How to start a cleaning business in Ontario

Whether it’s cleaning homes, offices, or special jobs, there are many opportunities for people who want to start their own cleaning business in Ontario. Plus, with benefits like low startup costs, flexible hours, and the potential to earn a profit, the cleaning industry is becoming a very appealing option for many entrepreneurs in Canada. However, like any new business, starting a cleaning business requires lots of research, planning, and effort. Here are nine steps to help you start a cleaning business in Ontario.

1. Start by researching the market

Starting a cleaning business requires careful planning and an understanding of your market. Research other cleaning companies in your area to see what services they offer and identify any gaps that your business could fill. Read their reviews on Google, Facebook, and other social media platforms, and take notes of what people liked and didn’t like about their cleaning services. This research can help you define your business goals and structure and determine what you want your cleaning company to be known for.

2. Decide which types of cleaning services you’ll offer

After doing your market research, choose a specific cleaning service to focus on. This choice will help you figure out what licenses, equipment, and tools you need, what insurance to get, and any training required. Maybe you want to start with a residential cleaning business or jump right into a cleaning service specialty. A cleaning business can provide a range of services for clients. Here are a few of the many types of cleaning services you could offer:

Residential cleaning services

Residential cleaning services involve professionally cleaning houses, condos, apartments, and other homes. The tasks you do each day will depend on what the homeowners or renters need. The most common types of residential cleaning services are:

Basic home cleans

A basic home clean is a general cleaning of the house. It typically includes things like:

• Sweeping and mopping the floors
• Vacuuming carpets
• Dusting
• Wiping down countertops
• Washing dishes
• Cleaning bathrooms

Deep cleans

A deep clean is a more comprehensive clean that generally includes a basic clean as well as cleaning additional areas, like:

• Washing the walls, windows, cabinets, baseboards, ceiling fan blades
• Vacuuming the upholstery
• Polishing wood
• Cleaning appliances, like the oven and the fridge

Commercial cleaning services

Commercial cleaning services are for places like:

• Businesses
• Offices
• Schools
• Restaurants
• Industrial buildings

With commercial cleaning services, cleaning tasks will vary based on each client’s needs.

Laundry cleaning services

There are a few different ways to offer laundry cleaning services. Here are three examples:

1. Offering additional laundry services as part of their residential cleaning, such as washing and folding laundry while doing basic home cleaning.
2. Small laundry business owners can pick up laundry from their customers, wash and fold it either at their own home or at a laundromat and return it when finished.
3. Business owners can open their own laundromats and offer laundry services, where customers can drop off their laundry and pick it up when it’s finished.

Janitorial and sanitation services

Janitorial and sanitation specialists provide cleaning services to keep workplaces clean and sanitary. This includes daily cleaning, deep cleaning, sanitizing, and special event cleanup of areas, including:

• Floors and carpets
• Restrooms, offices and break rooms
• Windows and doors
• HVAC systems
• Surface disinfection
• Waste removal

Post-construction cleaning services

Post-construction cleaning services involve cleaning up after renovations and building projects. This service removes dust, debris, and construction leftovers to make the space safe and clean for workers and visitors. These types of services often include things like:

• Removing and cleaning dust, dirt, and debris
• Cleaning and sanitizing bathrooms and kitchens
• Cleaning out vents and ductwork
• Cleaning walls and ceilings
• Washing, polishing, and finishing floors
• Vacuuming carpets
• Waste removal

Disaster and emergency cleaning services

Working in the disaster and emergency cleaning services industry requires you to have special skills for dealing with smoke, water, fire damage, and mould removal. Disaster and emergency cleaning companies offer various types of disaster cleaning services, such as:

• Flood and water damage restoration
• Fire damage
• Mould damage and remediation
• Odour removal
• Vandalism damage
• Damage due to natural disasters

3. Put together a business plan

To help you start a cleaning business, you may want to develop a business plan. A business plan is a document that outlines your company’s goals, how to achieve them, and the timeline for doing so. It typically includes your market analysis, financial projections, and the company’s structure. Basically, this plan outlines your business idea, your short—and long-term goals, and the resources you’ll use to start and run a profitable cleaning business. A good business plan will help you:

• Define your strategy
• Spot potential problems
• Identify any needed resources
• Assess if your idea and growth plan are viable

While not every successful cleaning business starts with a formal plan, many entrepreneurs find it useful to take time to research their idea and market, understand the scope, and develop a solid strategy.

4. Business license, registration, and necessary certificates

Now that you have your business plan established, you’ll need to get your business license and register your business. You’ll also want to look into getting any certifications that can benefit your business. Below, we will explore various licenses, registrations, and certificates to help you get equipped to start a cleaning business:

Business license

In Ontario, businesses need licenses to ensure compliance with regulations and protect consumers. Most businesses need a municipal business license, which varies by municipality. Check with your local municipality to get the correct license.

You will typically need to provide your contact details and basic business information. Depending on the application, you might also need to confirm if you or any business partners have been charged with a crime and if you have the proper insurance.

Business registration

Some people opt to use their name as their business name, while others wish to have a unique cleaning business name that helps them stand out. Either way, you’ll need to register your business using the Ontario Business Registry if your business has employees, facilities, or offices in Ontario.

To register your own cleaning business name, you need to research other cleaning businesses to ensure your name is unique and not already in use. You can do so on the Ontario Business Registry website.

Once you have a unique name, you’ll need to choose a business structure, such as a sole proprietorship or a general partnership. Then, you’ll create a My Ontario Account and a ServiceOntario Account so you can fill out the business registration form.

Certifications

Now that your business is registered, do some research into the types of certifications that can benefit you and your business. If you’re just planning to focus on basic home cleaning, you may not need any.

However, if you’re planning to specialize, like in carpet cleaning, or to focus on other types of cleaning services, such as having a commercial cleaning business or offering janitorial services, acquiring extra training to learn about proper handling of chemical cleaning supplies, wearing proper safety gear, and properly disinfecting areas can really help your business. Plus, you can let your customers know that you’ve had formal training, which can certainly give you a leg up in this competitive cleaning industry.

Here’s an example: ISSA Canada offers a Custodial Technician Certification, which is designed for frontline custodians, building service contractors, and businesses cleaning in educational facilities, government facilities, and health care. They also offer specialty training programs for carpet care specialists and floor care specialists.

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5. Open a business bank account

You’ll want to open a separate bank account strictly for your cleaning business to keep your transactions organized and separate from your personal finances. After opening a business bank account, you can manage your cash flow and budget for your business expenses, as well as any employee paycheques. Additionally, having a business bank account can help if you need to apply for a loan or financing to start your business.

Next, create a budget for expenses like gas, cleaning supplies, equipment, marketing, and other overhead costs. Try to stick to this budget each month. Keeping detailed records of all your income and expenses will help you report accurately when it comes time to file your business taxes with the Canada Revenue Agency (CRA).

6. Figure out how to price your services

Choosing a pricing strategy for your cleaning business is crucial for having a profitable cleaning business. After all, your prices need to keep you competitive and help you make a profit.

Start by researching local cleaning service rates to see what homeowners are willing to pay. You can even use social media, such as local Facebook groups, to see if posts are already asking about cleaning companies and prices.

Then, decide if you want to charge an hourly rate, a flat rate, a room rate, or based on the size of the area to be cleaned. Remember to set your prices based on your expertise and the quality of your cleaning. For example, cleaning businesses sometimes charge higher rates for deep cleaning than for basic home cleaning. When pricing your cleaning services, consider the following factors:

• The size of the area to be cleaned
• How often the service is needed (daily, weekly, bi-weekly, monthly)
• If you’re using your own cleaning products/tools or if the customer is providing their own
• Whether the customer asks for extra services or has special requests

7. Consider cleaning business insurance

Cleaning business insurance is essential to protect your business and future employees. Without proper insurance, your cleaning business faces high risks. Accidents can happen while cleaning commercial spaces or homes, such as spills, falls, or breaking items. As a new business owner, you don’t want to accidentally damage a client’s property and have no insurance to cover the costs. This could put you in debt if you have to pay for the damage yourself.

As a business owner, you’ll need to work hard to avoid several risks every day. Having the right insurance policy for your business can not only provide financial security to help your business survive, but it also counts as a type of risk management to help you prepare should accidents or injuries occur while on the job. Typically, business insurance in Ontario for cleaning companies includes an assortment of the following types of coverage:

Commercial general liability insurance

Business liability insurance, also known as commercial general liability (CGL) insurance or third-party liability insurance, protects you financially in case of a lawsuit. It covers legal costs and claims from third parties for bodily injuries and property damage.

This includes protection against property damage and personal and advertising injuries like slander, libel, or copyright infringement. It also covers medical expenses for injuries on your premises and legal costs for any claims.

Commercial property insurance

Commercial property insurance protects a company’s physical assets. It gives financial protection if your business property is damaged, destroyed, or lost, covering buildings, machinery, stock, furnishings, and fixtures.

This insurance typically covers fire, vandalism, theft, severe weather, and other specified risks. It helps businesses recover from property-related incidents by covering the costs of repairs, replacements, or reconstruction.

Business interruption coverage

Business interruption coverage financially protects businesses if they have to temporarily stop operations due to a covered event. It helps cover lost income and ongoing costs like rent, utilities, and payroll during the interruption.

This coverage helps businesses recover lost income and manage expenses so they can resume operations smoothly after the issue is resolved. Business interruption coverage is usually an add-on, and coverage details can vary depending on the policy and insurer.

Commercial auto insurance

Commercial auto insurance protects vehicles used for business. It’s important for companies of all sizes and industries, whether you have one car or a fleet. This insurance covers cars, trucks, vans, and specialized vehicles used for business activities. It ensures you have coverage for accidents, damage, or liability claims, whether your business vehicles are used for moving goods, making deliveries, or providing services.

Home business insurance

Home business insurance is important for people who run businesses from their homes or work from home regularly. Regular homeowners’ insurance usually doesn’t cover losses or damages from business activities, putting you at risk.

Without home business insurance, you would be personally responsible for any harm caused by your home business. Getting home business insurance protects you from financial strain, allowing you to focus on running your business without worrying about the cost of potential accidents.

Professional liability insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects professionals from financial harm due to claims of negligence, mistakes, or oversights in their services or advice. It covers legal defence, settlements, and judgments if a client claims financial loss or damages because of a professional’s mistake, oversight, or failure to perform their duties properly.

Cyber liability insurance

There are two types of cyber insurance: first-party and third-party protection. First-party coverage, also known as cyber liability protection, helps your company if there’s a security breach. It protects sensitive information like SINs, credit card numbers, medical records, and other company data. It can also help with data recovery in a ransomware attack.

Third-party coverage is for companies that handle consumer information privacy. If a customer experiences a data breach or online attack, this policy can help cover legal costs for settling claims.

Tools and equipment coverage

Tools and equipment coverage is a type of property coverage that protects the portable tools and equipment needed for house cleaners to do their jobs, including tools like vacuums, steam cleaners, floor waxers, upholstery cleaners, and more. This insurance can pay to repair or replace tools if they are lost, damaged, or stolen. It covers events like vandalism, theft, fire, or flood damage. Note: Items under $1,500 are considered tools, while anything over $1,500 is considered equipment.

Equipment breakdown coverage

Equipment breakdown insurance provides coverage that standard property insurance often doesn’t include, such as internal equipment failures. It covers issues like mechanical malfunctions, electrical wiring problems, motor burnout, and similar events. This insurance helps companies handle the financial impact of equipment failures, reduces interruptions, and ensures smooth operations.

8. Start buying your cleaning equipment

Typically, starting a business can be expensive. But as we mentioned, starting a cleaning company is more affordable thanks to its low start-up costs. It only requires basic supplies at the beginning.

To get started, you will only need essential cleaning supplies. As your business grows, you can invest in more equipment. Here are some common examples of cleaning equipment you’ll need to purchase before you start:

• Broom and dustpan
• Mop and bucket
• Vacuum
• Gloves
• Sponges
• Cleaning towels or rags
• Garbage bags
• Duster
• Disinfectant sprays
• All-purpose cleaners
• Bathroom cleaners

9. Market your business

A strong marketing strategy is key to finding customers and launching your cleaning business. Start by building a strong business brand. Everything should look professional, from your logo and signage to uniforms and online presence. A strong brand helps you gain trust with new clients. Once you’ve built a strong brand, here are some ways to start promoting your new business:

Friends and family

Tell your family and friends about your new cleaning business and get them as your first clients. Ask them to help spread the word, either through word of mouth or their social media.

Social media platforms

Using social media can be a great way to advertise your cleaning business. Platforms like instagram and tiktok are perfect for showing your skills, work quality, and expertise. Creating a Facebook business page and joining local Facebook groups is another effective way to promote your cleaning services.

Google

Create a free Business Profile with Google. Here, you can add your:

• Contact information
• Photos
• A service description
• Reviews from completed jobs
• A website link
• Social media links

As you get more clients, you can update your listing with new photos, respond to reviews, and attract more customers to your cleaning business.

Referral program

Referral programs can encourage customers to recommend your business to others, and you can thank them for the referral with things like a discount on their next clean.

Signs and decals

If you have a vehicle, add decals or a wrap to turn it into a moving billboard. It’s a cheap way to advertise your business as you drive around. By displaying your business name and contact information on your car or truck, you can create interest in your services all over town.

Get a business insurance quote from BrokerLink

Are you starting a cleaning business in Ontario and needing business insurance? Look no further than BrokerLink. Since 1991, the BrokerLink team has been dedicated to finding insurance policies that meet the needs and budgets of our customers. We are experts in all things insurance and can ensure you receive the most competitive rate on your policy.

You can reach us by phone, email, or in person at any one of our locations throughout Ontario. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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FAQs for how to start a cleaning business in Ontario

Do you need a license to start a cleaning business in Ontario?

Yes. In Ontario, you need a business license to start a cleaning business and you must register it through the Ontario Business Registry. Check with your local municipality for the specific requirements.

Is starting a cleaning business worth it in Canada?

Absolutely. Starting a cleaning business in Canada can be very profitable. The cleaning industry is ever-growing, and there is a high demand for cleaning services.

What is the best type of cleaning business to start?

The best type of cleaning business to start depends on your interests and market demand. Common options include residential cleaning, commercial cleaning, and specialized cleaning services like post-construction or carpet cleaning.

How do I get customers to start a cleaning business?

To get customers, promote your business through social media, create a professional website, use referrals from friends and family, and consider advertising in local areas. Offering high-quality services and asking satisfied clients for referrals can also help.

If you have any questions, contact one of our local branches.