How to Start a Cleaning Business – From Side Hustle to Full-Time Business

📌 Recap: How Anna Started Her Cleaning Business

 

In Part 1, we followed Anna’s transformation from a McDonald’s cashier to a cleaning business owner. She started with no money, no experience, and no equipment—just determination. By using clients’ cleaning supplies and keeping costs low, she landed her first few clients and started making $2,000/month.

But the reality of running a business quickly hit her. Business expenses, taxes, and lack of planning made her realize she needed more clients, more money, and better systems to survive. 

What This Blog is About: Growing & Scaling Up a cleaning business.

 

Now that Anna has quit her 9-5 job, she has full-time hours to dedicate to her business. But that comes with new challenges:
✔️ How does she get more clients?
✔️ What happens when she’s overworked with too many bookings?
✔️ When is the right time to hire employees?
✔️ Should she switch from a sole proprietorship to an LLC?

In this blog, we’ll follow Anna’s next steps as she:
✅ Uses marketing & referrals to grow her client base.
✅ Works 60+ hours per week and starts burning out.
✅ Realizes she needs to hire help with her cleaning business to keep up with demand.
✅ Registers an LLC & chooses a company name to become a real cleaning business.

By the end of this article, you’ll learn exactly how to grow your cleaning business, how to get steady customers for your home cleaning business, and start to hire employees and start building a team.

How do I start marketing a cleaning business

 

First, Anna worked with her website designer to build a clean and professional site that showcased her cleaning services, pricing, and customer testimonials—essentially, a digital business card. She gathered customer reviews to boost credibility, and one satisfied client even allowed her to take before-and-after cleaning photos, making the website even more convincing.

Next, she set up Google My Business on her home address since she didn’t yet have a commercial location. She asked every past and current client to leave a Google review, which quickly increased her credibility and helped her rank higher in local search results for people looking for cleaning services in [city].

Then, Anna launched social media pages on Facebook and Instagram. She regularly posted before-and-after cleaning transformations, shared home cleaning tips, and engaged with potential customers. She also followed as many local users as possible—sometimes even getting temporarily blocked by Instagram! But over time, her follower count grew, and people slowly started reaching out for cleaning services or asking what the price of a cleaning service was..

Finally, she ordered business cards and discount flyers. Instead of handing them out randomly, she created a targeted distribution strategy. For her small business marketing strategy, this would be how she would get the most new customers for her cleaning services.

Anna’s referral program worked like this:

✔ Existing customers who referred new monthly clients earned 2 free hours of cleaning ($60 value).

✔ New customers received a 25% discount on their first month and could later join the referral program.

✔ This strategy helped Anna grow her client base without losing revenue, as referrals are one of the best ways to attract new clients in service-based businesses.

Once the flyers were printed, Anna set a clear goal: distribute 100 flyers per day in neighborhoods where she already had satisfied customers. She knew that trust played a big role in winning new clients, so mentioning her existing customers in the area would make her pitch stronger.

She prepared for rejection but stayed confident—knowing that every ‘no’ brought her closer to a ‘yes.’

To maximize her time, she estimated that each flyer drop would take around 2.5 minutes on average, including quick conversations with homeowners when possible. This meant she would be delivering flyers for about 4 hours a day. But she didn’t mind—she had the time, and every conversation was an opportunity. She did it after dinner hours, when most people were home.

Instead of just handing out flyers and walking away, Anna focused on making a strong first impression. She made sure to: 

✔️ Smile & maintain eye contact – Confidence helps build trust.
✔️ Use a friendly, non-pushy approach – “I already have satisfied clients in this area!” made her pitch stronger.
✔️ Leave flyers in visible spots – Even if someone wasn’t interested at the moment, they might pick it up later when they needed help.

There were three types of interactions.

Anna knocked on doors in neighborhoods where she already had satisfied clients. She had three types of conversations:

1️⃣ The Quick Rejection – Some homeowners politely declined, others barely opened the door. “Not interested,” they’d say, and shut the door before she could even start, or fully finish her pitch.

2️⃣ The ‘Maybe Later’ Response – A few were interested but hesitant, needing to discuss it with their spouse first. Anna made sure to leave a flyer and asked for their number to follow up in a week.

3️⃣ The Instant Yes – Occasionally, a homeowner lit up. “Oh! I was just thinking about hiring a cleaner.” They took a flyer, asked about pricing, and sometimes even booked on the spot.

The average conversion rate in door to door sales is around 2% to 3% according to Sunbase (https://www.sunbasedata.com/blog/door-to-door-sales-success-rate#:~:text=What%20is%20the%20door%2Dto,is%202%2D3%25%20percent.) . Since Anna was selling a luxury product (when people don’t have money they clean themselves), her conversion was a little bit lower, around 1 to 1,5%. 

How Profitable is a Cleaning Business?

“Anna’s marketing efforts were paying off. Within a month of distributing flyers and leveraging referrals, she secured 8 new clients, leading to a major revenue increase.”

This meant she had added 16 extra hours of cleaning per week, which translated into an additional $480 in weekly revenue.

Breaking Down the Numbers:

📌 Before marketing efforts: $2,000/month
📌 New clients (16 extra hours/week at $30/hour): +$2,080/month
📌 New Total Revenue: $4,080/month
📌 Monthly Expenses: -$805
📌 Total Monthly Profit: $3,275

She was now making more than $3,000 in profit per month, while working just over 31 hours per week. This was double her income from before and she still had room to grow!

Hitting Her First Full-Time 40-Hour Workweek

Two months later, by the end of the year, something incredible happened—Anna reached her first full 40-hour workweek of cleaning! It was a huge accomplishment.

Six months earlier, people doubted her decision to start a cleaning business with no money. Some even laughed at the idea. But here she was fully booked, earning well, and proving everyone wrong.

Setting Goals for Next Year

As the year wrapped up, Anna sat down and set her goals for the next phase of her business:

📌 $90,000 in annual revenue 💰
📌 Increase hourly rate to $35/hour 💵
📌 Grow the business & hire her first employee 👥

At this stage, she was able to pay herself a $2,400/month salary after taxes, while still saving money. It wasn’t a luxurious income yet, but it was stable. To create a comfortable and scalable business, she knew she needed to grow further.

And she had a plan.

Leveling Up: Learning While Cleaning

One unexpected advantage of being a solo cleaner? Time to listen and learn.

While scrubbing floors and wiping down kitchens, Anna had hours of uninterrupted time every day—so she made the most of it.

🎧 She started listening to entrepreneurship podcasts, absorbing lessons on:
✔ How to scale a service-based business
✔ How to find and hire employees
✔ How to build systems to work smarter, not harder
✔ How other cleaning business owners grew to six figures and beyond

Anna wasn’t just working in her business—she was working on her business.

How to Grow Your Cleaning Business

 

At the start of the new year, Anna’s cleaning business had taken off.

By January, she was working 55 hours per week, and by February, that increased to 60 hours per week. The demand for her services kept growing, and so did her income.

Revenue at 60 Hours Per Week

• Weekly revenue: $1,800
• Monthly revenue: $7,800
• Business expenses: $805
• Monthly profit: $6,995
• After 15.3% taxes (sole proprietorship): $5,925 net income

She was now saving around $3,000 per month in her business account. By April, she had built up $10,000 in her business savings, a significant milestone considering she had started with nothing.

However, success came with its own set of challenges.

When to hire new employees for your cleaning business

 

New clients kept reaching out, eager to book her services, but Anna had no availability left. 

“After months of working 60-hour weeks, the workload became unsustainable. The business was thriving financially, but the constant strain was wearing her down. She realized that if she wanted to keep growing while maintaining her quality of life, hiring help was the only option.”

“If you want to scale your cleaning business, at some point, you have to hire help.”

That was her answer. It was time to take the next step. She was expanding the business and hiring employees to go professional

 

Turning a Sole Proprietorship into an LLC

 

As Anna continued listening to business podcasts, she came across a key piece of advice: If you plan to hire employees, switching from a sole proprietorship to an LLC is the best option. Before making the hire, she needed to ensure her business structure was solid, her insurance covered employees, and all official paperwork was in place.

An LLC (Limited Liability Company) would give her:
✔ Legal Protection – It separates personal assets from business liabilities.
✔ Tax Benefits – An LLC allows for tax flexibility and potential savings.
✔ Professionalism – Clients and employees take a registered business more seriously.

Is an LLC Right for Your Cleaning Business?

 

✔ Do you plan to hire employees? – If yes, an LLC is highly recommended.
✔ Is your business making more than $40,000 per year? – If yes, an LLC can provide tax advantages.
✔ Do you want liability protection? – If yes, an LLC separates your personal assets from business debts and lawsuits.

Anna knew that with employees, she would also need workers’ compensation insurance, payroll systems, and legal contracts. Moving from a sole proprietorship to an LLC was the smartest move for growth.

Where to Register an LLC?
Anna found this helpful resource for registering an LLC: Northwest Registered Agent. (This is not an affiliate link, just a recommendation for a reliable service.)

With the decision made, Anna was ready to take the next big step—officially transitioning from a one-woman cleaning business to a real company with a team.

 

How Do You Hire Employees for a Cleaning Business?

 

Now that Anna’s LLC, FreshNest Cleaning Co., was officially registered, she was ready to expand her team. With demand increasing and her schedule maxed out, it was time to bring in extra help.

But hiring an employee wasn’t just about finding someone to do the job—it meant taking on new responsibilities as a business owner, from payroll to training to ensuring a good fit for the company’s culture.

Finding the Right Employee

Anna already had someone in mind. Back when she worked at McDonald’s, she had a great connection with one of her managers—Emma.

Emma was 22 years old, hardworking, and reliable. Like Anna, she had dropped out of college and wasn’t sure what career path to take. Despite her strong work ethic, management at McDonald’s never really appreciated her. Anna had always admired how Emma took responsibility for her work, even though she wouldn’t get any appreciation for her work..

So, one afternoon, Anna picked up the phone and called her.

The Conversation

“Anna remembered Emma from McDonald’s—a hard worker with untapped potential. She called her up, explained the opportunity, and Emma was immediately interested. ‘I’ve never done cleaning before,’ Emma admitted. But Anna reassured her, ‘I’ll train you, and I’’ll pay you way better than McDonald’s does.’ The next week, Emma was onboard.”

Just like that, Anna had her first employee lined up.

Steps to Hiring an Employee for a Cleaning Business

 

Hiring a friend or former colleague was a great start, but Anna knew she needed to do things properly. Here’s what she did to legally and successfully hire her first employee:

1. Apply for an EIN (Employer Identification Number)

Now that Anna had employees, she needed an EIN from the IRS to manage payroll taxes and legally hire staff.

2. Register for State and Local Employment Taxes

Each state has different tax requirements for employers, including unemployment insurance and worker’s compensation. Anna checked her state’s labor department website to register.

3. Set Up Payroll and Withholding Taxes

Since Anna was now an employer, she was responsible for withholding federal and state income taxes, Social Security, and Medicare from Emma’s paycheck. Her accountant fixed this for her for the fee of 300 dollars. The monthly rate of her accountant also went up by 100 dollars per month.

4. Obtain Workers’ Compensation Insurance and Additional Coverage

Since cleaning involves physical labor, accidents are always a possibility. To protect both Emma and the business, Anna secured workers’ compensation insurance, which would cover medical expenses and lost wages if an injury occurred on the job.

Additionally, she opted for a Business Owner’s Policy (BOP), which provided general liability insurance to cover potential property damage or legal claims.

💰 Monthly Insurance Costs:

• Workers’ Compensation Insurance: $136/month
• Business Owner’s Policy (BOP): $76/month

Although these were extra expenses, they were essential investments in making FreshNest Cleaning Co. a legally compliant and financially secure business.

5. Create an Employee Handbook & Training Plan

Anna wanted to make sure Emma knew exactly what was expected. She put together a simple training plan that covered:

• Cleaning procedures
• Customer service expectations
• Scheduling and responsibilities
• Company policies (dress code, time off, etc.)

6. Draft an Employment Agreement

Anna created a basic employment contract outlining pay, hours, expectations, and termination policies. This protected both her business and Emma in case of misunderstandings.

Setting the Right Pay

Anna wanted to offer a fair wage while keeping the business profitable. She decided on $19 per hour to start, which was $2,50 an hour higher than McDonald’s pay, giving Emma a strong incentive to join. You can never pay enough for good personnel!

H9: The Costs of Growing a Cleaning Business

With Emma onboard, Anna’s business started expanding again. However, her expenses also increased significantly. While hiring an employee helped her take on more clients and boost revenue, it also required additional costs for salaries, insurance, and operational expenses.

How Much Are the Monthly Expenses for a Small Cleaning Business?

How much does Insurance Cost for an LLC Cleaning Business?

(Sources: Industry Averages & Provider Estimates)

✔ General Liability Insurance: $42/month
✔ Business Owner’s Policy (BOP): $57/month
✔ Professional Liability (E&O) Insurance: $61/month
✔ Workers’ Compensation Insurance: $136/month

💰 Total Monthly Insurance Cost: $417

What are other business expenses for an LLC cleaning business?

✔ Accountant & Payroll Services: $300/month
✔ Marketing & Website Maintenance: $250/month (includes SEO, website hosting, and social media ads)
✔ Supplies & Equipment Savings: $250/month (for new tools, cleaning products, and future equipment purchases)

💰 Total Fixed Business Expenses: $1,217/month

📌 Employee Salary Costs

✔ Emma’s Salary: $3,293/month (based on $19/hour, 40-hour workweeks)

💰 Total Monthly Business Costs: $4,510/month

While the expenses of her cleaning business were higher than ever, Anna knew these investments were essential for long-term growth, sustainability, and professionalization of FreshNest Cleaning Co.

Turning your cleaning business into a profitable business.

 

Scaling Profitability with a Price Increase as a cleaning business

 

At this stage, Anna’s business was generating $7,800 per month with her working 60 hours per week. However, with Emma gradually onboarding into a full-time role (Want to know the best way to onboard new employees? [Read this article]), Anna finally had more free time to focus on growing the company instead of just managing daily operations.

Increasing Prices for Long-Term Profitability in a cleaning business

 

Now that FreshNest Cleaning Co. was an LLC with professional employees, Anna realized she needed to adjust her pricing to reflect the business’s higher quality and professionalism. Otherwise, the profit margins would shrink due to rising expenses.

💡 She decided to raise her hourly rate from $30 to $35 per hour.

At first, she was hesitant, fearing customers would leave, but to her surprise:

✅ Almost no one complained.
✅ Not a single client left.
✅ Her revenue increased immediately—without extra work!

Why did this work? Because when customers trust your service quality and reliability, they are willing to pay more. Many businesses fail to grow because they undervalue their services and fear raising prices—but Anna proved that the right customers pay for value, not just price. (This is why you need to raise your prices: [New Article])

“Now that Anna was charging $35 per hour and still retaining all her clients, she started thinking: What if I worked a full schedule alongside Emma? With two full-time cleaners, how much revenue could FreshNest Cleaning Co. generate?”

New Revenue & Profit Calculation After Price Increase for a cleaning business

 

📌 Previous Revenue (at $30/hour): $7,800/month
📌 New Revenue (at $35/hour): $9,100/month (a $1,300 increase without extra work!)
📌 New Profit (after expenses but before taxes): $4,590/month

With Emma onboard and higher prices, Anna was still profitable and had time to scale further. FreshNest Cleaning Co. was no longer a small solo operation—it was becoming a real company with sustainable growth potential.

Projecting Revenue with a Full-Time Workweek

With Emma onboard, Anna decided to calculate her potential earnings if she worked a full-time schedule alongside her new employee.
Since commuting time wasn’t billable, she estimated 70 billable hours per week instead of the full 80.

📌 Revenue Breakdown
✔ Hourly rate: $35
✔ Weekly revenue at 70 billable hours: $2,450
✔ Monthly revenue (× 4.333 weeks): $10,615
✔ Monthly profit (after expenses, before taxes): $6,105

What excited Anna the most?
Even though she was working 20 hours less per week than before hiring Emma, she was now making more profit! 

How to Solve Business Problems

 

By July, just three months after hiring Emma, Anna had already surpassed most of the goals she had set last year:
✅ $90,000 in revenue? On track to hit over $110,000!
✅ Hiring an employee? Done.
✅ Raising rates to $35/hour? Successfully implemented, with no client losses.

Things were moving fast—maybe even too fast.

That’s when Anna ran into her next big business challenge.

The Problem: Business Mobility

 

Until now, Anna and Emma had been using their own cars to travel to clients, storing cleaning supplies in their trunks. It worked—but was it sustainable?

One Friday after a long workweek, Emma casually asked:
“Why are we still using our own cars? Don’t real cleaning businesses have company vehicles?”

Anna froze. She had never even considered that.

Of course, a proper cleaning business should have branded company vehicles, but that came with major costs:
🚗 Car payments or leases (if buying, that’s a huge upfront investment).
⛽ Gasoline costs (which Emma and Anna had been paying out-of-pocket).
🛡 Commercial auto insurance (more expensive than personal coverage).
🛠 Maintenance & repairs (unexpected expenses that could eat into profits).

It was a huge financial decision. If she wanted to invest in company vehicles, she would need to expand her business again to stay profitable—or risk losing her margins.

The Crossroads: Stay Small or Scale Up?

Anna had two choices:
1️⃣ Stay comfortable—Keep things the way they were, continue making good money, but limit future growth.
2️⃣ Take the leap—Invest in company vehicles, scale the business, and take on larger jobs and more clients to cover the costs.

She took a deep breath and thought:
“I’m only 22 years old—I didn’t come this far to stop now. There’s too much potential. Let’s grow this thing!”

Click here for part 3:

1. Marketing & Referrals Are the Key to Growth 🚀

Anna expanded her client base by leveraging Google My Business, social media, and targeted flyer distribution. However, her referral program became the biggest driver of new clients—offering incentives to existing customers helped her grow without losing revenue.

2. Hard Work Alone Isn’t Enough—You Need Systems 🏗️

Working 60+ hours per week left Anna exhausted. She realized that hustling alone wasn’t sustainable—she needed to hire help, raise her prices, and structure her business properly to scale without burning out.

3. Hiring an Employee is a Big Step—But a Necessary One 👥

Bringing on Emma transformed Anna’s business, but it also meant handling payroll, taxes, insurance, and training. Despite the added responsibilities, it allowed Anna to work smarter, not just harder, and focus on growing her company instead of just cleaning.

4. Raising Prices Can Be Scary—But Necessary for Profitability 💰

Anna increased her hourly rate from $30 to $35 and feared losing clients, but no one left. When your service is high-quality and trusted, customers are willing to pay more. Underpricing your work limits your growth!

5. Growth Comes with New Challenges—Be Ready to Adapt 🔄

Just months after hitting her goals, Anna faced a new challenge: business mobility. Scaling meant investing in company vehicles and finding bigger jobs to maintain profit margins. Instead of staying comfortable, she embraced the challenge and committed to expanding further.

Next Steps: Scaling & Growth

Anna hit $110K+ in revenue faster than expected, but the journey isn’t over! In Part 3, we’ll dive into how she scaled her business beyond two employees, took on bigger contracts, and turned FreshNest Cleaning Co. into a thriving company. Stay tuned! 

Click here for part 3