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Buying a cleaning business

Julianne Leybag
09 July 2018 4 minute readShare
Cleaning business

My Business provides a list of the necessary things that one needs to account for in buying a professional cleaning business and operating it in its beginning or early stages.

Acquiring or investing in a cleaning business franchise can be a rewarding business decision, particularly in Australia. A steady rise in the demand for professional and reliable cleaning services shows that there are opportunities for profitability and financial success in the cleaning business industry.

However, make sure that consider the following:

  • Track record of the cleaning business
  • Terms and conditions attached to the sale
  • The cost of the business
  • Additional support made available to the buyer
  • Competitors and their location(s)
  • Acquisition process
  • Profitability
  • Insurance

Track record of the cleaning business

Look at the cleaning business’ track record to see clear and significant achievements made by the company. Talk to clients and suppliers to get additional information and verify the information that the company has provided.

If buying a franchise and not a whole company, know the number of franchise units the cleaning company has sold and the span of time before each franchise unit have been sold. Other relevant details could enlighten whether or not investing in a franchise is a good decision.

Terms and conditions attached to the sales

Check the specific terms and conditions attached to the sale to make sure that the contents of the terms and conditions are clear. Realistically speaking, some of these terms and conditions may not be favourable to the would-be cleaning business’ goals.

Consult and engage the services of a trusted lawyer, accountant, and any other relevant professional(s) who can help understand the specifics of the terms and conditions attached to the sale and acquisition process.

The cost of the business

Be aware of the costs incidental to the purchase of the cleaning business or of its franchise, whichever applies. Study and compare purchase costs.

Acquire the cleaning company or franchise that suits your budget and financial situation. Avoid large risks, such as increased debt on the new business, especially in the beginning stages.  If business owners do not have the right finances and/or other financial sources, one needs to fortify the needed financial structures to operate the cleaning business and drive it towards success without the business end up failing, or much worse, bankrupt.

Additional support

Take any additional support that the company or its previous owners/operators extend to you as a buyer. If support is not specifically included in the purchase, inquire for needed assistance. Enumerate specific support or assistance that the business may need. Some companies offer free or very affordably priced consultancy services if you run the business in its beginning stages.

Competitor(s) and their location(s)

Know, understand, and strategically analyse your competitor(s)’s location(s) in relation to the location of the cleaning business. Location is important to any kind of business that relies heavily on the availability of clients in a specific location. Knowing and understanding the location would help gauge whether or not the business has a complete monopoly or lots of competition.

When buying a franchise, consider if there is another franchise in the same location. A business owner may rescind acquisition of the franchise if undue competition with old franchises will be disadvantageous. Would-be owners may also consider looking at other locations if the set-up is amenable.

Location always has the ability to make or break any business.

Acquisition process

Have a clear understanding and comprehensive working knowledge of the terms and conditions included in the sale of the cleaning business including all other relevant specifics. Consult with a cleaning business specialist for advice, along with a trusted lawyer and accountant.

If one of the options is giving the would-be business owner unnecessary stress before acquisition commences, rethink the purchase decision and consider other available options.


The most important goal in acquiring a cleaning business or buying one of its franchises is to increase financial opportunities and profitability. Study with your lawyer and accountant the profit record of the prospective cleaning business and decide whether or not it is profitable.


Prepare for insurance and the coverages required for the new cleaning business, such as:

  • Comprehensive cleaning insurance
  • Public liability insurance
  • Cleaner equipment insurance
  • Cleaners’ income protection insurance

Comprehensive cleaning insurance 

Insuring the cleaning business will bring benefits than liabilities if things get from bad to worse. In cases of unfortunate eventualities, the pre-purchase insurance packages may be the saving grace when worse situations happen.

Make sure that the insurance covers all necessary aspects of the newly acquired cleaning business. Talk to a lawyer, accountant, and the insurance firm to customise and prepare the right insurance policy for the business. The right insurance policy means everything necessary is covered without added costs or unnecessary insurance.

Public liability insurance

Potential hazards may present themselves in the course of the cleaning business’ operations and workers’ performance of cleaning jobs.

Customise and design a public utility insurance package that includes public liability insurance for one’s employees.

Cleaner equipment insurance

A floor polisher or an expensive vacuum machine may suddenly break and may no longer work, for example. Or there may be possible theft of the cleaning business’ equipment. A cleaner equipment insurance will help you avoid overspending in the aforementioned cases, but will also give peace of mind.

Cleaners’ income protection insurance

Of course, no one wants to experience sudden illness or injuries in the course of running a cleaning business. But if the owner gets sick or injured, how can the business cope financially? A comprehensive and reliable illness and injury insurance would give appropriate insurance coverage if and when the business owner gets sick or injured

Consult with a business advisor, a trusted lawyer, and a professional accountant to navigate the complexities of buying and running a cleaning business and driving towards profitability and continued success.

Buying a cleaning business
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Julianne Leybag

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