Establishing a cleaning company involves several steps in the UK. Starting a cleaning business may seem complex, but with our straightforward five-point tutorial, we’ll simplify the process for you. We’ll guide you through each crucial stage from start to finish, ensuring you understand the benefits of each step.
Launching a cleaning company could be your chance to work for yourself and offer a highly sought-after service in a developing market with cheap start-up costs.
Although setting up a budget and business plan, buying supplies, and registering your new cleaning company may seem difficult, following our step-by-step instructions will make the process manageable for any aspiring business owner.
Why start a cleaning company?
A cleaning company could be a good fit for you for the following main reasons:
- Minimal start-up costs: Cleaning supplies and equipment are often affordable, and some house cleaners use their clients’ supplies and equipment.
- Accessible: Starting a cleaning business does not require any special training or prior cleaning industry experience. Although there are a few obstacles to admission, it’s still a good idea to learn how to utilize tools and cleaning solutions.
- Be your own boss: When you own your own business, you determine the hours you work, the number of clients you accept, and the procedures and culture of your organisation. This can be especially helpful if you’d rather work for yourself and require flexibility because of childcare responsibilities or other jobs.
Five Steps for Beginning a Cleaning Business
This is a brief guide covering all the planning and considerations you should have when launching a cleaning business in the UK, along with the legal requirements.
Do your research and search your market to start your company
You may perform this research using a variety of useful techniques, including web research, in-person client interviews, and online competitor analysis, all of which can yield insightful information for your cleaning company.
The following are the two crucial queries:
- Does my service or product have a market?
- Who is your target audience?
Before deciding on the kind of cleaning firm you want to start, you should do much research about the UK cleaning industry. This is due to the industry’s large employment base—roughly 1.5 million people are employed in the cleaning, hygiene, and waste sectors, according to data from the British Cleaning Council. With the amount of competition, it’s critical to know how your company will fit in.
Additionally, you must choose if you wish to specialise. Various categories of cleaning businesses consist of:
- Domestic cleaning: Companies that take on routine cleaning duties around the house, like vacuuming, dusting, mopping, polishing, and cleaning fixtures and fittings in the kitchen or bathroom. They might also clean pots, do some tidying, and do laundry and ironing. Given that no sophisticated equipment is needed, this is probably a low-cost solution.
- Commercial cleaning: This group covers any cleaning done on company properties, such as restaurants, retail stores, hospitals, and more. Most commercial cleaning companies will choose to focus on one of these areas. These companies usually use industrial cleaning equipment because the spaces they clean are usually larger than houses.
- Deep cleaning: These companies provide specialised home cleaning that requires more resources and time. Particular focus is given to cleaning duties including cleaning soft furnishings and appliances, as well as cleaning behind or underneath furniture.
After conducting market research and determining the kind of cleaning service to launch, it’s time to develop a budget and business plan that is specific.
Make a financial plan for your cleaning company
In addition to helping you determine whether your ideas can actually be converted into a business, creating a business plan and budget can assist you in determining just how much money you need. Typically, applying for a business loan or start-up loan will also require you to provide a business plan.
See our guide on how to build a business plan for a comprehensive how-to.
Planning for your new cleaning company will also include creating a budget. It is imperative to include in every possible expense, be it one-time or ongoing. Important expenses for a cleaning company to think about are:
- Cleaning supplies: If you have to carry cleaning supplies like polishes, degreasers, and bleaches to every job, you should be aware of their price and the frequency at which you might need to replace them. Examine whether purchasing goods in bulk would be a profitable strategy for cost savings.
- Cleaning supplies: This may be a ride-on sweeper driven by a battery that costs £6,999, or it could be a dustpan and brush. Take into account any machinery or equipment that you will need to buy, regardless of size.
- Transport: You should have a ballpark estimate of the cost to travel and move your equipment from job to job, regardless of whether you are a professional cleaner using a branded van or a household cleaner utilising public transport. For instance, you might need to get coverage for business auto insurance.
- Salary information for employees: If you intend to hire your team members, you must pay them at least the minimum wage. A full-time cleaner’s beginning compensation is about £17,000, although hiring a staff member has additional fees.
Check out our five-step approach to developing a small company budget for more information on budgeting.
When starting a new cleaning company, consider how you will separate your personal and business finances. A business bank account could be helpful in this regard, as it gives you a different platform to track your income and expenses without interfering with your daily expenses.
Register your housecleaning company
Selecting a business structure and registering your cleaning firm are two of the first official actions you will take when you first start. Spend some time determining which business structure best meets your needs.
- Sole Trader: A sole trader is the only owner of a company and is entitled to keep all earnings after taxes. It also implies that there is no distinction between you and your company, which means that you bear personal liability for any losses it sustains. At the conclusion of the fiscal year, you will have to file a tax return and register for self-assessment.
- Partnership: In a business partnership, two or more individuals share the duties, risks, gains, and losses of the enterprise. Limited liability partnerships, commercial partnerships, and limited partnerships are the three primary categories of partnerships.
- Limited company: If you decide to incorporate as a limited company, you will remain separate from your cleaning firm both financially and legally. As a limited business, you will have shareholders and shares, and you will be able to keep any profits after taxes.
You must notify HM Revenue & Customs if you are forming a general partnership. You must register your limited company, limited partnership, or limited liability partnership with Companies House.
Fund your cleaning business
To begin with, most enterprises do, of course, require capital. You are prepared to look for money once you have registered your business and developed a budget. To launch your business, you should combine the several financial sources listed below.
- Personal savings: You can maintain complete ownership of your company if you launch it with personal funds, but you must be cautious not to jeopardise your financial stability.
- Friends and family: Borrowing money from friends and family can be challenging. Therefore, it’s important to put everything in writing to prevent future disputes.
- Small company grants: The UK offers a variety of start-up business grants, including those headquartered in Scotland, Wales, and Northern Ireland, that are both partially and non-repayable.
- Government business loans: Depending on where you reside in the UK, your firm may be eligible for a different kind of government business loan.
- Business loans: As a start-up, it may be challenging, but not impossible, to obtain a standard small business loan. Loan providers will examine your business plan, cash flow forecasts, and personal credit history.
- Angel investors: Rich people who seek to invest in early-stage companies in return for convertible debt that may eventually become unmanageable.
- Crowdfunding: This is the process of obtaining capital from multiple sources in return for advantages like stock or first access to goods. Frequently, crowdfunding occurs via an internet-based campaign.
Locate your initial clientele to clean for
Getting your first clientele is one of the most satisfying aspects of launching a new company. There are numerous approaches to advertise and build awareness for your cleaning company:
- Word-of-mouth: Don’t be embarrassed to start a new company. Inform your neighbours, relatives, friends, and nearby companies. A few of these contacts might turn into important clients very soon.
- Flyers and business cards: To promote your company, post these in letterboxes or pin them on notice boards.
- Social media: Setting up a page on social media can be quite beneficial for generating leads. Establishing a Facebook profile can help you become more visible online, and posting quick films to YouTube, Instagram, or TikTok may even help your company go viral. It may seem unlikely, but several cleaning companies have amassed enormous followers and millions of views because of how fulfilling their videos are.
- Trade platforms: Though there is a membership cost, you may want to consider signing up for websites like Rated Individuals or Checkatrade, which let individuals contact local tradespeople and request quotes.
- Local listings online: You may post your cleaning company for free on neighbourhood social media platforms like next-door. To make it easier for potential clients looking for cleaning services to find you, make sure your company is included in local business directories. You can do this for free on websites like Yell and Local Pages.
- Request reviews: Ensure that pleased clients provide favourable evaluations on websites like Trustpilot and Google Reviews.
What is the cost of cleaning services?
One important thing to think about is how much to charge your clients. In the UK, costs vary; however, the following are general averages:
- Domestic cleaning: Individual cleaning costs £10 to £20 per hour, while agency cleaning ranges from £15 to £25 per hour.
- Commercial cleaning: Routine cleaning typically costs between £15 and £20 per hour.
- Deep cleaning: A deep clean for a studio apartment at the end of a lease is priced at £180.
Is insurance required for cleaning businesses?
Employees working for small cleaning companies need insurance for public liability, employer’s liability, and portable equipment. Public liability insurance covers property damage, while employer’s liability insurance covers worker’s compensation.
This is particularly so because specialized portable equipment insurance covers items such as floor buffers, vacuum cleaners, and cell phones. Protection against illness or injury is essential, particularly for people who work for themselves and have no sick leave entitlement.
These policies protect sickness, which hinders one from work, through either a lump-sum payment or a stipend.
Summary of the Guide
To sum up, establishing a cleaning company in the UK involves careful planning and execution. This manual offers a thorough, step-by-step process for launching this firm, including everything from market research to hiring your first customers.
Starting a cleaning company is easy since you can start with little capital, and the barriers to entry are comparatively low. This means that you can be your own boss while being part of a growing industry. Still, when it comes to entrepreneurship, one has to pay attention to legal aspects, finance management, client search, etc.
Whether you decide to focus on home cleaning, office cleaning, or intensive cleaning, our guide helps you acquire all the necessary knowledge and tools to start your business.
Remember to consider the role of insurance to cover your business and clients in case of any unfortunate incidences. If committed and focused, your cleaning business has all the potential to blossom in this competitive environment.
