How Do you Start a Cleaning Business in the UK?

Is Starting a Cleaning Business a Profitable Idea?

You don’t often hear many people expressing their excitement to clean. While certain people find comfort in cleaning their own homes, it can get more complicated and strenuous with corporate offices and large domestic households.

Most people live busy lives and don’t have time to clean, fix or maintain certain things. Therefore, demand for cleaning services will always be on the rise, with cleaners making up 5% of the UK’s population.

To echo this statistic, the British Cleaning Council states that there were 66,420 UK cleaning businesses in 2020. While this demonstrates that demand is present, it also means that it is a crowded market, with small businesses competing for clientele.

The regions with the most cleaning businesses in the UK are London, East England, South East, South West, and North West.

Nonetheless, starting a cleaning business in the UK has multiple benefits and can be profitable if you manage your operational processes effectively.

Some benefits of starting a cleaning business:

• You can specialise in different areas, such as domestic households, corporate offices, hospitals, factories, or schools. All these markets require cleaning services, so you can grow exponentially if you prepare and execute your business plan effectively.
• The start-up and overhead costs are relatively low.
• You don’t necessarily have to get your hands dirty. You can take charge of managerial and leadership tasks and employ a team to carry out the cleaning service.
• If you can secure contracts or regular domestic clientele, your cleaning business can become scalable, resulting in higher profit margins.

What qualities do you need to start a cleaning business?

Starting any business requires specific qualities that you need to work towards. While business and financial management is something that every business owner needs to acquire, a cleaning business owner will need:

Patience

Valeri Kozarev, Vice President of Expansion at Fantastic Services explains that entrepreneurs, regardless of the industry they will enter, need to be patient:

“Patience is a quality that every new business owner needs to strive toward. You won’t be able to do everything right in the beginning, and that’s okay”.

Attention to detail

Attention to detail is another quality that an entrepreneur wanting to start a cleaning business should have. This detail should not only manifest itself in the work that you do, but the financial and operational processes of your cleaning service too.

Dealing with pressure

“When someone starts a business of their own, they can be met with chaos. It’s difficult to prioritise what activity is more important to the business regarding short- and long-term impact. So, dealing with operational pressures effectively and strategically is important,” says Valeri.

Responsible and trustworthy

Any business owner needs to be responsible and transparent, but a cleaning business will deal with personal and corporate settings, so it is integral that you do so with respect and professionalism. The satisfaction of your clientele will manifest through referrals and five-star reviews, so ensure that you meet their needs with high standards.

How to Set Up Your Own Cleaning Business

Now that we’ve run through some important considerations, let’s dive into what it will take to set up your cleaning business.

How much does it cost to start a cleaning business?

There is consensus that start-up costs for a cleaning business are relatively low in the United Kingdom, but this does not mean you shouldn’t budget for investments, equipment, overheads, salaries, insurance, and other expenses. Starting a cleaning business can cost anywhere between £5,000 to £25,000, but this will depend on your target market and specialisation.

Your target market and specialisation

“The most important starting point for an entrepreneur in this industry is deciding who your ideal client will be. Who do you want to solve problems for? It can’t be everybody. Will it be domestic households, factories, or schools? Once you’ve figured that out, you can begin defining your services and unique selling propositions for your end client,” says Valeri.

The United Kingdom has three major markets: domestic, commercial and specialist. You need to understand what each market’s demands, competitors, industry health and risks are to provide a reliable and efficient service:

Domestic: this may be a suitable market to target if you want to carry out private house cleaning jobs. Some clients might not have time to dust, mop or deep clean, and others may not have the mobility or energy to clean their homes.

Commercial: this will involve large, public spaces like schools, factories, offices, hospitals, or shopping centres. It’s important to remember that you’ll need a large team for this target market, and you’ll likely work in the late evenings or early mornings. If you plan to manage a team, you’ll be responsible for dealing with clients, contracts and delivering your services promptly.

Specialised: specialised cleaning can include more unique forms of cleaning, like deep carpet cleans, floor maintenance, removing graffiti, maintaining historic buildings like museums, chimney cleaning, and even crime scene cleaning.

Health and safety regulations and training are crucial here, as you may deal with dangerous chemicals or situations.

Your cleaning company business plan

Many entrepreneurs think that a business plan is only helpful when applying for financing. This is a dangerous assumption, because your business plan is the foundation of your goal to start a cleaning company. It will include the crucial elements of your business structure, including (but not limited to):

• Business details (name, address, and contact)
• Your objective
• Your monthly costs and how you’ll fund them (including overheads and outgoing costs, and start-up costs)
• Projected profits and losses
• A detailed analysis of your target market and competitors
• Your marketing and pricing strategy

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

When it comes to domestic cleaning, you are not legally required to hold any certifications, although commercial and specialised cleaning will likely require rigorous training. However, certifications, licences and training will boost your credibility as a company, so we recommend considering the following:

• Visiting the British Institute of Cleaning Science for workshops, courses, and certifications.
• Understand the Control of Substances Hazardous to Health Regulations 2002.
• Carry out a risk assessment to prevent harm to you or your employees’ health.
• When it comes to insurance, if you plan on hiring a team, you are legally obliged to take out an employers’ liability policy.
• Consider public liability insurance if you think there is a risk of claims being made against you for injury or loss due to your work.

Cleaning business equipment and costs

The equipment you use will vary depending on the market you’ll support. Domestic households often supply cleaning materials for you, but if you plan on bringing in your own cleaning equipment for a small business, you’ll need:

• Vacuum
• Mop
• Cleaning products
• Cloths
• Scrubbing brushes, sponges, and scourers
• Dustpan and brush
• PPE (gloves, masks, and aprons)
• A caddy to carry your products and tools
• Safety signs

If you’re thinking of starting a commercial or specialised cleaning company, you’ll need industrial cleaning equipment designed to serve your target market. For example, if you plan on cleaning large office spaces, using a Hetty or Henry vacuum cleaner won’t be very effective.

Funding the Start of Your Cleaning Business

Starting any business requires a budget, but not everyone has access to large sums of capital. Start-up funding can be a gruelling process for most entrepreneurs, so we’ve got useful resources you can browse through to understand what support is in place for entrepreneurs seeking start-up financing.

Our guide on small business grants offers research on multiple grants available in the United Kingdom. This is a helpful financing method for entrepreneurs who are seeking a cash injection that doesn’t need to be paid back. However, applying for and securing a grant is not easy, so make sure you read up on the advantages and disadvantages.

We also have a dedicated guide on loans to buy a business, which covers everything from secured loans, asset financing and equity financing. While this guide focuses on buying a business, the content is still useful for entrepreneurs wanting to start a business.

How do you register a cleaning company?

If you want to start a business, you need to decide what your business structure will be. Will you be a sole trader (self-employed), develop a partnership or act as a limited company?

If you decide to work as a self-employed cleaner, it is crucial to register with HMRC, and follow the website’s guidelines on self-assessment tax return and National Insurance contributions.

If you’d like to register as a limited company. The UK government website has a step-by-step guide on setting up a limited company.

If you plan on setting up a business with a partner, you can follow HMRC guidelines too.

Investing in CRM for a cleaning business

If you plan to grow your clientele, you’ll need software to help you manage the front and back end of your business operations.

Valeri Kozarev, Vice President of Expansion at Fantastic Services emphasizes the importance of having adequate technology in place to manage your business:

“The way a business will work effectively is through its operational processes, so investing in proper technology is crucial. As you grow, you’ll have a lot of elements to balance. A software tool is integral, as it will help you keep track of everything and optimize your service”.

If you’d like to see what cleaning company software is available, Capterra offers a helpful analysis of different rated software.

How to Market Your Cleaning Business

Marketing is not just about ‘getting your name out there’. The purpose of marketing is to attract, satisfy and retain customers using different methods and tools.

With a cleaning company, establishing a sense of trust and credibility is crucial:

“People who are evaluating your services want justifications and benefits. People make their buying decision based on multiple things, and one of those is social proof”, says Kozarev.

For example, Trustpilot and online cleaning forums are great ways to encourage this social proof. Of course, you should consider the following marketing methods if you want to reach and retain customers:

• A website with healthy SEO hygiene
• Social media marketing
• Email marketing and newsletters
• Content marketing
• Attending trade shows, where you can network and hand out your cleaning business card

Some helpful advice that Valeri Kozarev offers is related to your CPA (cost per acquisition). This is how much money it will cost your business to acquire a new client.

“If your CPA equals the minimum call out charge of your business, the smart thing to do is to offer vouchers or discounts for your services. If your CPA is exceeding your minimum call out charge, you shouldn’t think twice about offering them discounts! If you have already converted someone into a regular client, offering them a discount or voucher will be far more valuable than spending that money on a PPC campaign,” he says.

Starting a Cleaning Business is Not Your Only Option

Starting a cleaning business is something we strongly encourage you to pursue, but it is also important that we mention other routes into business ownership that you can consider.

Buying a cleaning franchise

A common alternative to starting your own business is investing in a cleaning franchise. Valeri Kozarev offers the following benefits of investing in a franchise:

• The franchisor has already made mistakes to ensure that the working processes function optimally.
• Franchise systems solve a lot of accounting, legal, software, corporate clientele, and marketing strategy problems.
• The franchisor is offering you the ability to start, run and grow a profitable service delivery for the rest of your life.
• A cleaning franchise’s recognisable brand has significant leverage in this industry. Because it will have a particular standard, a new territory can accelerate faster than a seed business.

Buying an existing cleaning business

Buying an existing cleaning business is another option you can consider. Buying a business can be an easier and potentially safer route, as lenders may be more lenient when approving loans.

Likewise, you’ll be acquiring an operational business with equipment, a customer base, and other elements that you would need to build and grow if you started from scratch. It’s important that you conduct appropriate research on buying a business before you consider this option, so we’ve created a dedicated buying a business guide to support you.

If you’d like to discover cleaning businesses for sale on our site, you can discover listings in the following markets:

• Domestic cleaning businesses for sale
• Commercial cleaning businesses for sale
• Industrial cleaning businesses for sale

Regardless of the route you take, let’s run through a quick checklist to start a cleaning business:

1. Refine your target market and specialization
2. Create a concise business plan (not just for financing purposes, but to grow your business and hold yourself accountable for tasks and objectives)
3. Receive training if you want to boost your credibility
4. Secure funding (if you need to)
5. Register your business
6. Invest in a trustworthy CRM software
7. Start acquiring clients

We hope this guide has been a valuable resource to you. If you’d like to speak to someone from the team, or you’d like more information on buying a franchise or existing business on our site, please feel free to contact us!