Do you want to know exactly how much it cost to start a cleaning company from home? If YES, here is a detailed cost analysis for starting a cleaning business and raising finance.

The cleaning industry provides several different services. Franchises in this large industry mostly fit into one of three areas: cleaning and janitorial services, carpet and upholstery cleaning services, and dry cleaning and laundry services.

Having provided you with a:

  1. Industry Overview
  2. Market Research and Feasibility
  3. Cleaning Service Business Plan
  4. Cleaning Company Name ideas
  5. Licenses and Permits
  6. Cleaning Service Marketing Plan
  7. Cost of Starting a Cleaning Company
  8. Marketing ideas & Strategies

Industry Overview

In 2010, there were about 50,000 cleaning services operating in the United States and about 9,000 carpet and upholstery companies, which brought in a total of about 40 billion dollars in annual revenue.  About 90 percent of the cleaning revenue is accounted for by cleaning companies, versus about 10 percent by carpet and upholstery.

There were 30,000 companies in the laundry and dry cleaning business that brought in about 10 billion dollars in revenue last year, 70% of which were retail laundry and dry cleaning operations, and 30% of which were coin-operated laundry locations.

While it’s recommended that you decide on a niche and concentrate on building a business that will serve your chosen market, it’s entirely realistic to expect to be able to serve multiple markets successfully. Before you leap into the cleaning business, it’s important to look at it with 20/20 vision. Though technology has certainly had an impact on cleaning services, but it is not a high-tech business.

But the upside is that you can build an extremely profitable business that will generate revenue very quickly. Most cleaning service businesses can be operated on either part-time or full-time basis, either from home or from a commercial location. That flexibility gives this industry a strong appeal to a wide range of people with a variety of goals.

One of the many reasons why aspiring entrepreneurs struggle to start a business of their choice is attributed to lack of start–up capital or not knowing the estimated amount needed to launch the business either on a small scale, medium scale or large scale. This article will give you an idea of how much it will cost you to start your own cleaning business in the United States of America, Canada, United Kingdom and Australia.

How Much Does It Cost to Start a Cleaning Business?

This industry has a low level of capital intensity which is similar to other service industries. In 2016, for every $1.00 spent on wages, industry operators will typically only spend $0.017 on capital investment. Capital intensity is roughly the same from 2010 through 2015.

However, over the past decade, industry operators have invested in green cleaning products and equipment such as floor scrubbers that use less chemical products and machines that ionize water to help lift dirt particles. These investments can help attract environmentally conscious clients and save industry operators chemical cleaning costs over time.

The cost analysis as it relates to starting a standard cleaning business in the United States of America, Canada, United Kingdom, and Australia can be said to be almost the same except for few variations.

For example, the cost of setting up a full-service state of the art pressure washing cum cleaning facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines, Insulator washers with a pump pressure of about 1000 psi and a nozzle pressure between 500 and 750 psi, centrifugal water pump, stainless steel water storage tank, high-pressure water hose, high-pressure dead-man type water wash gun, electrical grounds for the wash gun and washing system and chemical supplies for cleaning are same especially when bench–marked against the US Dollars.

Other factors that may be slightly different in terms of costing when it comes to starting a standard cleaning business in any of the countries listed above are cost of labor, cost of transportation and logistics, local tax, business incorporation fee, and rent/leasing amongst other factors.

Over and above, when it comes to starting a medium scale cleaning company, you should be prepared to either rent or lease a standard and centralized facility; this is going to be one of the areas where you are expected to spend the bulk of the start-up capital.

How Much Does It Cost to Start a Cleaning Business in the United States?

These are the key expenses you are expected to make when starting a medium scale but standard cleaning company business in the United States of America;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the cleaning company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for leasing a standard facility in good location – $150,000
  • The cost for remodeling the facility – $5,000.
  • Other start-up expenses including stationery ($500), phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory and standard cleaning machines and equipment (the cost of setting up a full-service state of the art pressure washing cum cleaning facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines, Insulator washers with a pump pressure of about 1000 psi and a nozzle pressure between 500 and 750 psi, centrifugal water pump, stainless steel water storage tank, high-pressure water hose, high-pressure dead-man type water wash gun and Electrical grounds for the wash gun and washing system and cleaning chemical supplies) – $250,000
  • The cost for the purchase of trucks/vans for conveying workers and equipment to sites – $45,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs et al): $4,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $2,000
  • Miscellaneous: $5,000

You will need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up a medium scale but standard cleaning company in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level.

Starting a small scale but standard cleaning company business that can only carry out routine cleaning services for homes and offices in the United States of America will cost about five thousand dollars to fifteen thousand dollars ($5,000 to $15,000). Please note that it is cost effective to start a small scale cleaning company.

When it comes to starting a standard and large scale cleaning company with several outlets in key cities in the United States of America, a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level and a company with the intention of selling franchise, then you should look towards budgeting well one million, five hundred thousand dollars ($1.5 million).

How Much Does It Cost to Start a Cleaning Business in the UK?

These are the key expenses you are expected to make when starting a medium scale but standard cleaning business in the United Kingdom;

  • In the United Kingdom, Online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – £700
  • Marketing promotion expenses for the grand opening of the cleaning business in the amount of £3,500 and as well as flyer printing (2,000 flyers at £0.04 per copy) for the total amount of £3,580.
  • The cost for hiring business consultant (including writing business plan) – £2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – £2,400.
  • The cost for leasing a standard facility in good location – £105,000.
  • The cost for remodeling – £3,000.
  • Other start-up expenses including stationery (£300) and phone and utility deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000
  • The cost for start-up inventory and standard cleaning machines and equipment (the cost of setting up a full-service state of the art pressure washing cum cleaning facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines, Insulator washers with a pump pressure of about 1000 psi and a nozzle pressure between 500 and 750 psi, centrifugal water pump, stainless steel water storage tank, high-pressure water hose, high-pressure dead-man type water wash gun and Electrical grounds for the wash gun, washing system and cleaning chemical supplies) – £205,000.
  • The cost for the purchase of trucks/vans for conveying workers and equipment to sites – £42,000
  • The cost for store equipment (cash register, security, ventilation, signage) – £9,500
  • The cost of purchase and installation of CCTVs: £4,500
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): £2,500.
  • The cost for building and hosting a website: £600
  • The cost for opening party – £2,000
  • Miscellaneous: £5,000

You will need an estimate of seven hundred thousand pounds sterling (£700,000) to successfully set up a medium scale but standard cleaning company in the United Kingdom. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level.

Starting a small scale but standard cleaning company business that can only carry out routine cleaning services for homes and offices in the United Kingdom will cost about four thousand five hundred pounds sterling to fourteen thousand pounds sterling (£4,500 to £14,000). Please note that it is cost effective to start a small scale cleaning business.

When it comes to starting a standard and large-scale cleaning company with several outlets in key cities in the United Kingdom, a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level and a company with the intention of selling franchise, then you should look towards budgeting well over one million, three hundred thousand pound sterling(£1.3 million).

How Much Does It Cost to Start a Cleaning Business in Canada?

These are the key expenses you are expected to make when starting a medium scale but standard cleaning company business in Canada;

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Corporations Canada’s online Filing Centre ($250 if filed through other means).
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the cleaning company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for leasing a standard facility in good location – $150,000
  • The cost for remodeling the facility – $5,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for start-up inventory and standard cleaning machines and equipment (the cost of setting up a full-service state of the art pressure washing cum cleaning facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines, insulator washers with a pump pressure of about 1000 psi and a nozzle pressure between 500 and 750 psi, centrifugal water pump, stainless steel water storage tank, high-pressure water hose, high-pressure dead-man type water wash gun and Electrical grounds for the wash gun and washing system and cleaning chemical supplies) – $250,000.
  • The cost for the purchase of trucks/vans for conveying workers and equipment to sites – $45,000.
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs et al): $4,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $2,000
  • Miscellaneous: $5,000

You will need an estimate of seven hundred and fifty thousand dollars ($750,000CAD) to successfully set up a medium scale but standard cleaning company in Canada. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level.

Starting a small scale but standard cleaning company business that can only carry out routine cleaning services for homes and offices in Canada will cost about five thousand dollars to fifteen thousand dollars ($5,000CAD to $15,000CAD). Please note that it is cost effective to start a small scale cleaning business.

When it comes to starting a standard and large-scale cleaning company with several outlets in key cities in Canada, a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level and a company with the intention of selling franchise, then you should look towards budgeting one million, five hundred thousand dollars ($1.5 millionCAD).

How Much Does It Cost to Start a Cleaning Business in Australia?

These are the key expenses you are expected to make when starting a medium scale but standard cleaning business in Australia;

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year. $80 for 3 years.
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the cleaning company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for leasing a standard facility in good location – $150,000
  • The cost for remodeling the facility – $5,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory and standard cleaning machines and equipment (the cost of setting up a full-service state of the art pressure washing cum cleaning facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines, insulator washers with a pump pressure of about 1000 psi and a nozzle pressure between 500 and 750 psi, centrifugal water pump, stainless steel water storage tank, high-pressure water hose, high-pressure dead-man type water wash gun and Electrical grounds for the wash gun, washing system and cleaning chemical supplies) – $250,000.
  • The cost for the purchase of trucks/vans for conveying workers and equipment to sites – $45,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs et al): $4,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $2,000
  • Miscellaneous: $5,000

You will need an estimate of seven hundred and fifty thousand dollars (AUD$750,000) to successfully set up a medium scale but standard cleaning company in Australia. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it applies to a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level.

Starting a small scale but standard cleaning company business that can only carry out routine cleaning services for homes and offices in Australia will cost about five thousand dollars to fifteen thousand dollars (AUD$5,000 to AUD$15,000). Please note that it is cost effective to start a small scale cleaning business.

When it comes to starting a standard and large scale cleaning company with several outlets in key cities in Australia, a cleaning company that can carry out pressure cleaning and any other form of cleaning services on a commercial level and a company with the intention of selling franchise, then you should look towards budgeting well one million, five hundred thousand dollars (AUD$1.5 million).

Estimating Start–Up Cost for Cleaning Company Business was Based on the following factors;

  • Staff/Manpower

When it comes to starting a standard commercial cleaning company business on a large scale, you would need the services of the following professionals;

  • Manager (Owner)
  • Human Resources and Admin Manager
  • Accountant/Cashier
  • Marketing and Sales Executive
  • Client Service Executive/Front Desk Officer
  • Cleaners/Pressure Machine Operators
  • Truck/Van Driver

Can a Cleaning Services Business be Bootstrapped on a Lean Budget Right from Home?

If you a looking for a small scale business that you can successfully bootstrapped on a lean budget right from your home, then you should consider starting a cleaning services company. One good thing about cleaning services is that you can successfully run the business from your home especially if you choose to major on offering cleaning cum janitorial services to homes and offices.

As a matter of fact, you can start a cleaning services business with as low as five thousand dollars or even less depending on how small you want the business to be. All you need to do is to register the business, purchase the basic needed cleaning tools/equipment, cleaning chemical supplies, print your business card and hire cleaners only when you have cleaning services to carry out.

The challenge here is that you must be ready to take on more than half of the available roles in the business. You should be able to serve as the manager, accountant, human resource and admin officer, sales and marketing officer and even cleaning machine operator.

How Much Does It Cost to Buy a Cleaning Business Franchise?

In the United States of America, the Average Cost of Purchasing a Cleaning Company Franchise is $30,000. Examples of 3 Well – Known Cleaning Service Franchising Companies in the United States of America are;

  • CleanNet USA® Inc.
  • Vanguard Cleaning Systems
  • Stratus Building Solutions

In the United Kingdom, the Average Cost of Purchasing a Cleaning Service Franchise is £20,000. Examples of 3 Well – Known Cleaning Service Franchising Companies in the United Kingdom are;

  • RB4U Waste Distribution
  • Thomas Cleaning Company
  • Minster Cleaning Services

In Canada, the Average Cost of Purchasing a Cleaning Service Franchise is $60,000 (Canadian Dollar). Examples of 3 Well – Known Cleaning Service Franchising Companies in Canada are;

  • Jan-Pro Cleaning System
  • Maid Simple House Cleaning Company
  • Steam Dry Canada

In Australia, the Average Cost of Purchasing a Cleaning Service Franchise is AUD$50,000. Examples of 3 Well – Known Cleaning Service Franchising Companies in Australia are;

  • AMC Commercial Cleaning
  • I.P Australia home cleaning Services Company
  • Keen to Clean Group®