Is the REAL Money in Commercial or Residential Cleaning?

This question has come up occasionally from both residential and commercial cleaners. People in residential cleaning hear there is more money to be made in commercial cleaning and to a certain degree this is true; primarily because commercial cleaning companies can grow to a tremendous size - in the tens and hundreds of millions in sales a year. Many of the most successful residential cleaning companies have grown to $2 to $5 million a year in sales. To do more than this in residential cleaning is rare. So from a sales perspective, yes, it is feasible to make more money in commercial cleaning.

But what is your definition of "REAL" money? Is it making $100,000 a year? $150,000 a year? $300,000 a year? ...more?

Here is something to consider that is besides the idea of how much money you can make in a cleaning business, no matter what kind of cleaning business you own. When we had our first really successful year in terms of income, it hit us that the old statement "money can't make you happy" is very true. We were finally making the kind of money we had always dreamed of, yet we were so stressed out that we couldn't take the time to enjoy the fruits of our labor.

Yes, our company was growing, but we didn't take the time to automate our business so it could run smoothly without us being there every single day. Because our company depended on us so much, we had a hard time taking time off and enjoying life. Sound familiar?

So what do I mean by automating your business? I'm talking about putting systems into place for everything you do in your business -- from hiring to training to home/building inspections to scheduling work. Yes, we had a policy manual that covered many of these things, and yes, we had certain systems in place. But what we did NOT do was document, step-by-step, each of these systems so that our key employees could duplicate what we did without us being there. This is where the REAL money is, because as you put systems into place you'll find you're spending less time spent fixing mistakes, handling complaints, and writing up poor performing employees. Instead you'll have more time to enjoy the lifestyle you really want to live because your company is learning to run without your constant presence.

You can certainly make REAL money in whatever type of business you choose - residential cleaning, commercial cleaning, carpet cleaning or selling widgets! The key is to choose a business you are passionate about and then systematize everything you do to maintain consistency throughout your company so your business can grow successfully. Before you know it, you'll not only make "real" money, but you'll be enjoying the lifestyle you've been dreaming about.

Please share your thoughts about this post by clicking on the Comments link below.

Comments

[Beverly Linton]

I thought it would be great to get into commercial cleaning, but I have found that businesses want thorough cleanings, but only want to pay for emptying the trash. If I give them an option on what level cleaning they want and give them the level of charges, they still turn me down (and believe me, I'm not over charging either).

[Angie]

I wonder what Steve or Jean would have to say about this. I feel your pain!....
Sometimes you have to ask what would be their budget for the cleaning they want and try to work a price that would be acceptable for both parties. You know what price you need to make some money, just keep that in mind when you are negotiating the price. Unscientific, but may be an option. Some may disagree, but that is just my opinion right or wrong.
Angie
KGHCS

[Jean Hanson]

Angie,
Thanks for posting. You have a good idea with asking about their budget. If you have that info you can tailor a cleaning program to fit within the budget. Then you present it as... here's what we can do within your budget.

With budgets being tight these days you need to be as efficient as possible and you may need to get creative. Maybe focus more time on entryways and restrooms and less time dusting & vacuuming work areas that the public doesn't see.

[Tim Herr]

In my opinion the cleaning franchises have ruined the commercial cleaning industry. Their unrealistic cleaning quotes and poor performance have made us all look bad. What do they really care? They are in business to sell cleaning franchises and turning the same account over and over provides far more revenue than they could make off what they bid a cleaning account. I can be as creative as I want in organizing cleaning but you can only be so efficient without improvements in supplies and equipment. I don't know if I have the time or desire to stick around for this bad business karma to catch up with them.

[maria]

whats the best way too advertise for a cleaning business

[Jean Hanson]

Maria,
There are many, many ways to promote a cleaning business. What kind of service do you have - residential? commercial?

We have two ebooks you might want to check out (both are free for members)
150+ Marketing Ideas for Residential Cleaning Companies
http://www.myhousecleaningbiz.com/products/item199.cfm

Marketing and Sales Success for Cleaning Companies
http://www.thejanitorialstore.com/products/item659.cfm

Jean