How to start a cleaning business: Steps, tips and essentials

Published Thursday 27 November 2025

Table of contents

• Why start a cleaning service?
• Types of cleaning businesses
• How do I start a cleaning business?
• 5 steps to start your cleaning business
• Manage your cleaning business operations
• Managing your business finances with Xero
• FAQs on starting a cleaning business

Key takeaways

• Prioritize market research and create a comprehensive business plan that includes competitive analysis, pricing strategy, and financial projections to identify profitable opportunities before launching your cleaning service.

• Choose the appropriate business structure (sole trader, partnership, or company) based on your risk tolerance and growth plans, ensuring you obtain necessary permits, insurance, and legal requirements for your region.

• Start with essential cleaning equipment and supplies while keeping initial costs low, then gradually invest in specialized tools and commercial-grade products as your client base grows.

• Develop a systematic client acquisition strategy that combines networking with local businesses, building an online presence, and delivering exceptional service to generate word-of-mouth referrals and repeat customers.

Why start a cleaning service?

A cleaning service business offers one of the lowest-barrier entry points into entrepreneurship, requiring minimal startup capital and providing steady income potential. While starting any new business can feel daunting, cleaning services deliver practical advantages that make them ideal for first-time entrepreneurs:

• Low start-up and running costs – you can base the business out of your home, and your largest expenses, at first, will be your equipment and a vehicle. If you don't have these already, you can buy them second hand.
• Flexible hours – you can start part time while working at another job.
• There is plenty of work. Cleaners are always needed, even during economic downturns, and there is strong potential for business growth.

Here are some things to prepare for as you start your cleaning business:

• Physical demands: Cleaning work requires stamina and physical fitness
• Market competition: Many established players compete on price
• Business complexity: Managing paperwork, regulations, and operations

To succeed as a cleaning business owner, focus on:

• Time management: Efficiently scheduling jobs and managing workflows
• Attention to detail: Ensuring consistent, high-quality results
• People skills: Building trust with clients in their personal spaces

Types of cleaning businesses

Cleaning businesses operate in three distinct market segments, each with different requirements and profit potential:

Residential cleaning serves private homes and apartments:

• Equipment needs: Basic household cleaning supplies
• Team size: Often solo operators or small teams
• Client relationships: Direct consumer relationships

Commercial cleaning targets business properties:

• Equipment needs: Industrial-grade tools and supplies
• Team size: Larger crews with specialised training
• Client relationships: Contract-based B2B relationships

Specialist cleaning services include:

• Oven, window and carpet cleaning
• Move-in and move-out cleaning
• 'Green' cleaning
• Post-construction, crime scene, disaster, and hazardous cleaning

While specialist services may need extra equipment or certification, they can set your business apart and allow you to charge higher prices.

How do I start a cleaning business?

Essential startup requirements for your cleaning business include:

Business foundation:

• Business plan: Document your services, target market, and financial projections. Find guidance on creating a business plan and business financing.
• Legal structure: Choose from one of the 4 commonly usedbusiness structures, which include sole trader, partnership, company, and trust.
• Licences and permits: Obtain required cleaning service permits for your region

Operational necessities:

• Insurance: Protect your business and personal assets
• Equipment and supplies: Basic cleaning tools and commercial-grade products
• Marketing materials: Website, business cards, and promotional content

Here's more information on getting a business off the ground.

5 steps to start your cleaning business

Follow these steps to start a well-functioning cleaning business.

1. Do your market research and create a business plan

Market research helps you identify profitable opportunities and competitive advantages before launching your business.

Research your local competition:

• Service gaps: What cleaning services aren't currently available?
• Pricing analysis: How do competitors price different services?
• Competitive weaknesses: Where do existing cleaners fall short?

Gather market intelligence from:

• Potential customers: Friends, family, and local business owners
• Service users: People who've hired your competitors
• Industry contacts: Real estate agents, property managers, Airbnb hosts

Next, you'll need a business plan – whether you're going for a start-up loan, a business grant from the government, investment from private investors, or just a roadmap to show you the right direction.

Your plan defines your business goals, the services you offer, and your pricing strategy.

• Work out how much you need to survive until the business starts to break even. Costs quickly add up when you include marketing, website development, insurance, and legal and accounting advice. (You can build your own website using a website builder platform.)
• Know your running costs and decide your profit margin.
• Establish a price list. Decide whether to charge by the room, by the square metre, per job, or by tendering for contracts.
• Set competitive prices and consider offering value-added services and packages.
• Test your prices with your target market. Adjust them based on customer feedback and market demand.
• Consider creating a quote or proposal template for larger jobs.

2. Check legal requirements

Business structure selection determines your legal protection, tax obligations, and operational complexity. Choose the structure that matches your risk tolerance and growth plans.

Sole trader structure:

• Best for: Individual operators starting small
• Benefits: Simple setup, direct profit retention, minimal compliance
• Risks: Personal liability for business debts and legal issues
• Tax treatment: Report business income on your personal tax return and, according to the ATO, you must register for GST if your annual GST turnover is $75,000 or more.

Partnership

This is a business owned by at least two people. Partnership agreements should define profit share and start-up contributions (money, assets, time). Keep in mind, partnerships do not offer legal protection for personal assets.

Company

Operating as a company is more complicated—for example, all directors are legally required to apply for a director identification number (director ID)—but it comes with advantages.

• You'll generally pay tax at a lower rate
• Assets and debts of the business are kept separate from your personal assets and debts
• It's easier to get funding and investment, to grow your business, and to sell it in the future

Franchise

Buying into a franchise gives you:

• Brand awareness and marketing
• Training and support for staff
• A proven business model
• Established systems and processes

Buying into a franchise can be costly and may offer limited support or control over decisions. If you choose this path, research your options carefully.

What other legal requirements are there? You may need a cleaning business permit or licence ABLIS, liability insurance, and to register your company and then register it with your tax authority. Here's some more info to make it simpler:

3. Buy cleaning supplies and equipment

Equipment and supplies represent your largest initial investment after insurance. Start with essential items and upgrade as your business grows.

Basic cleaning equipment:

• Floor care: Vacuum cleaner, mop, bucket, and broom
• Surface cleaning: Cloths, wipes, scourers, and sponges
• Specialised tools: Toilet brush, dustpan and brush, window squeegees

Cost-saving strategies:

• Buy second-hand: Quality used equipment reduces startup costs
• Start basic: Add specialised equipment as you secure more clients
• Bulk purchasing: Buy cleaning products in larger quantities for better rates

Even if you plan to work locally, you will need a vehicle or van. You can reduce costs by buying second hand.

Invest in clear signage for your vehicle with your business name, logo, and contact details to help attract local clients.

Use quality commercial-grade cleaning products rather than regular supermarket cleaners. The right cleaning products company might give you training and how-to information. Keep a small supply in stock at all times, but don't waste money buying large stocks you won't use within a month.

Consider using eco-friendly cleaners that are cruelty-free, hypoallergenic, safe for pets, and free of harmful chemicals.

Wear a company shirt and black trousers to present a professional image. Keep track of your expenses to make tax time easier.

4. Develop a strategy to get clients

Client acquisition transforms your business setup into revenue-generating operations. A systematic marketing approach helps you build a sustainable customer base.

Foundation elements you'll need:

• Business identity: Simple, memorable name and professional logo. Note that there are fees to register a business name, which currently start at $45 for one year.
• Marketing materials: Business cards and promotional content
• Unique selling point: Clear differentiation from competitors

Your marketing strategy should include:

It's time for a marketing plan.

Get the word out

Build a database of potential clients. Get friends and family to spread the word and advertise in local publications and radio. Put flyers in letterboxes with tempting opening offers, do leaflet drops, and go to community events.

Build your network by connecting with companies that have an existing client base, such as real estate agents and property managers. Talk to shops, Airbnbs and holiday rental organisations. Make sure everyone in your area knows who you are and what you do.

Build your web and social media presence

Build a website – keep it simple so it looks good on smartphones. Include your values and mission statement to show what's important to you. Have a Facebook page and at least one other social media platform (maybe Instagram).

Set your prices

Price your services fairly and offer value for money. Include special offers with your cleaning packages and provide discounts for referrals.

Get the basics right

• Be friendly and professional when you pick up the phone. Be there when you say you will.
• Make sure your employees are well vetted and police checked – remember, they're going into people's homes.
• Go above and beyond. Exceptional service is rare and helps you keep clients and gain referrals. Small touches make a big impression, such as leaving a handwritten note, offering discounts to repeat customers, or sending a birthday card.
• Respond quickly to customer feedback and use it to improve your business.

Word of mouth is powerful. Collect testimonials from satisfied customers to help grow your business. Reviews, referrals, and ratings are great ways to build a customer base.

5. Manage daily operations and plan for growth

Business scaling moves you from trading time for money to building a sustainable, profitable operation that generates income without your direct involvement.

Why scaling matters:

• Income limitations: Solo operators can only earn during working hours
• Business vulnerability: Illness or holidays mean lost revenue and potentially lost clients
• Growth potential: Systems and staff enable expansion beyond personal capacity

Scaling strategy:

• Document processes: Create written procedures for every service task
• Quality control: Standardised processes ensure consistent results
• Training efficiency: Clear procedures reduce onboarding time and costs

Subcontractors are fully trained, have the right equipment, and are available quickly, though they may cost more and offer less control over quality.

As your business grows, build a team of reliable, hard-working people with strong references.

• Advertise job openings, interview candidates, and train new hires in your systems.
• You will also need to meet legal obligations such as tax, superannuation, sick leave, and holiday pay. Accounting and payroll software such as Xero can help you manage these requirements.

To scale your business, explore new markets and add specialist services. Invest in training and better equipment. Specialised services can command premium prices and face less competition.

Manage your cleaning business operations

When you do all the cleaning yourself, your income is limited to your available hours. To grow, focus on becoming the business owner and building a team. Creating detailed written processes for everything you do will reduce training time and help with quality control. As your business grows, you can hire subcontractors or employ staff.

While subcontractors are trained and have their own equipment, building your own team of reliable, vetted people gives you more control. You'll need to advertise, interview, and train them in your systems. Remember to explore new markets and add specialist services to scale up.

This might mean investing in training and better equipment, but it can lead to premium prices and fewer competitors.

Managing your business finances with Xero

Running a successful cleaning business means staying on top of your finances. From tracking equipment expenses to managing payroll for your team, having a clear view of your cash flow is essential.

Good accounting software simplifies these tasks, saving you time on admin so you can focus on finding new clients and growing your business. Send quotes and invoices, track payments, and manage expenses on the go. Try Xero for free.

FAQs on starting a cleaning business

Find answers to common questions about starting a cleaning business below.

What type of cleaning business makes the most money?

Commercial cleaning often brings in the most revenue. Contracts for offices, retail spaces, and medical facilities are typically larger and more regular than residential jobs, providing a steady stream of income.

Do you need a license to start a cleaning business in Australia?

Yes, you will need to register for an Australian Business Number (ABN)—a unique 11-digit number issued to a business—and get a general business license. Depending on your state and the services you offer, you may need other specific permits. It's a good idea to check with your local council.

How much does it cost to start a cleaning business?

The startup costs for a cleaning business are relatively low. Your main expenses are equipment, cleaning supplies, insurance, and a vehicle. Start small with basic supplies and invest in more specialised equipment as your business grows.

What insurance do you need for a cleaning business?

Get public liability insurance to protect yourself, your business, and your clients in case of accidental damage or injury. If you hire employees, you will also need workers' compensation insurance.

How should you price your cleaning services?

Research what other cleaning businesses in your area are charging. Set your prices per hour, per room, or as a flat fee for the entire job. Focus on offering great value and excellent service.