How to Start a Cleaning Business in the UK

Starting a business is a major step in your life.

 You're leaving the traditional workforce and going out on “your own.” If you have always dreamed of owning a business, starting a cleaning service is a smart choice.

In fact, cleaning is one of the largest industries in the country, contributing £24 billion to the economy annually.

But at ActionCOACH, we know how big of a step it is to become a business owner.

Starting is the hardest part of the process, and we’ll walk you through the steps that you need to take and questions to ask before starting your business.

How to Start a Cleaning Business in the UK

You want to enter a market that you want to work in each day. Some owners want to meet with customers and go to their homes. You’ll forge lasting relationships with these clients, but you can also venture into the lucrative commercial cleaning niche.

Before doing anything else, you need to determine whether you want to offer:

• Residential cleaning services
• Commercial cleaning services

What is Commercial Cleaning?

If you choose to be a commercial cleaner, you’ll contract with other companies to clean their facilities.  Your clientele might include banks, schools, supermarkets, hospitals – any commercial entity. Cleaning takes place during non-peak hours, and you may need:

• Multiple employees
• Special cleaning supplies
• Safety equipment

Commercial cleaning companies are contract-based, and while you can often charge more than residential cleaning, you’re committed to your contractual terms and may have to meet higher safety standards. 

What is Residential Cleaning?

A residential cleaner will clean a person’s home, which can be an elderly person who needs a little extra help around the house or a busy executive. Interactions are often more frequent, and you may need to offer:

• Home cleaning
• Floor cleaning
• Laundry services

Often, starting a residential cleaning company is less expensive. You can be a hands-on owner until you reach profitability and can hire staff.

Learning how to start a commercial cleaning business in the UK is the easy part. The bigger question is: will there be enough demand in your area? What about competition?

Research the Market and Competition

Cleaning businesses are a popular, low-cost option for aspiring new business owners, and you need to conduct market research to:

• Identify main competitors in your area
• Learn if there’s demand for your services
• Understand going prices for your area

Residential cleaners charge hourly rates, so it’s easier to pinpoint how much you can charge for your services compared to commercial cleaners, which have private contracts.

Commercial cleaning is also highly competitive, so you may find that focusing on services for small offices is the best way for you to capture market share.

If there’s a market for your services, you then need to determine whether a franchise is an option for you or not.

Create a Business Plan

Business plans offer you a roadmap to success, but they are tedious to create. You’ll need to define your:

• Services
• Target market
• Pricing
• Goals and KPIs 
• Projections
• Costs and capital necessary to start

Cleaning businesses must register with the HMRC and choose an entity type. What entity is best for you? If you’re a one-person business, operating as a sole trader is a no-cost option, but you’re liable for all debts.

A limited company comes with more regulations and legal requirements, but if the business fails, your personal assets are shielded.

Of course, if you have a business partner, a partnership may be an option to consider. You'll need to consider the pros and cons of each entity type before registering and acquiring your licensing and insurance.

Acquire the Necessary Licensing and Insurance

Generally, you do not need a business license to start a cleaning business in the UK. However, there are exceptions. For example, you will need a waste carrier’s license if you will be handling and disposing of hazardous waste. 

Once you have a business plan and a list of clearly defined services, you can begin researching potential license requirements for your specific area.

Next, consider your insurance options. Although it will add to your expenses, insurance will protect your business, employees and customers.

Several types of coverage may benefit your business, including:

• Public liability insurance
• Professional indemnity insurance
• Motor insurance (if you plan to use a van for your business)

If you plan to hire employees, you will also need employer’s liability insurance. This obligatory insurance will cover the cost of compensating employees who are injured or become ill on the job.

Develop a Marketing Plan

Once your cleaning business is up and running, how will you find customers? At the start, referrals and personal recommendations will likely be your best form of marketing.

Prioritising punctuality, quality service and professionalism can help you start building a positive reputation from the start. Delivering a great customer experience will encourage clients to recommend your services to friends and family. 

To increase referrals from clients, consider offering a discount on the first month of service.

To further improve your marketing, consider advertising online and offline via flyers, on social media channels and with a website. 

Hire and Train Staff 

Initially, you may plan to operate on your own, but eventually, you will need to hire staff. Hiring staff will allow you to grow your business and serve more customers. 

Keep in mind that you can always start with just a few part-time or full-time employees and gradually build your team over time.

But once you start hiring, you’ll need to ensure that you:

• Have employers’ liability insurance
• Have a health and safety policy that explains how your business will manage the health and safety of staff, and who is responsible for related tasks (risk assessments, training, etc.).
• Register with HMRC as an employer
• Implement a payroll system to collect national insurance and taxes for employees

Businesses with five or more employees must have a written health and safety policy. If you’re not sure where to start, HSE has a helpful example and template you can use.

Ensure that you understand your obligations and responsibilities as an employer before you start hiring. 

Jumpstart Your Success with the Guidance of a Business Coach

Launching a business is one thing. Growing it is another. 

It all starts with a solid business plan and a vision, but if you want to reach your goals and grow your operations, you can benefit from the help of an expert advisor who can help you:

• Build a solid foundation for growth
• Recruit, train and onboard staff
• Implement systems to streamline tasks

At ActionCOACH, we help entrepreneurs transform their businesses with confidence. Find out more by speaking to one of our advisors today or visit our learning center for more free business advice.