Is A Cleaning Business Profitable?
Like many other business ideas, a cleaning business can be highly profitable. It takes time to achieve high-profit margins, and if you think you're going to beat out your competition and deliver high-profit margins your first year, you'll be surprised.
When I first started my cleaning business, the first year, my partner and I didn't even think about high-profit margins. All we cared about was gaining as many clients as possible, even if that meant breaking even. Each new client allows you to build your brand, and that's what you should focus on because building a brand will let you have a strong business for many years. Once a stable company generates revenue, you should increase your profit margins.
How much does a cleaning business make a year?
It all depends on how you run your business model, but my company which generates around 1.36 million per year, does about 28% in profit before taxes which comes out to be about $380,000 per year.
As you can see, that is a lot of money that one small niche cleaning company can make, so yes, a cleaning business can be highly profitable over time, but it will take time to build your business and then learn the best strategies that will bring in the best profit margins.
What is a cleaning business owner's salary?
A cleaning business owner's salary varies just like it would for any business owner in any industry. As you can see, my business made me around $380,000 last year before taxes. I can take that entire amount as salary, which would make my salary from my cleaning company $380,000, or I can take a smaller salary of $100,000 and re-invest the rest back into the business before it is taxed.
That is why it's never accurate or a good idea to ask how much a business owner makes because it is entirely up to them what they want to do with the profits. Today in 2023 I take it all as a salary, take the tax hit and use the money to purchase other assets outside my cleaning business. I did the opposite back in the day. Even though I could've been taking a significant annual salary since the year 2015, I didn't. Instead, I only took enough to pay my bills and a bit extra to slowly make other investments while the rest was re-invested into the business so it could grow.
How much can I sell my cleaning business for?
The average sale price of a home cleaning business is 3x your cash flow assuming there is no debt owed. So if your business is debt free and you take $380,000 and multiply it by 3x, the sale price would be around $1,140,000.
Of course, other sources say it can sell for as high as 6x.
Is starting a cleaning business worth it?
I will leave it to you to decide, but a business that can generate over $350,000 annually and is worth over $1,000,000 seems like an excellent investment. If you're interested in starting a cleaning business you should check out this article next: https://www.filipboksa.com/post/how-to-start-a-cleaning-business