Average Income & Salary for a Cleaning Business
Before you make your dream of starting a cleaning business come to life, you must want to know how much you can earn through this venture. Will it be enough to support your expenses? How much do you need to expand your cleaning services to reach your monetary goal?
The average cleaning business earnings differ across businesses, states, and even cities. However, keeping the average in mind will allow you to determine the potential for scalability and growth.
In this guide, we discuss how much you can make annually from a high demand house cleaning business and a commercial cleaning service.
Below you’ll find How Much Can You Make Per Year With A Cleaning Business?
What Is The Average Annual Income Of A Cleaning Business?
The average yearly income of a cleaning business is based on its scope, the number of clients it has, and service charges. Initially, you can expect to earn anything from $35,000 to $50,000 a year.
As your business and client base grow, you can earn up to $100,000 a year. But then again, it all comes down to having a consistent stream of clients.
How Much Can You Earn With One Cleaner?
When you begin, you’ll most probably be working alone or with an assistant. Even with such a small team or solo operation, you can make up to $50,000 a year, provided you have a number of loyal clients.
However, do note that this figure is before you have paid any taxes or additional expenses.
The national average for a per-hour cleaning session is $25 to $40. While this may seem little, it tends to add up once you have a full day of work every day of the week.
Suppose you charge $30 an hour and work for 40 hours a week; that comes to $1200 a week. Multiply it by the number of weeks in a year, and your annual total comes to $62,400.
Now, if you take out your expenses from this amount, you can average close to $40,000 or $50,000 every year with just one cleaner.
But you’re likely to have fewer clients initially unless you’ve marketed your services well. In most cases, new cleaning businesses have five to six clients in the early stages and work around 20 hours every week.
As your client base grows and you bag over ten clients, your weekly hours could go up to 40. That’s the maximum we recommend you work with a single cleaner. Keep going at this pace for a year and recruit more employees with your savings.
More importantly, focus on advertisement and marketing to get more clients over the months.
How Much Can You Earn With A Team?
Once you have grown your client base substantially to fill the weekly calendar, it’s time to hire more employees. Since you would have been providing cleaning services to these clients for a year, they’ll be more consistent, giving you the flexibility to board more members on your team.
When you hire more people for house cleaning and commercial services, you can add more hours to your week. Thus, it will increase your earnings, taking it closer to $100,000, depending on the number of employees in your team.
On the flip side, adding more members to the team means a higher expense since you have to pay them too. Thus, you need to find the sweet spot where the pros of recruiting more people outweigh its downsides.
For that, you should pay your employees around 70% of what you’re charging the client. For instance, if your hourly rate for residential cleaning is $40, pay your team $30.
If you want to increase your revenue significantly, step into commercial cleaning as you can charge a higher hourly rate than residential cleaning.
How Much Can You Earn With Commercial Cleaning?
On average, a commercial cleaning business earns anywhere from $70,000 to above $100,000 every year. The higher income is mainly due to the fact that you can charge higher for cleaning commercial buildings.
Plus, if you secure long-term cleaning contracts, you can earn sufficiently even with a few clients, as opposed to residential cleaning that requires a vast clientele to be profitable.
For instance, if you’re hired by an office building for weekly cleaning, your monthly income from one job can be up to $1500. On the other hand, you’ll need about three residential clients to earn the same amount.
If you don’t have the capital to start a commercial cleaning business, begin with a house cleaning business instead. Save a certain percentage of your profit every year, and eventually, you’ll have enough to branch out to commercial cleaning.
How Much Should You Pay Yourself As A Cleaning Business Owner?
Sure enough, you own the business, but you can’t use your profits entirely. Whether you have a residential cleaning business or offer commercial services, you need to determine a salary to pay yourself.
Here’s how to do it:
Calculate Your Expenses
First off, calculate your overall expenditure. It will include the cost of cleaning supplies, business license application and renewal, transportation to reach clients, taxes, and miscellaneous costs.
If you’ve been in the field for a few months, you’d have a clearer understanding of your total costs.
Find Your Net Income
Now, determine the amount you’re making every month and subtract your expenses from it. For instance, if you make $4000 a month and the expenses are $500, your net income is $3500.
Thus, the highest salary you can pay yourself as a business owner is $3500.
A common mistake new business owners make is not saving for scalability. Just because you can give yourself the maximum salary doesn’t mean you should do so.
Decide The Amount To Save
At this point, you should know what you plan for the future. Do you want to hire more employees by the end of the quarter or the year? Do you want to spend money on marketing to get new clients?
Keeping these things in mind, you can calculate the amount you need to save every month to have your desired sum at the end of the year. Likewise, if you want to buy commercial cleaning supplies sometime in the future or invest in a new vacuum cleaner, save accordingly.
Let’s say you want to save $1000 every month. In that case, your monthly salary will be $2500.
Now, it may seem little at the moment, but once you get more members on board and your marketing tactics bring in more clients, your monthly salary will also grow. As a new business, you should keep the bigger picture in mind.
Why Do Cleaning Businesses Fail?
While an annual $100,000 mark is achievable, Glassdoor statistics show that most cleaning businesses average at $36,000 per year. Why is that? Why don’t all cleaning services make a whopping hundred thousand? Here are some reasons a cleaning service might fall short:
Poor Work Ethic
When you’re in the service industry, your work ethic paves the trajectory for your growth. Cleaning services with a decent work ethic get consistent clients since their customership is happy with their service.
On the other hand, if you end up breaking a client’s valuable trophy or don’t lend an ear to their particular cleaning instructions, you’re bound to lose them. Having a good work ethic ensures repeated hiring from the same clients.
Lack of Networking
The cleaning services industry is all about networking. If you have a few steady clients, that’s no reason to stop networking. Make sure you are talking to the right people and partaking in cleaning-related community activities.
More importantly, leverage the power of social media and brochures to market your services because word-of-mouth can only do so much.
In today’s time, a business that doesn’t have a website isn’t doing things right. A website increases your credibility and puts an online presence to your name.
Even better, you can list your cleaning business on Google’s local businesses or show geo-targeted ads to make more people aware of your business.
How To Grow Your Income From The Cleaning Business?
Over time, you’d obviously want to grow your business and make more money. Fortunately, cleaning businesses are in high demand, and there’s a lot of room to grow. But exactly what do you need to do to accomplish this? Here are some tips.
As an independent contractor for home cleaning, you might not have the budget to run extensive marketing campaigns. But thanks to social media, you can publicize your cleaning business for free too.
Alternatively, distribute flyers in your locality to let people know about your existence. Also, make a website and put testimonials from previous clients on it.
Maintain A Positive Reputation
Among all other forms of advertisement, word-of-mouth is the most impactful as people are more likely to believe their family and friends than the claims made by a business.
Thus, you should amp up your worth ethic to ensure you provide a stellar experience to new clients. Likewise, don’t let your quality of work drop, or your old clients will forsake you.
Ask your clients to refer you to their friends and family. It will not only bring you more work but will also let a significant number of people know about your business.
You can give your clients incentives for referrals. For instance, give 10% for referring a friend. In many cases, this is cheaper than running a whole marketing campaign.
If you lack the expertise or time to do certain tasks, such as manage your social media accounts or respond to client emails, hire a freelancer. It will give you peace of mind and at the same time ensure that someone skillful is performing important business activities.
More importantly, it will give you time to focus on expanding your business and networking.
It sure can, if by rich you mean earning over $100,000 a year. However, it won’t happen overnight. You need to create a business plan that involves the recruitment of new employees and expanding residential services to commercial cleaning.
Starting a cleaning business is definitely worth it if you’re ready to put in the effort and hours. Since it’s a hands-on job, you need to be active and have a passion for growth. Many cleaning businesses are earning up to $150,000 a year, with teams consisting of ten or more people.
On average, cleaning businesses charge $25 to $90 per hour, depending on the location and the variety of services they provide. As a beginner, you can set your hourly rate at $30 and increase it gradually if you offer your services to a well-to-do neighborhood.
Home Advisor reports that cleaning a single-family home costs $120 to $150. But you can maximize your profits by offering additional services, such as yard cleaning, ironing, etc.
The simplest way to do this is by offering top-notch performance and value for money. Moreover, train your employees regularly and keep them up to date with everything they need to know to keep the clients happy.
Plus, pay attention to feedback and let the clients know their concerns are being heard and addressed. With time, you’ll build a number of referrals and testimonials that will give you an edge over your competition.
As a cleaning business, your main expense will be getting a business license and renewing it, buying cleaning supplies, commuting to the clients’ accommodation, and paying your employees.
Additionally, you may have some miscellaneous charges, such as legal advice, insurance, marketing, etc.
Luckily, cleaning services are one of those businesses that you can start with minimal investment. Moreover, you don’t need a ton of fancy tools or hire employees from day one.
So, there’s a major potential for growth, provided you’re dedicated and network extensively.