How to Start a Commercial Cleaning Business in 2026 — The Complete Guide

The commercial cleaning industry generates over $142 billion in revenue annually in the US alone. It's one of the few industries where you can start with minimal capital, scale to six figures within a year, and build a business that generates recurring monthly revenue from long-term contracts.

But most people who start a cleaning business fail within two years. Not because the work is hard — but because they price too low, skip the business fundamentals, and never learn how to bid profitably.

This guide covers everything from registering your LLC to landing your first $5,000/month contract.

What You'll Learn

Why commercial cleaning is one of the best businesses to start in 2026
Legal setup, insurance, and licensing requirements
Equipment and supplies you actually need (and what you don't)
How to price your services profitably from day one
How to find and win your first commercial clients
Hiring your first employees and when to scale
Common mistakes that kill new cleaning businesses

Why Commercial Cleaning?

Before diving into the how, let's talk about why this industry is worth entering.

The Numbers

| Metric | Value | |--------|-------| | US market size | $142 billion | | Annual growth rate | 6.5% | | Average contract value | $2,000-$8,000/month | | Contract renewal rate | 80-90% | | Startup capital needed | $2,000-$10,000 | | Time to first revenue | 2-8 weeks |

Why It Works

Recurring revenue. Unlike one-time service businesses, commercial cleaning contracts pay monthly. A single 20,000 sqft office contract might pay $3,500/month — that's $42,000/year from one client.

Low barrier to entry. You don't need a degree, specialized certifications, or expensive equipment to start. A few hundred dollars in supplies and a business license gets you operational.

Recession-resistant. Buildings need cleaning regardless of the economy. During downturns, companies may reduce frequency but rarely eliminate cleaning entirely.

Scalable. You start by doing the work yourself, then hire cleaners, then hire managers. The business model scales naturally from solo operator to multi-million dollar operation.

Step 1: Legal and Business Setup

Get the boring stuff right first. Cutting corners here costs you later.

Choose a Business Structure

For most cleaning startups, an LLC (Limited Liability Company) is the right choice:

Protects your personal assets from business liability
Simple tax filing (pass-through to personal return)
Flexible management structure
Costs $50-$500 depending on your state

File with your state's Secretary of State office. You can do this online in most states in under 30 minutes.

Get Your EIN

Apply for an Employer Identification Number from the IRS (free, takes 5 minutes at irs.gov). You need this to open a business bank account and hire employees.

Business Bank Account

Open a separate business checking account immediately. Never mix personal and business finances. This is non-negotiable — it protects your LLC status and makes tax filing infinitely easier.

Licenses and Permits

Requirements vary by location, but most cities/counties require:

Business license — from your city or county clerk
Sales tax permit — if your state taxes cleaning services (about half do)
DBA (Doing Business As) — if operating under a name different from your LLC

Check your state and local government websites. Most of this can be handled online for under $200 total.

Step 2: Insurance

You cannot service commercial accounts without insurance. Period. No property manager or facility director will hire an uninsured cleaning company.

Required Coverage

| Type | Typical Coverage | Annual Cost | |------|-----------------|-------------| | General Liability | $1M per occurrence / $2M aggregate | $500-$1,500 | | Workers Compensation | State-mandated minimums | $3-5 per $100 of payroll | | Commercial Auto | State minimums + $1M umbrella | $1,200-$2,400 | | Bonding (Janitorial Bond) | $10,000-$50,000 | $100-$300 |

Tips on Insurance

Get general liability first. This is what clients will ask for immediately. $1M/$2M is the standard minimum.
Workers comp is required once you hire. In most states, you need it as soon as you have even one employee. Some states require it even for solo owners.
Janitorial bonding protects against employee theft. It's cheap and many contracts require it.
Shop around. Get quotes from at least 3 providers. Insurance costs vary wildly. Providers specializing in janitorial/cleaning businesses often offer better rates (look into ISSA member programs).

Budget $2,000-$5,000/year for insurance when starting. It increases as your payroll grows.

Step 3: Equipment and Supplies

One of the biggest advantages of a cleaning business is the low startup cost. Here's what you actually need.

Essential Equipment (Start Here)

| Item | Estimated Cost | |------|---------------| | Commercial backpack vacuum | $300-$500 | | Mop bucket with wringer | $60-$100 | | Microfiber mop system | $50-$80 | | Cleaning caddy with supplies | $80-$120 | | Microfiber cloths (bulk) | $30-$50 | | Spray bottles and triggers | $20-$30 | | Trash bags (case) | $30-$50 | | Wet floor signs (2) | $20-$30 | | PPE (gloves, safety glasses) | $30-$50 | | Total | $620-$1,010 |

Cleaning Chemicals

Start with a concentrated chemical system — it's cheaper per use and easier to manage:

All-purpose cleaner — for most surfaces
Glass cleaner — for windows and mirrors
Restroom disinfectant — hospital-grade, EPA registered
Floor cleaner — appropriate for the floor types you're servicing
Stainless steel cleaner — for kitchen appliances and elevators

Budget $100-$200 for initial chemical stock. Buy concentrates, not ready-to-use — you'll save 60-80% long-term.

What You DON'T Need Yet

Floor buffer/burnisher (rent when needed for strip & wax jobs)
Carpet extractor (subcontract this initially)
Ride-on scrubber (this is a $5K+ investment for later)
Branded uniforms (a clean, matching shirt and ID badge is fine to start)
A company vehicle (use your personal vehicle initially — that's what commercial auto insurance covers)

Total realistic startup budget: $3,000-$6,000 including insurance, legal setup, equipment, and initial supplies.

Step 4: Pricing Your Services

This is where most new cleaning businesses fail. They underprice to win contracts, then can't afford to operate.

The Bidding Formula

Commercial cleaning pricing is based on labor hours, not arbitrary square footage rates. Here's the simplified framework:

Monthly Price = Total Monthly Cost ÷ (1 - Target Margin)

Where:

Total Monthly Cost = Monthly Labor Cost + Monthly Supply Cost
Monthly Labor Cost = Hours per Visit × Visits per Month × Burdened Hourly Rate

Know Your Burden Rate

Your burden rate is the true cost of one hour of labor. It's always higher than the hourly wage:

| Component | Example | |-----------|---------| | Base hourly wage | $15.00 | | FICA (7.65%) | $1.15 | | FUTA (0.6%) | $0.09 | | SUTA (varies by state, ~2.7%) | $0.41 | | Workers comp (~4%) | $0.60 | | Burdened rate | $17.25/hr |

If you're paying someone $15/hour, they actually cost you $17.25/hour (or more, depending on your state and benefits). Pricing based on the $15 wage — which many new BSCs do — means you're losing money on every hour worked.

Use ISSA Production Rates

The ISSA 612 Cleaning Times handbook provides industry-standard production rates for every cleaning task. These tell you how long tasks actually take:

| Task | Production Rate | |------|----------------| | Vacuum carpet | 3,000-5,000 sqft/hr | | Dust mop hard floor | 7,000-10,000 sqft/hr | | Damp mop hard floor | 3,500-5,000 sqft/hr | | Clean restroom (per unit) | 15-25 min/unit | | Empty trash (per unit) | 2-3 min/unit | | Dust surfaces | 4,000-6,000 sqft/hr |

Use these rates to calculate how many hours each job will take. Then multiply by your burdened rate to get your labor cost.

For a deep dive on this calculation, read our complete labor cost guide.

Target Margins

New BSCs should aim for 25-35% profit margin on every contract. Here's why each range matters:

| Margin | Status | What It Means | |--------|--------|---------------| | Below 15% | Dangerous | One surprise expense wipes out your profit | | 15-24% | Thin | Sustainable but no room for growth | | 25-35% | Healthy | Industry standard for established BSCs | | 35%+ | Premium | Achievable with efficiency and specialization |

Margin, not markup. If your costs are $2,400/month and you want a 30% margin:

Price = $2,400 ÷ (1 - 0.30) = $3,429/month

Not $2,400 × 1.30 = $3,120. That's a 23% margin — not 30%. This distinction matters. For more detail, see 5 Pricing Mistakes That Kill Cleaning Company Profits.

Step 5: Finding Your First Clients

This is the hardest part for most new BSCs. You have no track record, no references, and no reputation. Here's how to overcome that.

Target the Right Accounts

As a new BSC, focus on accounts that are:

5,000-25,000 sqft — large enough to be profitable, small enough that you can service them solo or with 1-2 employees
Professional offices, medical offices, small retail — these are the bread-and-butter accounts
Managed by the business owner or office manager — not a property management company (they're harder to close as a new company)

Avoid going after 100,000+ sqft accounts right away. They require teams, supervisors, and operational capacity you don't have yet.

Prospecting Methods (Ranked by Effectiveness)

1. Door-to-door / in-person visits Walk into businesses in commercial parks and office buildings. Ask to speak with the office manager. Introduce yourself, leave a card, and ask if they're satisfied with their current cleaning company. This is uncomfortable — and it works.

2. Google Business Profile Set up and optimize your Google Business Profile immediately. When facility managers search "commercial cleaning near me," you want to show up. Add photos of your work, collect reviews from early clients, and post regularly.

3. Networking and referrals Join your local Chamber of Commerce, BNI group, or commercial real estate networking events. Property managers and real estate agents are referral goldmines.

4. Online directories List your business on Yelp, Angi, Thumbtack, and any local business directories. These generate leads — not the highest quality, but they're a starting point.

5. Cold email/calling Research businesses in your target area, find the decision-maker, and reach out directly. Personalize every message. Offer a free walkthrough and bid.

6. Social media and content Create a Google Business page and basic website. Post before/after photos, cleaning tips, and client testimonials. This is a long-term play but builds credibility over time.

Your Sales Process

Prospect — identify potential clients
Introduce — reach out and offer a free walkthrough
Walkthrough — visit the facility, take measurements, ask about their needs and pain points
Bid — calculate your hours and price using the formula above
Propose — send a professional proposal (not a one-page quote)
Follow up — call within 48 hours. Then follow up weekly until you get a yes or no.

The proposal step is where most new BSCs lose contracts. A professional, branded proposal dramatically increases your close rate. Read our guide to writing winning proposals for the complete framework.

Step 6: Operations and Quality

Winning the contract is half the battle. Keeping it requires consistent quality.

Standard Operating Procedures (SOPs)

Document your cleaning process for every type of area:

Office spaces: vacuum pattern, dust sequence, trash route
Restrooms: top-to-bottom cleaning order, disinfection protocol, supply check
Hard floors: dust mop direction, mop technique, drying time
Kitchen/break rooms: appliance cleaning, sink protocol, floor care

Written SOPs mean your employees clean to a standard, not their own interpretation. This becomes critical once you're no longer doing the work yourself.

Quality Inspections

Inspect your own work (or your team's) regularly:

Weekly for the first month of a new contract
Bi-weekly for established accounts
Monthly minimum for all accounts

Use a simple checklist. Walk the facility during or after cleaning. Note anything below standard and address it immediately. Clients notice quality drops before they tell you — and by then it's usually too late.

Communication

Check in with your clients proactively:

Monthly email or call: "How are we doing? Anything we should adjust?"
Immediate response to complaints (same day)
Quarterly review meetings for larger accounts

The #1 reason clients switch cleaning companies isn't quality — it's lack of communication. They feel ignored. Don't let that happen.

Step 7: Hiring and Scaling

Once you have enough contracts that you can't physically do all the work yourself, it's time to hire.

When to Hire

The general rule: hire when you have enough contracted revenue to cover the employee's burdened cost plus your margin. Don't hire on speculation.

If you're working 6-7 nights a week and turning down bids because you can't take on more work — that's the signal.

Hiring Tips

Pay above market. Turnover is the #1 cost in commercial cleaning. Paying $1-2/hour above the going rate reduces turnover dramatically and pays for itself.
Run background checks. Your employees have keys to businesses. One theft incident can destroy your reputation.
Train before deploying. Never send a new hire to a job site alone on their first night. Shadow them for at least a week.
Start part-time. Hire part-time cleaners for specific accounts before committing to full-time employees.

Scaling Math

Here's a rough growth trajectory for a solo BSC growing to a team:

| Stage | Monthly Revenue | Accounts | Employees | |-------|----------------|----------|-----------| | Solo operator | $3,000-$8,000 | 2-5 | 0 | | First hire | $8,000-$15,000 | 5-10 | 1-2 | | Small team | $15,000-$30,000 | 10-20 | 3-6 | | Operations manager | $30,000-$60,000 | 20-40 | 6-15 | | Multi-crew | $60,000+ | 40+ | 15+ |

The jump from "solo operator" to "first hire" is the hardest. You go from keeping all the profit to splitting it — but this is the only way to scale past your physical capacity.

Common Mistakes That Kill New Cleaning Businesses

1. Pricing too low to win contracts Charging $0.05/sqft when your costs require $0.12/sqft is not a strategy — it's a countdown to bankruptcy. You cannot grow a business on unprofitable contracts. Walk away from any job where the math doesn't work.

2. No written contracts A handshake agreement provides zero protection. Always use a written contract with scope, pricing, terms, and cancellation clauses. This protects both parties.

3. Skipping insurance One slip-and-fall claim or one employee theft allegation without insurance can end your business. This isn't optional.

4. Ignoring the burden rate If you're pricing based on the hourly wage you pay employees, you're underpricing every job. The true cost of labor is 15-25% higher than the wage. Learn the full burden rate formula.

5. No systems Relying on memory and text messages works for 2-3 accounts. It breaks at 10. Invest in basic systems early: scheduling, invoicing, quality checklists, and bidding tools.

6. Trying to do everything Focus on commercial cleaning first. Don't add residential, carpet cleaning, floor waxing, window washing, and pressure washing all at once. Master one service, build a client base, then expand.

7. Slow proposals Sending a bid two weeks after the walkthrough signals that you're disorganized. The first professional proposal on a facility manager's desk has a massive advantage. Aim for 24-48 hours.

Tools That Save You Time

As your business grows, manual processes become bottlenecks. The areas where software helps most:

Bidding and proposals — Calculating labor hours, burden rates, and generating professional PDF proposals
Scheduling — Assigning crews to job sites, tracking hours
Invoicing — Monthly billing, payment tracking, late payment reminders
Quality control — Digital inspection checklists, photo documentation
Communication — Client portals, work order management

BidLoom handles the bidding and proposal side. It calculates your labor hours from ISSA production rates, applies your full burden rate (FICA, FUTA, SUTA, workers comp), and generates a branded PDF proposal — the kind that wins contracts. The free tier lets you build 3 complete bids, so you can see if it fits your workflow before committing.

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