Original Post Date: November 14, 2016
There are endless opportunities for success when starting a cleaning business in Canada. If you’re passionate about creating a clean space for home and business owners, and are committed to being your own boss, starting a house cleaning or commercial cleaning business may be an excellent opportunity for you. Let’s take a look at how to start a cleaning business from scratch and some important information to keep in mind. Read along to learn everything there is to know about cleaning company registration.
4 Easy Steps to Start Your Own Cleaning Business
A significant barrier to entry for many wanting to start a business is the startup cost. If you are looking at some of the cheapest business ideas to start, a cleaning business is a great option. There are minimal requirements to starting a cleaning business, so there are very few barriers to entry. You can start off small with limited supplies and then build your supplies and cleaning equipment as your business grows and excels.
Here are 4 easy steps to get your cleaning business off the ground!
1. Register Your Cleaning Business
One of the first things you will want to do when starting your cleaning business in Ontario is to either register or incorporate the business. In Ontario, you have the option to register your small business as a general partnership or sole proprietorship. It just takes a few simple steps to get started, and Ontario Business Central can help get it all set up for you!
Whether you choose to register a small business or incorporate, Ontario Business Central makes the process easy. Just follow the link below, and in a few minutes, you’ll be on your way to having your completed documents:
You’ll need a great business name that you can brand to potential clients and that is both memorable and lets customers know what cleaning services you offer. It is a good idea to do a NUANS name search or an Ontario Business Name Search to see if there are any existing business names that are similar before registering, both to ensure that you’re using a unique business name and to confirm that you are not infringing on a protected business name. Business licenses in Ontario are valid for 5 years, at which time renewal is required to keep your business registration in good standing with the Ontario Ministry.
Alternatively, you have the option to incorporate the business. Corporations have name protection within the jurisdiction they are registered in and are continual business registrations that do not require renewal. In this case, a NUANS report is required to reserve your corporation’s name, and a pre-search is recommended prior to opening a cleaning business in Canada.
We can assist with your cleaning business registration or incorporation in a number of provinces. You can find our easy online forms using the links below. You can submit your information in just a few simple steps and start a cleaning business quickly and easily. Don’t forget to explore funding opportunities that might be available to help you start and grow your business through various government programs and grants.
2. Decide on Your Services
There are a variety of specialized cleaning services you can offer depending on your target market. A cleaning business in Ontario can provide anything from maid services, commercial and residential cleaning services or carpet cleaning. Deciding on which services you’ll provide will help you effectively target potential customers. This decision-making becomes easier once you’re clear on the cleaning business fundamentals such as target market, pricing, and service types. For example, are you looking to start a house cleaning business or a commercial cleaning business? Regardless of whether you are cleaning customers’ homes or providing office cleaning, you will want to maintain a professional appearance, show up on time as scheduled, and complete the task efficiently and professionally. Determining the type of specialized cleaning services to provide will help you create an effective marketing strategy and business plan.
There are a number of different niches in the cleaning industry, including:
- Residential cleaning
- Green cleaning business
- Office cleaning services
- Window cleaning
If your business structure is registered as a corporation and you wish to operate several cleaning companies to offer different specialized cleaning services – for example, one branch as a commercial cleaning business and another branch as a residential cleaning business – you can register multiple business licenses under your corporation as trade names. The ability to register a trade name is one of the benefits of incorporating your cleaning business and allows your corporation to operate using different business names.
3. Plan Your Business Operations
Operating your cleaning business in Canada has many components, from pricing to suppliers and regulations. Some essential components to consider include:
- Pricing: Decide on the services you would like to provide to clients and for what price. For example, you might include dusting, sweeping, and surface cleaning as part of your basic cleaning package, but you can offer clients extras such as drape cleaning and laundry for an additional cost. You may choose to provide services at an hourly rate or a flat per cleaning job. Additionally, consider the cost of obtaining a cleaning business license.
- Permits & Regulations: Ensure your cleaning business in Canada complies with any applicable regulations. Handling chemical cleaning supplies might require you and your employees to be trained in the Workplace Hazardous Materials Information System (WHMIS). Also, ensure you have acquired any municipal licensing, location approval, and any municipal, provincial, or federal permits needed for specific cleaning equipment or cleaning supplies.
- Location: Cleaning business owners often choose to operate their business from home due to the nature of cleaning services. Running your business activities from home can help keep the startup cost down. If you choose to open an office location, ensure it serves as a functional space to store supplies, do repairs and operate your business, as clients may occasionally need to visit your business location. If you are operating from your home, you may want to look into your homeowners’ insurance to see if your business activity will impact this.
- Transportation: You or your team will need to go to your client’s home or office, and many cleaning business owners brand their vehicles with the business’s logo. Ensure transportation for you and your employees is safe and functional while also promoting your business. You may want to consider auto insurance, business insurance and liability insurance, to protect yourself and your business. As a sole proprietor, any liability for the business would fall on you personally, so it’s important to ensure you are protected with sufficient business insurance.
- Suppliers: You’ll also need to find a supplier for your cleaning products, such as vacuums, brooms, transport carts, chemical cleaning supplies and more.
- Business Bank Account: Once you are done with your business registration, you can open a business bank account to help keep all of your transactions organized and separate from your personal transactions. You may also be able to apply for a business loan or financing to help get your business off the ground. The bank may request a copy of your business licence or Articles of Incorporation to open a business bank account, credit card, etc.
- CRA Tax Accounts: When you register your business in many jurisdictions in Canada, the CRA will automatically generate a Business Number (BN), which is used as your tax number when submitting tax forms. If any additional CRA accounts are needed, you will use this BN to register these. These can include HST registration and payroll registration if you are hiring employees. You may not need these right away, but as you grow your business it may be necessary to get these registered.
4. Create a Marketing Strategy to Promote and Grow Your Cleaning Business
To start your business, you will need to focus on obtaining potential clients through marketing your cleaning business in some form. Whether through social media, word of mouth or some other form, getting the word out there about your new venture is essential in building your successful business and finding your customers to grow your company. Once the business name is registered, you can begin to market your business by developing your marketing strategy, creating marketing materials, setting up your social media accounts, creating a Google My Business profile, and establishing your website. Remember: the Ministry requires you to operate under the exact business name you have registered. Ontario Business Central offers domain registration services, where we will search the domain name and if available, register it for you to begin setting up your website. A solid online business presence is one of the keys to growing your successful cleaning business. Whether you’re opening a residential cleaning service, commercial cleaning business (such as post-construction cleaning, industrial cleaning, and more), or any other cleaning venture, the above information will help you to be successful.
Ontario Business Central has been helping individuals to start a new business in Canada, including assisting them to incorporate or register a business, providing information and resources for new business owners and supporting entrepreneurs as their business grows. Be sure to understand and budget for any applicable fees associated with starting and operating your business. Additionally, use business registries to ensure your business is properly documented and compliant with all regulations. Understanding the benefits of starting your own cleaning business can also motivate and guide you in making informed decisions.
Small Business Registration:
British Columbia Business Registration
Manitoba Business Registration
Saskatchewan Business Registration
Incorporation:
British Columbia Incorporation
Should you have any questions about registering a business, please feel free to reach out to our staff for additional information and assistance.
inquiries@ontariobusinesscentral.ca
Toll-Free: 1-800-280-1913
Local: 1-416-599-9009
Fax: 1-866-294-4363
Office Hours: 9:00am – 5:00pm
Monday – Friday E.S.T.
Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions, that you speak to a qualified professional.
