In order for a business to succeed, it must make a consistent profit. Commercial cleaning companies are no different. Luckily, the stable demand for cleaning services makes these businesses regularly successful. However, this begs the question, how much does a commercial cleaning business make a year?
There are several different factors that can influence potential profit amounts. It is important to understand what these are as it may put your business in a better position to succeed and grow. Let’s take a deeper look.
Typical Revenue for a Commercial Cleaning Business
Revenue is the total amount a business receives for its services. It is important to note that this figure does not include business expenses and taxes. As it relates to the cleaning industry, revenue is heavily influenced by location and types of services offered.
High-traffic areas tend to bring in more profit. This is due to demand and higher costs of labor. In addition, commercial cleaning companies typically charge more for deep-cleaning services. Tasks like these require greater amounts of time and skill. Therefore, they are more expensive than routine daily cleaning services.
Potential Earnings with a Single Cleaner
As stated by Jobber, the average income for a single-person commercial cleaning business is around $56,000 per year. Understandably, it is more affordable to be a one-person company. With fewer employees, you may have higher profit margins.
Also, there can be fewer accident risks. However, this type of structure can have its drawbacks. To start, there is a limit to the types of places you can clean. Larger spaces may require extensive amounts of time and effort.
Clients want efficient cleaners, and it is hard to maximize productivity with a one-person staff.
Potential Earnings with a Group of Cleaners
To continue, your potential earnings can increase if you employ a group of cleaners. Typically, prices are determined by square footage size. Larger areas are more expensive since they require additional cleaning hours. With more employees, you can accept these types of jobs and complete them with efficiency.
In addition, cleaning companies can charge higher prices for services that need more people. While it may have increased expenses, hiring a group of cleaners can significantly boost your business. The growth potential is an opportunity you should want to take.
Potential Earnings for a Business That Offers Commercial Cleaning Services
An effective method to increase potential earnings is offering extensive commercial cleaning services. Many businesses opt for residential areas as they can be less demanding or time-consuming. While true, this ideology can stifle your growth opportunities.
As stated by PropertyShark, the average home in the Dallas-Fort Worth area is between 1,433-1,660 sq ft. Unless you are cleaning several different houses a week, you will not see significant growth or profits. Instead, you can try finding clients from commercial buildings, restaurants, and schools. These locations are larger in size and will require routine deep-cleaning services.
Also, they must meet health and safety regulations. In addition, they are more likely to sign commercial cleaning contracts. This strategy provides greater profit amounts and potential guaranteed work.
How to Calculate Income For a Commercial Cleaning Business Owner?
It is essential for a commercial cleaning business owner to set their own salary properly. The decision they make can significantly impact their company. An increased salary at the expense of staff member wages will severely decrease employee morale and retention. In addition, it can stunt business growth as there is a lack of investment in cleaning products and marketing.
To start, you should calculate your business’s net income. This is the total amount after deducting monthly business expenses from monthly revenue. Afterward, you should factor in any potential tax savings or business debt. Also, it is smart to create a business savings plan. This can help pay for marketing promotions, training new hires, and purchasing equipment.
Finally, you should genuinely think about realistic personal needs. Now, that does not mean you have to forego all luxuries. Instead, you should avoid being excessive with your personal salary.
5 Factors That Affect Revenue for Commercial Cleaning Businesses
As with any company, there are a plethora of factors that can affect your revenue potential. By understanding them, you will be better equipped to make smarter business decisions.
Types of Clients
The first factor that can affect revenue potential is your type of clients. Routine residential assignments can be easy to complete but may not result in high profits. Alternatively, places like restaurants and healthcare facilities tend to be more profitable.
As a business owner, it is your job to identify target customer bases and effectively appeal to them.
Services Offered
Furthermore, you must properly provide a list of services offered. It is best to have an extensive list of services, ranging from routine sanitizing to thorough deep cleaning. Understandably, more intensive tasks will result in higher profits.
In addition, you can offer services like floor cleaning, carpet cleaning, restroom cleaning, and disinfecting. A varied selection of services can peak the interests of potential clients.
Pricing Strategy
The three most common types of pricing strategies are flat rates, hourly rates, and square footage.
With a flat rate, you are charging a fixed price for the entire service. This is better suited for smaller locations. Alternatively, hourly rates can fluctuate depending on the cleaning time required. Lastly, pricing based on square footage size is best for larger locations. In addition, you can also determine pricing from the level of cleaning. While you should primarily focus on your own business, offering lower competitive prices can be helpful.
Quality of Services
Your revenue potential can also be impacted by your quality of services. If you provide consistently efficient and effective cleaning services, clients are more likely to hire your business again. In addition, with higher quality standards, you can charge higher prices.
While this may deter some clients, many will stick with your business because of your excellent work ethic and repertoire.
Business Reputation and Marketing
A business can only go as far as its reputation. A well-valued company name and strong community standing can significantly increase profits. This can be accomplished through years of high-quality services and productivity. While it will take time and effort, good faith is irreplaceable.
6 Strategies for Increasing Revenue for Commercial Cleaning Businesses
Now that you understand factors that can affect revenue potential, we will discuss potential profit increasing strategies. Before implementing them, you must have a strong understanding of your business structure and customer base.
Expanding Services Offered
To begin, you can try expanding the services offered by your business. This can provide a boost against local competitors. Furthermore, additional services can increase profits as it allows a wider network of clients.
However, this may require increasing staff members and providing extra training and safety courses. It is also important to note that you may need to purchase additional cleaning products.
Targeting High-Value Clients
In addition, you should target high-value clients. Preferably, these are businesses with large offices or public spaces. Also, ideal clients are those that will sign long-term commercial cleaning contracts.
For this to be successful, you must maintain a strong brand reputation and remain active in your local community.
Implementing Efficient Processes
Productivity is essential to any commercial cleaning business. As a business owner, you must administer routine training and skill-development courses. However, it should be noted that efficiency cannot come at the expense of effectiveness.
Customers will not be happy if they receive unfinished service. A great way to improve efficiency is by investing in up-to-date software and planning programs.
Improving Customer Service
Clients are the focal point of the cleaning industry. Therefore, you must actively communicate with your customers. For example, respond to questions in a timely manner. Furthermore, be transparent about prices and cleaning time.
If you maintain strong relationships with customers, they may refer you to new clients. Over time, this will result in a thriving and successful cleaning business.
Developing a Marketing Plan
It is important to develop a great marketing plan. Social media is a vital component of effective promotion. Your business must have an active online presence with fun and informative content.
In addition, you should have a regular upload schedule. Consistently is crucial to long-term viewer engagement and brand reputation.
Become a Contractor with a Successful Commercial Cleaning Business
If running a business by yourself seems overwhelming, you should consider becoming a vendor with a successful cleaning business. In particular, Dallas Janitorial Services can help your business grow and succeed since it can provide support, resources, and clients.
FAQs About the Revenue of a Commercial Cleaning Business
What type of cleaning business makes the most money?
Typically, commercial cleaning businesses make the most money. Unlike residential locations, commercial buildings and restaurants require more extensive cleaning services.
What is the success rate of a cleaning business?
Jobber states that 68% of new cleaning companies survive their first two years.
Is a cleaning company a good investment?
Yes, a cleaning company can be a good investment. With informed decision-making, you can experience steady growth and increased revenue potential.
How big is the market for cleaning services?
As stated by IBISWorld, the market size of janitorial services in the US was $89.7B in 2022. Understandably, there will be a consistent demand for high-quality professional cleaning services.
What business structure is best for a cleaning company?
The best type of business structure for a cleaning company is one that focuses on company size, location, and potential clients.
What is the profit margin for a cleaning business?
Most commercial cleaning services have a positive profit margin. This is due to lower expenses and overheads.
What Does Dallas Janitorial Do?
Dallas Janitorial has provided excellent commercial cleaning services for over 10 years and continues to do so. With an industry-leading low turnover rate, our team of qualified professionals would love to help you. To schedule an appointment, please contact us at 214-778-3689.
