When it comes to starting a new business, a cleaning service could be a great option. But how do you actually start one?

Experts predict that the demand for cleaners will keep growing, with jobs for home cleaners expected to increase by 6.09% by 2029, and commercial cleaning jobs by 5.4% by 2025.

One big advantage of starting a cleaning business is that you can start small, cleaning homes in your neighborhood, or aim for bigger profits by offering commercial cleaning with a team.

No matter the size you aim for, you need to know how to get started. Luckily, that’s what this article is all about. We’ll cover what a cleaning business is, the different types, why it’s a good idea to start one, and the steps you need to take to make it happen.

What Does a Cleaning Business Do?

A cleaning business is a company that provides different cleaning services to homes, businesses, factories, or specific clients.

The services you offer can include basic house or office cleaning, as well as specialized tasks such as cleaning carpets, washing windows, tidying up after construction, and more.

What Types of Cleaning Businesses Exist?

One of the perks of starting a cleaning business is the variety of options available, allowing you to tailor your services and business size to your preferences. Let's explore some popular types of cleaning businesses you could consider:

1. Household Cleaning Services

These businesses focus on cleaning residences such as houses, apartments, and condos. Services typically include basic housekeeping tasks like dusting, vacuuming, mopping, and bathroom and kitchen cleaning. You can operate solo or hire a small team.

2. Commercial and Office Cleaning Services

These cater to businesses and commercial spaces like offices, retail stores, and restaurants. Services may include office cleaning, floor maintenance, bathroom sanitation, and common area upkeep. Typically, you'll work late nights after these spaces close.

3. Specialized Cleaning Services

Some companies specialize in specific cleaning areas like carpet and upholstery cleaning, window washing, post-construction cleanup, industrial or warehouse cleaning, and exterior cleaning such as power washing. This offers a more niche approach to starting a cleaning business.

4. Eco-Friendly Cleaning Services

With an increasing focus on environmental sustainability, green cleaning businesses use eco-friendly products and practices. This appeals to clients who prioritize environmentally friendly and sustainable cleaning solutions.

5. Move-In/Move-Out Cleaning Services

These services target individuals or businesses requiring deep cleaning before moving into or out of a property. They aim to prepare or restore spaces for new occupants and often involve extensive cleaning hours to rejuvenate the space.

6. Special Event Cleaning Services

These businesses provide cleaning services before and after events such as weddings, parties, conferences, or exhibitions. Their goal is to ensure venues are presentable and clean, offering potential partnerships with event spaces or coordinators.

Why Consider Starting a Cleaning Business?

Is launching a cleaning business a wise move? We believe so, and there's evidence to support it. According to GrandViewResearch, the residential housecleaning sector is nearing $20 billion in yearly revenue, with an estimated annual growth rate of 20%.

Still need convincing? Here are some compelling reasons to start a cleaning business:

1. Strong demand: The demand for cleaning services has surged, particularly since the COVID-19 pandemic, with heightened cleanliness protocols in homes and workplaces, and increased requirements for public spaces.
2. Affordable startup: Initial costs for equipment and supplies are relatively low, making entry into the market accessible to many aspiring entrepreneurs.
3. Flexibility: As a cleaning business owner, you have the freedom to set your work schedule, choose your clientele, and tailor your services, enabling a better work-life balance.
4. Growth opportunities: Starting small and gradually expanding your operations is entirely feasible, presenting avenues for growth in various niches or service offerings.

How to Begin Your Cleaning Business

Step 1: Conduct Thorough Research

Before diving into any business venture, thorough research is essential. What are the specific needs of your target market? How are your competitors operating, and what strategies can you employ to set your cleaning business apart? Additionally, consider which niche you want to focus on—whether it's residential, commercial, eco-friendly cleaning, carpet cleaning, industrial window cleaning, or disaster clean-up. This research forms the bedrock of your business, shaping your unique selling proposition and identifying your target audience.

Step 2: Selecting the Right Business Structure for Your Cleaning Business

This step is crucial and should not be overlooked. For further guidance on various legal structures and determining the most suitable one for your cleaning business, refer to this resource.

Do I Require a Cleaning License in New Jersey?

To operate a cleaning business professionally in New Jersey, obtaining a cleaning license may not be mandatory. However, depending on the nature of your cleaning services, you may need to register with the New Jersey Division of Consumer Affairs as either a Home Improvement Contractor or a Service Contract Provider.

Step 3: Obtain an EIN (Employer Identification Number) for New Jersey

To secure an Employer Identification Number (EIN) for your residential cleaning business in New Jersey, follow these steps:

• Determine EIN necessity: An EIN is a unique nine-digit identifier assigned by the IRS for tax purposes. You may require one if you have employees or if your business operates as a partnership or corporation.
• Gather essential details: For EIN application, gather your business's legal name and address, along with the name and Social Security number of a principal officer.
• Apply online: The quickest method is via the IRS website. Complete the online application form and receive your EIN instantly.
• Apply by mail or fax: Alternatively, complete Form SS-4 and send it to the IRS via mail or fax. This method typically takes a few weeks.
• Apply by phone: Contact the IRS Business & Specialty Tax Line at 1-800-829-4933 to apply over the phone.

Ensure you have all necessary documents prepared and check New Jersey state laws for any additional requirements.

For online application:

1. Visit www.irs.gov/businesses and choose "Apply for an EIN online."
2. Fill out the online form, providing business details like name, address, entity type, and owner's name and SSN.
3. Submit the application.
4. Upon processing, the IRS will issue your EIN.

Step 4: Register Your Business with New Jersey

All businesses operating in New Jersey must register with the Division of Revenue and Enterprise Services, a division of the New Jersey Department of the Treasury.

The registration fee for LLCs or Corporations in New Jersey varies based on entity type and filing method, typically starting at $150 when filing online.

To register as an LLC, submit a Certificate of Formation to the New Jersey Department of Treasury. This document outlines essential business details such as name, address, and purpose.

For corporations, file Articles of Incorporation with the New Jersey Department of Treasury, providing information like corporate name, purpose, and officer details.

For detailed filing instructions and a comprehensive list of associated costs, please refer to the state’s online portal.

Step 5: Business License Requirements in New Jersey

General house cleaning businesses in New Jersey are typically required to obtain a business license. However, regulations may change, so it's advisable to verify the state's current licensing requirements when establishing a new business.

Additionally, it's important to check with your specific county, city, or local municipality, as requirements can vary. Some areas may mandate a general business tax, licensing, or other filings for operating a business.

To confirm whether such requirements apply to your business, contact your local municipality office for clarification.

Step 6: Obtain Business Insurance

Before proceeding, familiarize yourself with the importance of insurance, various types available, and the distinction between insurance and bonding by referring to this guide.

It's advisable to acquire business insurance when launching a cleaning business in New Jersey. Business insurance offers protection for your business and personal assets in case of legal disputes or claims. Key types of business insurance to consider for cleaning businesses include general liability insurance, worker’s compensation insurance, and commercial property insurance.

For a Free insurance quote tailored to your specific needs, click here.

In conclusion, starting a cleaning business in New Jersey offers a promising opportunity for entrepreneurs. With the demand for cleaning services on the rise and a variety of niche markets to explore, aspiring business owners have ample room for growth and success. By following the outlined steps, conducting thorough research, and ensuring compliance with legal requirements, individuals can embark on their journey toward building a thriving cleaning business. 

Whether focusing on residential, commercial, or specialized cleaning services, the key lies in meticulous planning, dedication, and a commitment to providing exceptional service to clients. With the right strategy and tools in place, the sky's the limit for those venturing into the cleaning industry in New Jersey.