If you’ve landed on this article, chances are you’re either considering starting a cleaning business in the UK or are simply curious about the industry.
Well, you’ve come to the right place. This article will guide you through the essential steps to set up your cleaning business, key considerations to keep in mind, effective marketing strategies, business registration types, necessary insurance, required cleaning equipments, and much more.
Ready to become a small business owner? Let’s go.
What’s the cleaning industry like in the UK?
First things first, let's go over some relevant statistics about the cleaning sector in the UK to give you a better idea of the market size and available opportunities.
According to a 2023 report by the British Cleaning Council, the cleaning industry in the UK is a significant and growing sector. Here’s why:
Sector Turnover: The sector’s turnover was around £58.9 billion in 2019, with a 22% increase since 2015.
Number of Businesses: Operating cleaning businesses grew from 45,970 in 2010 to 69,005 in 2021.
Sub-Industries: Facilities Management contributes 51% of turnover, Waste Management 24%, Cleaning Activities 17%, and Landscape Services 8%.
Business Size: 88% of businesses are micro-businesses, employing less than 10 individuals.
Employment: The industry employs approximately 1.47 million people, which is about 5% of the UK workforce.
Qualifications: 42% of the workforce does not hold a Level 2 qualification, indicating opportunities for training and upskilling.
Gender Distribution: 56% of the workforce is female, with notable variations across sub-industries.
Wages: Average hourly wages vary by sub-industry, from £10.21 in Cleaning Activities to £14.75 in Facilities Management.
These statistics highlight the cleaning industry's significant role in the UK economy and the opportunities it offers for employment and business growth.
Source: British Cleaning Council Report
Why Starting a Cleaning Business in the UK is a Smart Move
Based on the data shared above, if you’re considering starting a cleaning business, here are a few compelling reasons why it may be a good idea for you:
Growing Market: The sector has seen a significant increase in turnover, growing by 22% from 2015 to 2019. This shows a strong and expanding market with increasing demand for cleaning services.
High Demand for Services: With 1.47 million people employed in the industry, cleaning services are essential across various sectors, including healthcare, hospitality, and commercial properties. The consistent demand means there’s a stable customer base for new businesses.
Opportunities for Small Businesses: The majority of businesses in the industry are micro-businesses. This means that there’s a big opportunity for small and new businesses to enter and succeed in the market. The low entry barriers make it feasible to start with minimal investment.
Economic Contribution: The industry's substantial contribution to the UK economy, with a turnover of £58.9 billion, highlights its importance and the potential for profitability. In other words, starting a cleaning business is commercially a viable one.
Low Start-Up Costs: Starting a cleaning business doesn’t require much capital. You won’t need a physical office, as you’ll be on the move. The major investment will be a vehicle to carry your cleaning equipment.
Flexible Working Hours: If you’re tired of the 9 to 5 schedule, starting your own cleaning business will give you more control over your time. Although you might work longer hours sometimes, you can set your own schedule and free up time for other activities.
These points illustrate the attractiveness of the cleaning industry for aspiring entrepreneurs, underscoring both financial opportunities and lifestyle benefits.
What are the different types of cleaning businesses?
When starting a cleaning business, it’s important to know the different types of services you can offer. These generally fall under three main categories, each having unique requirements in terms of equipment, contracts, and service specifics.
Residential Cleaning
Who Usually Needs This: Homeowners and Renters
General Cleaning: Routine tasks such as dusting, vacuuming, mopping, and bathroom sanitation.
Deep Cleaning: Thorough cleaning of a house sometimes including appliances, cabinets, and hard-to-reach areas.
Carpet Cleaning: Removing stains and refreshing carpets using specialised steam tools.
Window Cleaning: Washing windows from the outside and inside.
Commercial Cleaning
Who Usually Needs This: Business Owners and Facility Managers
Office Cleaning: Regular cleaning of office space, common areas, and bathroom sanitising.
Retail Cleaning: Cleaning of retail spaces such as shops and malls, focusing on high-traffic areas.
Structured Approach: Often involves detailed contracts outlining specific cleaning schedules and standards to meet health and safety regulations.
Specialised Cleaning
Who Usually Needs This: Construction Companies, Industrial Facility Managers, and Hazardous Waste Handlers
Post-Construction Cleaning: Cleaning up after building projects, removing dust and debris.
Industrial Cleaning: Cleaning factories and warehouses with heavy-duty equipment.
Hazardous Waste Cleanup: Safe handling and disposal of hazardous materials.
Understanding these differences will help you determine what services you want to offer. It will also make it easier for you to carry out your market research and build marketing campaigns that focus on the intended target audience.
How to name your cleaning business
Choosing the right name for your cleaning business in the UK is crucial for branding and online visibility. What are you going to call your business? This is an important step when you’re starting out. Keep in mind that you will also need an online presence, which means you’ll need a domain name. A good business naming practice is to make sure that the domain is available and not already in use.
You can do that by checking websites like GoDaddy to see whether your desired .com or .co.uk domain is available. Why is this important? Because when you’re considering business names, you want to stand out from the competition. Ideally, your business name and domain name should match, so you don’t lose website traffic to competitors.
Briefly, there are two ways to decide on a business name. You can either check whether the domain is unregistered, meaning no one owns it, in which case you can ‘hand register’ it for a minimal cost.
For example, I looked up letscleangloucester .com, and it appears no one has registered the domain. This means I can register it for $22 with an applicable discount. The .co.uk domain costs $12.99/year. I won’t delve into which is better, .com or .co.uk, but if you’re going to operate locally and won’t be selling products online, then a .co.uk domain might make more sense for your business.
Another way to choose a name for your business is by purchasing a domain that already exists. This option is more expensive than hand registering a domain but might be worth the investment if you have the capital.
You can do this in several ways: 1) You can negotiate buying a domain from someone who already owns it. 2) You can visit the GoDaddy expired domains auction, sift through the existing domains, find something you like, and bid on it.
I could go on and on about domain and business names, but I just wanted to give you a brief overview of the things you should consider when setting up your cleaning business.
At the end of the day, when choosing your business name, try to focus on:
Simplicity: Easy to spell and pronounce.
Memorability: Sticks in the mind, making it easy for clients to recall.
Relevance: Gives a hint of what your business does.
Uniqueness: Stands out from competitors.
Business basics: Market Research, business plan, registering a business
We’ve written extensively on this topic before, so we will limit this section to a brief overview of the different steps to keep in mind. Before that, remember that starting a new business is not a walk in the park. Many businesses shut down within the first year, and up to 60% close within the first three years. However, it’s not always doom and gloom. With the right preparation and mindset, you can avoid the common reasons new businesses fail and the mistakes they make. This will put your business in a good position to succeed and grow.
Conduct Market Research
Identify your target market (residential, commercial, specialised).
Analyse local competitors and identify gaps in the market.
Create a Business Plan
Define business goals, services, target market, and pricing strategy.
Obtain necessary licenses and permits (e.g., waste carrier license).
Essential equipment for starting a cleaning business
Starting a cleaning business requires various tools and supplies to ensure efficient and thorough service. You can find many of these items at discount stores like Home Bargains, B&M, Tesco, and Asda. Below is a categorised list of cleaning tools you may want to consider purchasing:
General Cleaning Tools
Vacuum Cleaner
Carpet Cleaner
Brooms
Mops
Buckets
Dustpan
Spray Bottles
Cleaning Cloths and Pads
Microfibre Cloths
Glass Cleaning Cloths
General-Purpose Cloths
Sponges
Cleaning Solutions and Chemicals
Glass Cleaner
Disinfectant
Floor Cleaner
Multipurpose Cleaner
Toilet Cleaner
Furniture Polish
Waste Management
Bin Bags
Safety and Protective Gear
Disposable Gloves
Personal Protective Equipment (PPE): Safety gear like masks and goggles to protect against exposure to harmful substances.
Specialised Tools
Dusters
Squeegees for wiping away water and cleaning solutions from windows and glass surfaces.
Toothbrushes for scrubbing tight and intricate spaces.
Cleaning Bucket to hold cleaning solutions and water for various tasks.
Setting your prices: How much should you price for cleaning services?
Pricing can be tricky. How much should you charge your customers? What would be a better model: charging per hour or per month based on prearranged tasks?
The common approach is to charge per hour of work. However, there are different ways to approach this issue, with some preferring to price per hour and others by month or project.
For example, in a video by Kadz, who previously had a cleaning business, he suggests that it’s better to charge per month based on the required tasks. The reason for this is that it’s often easy to underestimate the amount of time it will take to finish a cleaning project.
Irrespective of the strategy you choose, here are a few things you should keep in mind when setting your prices:
Look Up Your Competitors' Prices and Pricing Strategies:
Research your competitors to determine the market rates. Prices differ from one city to another. Example: In London, hourly rates for cleaners range from £12 to £26 per hour, while in Manchester, hourly rates range from £14 to £18 per hour.
Check how much they are charging and their pricing model (hourly, per project, monthly, etc.).
Understand their service offerings and quality to position your pricing competitively.
Estimate and Calculate Cleaning Time:
Evaluate how long it typically takes to clean different types of properties (e.g., one-bedroom apartments vs. three-bedroom houses).
Conduct initial assessments or offer consultations to give accurate time estimates. When you’re starting out, it might even be a good idea to offer free consultations to acquire new customers.
Use this information to inform your pricing, ensuring it reflects the effort required.
Estimate Your Costs:
Fixed Costs: These are costs that remain constant regardless of the number of clients, such as rent for office space (if any), insurance, business licenses, and administrative costs.
Variable Costs: These costs vary with the number of clients or jobs, such as cleaning supplies, transportation, and labour.
Add Overhead Costs:
Overhead costs typically include expenses like marketing, administrative salaries, office supplies, and other operational costs.
It's common to add a percentage (usually 20-25%) to your pricing to cover these additional expenses.
Offer Discounts for Referrals and First-Time Clients:
Providing a discount to first-time clients can encourage them to try your service.
Referral discounts can incentivise your current clients to bring in new business, helping you grow your client base.
Example Calculation:
Research Competitor Pricing:
Competitors charge between £12 and £26 per hour.
Estimate Cleaning Time:
Average time to clean a two-bedroom house is 3 hours.
Securing the appropriate insurance is crucial for protecting your cleaning business against various risks. Here’s a summary of the essential and additional insurance types you need, along with tips on finding the right policy:
Essential Insurance Coverage
Public Liability Insurance:
Protects against claims from third parties for injuries or property damage caused by your work.
Examples include slips, trips, or damage from cleaning products.
Employers’ Liability Insurance:
Mandatory if you have employees, including volunteers or seasonal staff.
Covers claims from employees who are injured or become ill due to their work.
The minimum required coverage is £5 million, and failure to have this insurance can result in fines of £2,500 per day.
Additional Useful Insurance
Professional Indemnity Insurance:
Covers claims related to professional mistakes, unpaid bills, defamation, and loss of data.
Useful for protecting against dissatisfied clients or errors that need correction.
Van Insurance:
Essential if you use a vehicle for your business.
Policies may cover the vehicle and its contents, including professional and personal items, against theft and damage.
Specialist Insurance:
Needed for high-risk tasks such as high-rise window cleaning or handling valuable items.
Covers accidental damage, theft of equipment, liability issues, and worker injuries.
Important Considerations
Domestic vs. Commercial Insurance:
Commercial insurance generally provides higher coverage due to increased risks.
Ensure your policy matches the scale and nature of your operations.
Specialised Coverage:
For example, coverage for lost keys if employees carry keys for property access.
Fidelity insurance to protect against potential dishonesty from employees.
Finding the Right Policy
Shop Around:
Compare policies from different insurers to find the best coverage for your needs.
Understand the limits and exclusions, especially for high-risk work like cleaning at heights or handling hazardous materials.
Evaluate Your Needs:
Assess your business's specific risks, the number of employees, and your turnover to determine the required coverage level.
For more detailed information on business insurance requirements and finding the right policy, you can refer to the following links: Small Business, Companies House.
Legal requirements for UK cleaning businesses
Running a cleaning business in the UK involves adhering to several important legal requirements to ensure safety and compliance. This article by High Speed Training provides detailed information on what to keep in mind when starting a cleaning business.
Here’s a simplified breakdown of what you need to know:
Health and Safety
Health and Safety at Work Act 1974: If you have employees, ensure their safety and well-being. Conduct risk assessments and provide necessary protective equipment.
COSHH (Control of Substances Hazardous to Health) Regulations: Manage and safely handle cleaning chemicals. When applicable, train the staff on proper usage and storage.
Incident Reporting
RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013): Report serious workplace incidents and keep detailed records.
Waste Management
Properly separate and dispose of waste, especially hazardous materials. Use licensed waste carriers and maintain accurate records.
Hire and Train Employees
Follow minimum wage laws, working time regulations, and employee rights.
Recruit reliable and trustworthy staff.
Provide training on cleaning techniques and safety protocols.
Additional Resources
For more detailed and accurate information, it’s advisable to consult with a professional or use the resources provided by Companies House. This will help your cleaning business operate safely, ethically, and legally, helping to build a trustworthy and professional reputation.
Scaling your business
If you are thinking about scaling your cleaning business, here are a few points to consider:
Service Expansion: Offer new services based on demand.
Advanced Equipment: Invest in equipment for specialised services.
Growth Strategies: Consider franchising or opening additional locations.
Conclusion
If you’re contemplating starting a new venture, whether to break away from a traditional 9 to 5 job, gain more freedom, or simply seek an exciting new challenge, it’s well worth exploring the idea of launching a cleaning business.
This industry offers opportunities in residential cleaning, commercial janitorial services, and specialised cleaning such as carpet or window cleaning. With the right planning and strategies, entrepreneurs can tap into a market characterised by consistent demand and significant growth potential.
To summarise, the key steps to starting a cleaning business include conducting thorough market research, creating a detailed business plan, choosing the right business structure, and registering your business with the necessary authorities. Additionally, securing the right equipment, setting competitive prices, and implementing effective marketing strategies are essential for success.
Starting your own cleaning business can be an exciting and rewarding venture. Don’t be overwhelmed by the information; take it step by step. Remember, proper planning and execution are key to establishing a successful business.
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If you have any questions, please don’t hesitate to reach out to us. We’ll be happy to answer your inquiries.
