercial business plans are there to guide you as you start your business, help you make decisions that meet your goals, and obtain financing. Some key elements to include are:

  • Objectives: Your objectives include short-term and long-term objectives for the business, whether that is getting new customers, opening into a new market, or signing a certain number of contracts in order to meet your financial goals.

  • Costs: Part of your cost evaluation is going to extend to things like the startup costs for your company, including materials and tools. You will also need pricing strategies, including discounts you might offer for new customers, loyalty programs, and whether the pricing structure offers things like discounts for contracts. Finally, you'll need to forecast your revenue and how that impacts the growth of your company.

  • Services: You also need to decide what types of cleaning services you are going to provide. If your market research indicates that there are a lot of generalized cleaning services in the area but there are also several factories and hospitals, you might be better off providing specialized services for things like medical facilities that specifically deal with hazmat materials or eco-friendly options in an area that has heavy regulations.

Remember that knowing how to start a small commercial cleaning business means becoming intimately familiar with what your company is offering and why those services give you an economic advantage based on the current marketplace. 

Step 3: Choosing a Business Structure

Knowing how to start a small commercial cleaning business extends to the right business structure, something that should be decided upon before you complete your business plan. 

Here, you have several options, including:

  1. Sole proprietorship

  2. LLC

  3. Corporation

There are pros and cons to each. A sole proprietorship is something that you completely own and you can start your company by yourself, but it also means that your personal assets are tied to the business so if there is a problem and you get sued, they can go after all of your personal assets including your bank accounts, house, and car.

An LLC gives you the separation you need from your personal and professional finances, so it offers much more protection this way, and you can start it by yourself or with a partner. The name stands for limited liability corporation for a reason. However, there are more steps involved in both starting and dissolving such a business. You will also need to pay to register your business in a given state or multiple states, depending on the rules for your commercial cleaning business.

The highest level is a corporation and this is generally reserved for large organizations that have several partners. It will require a board of directors as well as articles of incorporation and bylaws in addition to your business plan. 

Depending on which you choose, you'll need to pick a name and legally register that business name and structure where you plan to operate. The name cannot be one that already exists and you will be required to pay a fee annually.

Setting Up Your Business

Once you have done the legwork, it's time to set up your business, and that starts with obtaining the necessary licenses and insurance. The licenses are based on where you plan to operate, and the insurance helps protect you and your employees.

After that, you'll need to acquire the equipment and supplies as laid out in your business plan. Staff will need to be hired and trained accordingly.

Remember that part of your business plan is determining the type of staff and quantity of staff members you need, the cost of hiring, training, and paying them, and the cost of things like insurance benefits. 

Launching and Growing Your Business

Once you have reached this stage, you know how to start a commercial cleaning business, but now it's time to launch and grow your business. 

Step 1: Building Your Brand and Online Presence

Start by creating a memorable logo, business name, and branding materials. This will be what you use for all of your marketing materials and promotional materials online.

Here is where you need to develop a professional website optimized for keywords like "commercial cleaning business" and "how to start a commercial cleaning business."

Don't shy away from leveraging platforms to reach potential clients and showcase services. This can mean allocating ad revenue to social media platforms or posting your business information on things like Google services and Yelp so that people can find you.

Step 2: Marketing and Sales Strategies

Then, it is time to dive into the sales and marketing strategies. Utilize Google Ads, social media advertising, and email marketing. These can all contain information to promote your growing business like your contact information, what services set you apart, and loyalty discounts for people who are new customers.

Take time to build relationships with local businesses. This can be done by attending industry events and seeking referrals. Remember to offer introductory rates or bundled services to attract initial clients.

Step 3: Operational Management and Quality Control

Once that is done, you'll need to continue with quality control to ensure that all of your clients and customers are receiving the same reliable service time and time again.

This means working with a web designer or a third-party company to efficiently manage appointments, routes, and client communications. It also means implementing systems to maintain high service standards and client satisfaction.

Have strategies for expanding services, entering new markets, and increasing revenue too. 

Summing Up

Launching a commercial cleaning business starts with conducting market research, developing your business plan, and choosing your business structure. Once that is done, it's time to set up your business legally with all of the right licenses and certifications. The final stage is launching and growing your business by building an online presence, using appropriate marketing strategies, and operational management. 

If you are ready to be one of the millions of people profiting from the $39 billion dollars across the market today, take action and start your new commercial cleaning business with confidence and see how successful you can be in the industry.