Start a cleaning business in Colorado. Homeowners pay an average of $170 to get their house cleaned in Colorado. imagine if you cleaned 2 houses a day that would be an average of $340 a day and $1,700 a week!
The majority of cleaning companies are made up of small businesses. There can be little start up cost involved and as you grow your cleaning business, you can add on the fancy tools.
How to start a Cleaning Business in Colorado
This guide includes resources for starting a cleaning business in Colorado. Visit the states Business Organizations page to learn more about running a business in Colorado.
Decide what type of cleaning service you will offer
There are many different types of cleaning business you can start in Colorado.
- Recurring House Cleaning
- Rental Cleaning
- Hotel Cleaning
- Foreclosure cleaning
- Office cleaning
- Move out cleaning service
- Restaurant Cleaning
Choose a name for your cleaning business
When choosing a name, you will want to consider SEO (search engine optimization, how new clients will find you on the internet) and the name should represent what your business does. This way when some one hears your business’s name, they know your are in the business of cleaning houses.
To brainstorm a name for your cleaning business, start with the words Maid, Cleaning and Service. Put these words at the top of a sheet of paper.
Then start writing as many adjectives and adverbs that match your company. This will help you to create a list of possible business names for you to choose from.
Once you choose a name you will need to verify, no other businesses are registered with the same name in Colorado. You can do a Business Name search here to verify your business name is available in Colorado.
Choose a Business Structure for your Cleaning Business
Before registering your new cleaning business, you will need to know the legal structure for your business.
This structure will determine how your cleaning business will file its tax returns and how you as the owner will be taxed on your earnings as well.
It’s extremely important that you become familiar with and understand the different structures and how taxes are paid and filed with each. When choosing your business structure, consult with your tax professional. They can also help you file all the necessary paperwork.
The different structures include sole-proprietor, partnership, corporation, s-corporation or limited liability corporation. You can learn more about each business structure here.
Apply for an EIN (Employer Identification Number)
Getting an EIN for your cleaning business is a must if you will be hiring employees.
If you will be operating as a sole-proprietor and not hiring employees, you may be able to use your personal social security number when filing taxes and such for your business. But it is always best to talk to your tax professional to see which you will need.
To apply for an EIN you will file a SS-4 with the IRS. It is free and you can do so on the IRS website. If you file online you will get your number right away.
You can also apply by snail mail, but it will take much longer to get your number. Read more about your filing options on the IRS website.
File your cleaning business with the state of Colorado
The state of Colorado requires that all businesses register at Coloradosos.gov.
If you are forming a Corporation you will file an Articles of Incorporation with the state. The fee to file is $50.00. For instructions on filing an Articles of Incorporation visit .
To file a Limited Liability Company in Colorado you will file an Articles of Organization. Click here to get a checklist to use when filing an LLC in Colorado. The fee to file an Articles of Organization in Colorado is $50.00.
If you are not ready to file as a Corporation or an LLC, you are able to operate as a sole-proprietor. To file your cleaning business in Colorado as a sole-proprietor you only need to file a trade name on the Departments Website. The Fee to file a trade name in Colorado is only $20.00.
The State of Colorado offers a training that walks you through the process of registering your house cleaning business with the state. The training is called Starting a Business in Colorado.
Business licensing needs in Colorado
At the time this article was written, Colorado does not have state business licenses. Licenses are applied for at local municipalities.
I recommend checking with the states licensing need when registering a new business.
Get Business Insurance
Insurance protects you and your business’s assets, or money in the event of a accident or other unplanned event.
Types of insurance your cleaning business may need include liability insurance, bonding insurance and commercial car insurance.
The easiest way to shop for business insurance is to start with an insurance broker and they will do the shopping around for you to find the best deal.
This article goes more in depth on what types of insurance are best for cleaning businesses along with some FAQ’s.
Additional Resources to start a cleaning business in Colorado
The Colorado Chamber of Commerce has lots of resources for small businesses in Colorado. They offer online training, new and existing business counseling, as well as business training and events.
The Colorado Small Business Development Center is a not for profit organization who offers free business consulting and low cost trainings for small business owners. Their mission is to help small businesses grow and prosper in Colorado.
Next Steps to start your cleaning business.
Now that you have taken care of the boring (but oh so necessary) legal steps to getting your cleaning business official, you can now start with the Cleaning!
Below are resources on how to operate a cleaning business successfully.
Purchase cleaning supplies and equipment
Now that you have started your cleaning business in Colorado, you’ll need to get supplies to start cleaning your first client homes. I have that taken care of for you.
Visit my page to get a complete list of cleaning supplies and equipment needed to run a Professional Cleaning Business.
If you have the money, I recommend investing in a good quality vacuum. If you need help purchasing a vacuum visit my page on purchasing a vacuum for your cleaning business
Marketing your cleaning service
You can’t start cleaning houses if you don’t tell people you have a cleaning business.
Your first step to marketing will be to tell all your friends, family and contacts that you have started a house cleaning business and you are currently taken new clients. If you don’t let everyone know, then they won’t be able to refer you to their friends.
Next get your business online. Most homeowners now search for services online before hiring a business. Make sure your business is visible online when a homeowner searches for cleaning services in your area.
Claim your My Business google profile. By claiming your My Business google profile your business will show up in searches when someone searches Cleaning Businesses in Town Name.
When setting up your Google Profile, make sure to add your contact information, a list of your services, and a an about me page where you introduce yourself. Include high quality before and after images of your cleaning.
Activate a Facebook Business Profile. Complete your profile completely including contact information, pictures of yourself and pictures of cleaning you’ve completed.
Price your cleaning services
Decide whether you are going to price your cleaning services by the hour or by a flat fee. Most cleaning businesses make between $25 – $75 an hour.
Charging by the hour for house cleaning services:
It is best to charge by the hour when you are offering services that will take longer to complete and when the tasks can vary each time you clean a house. When your cleaning times vary it becomes much more difficult to charge a flat fee per clean.
It is best to charge by the hour if you plan to offer the following tasks similar to the following:
- picking up clutter/toys
- organizing spaces
- personalizing cleaning service to each client
Charging a Flat Fee
Charging a flat fee is the best way to streamline your business and start building more profits. But a HUGE disclaimer: Only charge a flat fee if you are completing the same cleaning service for each client.
This means you define the checklist and tasks that you will complete at the home. If you do not follow the same cleaning checklist for each client and each time you clean, DO NOT charge a flat fee to clean.
Check out the following articles for more information on Pricing Cleaning service:
- How to get paid for Cleaning Services (including how to collect electronic payments)
- Pricing Guide for Cleaning Services
- How to provide a quote for cleaning services
- How to talk cleaning fees with clients (and charge what you are worth).
If you plan to hire employees you will need to make sure you have filed for an EIN (Review step #4) and have proper insurance (Review step #7).
You will also want to have a training plan in place. In my experience it is best to have a 3 step training plan in place.
- Have your new employee read through or watch a video that you have put together on how to clean your way.
- Next, have the new employee follow you while you clean. Talk through all the steps they should be taking for each task and room in a home.
- Now, you shadow the new employee for a few houses. It is important to correct a any movements that do not fit into your cleaning strategy. For this step you are helping your new employee to develop the same habits to clean a home your way.
Well Kept Clutter helps aspiring entrepreneurs to start their own cleaning business and start making money right away.
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Get additional resources for your cleaning business from Well Kept Clutter
- Professional Cleaners cleaning guide to providing top notch cleaning service and customer service
- Ready to Print New Client Forms
- Marketing Power Pack, with 35 Marketing Idea’s
- Client Email communication templates