How to Start a Cleaning Business in Australia

Thinking of starting a cleaning business? There are currently 32,000+ domestic cleaners and 153,000+ commercial cleaners in Australia, highlighting the popularity and demand for workers in home and business spaces¹.

To launch a business in this industry, it’s important to understand what’s involved so you can set everything up legally and attract clients while building a service that stands out in a competitive market. There are lots of niches you can explore.

In this blog, we’ll walk you through the main types of cleaning businesses and the steps to get started in Australia. There’s also an introduction to Wise Business for managing small business finances.

Sign up for the Wise Business account! 🚀

How to start a cleaning business in Australia

You can start a cleaning business entirely on your own or hire staff to create a team, depending on how ambitious your plans. Before you get started, though, there are certain building blocks you need to put in place to give your business a sound legal and financial footing to work from.

Follow these eight steps — from registering your business to building your brand — to get your cleaning enterprise up and running.

1. Research the market

Start by looking at the demand in your state in Australia. Residential cleaning tends to be competitive, but you could carve out a niche in eco-friendly cleaning or office cleaning. Take a deep dive into “competitor analysis.” Find out who they are, what they charge, and whether there are any gaps in services you use to differentiate yourself.

We’ll look at the different types of cleaning businesses in more detail later.

2. Register your business and get an ABN

When you’ve decided what direction to go in, you’ll need to sort out a few legal requirements. You must decide on a legal business name. This could be your own personal name, but it might be better to choose something that supports your branding efforts later. However, you must register any business name other than your own name with ASIC².

You should also:

• Apply for an Australian Business Number (ABN). The government says sole traders are “entitled” to an ABN, and it’s useful for invoicing and tax³.
• Register for Goods and Services Tax (GST) with your ABN if you expect your turnover to exceed $75,000⁴.
• Create a business bank account to help separate and easily reconcile your business finances.

3. Choose your business structure

Next, use your legal details to finalise a business structure. Many opt to work as sole traders at this stage as it’s easier to set up with lower costs. But you could also register as a company (e.g., Pty Ltd) if you want a bit more structure and legal protection.

4. Understand costs (and get insurance)

Another common question is: how much money do I need to start a cleaning business? Startup costs vary depending on the type of cleaning business you choose and the industries and clients you work for. A small residential cleaning service could cost $2,000 to source basic equipment and supplies, but commercial setups might need $15,000+ for industrial machinery and vehicles.

Don’t forget insurance, either. You’ll definitely want to take out public liability insurance to cover for accidental damage to a client’s property. And you might also benefit from income protection and equipment insurance.

Here’s a round-up of common costs:

• Equipment and supplies - Vacuums, mops, cleaning products, protective gear
• Insurance - Public liability policy and any other relevant insurance
• Transport - Fuel and vehicle expenses if you need to travel to clients
• Marketing - Website, flyers, ads, and other branding materials

5. Secure funding (if needed)

To cover these startup costs, you can use personal savings early on if you’re in a financial position to do so, or take out a small business loan. To get lenders to agree to a loan, you’ll need to meet the eligibility criteria — which can be strict — and provide a business plan.

6. Check licences and permits

If you’re wondering what licences are needed to start a cleaning business, the barrier to entry is quite low. You usually don’t need to acquire any in Australia. However, you can take courses to get domestic and commercial cleaning certifications. These provide you with practical skills, as well as a “seal of approval” to show customers that you’re a professional with high standards.

Even though there aren’t any specific regulations, there are still local requirements in Australia to keep in mind:

• You might need permits if you’re handling certain chemicals for industrial cleaning.
• You might have to go through police or Working with Children checks if you plan on cleaning schools or securing government contracts⁵.

7. Build your brand

Once the legal stuff is sorted, you’ll need to get the word out there that your cleaning business is up and running and ready to serve clients. You can do this the old-fashioned way with flyers and leaflets (still useful for local businesses), and by setting up a website and running ads on Google and across social media.

You can also:

• Create a simple logo and colour-based branding across all channels.
• Set up social media profiles to show pictures of your work.
• Register for online directories for cleaning services.
• Encourage customers to leave reviews online.
• Share client testimonials to build trust.
• Network in your local area to get referrals.

8. Hire and train staff (and manage payroll)

Going solo is a likely starting point for a new cleaning business. But if you expand, you’ll need to hire staff and make sure they are trained to meet safety standards and deliver consistent results. You’ll also need your business bank account to pay your staff and manage things like superannuation and tax obligations in line with Australian employment laws.

Types of cleaning businesses to start in Australia

There are multiple types of cleaning businesses in Australia. Each catering to different environments and clients' needs across homes, offices, industrial sites, etc. Every space needs cleaning, so you should find demand in most areas.

Here are nine examples:

• House cleaning - Basic residential cleaning services for specific areas like kitchens and bathrooms, or across the entire home.
• Deep cleaning - Beyond regular surface cleaning with services that scrub inside fridges and ovens or vacuum upholstery.
• Window cleaning - Cleaning windows both indoors and outdoors for clients using ladders and specialist equipment.
• Pressure cleaning - Power washing with high-pressure water jets to clean surfaces like commercial buildings and residential driveways, and roofs.
• Green cleaning - Using eco-friendly products like organic cloths and natural cleaners to clean spaces for discerning clients.
• Car cleaning - Cleaning the interior and exterior of vehicles by vacuuming and wiping, and restoring shine with waxing and polishing.
• Office cleaning - Cleaning spaces at business premises with tasks like mopping kitchens and reception areas, and removing waste.
• Carpet cleaning - Using steam and stain removal products to deep clean carpets.
• Medical cleaning - Meeting high cleanliness standards in hospitals and clinics by disinfecting and sanitising surfaces and equipment.

It might be easier to stick to one niche at the start, but you can always scale up and offer a wider variety of services eventually to grow your business.

Streamline your business finances with Wise

Managing cash flow is a big challenge for small cleaning businesses. You might have to juggle multiple clients paying at different times of the month, or work with overseas suppliers to stock up on inventory. This is why the Australian government says it’s a “good idea” to open a separate business bank account, even if you’re a sole trader.

You’ll be able to manage your business finances without them getting mixed in with personal funds. This is much better for accounting and tax reporting, too.

If you’re just starting out, a Wise Business account gives you all the tools to streamline payments and keep finances organised so you can focus on growing your cleaning business.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

Sources:

1. Jobs and Skills Gov Au - Occupations domestic cleaners, commercial cleaners
2. Business Gov Au - Business names, trading names, and legal names you may need to register it
3. ABR Gov Au - ABN Entitlement - Sole trader
4. ATO - Registering for GST when you need to register
5. ATO - Working with children check