Basic Start-Up Costs: How Much Does it Cost to Start a Business?

You constantly ask yourself – how much does it cost to start a business? Costs of starting a cleaning business is generally affordable especially if you work within your budget and purchase items only as needed. You can opt to finance and grow your business as you get more clients.

Life of a Cleaning Business Startup

On average, you will need no more than $1,000 – $2,000 to be a business owner. In the beginning, you may also prefer to do most of the work to avoid or reduce salary expenses. The challenging part is getting an initial client base. To do so, you can try reaching out to friends and small business owners and offer your services. As with any business owner who is starting out, perseverance and hard work is crucial especially in the early stages. Also, check out your local government to see if you can get a small business loan.

Register your cleaning business

The cost of registering your cleaning business startup depends on the type of business you want. The Sole Proprietorship is the least expensive business type to register for with costs anywhere between $30 – $60 at your local County Clerks Office. A Limited Liability Company (LLC) is slightly more expensive with costs ranging from $100 – $500.

Open a bank account

You will need to open a checking account for your business after you register your business name. Banks generally require a deposit of $100 although this money is yours so it is not really an expense.

Get insurance

The third step after registering your business and opening a checking account is to look into getting liability insurance. This type of insurance will cost roughly $500 – $2,000 per year. Depending on which state you live in, you can pay your insurance bills monthly which means you do not need to shell out the entire amount at the start of the year. As your business grows and you hire a cleaning staff, you may need to get workers comp coverage as well.

Purchase cleaning tools and products

If you are starting a small household cleaning business, you may find some items you need from your home. You can then supplement with other chemicals and supplies from a nearby store. The amount of supplies you need will depend on the cleaning services you offer therefore your cost will vary.

In general, you will need basic cleaning supplies and tools such as sponge, disinfectant, paper towels, and mops. There will be a few more expensive items in your inventory such as a vacuum cleaner. However all in all, $300 – $500 should be enough to get you started.

Note that you do not need to buy all the tools and products you need before signing up your first clients. You can make these purchases in almost real-time. The only downside is that items are cheaper if you buy in bulk but you can do this once you gain a regular and loyal set of clients.

Develop business and promotional materials

Consider having business cards and flyers printed out. Whenever a client asks you for a business card, it shows professionalism if you have these on hand. Business cards typically cost $50 to get a couple of thousand printed out. If you employ staff for your cleaning business, you may also want to consider wearing uniformed shirts or aprons with your business name and logo which will cost around $100 – 200.

As you see, starting a cleaning business requires a fairly low investment. However, be prepared to wait for 3 – 6 months before you start to become profitable. If you can, keep your day job and be financially conservative so that you can better sustain the business and weather growth challenges. That’s the secret to understanding how much does it cost to start a business. Remember that cost is only one part of the equation.  Review how to increase your revenue by reviewing Part 1 and Part2 for how to price your services!

Are you a cleaning business startup? Tell us how much it costs for you below!

About Cathy Sanders

Cleaning Business Now is my life, my passion, and where my heart is. Help me help others start, run, and grow their profitable cleaning/janitorial businesses!
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