How to Start a Commercial Cleaning Business in Ontario

Maintaining a hygienic and clean work environment is always a top priority for businesses. That’s why professional cleaning services are constantly in demand.

If you’re a detail-oriented individual with a strong work ethic and a knack for organization, starting a commercial cleaning business in Ontario can be a rewarding venture.

This guide will provide you with the essential steps on how to start a commercial cleaning business in Ontario, from conducting market research and obtaining the necessary licenses to securing proper insurance and attracting clients.

Market Research and Business Planning 

Starting a commercial cleaning business in Ontario requires planning. First, understand the cleaning landscape. Research businesses in your target area to see what kind of cleaning they need and how much they will pay. Don’t forget to check out the competition in the cleaning industry—what are they offering, and how can you be different?

Next, create a business plan that functions like a roadmap for your cleaning business. This plan should include your goals, who you’ll target (office buildings, restaurants, etc.), how you’ll reach them (marketing), and, most importantly, what kind of insurance you’ll need. Think about how much you’ll charge for your commercial cleaning services and how much it’ll cost to run the business.

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Picking a Structure for Your Cleaning Business 

Launching your Ontario cleaning business requires choosing the right legal structure. This impacts how you’re taxed, managed, and held liable. Here are the key options:

• Sole Proprietorship: Simplest setup where one person is responsible for all business profits and debts, but offers no protection for personal assets if the business faces financial trouble.
• Partnership: Good for starting with a partner, but has similar liability risks as a sole proprietorship.
• Incorporation: Creates a separate legal entity, protecting personal assets but with more complex legalities.
• Limited Liabilities Company: Protects partners from liabilities for business debts; hybrid between partnership and incorporation.

Ultimately, the best structure depends on the specific situation and goals of the business owner. Consulting with a lawyer or accountant can help you choose the right structure for success.

What Licenses Are Needed to Start a Cleaning Business in Ontario? 

Starting a cleaning business in Ontario means following some rules to operate legally and safely. This means getting the right licenses and permits which we’ll explain in this section so your business can thrive.

Business License 

The first step is obtaining a business license from the Ontario Business Registry (OBReg). This legally authorizes you to operate your cleaning business within the province. You can complete this process online or in person at a Service Ontario location. 

Additional Permits 

Depending on the cleaning services you offer, you might need additional permits or licenses. For instance, if you offer window cleaning at high heights in your service package, working at heights certification from the Ministry of Labour may be required.

Important note: Follow the Canadian Occupational Health and Safety (OH&S) Laws stated in the Canada Labour Code to keep your staff and clients safe and avoid problems. These regulations say how to handle cleaning chemicals safely, use equipment properly, and prevent injuries on the job.

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Building Your Customer Base 

Next comes attracting a loyal clientele and establishing a thriving commercial cleaning business in Ontario. To do that, implement these strategies aside from consistently delivering high-quality cleaning. 

Develop a Website 

When starting a commercial cleaning business, build a user-friendly website showcasing your services and SEO-optimized online presence to attract clients in today’s digital world. Potential clients searching for cleaning services locally could easily find your business if you have a site.

Via Networking 

Building trust and securing repeat business requires competitive rates and exceptional customer service. Network with local businesses and showcase the value you offer. Stand out by communicating your unique selling propositions, like eco-friendly cleaning or extended hours. Develop a clear service menu with pricing and leverage social media to connect with potential clients and build brand awareness.

Financial Management 

Keeping track of your money is essential for any successful business, and that goes for your Ontario cleaning company. Here are some key financial management things to do when starting a cleaning business:

• Create a Separate Business Bank Account: Establishing a dedicated business bank account is crucial for separating personal and business finances. This simplifies record-keeping and ensures clarity for tax purposes.
• Invoicing and Payment Systems: Develop a system for generating invoices for your clients after each cleaning service. Clearly outline the services provided, associated costs, and payment terms. Choose efficient payment methods like online payments or credit card processing to facilitate timely client payments.
• Expense Tracking and Budgeting: Track all business expenses, from cleaning supplies to equipment costs and marketing expenses. Create a budget to allocate resources efficiently and monitor your financial performance.

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Securing Insurance for Your Commercial Cleaning Business 

Unexpected events, such as a slip-and-fall accident, damaged client property, or even a stolen van full of cleaning equipment can impact your business. A fitting insurance policy from a trusted insurance provider can help you financially recover from these events and ensure your cleaning business’s smooth operation.

Commercial General Liability Insurance 

Commercial General Liability (CGL) protects you from financial losses arising from third-party bodily injury or property damage claims caused by your cleaning activities. For example, if a client trips on a wet floor and gets injured, CGL insurance would cover medical expenses and legal fees.

Tools and Equipment Insurance 

This covers your cleaning equipment, supplies, and other business property in case of theft, fire, or other covered perils. Imagine a fire damaging your cleaning equipment—tools and equipment insurance would help replace essential items to get your business back up and running.

Errors and Omissions Insurance 

Also known as professional liability insurance, Errors and Omissions (E&O) protects you from financial losses if your negligence leads to customer property damage or dissatisfaction. For example, if a cleaning mistake damages a client’s expensive carpet, E&O insurance would cover the repair or replacement costs.

Protect Your Business with Confidence 

Learning how to start a cleaning business in Ontario is just the start of a business venture—secure it from the start with proper liability insurance. Acting as your safety net, a robust insurance policy will prevent financial losses and shield you from unforeseen events, keeping your business running smoothly.

Contractors Insurance is your trusted partner for comprehensive coverage solutions specifically designed for Ontario’s commercial cleaning businesses. Our experts understand the risks you face and can tailor a policy that protects you from unexpected expenses.

Don’t wait until disaster strikes! Contact Contractors Insurance today for a quote.