How to start a cleaning business: step-by-step guide
Learn how to start a cleaning business, from setting your prices to finding your first clients.

Written by Lena Hanna—Trusted CPA Guidance on Accounting and Tax. Read Lena's full bio
Published Monday 22 June 2026
Table of contents
Key takeaways
- Start with thorough market research to identify service gaps, understand competitor pricing, and pinpoint what local clients actually need before you spend a single dollar on equipment or marketing.
- Choose your legal structure carefully, as sole trader suits small solo operators but leaves your personal assets exposed, while a company structure offers better protection and makes it easier to grow or attract funding.
- Prioritise specialist cleaning services such as carpet, window, or post-construction cleaning, as these typically command higher rates and help you stand out in a competitive market where many businesses compete on price alone.
- Build your first client base by reaching out to friends, family, and local property managers, and offer introductory discounts to generate reviews that will help attract new customers over time.
Why start a cleaning service?
A cleaning service is one of the easiest businesses to start because it needs little upfront money and offers reliable demand. You can begin from home, set flexible hours, and grow at your own pace.
Here's why cleaning appeals to first-time business owners:
- Low startup costs: equipment and a vehicle are your main expenses, and you can buy both second-hand
- Flexible schedule: part-time hours let you keep another job while building your client base
- Steady demand: cleaners are needed year-round, even during economic downturns
Every business has challenges. Here's what to expect:
- Physical demands: cleaning requires stamina and consistent physical effort
- Market competition: established businesses often compete on price alone
- Administrative load: paperwork, regulations, and scheduling take time to manage
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
Once you've decided to start a cleaning business, you'll need to choose what type of cleaning services to offer.
Cleaning businesses fall into three main categories: residential, commercial, and specialist. Each has different equipment needs, team sizes, and client relationships.
With residential cleaning, you serve private homes and apartments:
- Equipment needs: basic household cleaning supplies
- Team size: often solo operators or small teams
- Client relationships: direct consumer relationships
With commercial cleaning, you target 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?
Getting your cleaning business up and running requires careful planning and preparation across several key areas.
To start a cleaning business, you need a business plan, legal structure, permits, insurance, equipment, and marketing materials. Here's what each involves:
Business foundation:
- Business plan: document your services, target market, and financial projections
- Legal structure: choose between sole trader, partnership, company, or trust
- Licences and permits: obtain cleaning service permits required in your region
Operational necessities:
- Insurance: protect your business and personal assets from liability
- Equipment and supplies: purchase basic cleaning tools and commercial-grade products
- Marketing materials: create a website, business cards, and promotional content
Learn more in our guide to starting a business.
Five steps to start your cleaning business
Now that you understand the basics, here's a step-by-step guide to launching 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 reveals gaps in your local cleaning market and helps you price competitively. Before launching, study what's already available and where competitors fall short.
Research your local competition by examining:
- Service gaps: cleaning services not currently offered in your area
- Pricing patterns: how competitors charge for different service types
- Weak points: common complaints about existing cleaners
Gather insights from:
- Potential customers: friends, family, and local business owners
- Current service users: people who've hired your competitors
- Industry contacts: real estate agents, property managers, and Airbnb hosts
A business plan maps out your goals, services, and pricing strategy. You'll need one whether you're seeking a loan, applying for a grant, or simply keeping yourself on track.
Your plan should cover startup costs and ongoing expenses. Marketing, website development, insurance, and professional advice add up quickly. Learn more about startup business costs, and calculate how long you can operate before breaking even.
When setting prices:
- Calculate your running costs and target profit margin
- Establish a price list based on room, square metre, job, or contract
- Research competitor pricing and position yourself competitively
- Test prices with potential customers and adjust based on feedback
- Create a quote template for larger or custom jobs
2. Check legal requirements
Once you've completed your market research and business plan, you need to establish your legal structure and ensure compliance with regulations.
Your business structure determines how you pay tax, protect personal assets, and manage compliance. Choose the structure that fits your risk tolerance and growth plans.
Sole trader:
- Best for: individual operators starting small
- Benefits: simple setup, direct profit retention, minimal compliance
- Risks: personal liability for all business debts and legal issues
- Tax: report income on your personal return; register for GST if turnover exceeds $75,000
Partnership:
A partnership is owned by two or more people. Your partnership agreement should define profit shares and startup contributions, including money, assets, and time. Partnerships do not protect personal assets from business debts.
Company:
A company structure is more complex but offers clear advantages:
- Lower tax rate: companies generally pay less tax than individuals
- Asset protection: business debts stay separate from personal assets
- Growth potential: easier to attract funding, scale operations, and sell the business
All directors must apply for a director identification number (director ID).
Franchise:
Buying into a franchise gives you:
- Established brand: recognition and trust in the market
- Proven systems: tested business processes and operational support
- Training and support: ongoing guidance from the franchisor
- Marketing assistance: access to established marketing materials and campaigns
However, franchises require upfront fees and ongoing royalty payments, which can reduce your profit margins.
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. Get one month of Xero free.
FAQs on starting a cleaning business
Here are answers to common questions about starting and running a cleaning business.
Do I need insurance for my cleaning business?
Yes, you need insurance to protect yourself and your business. At minimum, get public liability insurance to cover damage to client property and professional indemnity insurance for claims related to your services. Consider adding workers' compensation if you hire employees.
How much does it cost to start a cleaning business?
Startup costs typically range from $2,000 to $10,000, depending on your scale. Basic expenses include cleaning equipment and supplies, vehicle costs, insurance, licences, and marketing materials. You can reduce costs by starting with second-hand equipment and working from home.
What cleaning services are most profitable?
Specialist services like carpet cleaning, window cleaning, and post-construction cleaning typically command higher rates than general residential cleaning. Commercial contracts also provide steady income, though they may require larger teams and more equipment.
How do I find my first cleaning clients?
Start by telling friends, family, and neighbours about your business. Create profiles on local business directories and social media platforms. Offer introductory discounts to build reviews and testimonials. Partner with real estate agents and property managers who regularly need cleaning services.
Do I need qualifications to start a cleaning business?
You don't need formal qualifications for basic cleaning services, but training in areas like infection control, workplace health and safety, or specialist cleaning techniques can help you stand out. Some specialist services like crime scene cleaning require specific certifications.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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