How to start a commercial cleaning business

Picture the difference between two phone calls. A homeowner asks if you can clean on Thursday. An office manager asks for a written proposal to clean 6,000 square feet five nights a week, with a certificate of insurance, a key-holding policy and monthly invoicing on 30-day terms. Both are cleaning. The second one is a different business.

Commercial cleaning offers larger, steadier contracts than residential work, and customers can stay for years when the service is reliable. It also asks more of you before the first night: staff, insurance, written scopes, a way to bid and enough cash to wait for the invoice to be paid. This guide covers those parts. If you have not decided between homes and offices yet, the guide to starting a cleaning business compares the two.

Step 1: pick the buildings you want to clean

"Commercial" covers very different sites. Start with one type you can serve well:

Medical sites and any site with special hazards have extra requirements. Leave them until you know your standard service well.

Step 2: understand what your labor costs

Commercial cleaning is labor-heavy, so labor cost drives everything. The Bureau of Labor Statistics puts the median pay of janitors and building cleaners at $17.71 an hour (May 2025). That is the wage; the cost to your business is higher once payroll taxes, workers' compensation and benefits are added. Across private employers, the BLS reports that wages are about 70 percent of total compensation cost, so a quick estimate of the real cost of a median-wage cleaner is $17.71 ÷ 0.70, about $25.30 an hour.

Every bid you write depends on that number, so work out your own as soon as you have payroll. The complete pricing guide shows how to turn it, plus overhead and margin, into a price.

Step 3: bid from a walk-through and your own timings

Never bid a commercial contract from a floor plan alone. Walk the site with the manager and note:

• total square footage and how it splits between offices, restrooms, kitchens and hallways
• floor types, because carpet, tile and hard floors take different times and equipment
• number of restrooms and fixtures
• how often each task happens: nightly, weekly, monthly
• access, alarms, keys and where supplies and trash go

Then estimate hours per visit with your own production rates, multiply by your real hourly cost, add supplies, equipment wear and overhead, and divide by one minus your margin. The logic is the same as for homes, explained step by step in the house cleaning pricing guide, just with more hours and a written scope.

Step 4: put the scope in writing

A commercial proposal protects both sides when it is specific:

1. Areas included, and tasks with their frequency.
2. Days and times of service.
3. Supplies: who provides paper products, soap and trash liners.
4. How extra requests are handled and priced.
5. Key and alarm procedures.
6. Price per month, invoicing and payment terms.
7. Start date, contract length and how either side can end it.

Step 5: insurance, bonding and the certificate

Commercial customers will usually ask for your certificate of insurance before you start. General liability insurance is the core policy; the SBA describes it as coverage for bodily injury, property damage, medical expenses and defending lawsuits. Because commercial cleaning almost always means employees, you will also need the insurance the SBA lists as required for businesses with employees: workers' compensation, unemployment and disability insurance, and some states require more.

Some property managers also ask whether you are bonded, especially when your staff hold keys. Ask your insurer what a janitorial bond or employee dishonesty coverage includes, and what the customer is actually asking for.

Step 6: hire, train and keep your people

Your reputation will be your night crew. A few things make a real difference:

• a written checklist for each site, so any trained cleaner can cover
• training on products and safety before the first shift
• the same people on the same sites where possible
• a simple way for cleaners to report problems and supply needs

On safety, OSHA's Hazard Communication Standard requires employers with hazardous chemicals in the workplace to have labels and safety data sheets for the products workers use and to train them to handle the products appropriately. On classification, the IRS looks at behavioral control, financial control and the type of relationship to decide whether someone is an employee or an independent contractor, and says there is no set number of factors. If you set the schedule, supply the products and train people to your checklist, get professional advice before treating them as contractors.

Step 7: plan for cash flow

Residential customers often pay on the day. Commercial customers usually pay monthly, sometimes 30 days after the invoice. That means paying your crew for up to two months before the first payment arrives. Before you sign a large contract, work out how much cash you need to cover payroll, supplies and insurance until the money comes in.

Step 8: find the first contracts

Commercial work is found through relationships more than advertising:

• small offices and shops near where you already work, so routes stay tight
• property managers, who can offer several buildings once they trust you
• referrals from current customers, asked for once you have delivered a few months of reliable service
• a simple website that states what you clean, where and how to request a walk-through

What to do next

Choose one type of building, walk two or three potential sites and practice writing a proposal with your own timings, even before you send it. The general setup steps, such as structure, EIN and taxes, are in the guide to starting a home service business.

Frequently asked questions

How much do janitors earn?

The Bureau of Labor Statistics reports a median wage of $17.71 an hour for janitors and building cleaners (May 2025). The cost to the employer is higher once payroll taxes, insurance and benefits are added.

How do I bid a commercial cleaning contract?

Walk the site, estimate hours per visit with your own production rates, multiply by your real hourly cost, add supplies and overhead, and divide by one minus your target margin.

Do commercial customers require insurance?

Most will ask for a certificate of general liability insurance, and businesses with employees must carry the insurance the SBA lists as required, including workers' compensation.