Growing a business with commercial cleaning services revenue
Business owners can unlock a world of consistent, recession-proof profits with commercial cleaning services revenue.
You might ask, “Can I make consistent money from cleaning?” The answer is: absolutely! We have done it here at 360clean, and so have our franchisees.
In this post, we will share our tips and advice to help you generate recurring income through janitorial services and contract cleaning.
We’ll help you assess profitability and navigate through challenges unique to cleaning businesses. Plus, we have tips on starting and growing your own business or franchise.
Understanding the Commercial Cleaning Services Industry
The commercial cleaning services industry is a thriving sector, providing essential support to a wide variety of businesses. From offices and retail stores to hospitals and schools, these cleaning companies ensure a healthy environment.
One of the features unique to commercial janitorial services is resilience. Unlike many other business types, commercial cleaning has proven resistant to economic downturns. Why? Because no matter what’s happening in the world or economy, cleanliness and health remain top priorities for any functioning facility.
For franchise owners, commercial cleaning services revenue can be stable and predictable month after month, which is very appealing for aspiring entrepreneurs.
The U.S Bureau of Labor Statistics forecasts that opportunities within this space will grow by 10 percent from 2016-2026; faster than average growth compared with other industries.
This paints an optimistic picture for those considering investing time, energy, or resources into starting or growing a commercial cleaning business.
How to Generate Recurring Revenue with a Commercial Cleaning Business
Running a flourishing commercial cleaning business requires more than just delivering superior services. It’s also about creating recurring revenue streams that ensure your company’s financial stability.
The Contract-Based Model:
A contract-based model can be an effective way of generating a steady income. In this setup, clients agree to regular cleanings over a specific period, typically monthly or annually. This arrangement lets you forecast revenues and manage resources effectively.
Add-On Services:
Offering add-on specialty services like deep carpet cleaning, window washing, floor cleaning, or sanitization can boost earnings as well. Customers appreciate the convenience of getting multiple needs met by one provider, which, in turn, increases their loyalty and profits for you.
Profitability of a Commercial Cleaning Business
Knowing your costs is crucial to evaluating the profitability of any business, and commercial cleaning services are no exception. You need to factor in both direct and indirect expenses.
Direct costs typically include wages for employees or contractors, cleaning supplies, and equipment maintenance. It’s also a good idea to keep an eye on fuel expenses if you’re offering mobile services.
Indirect costs are also part of the equation. This can include marketing efforts to attract new clients or administrative overheads such as insurance or licenses required by local authorities. If you are franchising a cleaning business like 360clean, they may provide support and financial assistance in these areas.
The good news? With steady growth, this industry provides the potential for healthy profits if managed well.
Key Factors Influencing Commercial Cleaning Services Revenue
The revenue of a commercial cleaning business hinges on several factors. Demand for cleaning services is largely driven by market trends. The growth of industries like healthcare and education often leads to more need for cleaning services.
A study by IBISWorld highlights that the increased outsourcing of cleaning tasks has also boosted this demand, contributing to industry-wide annual growth.
Beyond market trends, operational efficiency can greatly impact your bottom line too. Streamlined processes let you complete jobs quicker without compromising quality, meaning you can take on more clients and increase your income.
- Innovative equipment can speed up work times and lower labor costs.
- Eco-friendly products appeal to modern consumers’ desire for sustainable options which may attract premium pricing.
- Good staff training reduces errors and increases customer satisfaction. Happy customers are likely to be repeat customers.
Pricing strategy, another crucial factor, needs careful consideration because it directly affects profitability.
Finally, client retention plays a key role; maintaining long-term contracts ensures steady cash flow even during slower periods or economic downturns.
Steps to Starting Your Own Commercial Cleaning Business
To start your own commercial cleaning business, you’ll need a solid plan. Identify what kind of services you’re aiming to provide, from the simple task of office cleaning to more specialized industrial tasks. This could range from basic office cleaning to specialized industrial clean-ups.
Next up is market research. Understanding your local market will give insights into competition and potential clients in your area.
Starting any new business, let alone a commercial cleaning one requires proper licensing and insurance coverage for protection against liabilities.
Create an Effective Pricing Strategy
Pricing can make or break your revenue goals. To set competitive prices while maintaining profitability, it’s essential to consider factors like service costs, labor rates, and client budgets.
Hire the Right Team
A skilled team is key for quality service delivery that retains customers leading to recurring revenue. That means great customer service and well-trained cleaning staff.
Investing in Quality Equipment
The right equipment not only improves efficiency but also helps meet high standards.
Effective Marketing Plan
An effective marketing strategy isn’t just about bringing new clients on board but retaining them too; remember: loyal customers mean predictable monthly earnings.
Facing Market Competition
The market competition in commercial cleaning services can be fierce. To stay ahead, you must differentiate yourself from other janitorial service providers.
You need more than just competitive pricing; offering unique services or specializing in specific areas like green cleaning or advanced sanitization techniques can help you stand out.
360clean provides a host of tools to equip franchisees to tackle all of these areas. The Preset Sales Appointment system gives owners access to a shared calendar and ready-made sales appointments with facility decision-makers. A dedicated business coach assists you in creating bids and the national support center helps you close deals with a proven process.
Commercial Cleaning Services Revenue FAQs
Are commercial cleaning franchises profitable?
Yes, with the right management and market, a commercial cleaning franchise can be quite profitable due to recurring income from long-term contracts. For instance, the average gross sales for the top 10 percent of 360clean franchises in 2022 was $697,320. One franchise boasted gross sales of $938,127!
Is a commercial cleaning business worth it?
Absolutely. It’s an industry that always needs help because businesses need clean spaces. With smart planning, it can offer steady cash flow, and even a work-from-home lifestyle.
How big is the commercial cleaning industry market?
The U.S. Bureau of Labor Statistics suggests that the demand for janitorial services is growing by 10% each year—indicating a sizeable market opportunity.
How much is the commercial cleaning industry worth?
This sector has shown robust growth over recent years and was valued at $147 billion in 2023, according to Statista.
Conclusion
Getting into the commercial cleaning industry is no small feat. But with our guide, you’re equipped to dive in headfirst.
You now know how crucial recurring revenue is for consistent success and surviving a recession. It’s all about securing bids and delivering stellar service.
We have also covered operating costs for contract cleaning services and potential income streams that shape your commercial cleaning services revenue.
You now have a roadmap to unlocking a recession-proof business opportunity.
360clean gives franchisees access to a recurring revenue business with affordable startup costs, low overhead, and national support in a high-demand industry.
Interested in learning more about franchising with 360clean?
