Wondering is the cleaning business profitable? We got you!
Many people think about starting a cleaning business because of the ease of the job and the minimal investment required in this business. However, only a few succeed.
So, what determines success in a cleaning business? How much money can you make from this? Is a cleaning business worth it? Keep on reading as we explore the answers to these questions in this guide.
Cleaning Industry Outlook
- Currently the cleaning industry is valued at $90 billion and is expected to grow to nearly $100 billion by 2027.
- There are currently 1,063,988 cleaning businesses in the U.S.
- In the last decade, the cleaning industry has grown by 6.6% on average each year.
- Residential cleaning is approaching $20 billion in annual sales with an estimated annual growth of 20%.
Cleaning Business Start Up Cost
The cost of starting a cleaning business can vary depending on your business size, the number of people you hire, the kind of services you offer, etc. However, while starting out, you can expect to spend $2,000 to $10,000.
|Tye of Expense
|Marketing and Advertising Costs
|Licensing and Legal Fees
|$5,000 or more depending on if you rent/lease or buy used or new vehicle
What is the Profit Margin in a Cleaning Business?
Typically, the profit margin in a cleaning business is around 10% to 15%. This percentage could vary depending on a number of factors, such as the type of cleaning services you offer, your location, staff members, your expenses, etc.
To determine a good profit margin for yourself, you should do the calculation as accurately as you can. When quoting a rate for a job (be it hourly, per footage, flat rate, etc.), make sure to include the following:
- Labor cost
- Cleaning supplies and overhead costs
- Your markup cost
Calculating Profits In a Cleaning Business
Let us assume that you are charging a flat rate of $225 for a cleaning job.
If 70% of this amount includes your labor cost, supplies cost, overhead costs, etc., then your profit margin is 30%, or $67 is your profit for the single job.
So this is how you can calculate profits for a cleaning business.
How Much Do Small Cleaning Companies Make?
Small cleaning businesses make $35,000 to $50,000 a year on average. But as your business expands, you can reach $100,000 a year in revenue.
At the end of the day, your earnings will depend upon the flow of customers and demand you get.
Is The Cleaning Business Profitable?
Yes, starting a cleaning business is definitely profitable, and business owners can earn as much as $35,000 to $100,000 annually from this venture.
However, the earnings in a cleaning business largely depend on the type of cleaning services you offer, the number of staff members you have, your location, etc.
Generally, commercial cleaning is the most profitable cleaning niche.
Cleaning Business Income Potential With One Cleaner
The average pay for a single cleaner in the U.S. is $25-40 an hour, depending on the location.
So, if you charge $30/hour and work for 20 hours a week, then you can make $600 in a single week by working alone.
Eventually, if you scale up to 40 hours a week by working for, say, ten clients, then you can make $1,200 a week.
Cleaning Business Income Potential With a Team
If you start receiving more than 40 hours of work, then it’s time for you to hire a team.
You will have to pay $15-$30 an hour to individual team members. Hence, you should only think about building a team when you are completely booked and still keep getting more clients.
The income potential when working with a team in a cleaning business significantly increases since you are able to cater to more people. And even after deducting their salary, you still get to keep a portion of the profit for the same time.
Commercial Cleaning Business Income Potential
The highest potential for cleaning commercial properties is between $70,000 to $100,000. However, these earnings would depend upon the size of the buildings and the number of workers you hire.
For example, you will require three or more staff to clean a three-story building, and the customer will pay you $1,000 and $1,500 for the task.
You can obviously adjust the cost of your service depending on the type of property you are cleaning or, the complexity of the job, etc.
How To Start a Cleaning Business?
Here’s a step-by-step video guide on how to start a cleaning business:
Pros and Cons of Starting a Cleaning Company
Pros of Starting a Cleaning Company
- You get to be your boss
- Easy to set-up
- Scalable business
- High demand
- Limited skills and experience is required
Cons of Starting a Cleaning Company
- Tough physical work
- High staff turnover rate
Types of Cleaning Services That You Can Offer
There are a plethora of services that you can offer in your cleaning business. You can either specialize in one or offer multiple services, including:
- Residential cleaning
- Commercial cleaning
- Carpet Cleaning
- Pressure washing
- Window cleaning
- Janitorial cleaning
- Post construction cleaning
- Air duct cleaning, etc.
Why Do Cleaning Businesses Fail?
Like any other business, starting a successful cleaning business requires proper planning and strategy. The reason why many cleaning businesses fail can be traced back to poor planning and management.
Not having a proper business plan or course of action can lead you to make wrong decisions, which can affect your profits directly.
Another big mistake that cleaning business owners make is not doing their jobs properly and not offering customer satisfaction.
A client for a cleaning job will call you again only if you do the cleaning properly and if you give the results the client hoped for.
A cleaning business is one of the best businesses to start if you can’t make a lot of investment. This business does not require a degree or extraordinary skills.
Anyone who has the patience and resilience to start a business can make their cleaning business successful.
The key to starting a successful cleaning business lies in following a solid business plan, offering exceptional service, and making smart decisions.
We hope that after reading our guide, your doubts on “Is The Cleaning Business Profitable?” have vanished.
Is a cleaning business worth it?
Starting a cleaning business requires minimal investment ($2000 – $10,000) and minimal skills, and in return, it can help you generate $35,000 – $100,000 a year in revenue. So we think the cleaning business is definitely worth it.
Is the cleaning industry recession proof?
No, the cleaning business industry is not recession-proof. However, this industry sees consistent demand and is relatively stable.
What is the success rate of cleaning businesses?
The success rate in the cleaning industry is high. Approximately 60% of cleaning businesses remain in operation after five years. However, the cleaning industry is competitive, and you will face challenges in finding customers.
How can I make my cleaning business more profitable?
Here are some tips for you to make your cleaning business more profitable:
- Learn the necessary skills
- Choose a profitable cleaning niche
- Market your business
- Offer personalized services
- Make customer satisfaction your top priority
- Offer something extra to your clients
- Introduce a referral system
- Create an efficient workflow
- Do your job properly
Which is the best kind of cleaning business to start?
Window cleaning is one of the best cleaning businesses to start. This is because you can start this business for as low as $600 and can make $50-$70 an hour.
Is a cleaning franchise worth it?
If you do not want to take the risk or put in the hard work of building a business from scratch and have money to spare, then you can choose to buy a cleaning franchise. A cleaning franchise may be worth it for you if you pick the right company for yourself.