Before starting your own cleaning company, you need to know how much you can earn annually to decide if it’s profitable for you. Valuable information, like the average cleaning business owner salary, can help you make well-informed business decisions.
To help you gain an insight into the profitability of a cleaning company, we will answer an important question: How much does a cleaning company make?
We’ll talk about the typical salary ranges of a cleaning business owner and the average profits of a cleaning company in the U.S. We’ll also discuss if a cleaning business is truly a profitable venture, whether you’re interested in commercial cleaning contracts, residential house cleaning, post-construction cleaning, or other specialty niches.
Let’s dive right in.
Compelling Cleaning Industry Statistics and Trends
Residential cleaning businesses and commercial cleaning companies can be incredibly lucrative as demand for cleaning services continues to skyrocket all over the U.S.
Take a look at these impressive statistics and trends:
- The U.S. Department of Commerce forecasts that 80% of households will use a home cleaning service by 2024.
- The average hourly prices for deep cleaning across the country range from $55 to $65.
- The projected worth of the residential cleaning market by 2025 is around $40 billion.
- There are 1.99 million cleaners and janitors and more than 1 million cleaning businesses in the U.S., so the cleaning market definitely won’t get swept under the rug.
- North America has the largest cleaning industry market worldwide.
More than ever, millions of people are concerned with hygiene, health, and cleanliness, leading to a substantial surge in demand for residential and commercial cleaning services. Residential house cleaning is a fast-growing industry with an expected annual growth rate of 20%, and it’s undoubtedly an enticing market to enter for aspiring business owners.
What Is the Average Salary of a Cleaning Business Owner?
According to ZipRecruiter, cleaning business owners in the U.S. make around $56,000 annually or $27 per hour. Some salaries go as high as $137,500. The lowest cleaning business owner’s salary is $16,500. Many salaries range from $26,000 to $69,500, while the top earners make a whopping $110,000 per year.
Here’s a table summarizing the varying annual salaries and hourly wages of cleaning business owners in the U.S.
|Cleaning Business Owners||Annual Salary||Hourly Wage|
|75% of Cleaning Business Owners||$69,500||$33|
|25% of Cleaning Business Owners||$26,000||$12|
As you can see, cleaning business owners’ average earnings significantly vary, which means you have opportunities for scalability, growth, and higher pay as you level up your skills and experience. The location of your business also plays a key role in your annual cleaning business profits.
Several other factors can affect the profits of a cleaning service company, which we will discuss below.
What Is the Average Profit of a Cleaning Business?
The average annual income of a cleaning company depends on various factors, including the location, scope of services, number of clients, and service charges.
On average, residential cleaning businesses in the U.S. make around $36,000 to $100,000 annually. As you scale your business, you have the potential to earn much more than $100,000 each year.
House cleaning businesses that generate at least $36,000 typically clean 25 to 30 homes monthly and charge anywhere between $100 to $300 per cleaning job. Overall, the amount of money your business can earn largely depends on how much you charge for your services, how many clients you can get, and how much work you can do.
Cleaning businesses with a steady stream of clients have higher, more consistent profits. If you’re ready to take in more clients, then you also have to be prepared to hire additional cleaners to handle more jobs.
How Much Profit Should a Cleaning Business Make?
So how much do cleaning businesses make to be profitable? A good profit margin for a cleaning company is around 10% to 28%. However, you can gradually raise your profit margin to as high as 50% or more as your business grows.
For example, if your total revenue is $700,000 and your overall expenses is $500,000, then your net income is 200,000. You can calculate your profit margin percentage by dividing the net income by revenue. In our example, 200,000 divided by 700,000 is 29%.
29% is a healthy profit margin for a new cleaning business. As mentioned earlier, cleaning businesses typically have high profit margins and low startup costs, making them quite profitable. However, total cleaning business profits vary significantly from one cleaning company to another depending on factors like location and prices of services.
Is a Cleaning Business Truly Profitable?
Yes, definitely! The startup costs of a cleaning business are low, and it’s not an incredibly complex type of business to manage. Plus, there’s reliable demand for cleaning services all around you. You can get your business up and running in no time with some elbow grease and dedication.
Here are the top reasons why a cleaning business is a profitable venture:
High Demand for Cleaning Services
There’s a fast-growing demand for professional cleaning services in the residential and commercial cleaning markets. Homeowners and commercial business owners all need someone to come by and keep their properties clean and sanitary.
You can charge higher rates if there’s an increasing demand in your area, although you’ll likely have to set competitive prices if there’s a lot of competition and average demand. Find out the typical rates in your location by calling five or more local cleaning services.
It’s a good idea to investigate the types of cleaning services your competitors offer, so you can plan ahead and identify competitive rates that will still earn you reasonable profits.
Great Opportunities for Scalability and Growth
The cleaning industry statistics and trends shown earlier prove that there’s large growth potential. Opportunities to attract new clients are almost limitless. As you become more experienced in running your business and knowledgeable about your target cleaning market, you’ll be on the fast track to securing a steady flow of cleaning contracts and ultimately double your cleaning business profits.
Low Startup and Operating Costs
Cleaning businesses typically have low overhead costs, so it’s easier to increase your profit margins. The typical expenses of running a cleaning company include cleaning supplies/equipment, liability insurance, licenses, labor costs, and transportation expenses.
You can also save on startup costs by using space in your home as your office in the first year. As demand surges and your profits increase, you can move into a more presentable office and hire more staff.
Can I Get Rich Running a Cleaning Business?
Like any other business venture, a cleaning firm isn’t going to make you rich overnight or even after months. The truth is every well-thought-out business idea has the potential to make anyone rich. However, in reality, most cleaning businesses fail in the first few years due to factors like poor research and planning, ineffective marketing, low quality of services, and lack of online presence.
Succeeding in the cleaning services industry takes more than just providing stellar services; it’s critical to advertise your business vigorously, expand your network, and do everything you can to reach your target audience.
Can a cleaning business make you rich eventually? Yes, of course! A cleaning business can become successful and immensely profitable, but it’s a gradual process that usually takes years of commitment and hard work.
You have to be a savvy business owner who knows how to properly manage your cash flow and advertise your services. In your first year, you should be prepared to have a tight budget and sacrifice part of your personal savings to pay for various expenses and keep your business afloat.
If you apply advanced marketing strategies to get ahead of the competition, plan thoroughly, and perform diligent research, you can certainly run your own cleaning company and thrive in the industry.
Once you’ve mastered managing your company, you’ll find yourself earning more and more profits as you scale your business, increase your team, and widen your network of clients. Being an expert in your chosen industry will help pave the path toward expanding your company and reaching your goals.
How Do I Increase My Profits as a Cleaning Business Owner?
To become a successful business owner and enjoy substantial profits, you have to make your cleaning business shine.
You have to draw in quality clients who will stay loyal to your company and drive more business through networking and referrals. It’s also important to get ahead of the competition and stay top of mind among prospects.
Follow these must-read growth strategies to make your cleaning business successful and highly profitable:
Deliver Outstanding Services
The quality of your work will speak for itself and drive more clients through word-of-mouth referrals. Your company’s reputation can make or break your success, so make sure to deliver exemplary services every time. Follow the specific cleaning instructions of clients to keep them happy, so they will recommend your company to neighbors, friends, and everyone they know.
Prioritize Your Cash Flow
A study by U.S. Bank revealed that a whopping 82% of small business owners failed due to cash flow problems. Make sure to manage your finances responsibly. It’s critical to budget properly and analyze your cash flow statements to ensure everything is in order. You could use a cloud-based software, hire a bookkeeper, or ask for help from a certified accountant to keep your cleaning company’s cash flow in check.
Invest in Online Marketing
In today’s modern digital age, any business without an online presence is lagging far behind competitors. Make sure your prospective clients see your cleaning business on page one of search engine results when they look for local cleaning services.
Explore the following proven marketing tactics:
- Create a professional-looking, mobile-friendly website that gives site visitors a favorable experience and creates a lasting impression.
- Implement proper cleaning company SEO to push your site rankings to the top.
- Build your credibility and authority by creating quality blog posts.
- Get your business on Google by managing your Google Business Profile.
- Use paid advertising like Facebook Ads for cleaning companies to show targeted ads that spread awareness about your business.
- Leverage social media and regularly post engaging, relevant content.
- Post glowing reviews on social networking sites and on your website. It’s important to maintain a positive reputation online and offline.
Keep on Networking
Attend local events, shake hands with the right people, talk to other contractors, and market your services diligently. You can also join cleaning-related community activities and make people aware about your cleaning business by handing out pamphlets, flyers, brochures, and even free branded merchandise.
Follow up with clients after a cleaning job by sending a thank-you email, where you can ask if they’re happy with the results, encourage loyalty, and offer special discounts for successful referrals.
When you follow the tips above, you’ll significantly increase your chances of earning great profits with your cleaning business.
Final Thoughts: Running a Profitable Cleaning Business and Succeeding in the Cleaning Services Industry
Starting your own cleaning company can be an incredibly challenging endeavor but eventually rewarding when you succeed. Professional cleaning is a very profitable market with high growth potential.
Just make sure to have a thorough self-reflection before dipping your toes in the cleaning industry water to determine if you have the right skills, knowledge, experience, and resources to run your own business.
Keep in mind that operating a business involves immense hard work, patience, and persistence, especially in the first few years. You could be working long hours, even on weekends, to get your cleaning company off the ground. You should prepare yourself for the overwhelming amount of work you’ll face as you start your own small business.
With our information above on the average cleaning business owner salary and our handy tips on making a business highly profitable, you’ll be able to plan properly, make smart decisions, and set yourself up for long-term success.