How Do You Start a Cleaning Business in Canada?

Is Starting a Cleaning Business a Profitable Idea?

Cleaning services are in high demand, and they can generate incredible revenue. Many homes, schools, and businesses are choosing to outsource their cleaning to independent contractors, so you can generate significant profits if you start a business in this sector.

Households can pay up to $65 an hour for one cleaner, and the average cost of cleaning an entire home is around $165 an hour. You can succeed if you provide a functional and top-class service that helps your customers save time and money.

Benefits of starting a cleaning business

Here are four benefits of starting a cleaning business:

• High demand - many individuals and corporations rely on professional cleaners since they are too busy to do the job themselves.
• Low startup cost - you won’t have to spend a fortune to start a cleaning business. Cleaning businesses of varying specializations can get started with inexpensive tools and supplies.
• Flexibility - if you own your company, you can have the freedom to set your own hours, depending on your client needs.
• No experience is required - there are no prerequisites in education or experience to start a cleaning business. A sincere effort, a strong will, and the will to succeed are all required (although we do recommend receiving some certifications to improve your credibility, but we’ll get to that later).

Qualities that an entrepreneur will need to start a cleaning business

Finding your market and building your reputation is vital, but you need to do more than just provide excellent service and achieve your business goal. You should consider improving the following skill sets:

• Networking skills
• Teamwork and leadership skills
• Communication and listening skills
• Customer service
• Recruiting and human resource skills
• Accounting and finance
• Cleaning operations knowledge
• Strategic thinking and planning skills

How to Set up Your Own Cleaning Business

It takes extensive planning and an upfront cost to start a cleaning business. Let’s run through the most important elements:

How much would it cost to start a cleaning company?

The type of cleaning you want to provide will have a significant impact on your initial costs (and your business strategy).

Commercial cleaning has the potential to be more lucrative than residential cleaning because of the many additional services that may be offered to clients.

For a low-priced cleaning service in Canada, typical costs include:

• Registration as a limited-liability corporation costs between $100 and $500 in fees.
• Insurance premiums range from $2,500 to $7,500 per year, with the higher premiums associated with larger workforces. You should budget several hundred dollars a month for this.
• The cost of supplies for cleaning might range from $300 to $600. The cost of a high-quality vacuum may range from $200 to $300, while a mop, broom, and dusting supplies can cost about $20-$30.
• Print and digital ads cost between $100 and $200 monthly.
• The labor cost is around $12 per hour, per worker.

Starting costs for a modest cleaning company could range between $5,000 to $15,000, capable of providing ordinary cleaning services for homes and workplaces.

For a medium-sized cleaning business to get off the ground in Canada, you'll need to put down an estimated $750,000. This applies to a business cleaning service that offers pressure washing in addition to any other cleaning services, and the initial investment includes employee pay for the first three months of operation.

Industry research, your target market, and your specialization

The first crucial step in getting started is identifying whether you want to operate a residential or commercial cleaning service. Everything else - from funding and resources to tools and promotion - will be impacted by your decision.

Most cleaning firms only cater to one type of clientele, domestic or business. As a result of providing distinctly diverse services that necessitate different tools, many businesses have found it advantageous to specialize.

Create a detailed business plan

If you take the time to lay out your strategy carefully, you'll be better equipped to start a cleaning business, identify challenges and opportunities.

The essential components of a successful cleaning business plan are:

• Executive summary: information about the company, including who owns it and where it is located. Possibly a brief mission statement outlining the directions you want to take the business.
• Target market: when promoting your offerings, who will you target, and why? Be as explicit as you can in your explanations. One of the key elements to successful advertising is a deep understanding of your target demographic.
• Products and services: this section provides a detailed description of your company's offerings, including a price list.
• Competitors: can you name some of your rivals? Explain how your company is unique from the competition.
• Marketing plan: will you be handing out brochures? When and how will you promote your company? Just how much are you willing to spend every month on advertising?
• Financial plan (budgeting is a must): how much do you anticipate the maintenance expenditures (transportation, supplies, and equipment) will be each month? What set rates will you charge? When it comes to monthly sales, what kind of projections can you make? (You should provide a minimum viable target, a realistic average target amount, and aggressive long-term targets).

Do you need training or certifications to start a cleaning company?

While you are not legally obliged to have any certifications to start a cleaning business, having a solid reputation for reliability is crucial to the success of a domestic or commercial cleaning business. New companies can benefit from third-party validation. Your commercial cleaning company will stand out from the competition and gain more customers if you invest in certifications.

Cleaning businesses have had access to The Janitorial Store's training programs since 2005. One of the major trade groups, the International Sanitary Supply Association (ISSA), also offers certifications for businesses and individuals for janitorial proficiency.

Essential cleaning business equipment

Tools

• Rags and cloths
• Mops
• Buckets
• Brooms
• Dustpans
• Dusters
• Toilet brushes
• Spray bottles
• Squeegees

Supplies

• Latex gloves
• Window cleaner
• Bathroom cleaner
• Disinfectant
• Garbage bags
• All-purpose cleaners

Other elements

• Cart and Trolleys
• Vacuum cleaners
• Carpet steam cleaners
• Vehicles to transport equipment and personnel

Register your business

It is a legal requirement to register your business, and you may decide to register as a corporation, sole proprietor, or cooperative, and all three have different conditions that you should consider based on your capabilities and business strategy.

Generally, it's better to start your investigation and inquiries at the local level, and then ask if other levels of government need to be contacted.

If you’d like to find out more information on registering different types of businesses in Canada, you can visit the government website.

Invest in a CRM tool

Customer Relationship Management (CRM) software has been integral to the success of all businesses. CRM software is a valuable asset for any company, as it centralizes customer data and automates routine processes.

It may also serve as a nexus for internal and external communications, ensuring a constant flow of information and a consistent consumer experience. There are multiple CRM tools that you can consider, but you should certainly invest in one if you want to run a successful cleaning business.

How to Fund Your Cleaning Business

While you won't need a sizable startup loan to start a small cleaning business, there are certain fixed expenses you'll have to cover, such as insurance, a business license, cleaning supplies, and utilities.

Because of this, many startups must rely on loans or other forms of cashflow support to get off the ground. If you intend to start a cleaning business from scratch, our valuable resource for small business grants can assist you in minimizing your debt while you build the company. For additional details on small business loans, check out our comprehensive loans to buy a business guide. While this guide focuses on funding to buy a business, it is still appropriate and useful for entrepreneurs seeking funding support.

How to Market Your Cleaning Business

Online forums and service platforms

Online forums create a sense of connectedness that encourages loyalty, and customers are less likely to switch to an alternative service since it means leaving behind a community they care about.

As an entrepreneur in the cleaning sector, you should join various forums available on social media, including the ISSA Coffee Talk Forum, where representatives in the cleaning industry meet to discuss issues, trends, and other important topics.

References and referrals

Referrals from satisfied customers are an effective strategy to promote and expand your cleaning service. Referral marketing is a great way to boost customers’ lifetime value and build trust amongst potential and new clients.

Creating a successful customer referral system to get new clients is quite affordable and doesn't require much of your time. The increased number of recommendations will also help your bottom line because you won't have to spend as much on marketing.

Valuable marketing tips for entrepreneurs wanting to start a cleaning business

Any cleaning firm that wants to survive and develop must focus on growth and marketing. Here are some marketing ideas to boost your business:

• Launch a free Google My Business page to attract clients. You must also build a website and use SEO to attract clients.
• Participate in your community to nurture relationships and acquire clients. A Google search for local networking events should provide results. Don't forget your cleaning business cards.
• Instagram, LinkedIn, Facebook, and Twitter are wonderful for promoting your small business. You may use it to update current clients or attract new ones.
• Distinguish yourself from competitors by highlighting your strengths (USPs). Cleaning using ecofriendly solutions is one way to set yourself apart. Make it clear whether you're offering a low-cost or high-end service.

Starting a Cleaning Business is Not Your Only Option

The desire to start a cleaning business is always thrilling, but prospective business owners also have additional avenues to explore when it comes to business ownership.

Consider investing in a cleaning franchise

If you want to own a cleaning business but don't want to plunge into an unknown market, franchising may be the perfect solution.

A key benefit of owning a franchise is that you may use the franchise's established framework for running your firm. The presence of franchisor and franchisee support is an invaluable perk.

If a cleaning franchise seems like a good fit for you, take a look at our cleaning franchise opportunities.

Consider buying a cleaning business

For those who don't feel up to the challenge of starting from scratch, there are already functioning cleaning businesses that may be acquired.

Buying an established company often requires more capital upfront but securing loans for acquisitions is sometimes easier than new ventures. You may expand an established company's customer base through marketing and other means, but you won't have to start from zero.

You can begin your investigation by contacting professionals in the field and looking into the various domestic and commercial cleaning businesses for sale on our site.

Purchasing a cleaning firm may lead to significant financial and personal gains if done properly. If you want additional information on how to acquire a business, you can read our buying a business guide.

If you have read this far and intend to use the strategies discussed here, you are already on your way to building a lucrative cleaning business.

So, let's provide a quick checklist to start your own cleaning business:

• Make a financial forecast of what it will cost you to start
• Research your industry and specify a target market
• Create a detailed business plan
• Build your reputation with training and certifications
• Check out funding opportunities for your business
• Register your business
• Invest in a CRM
• Market your business

Feel free to connect with us if you need any help. Having reduced the task to manageable chunks, tackle them one by one. Achieving entrepreneurial success requires starting small and working steadily toward a goal.