Is a Cleaning Business Profitable? An In-Depth Analysis

Cleaning businesses have a low barrier to entry for new entrepreneurs and considerable growth opportunities, as there is a high demand for cleaning services. But are they profitable?

This guide covers the factors that affect profitability, start-up costs, operating expenses, and market demand. You’ll learn how to:

✓ Increase revenue

✓ Reduce overheads, and 

✓ Overcome common industry challenges

Keep reading for tips, from the profit potential of residential vs. commercial cleaning to streamlining operations and upselling extra services to build and grow a cleaning company.

We’ll also show you how tools like Aspire’s cleaning business software help owners be more efficient, satisfy more customers, and increase profit margins. 

Whether starting a new cleaning business or growing an existing one, this guide has the roadmap to long-term financial success.

Are cleaning businesses profitable?

The cleaning industry has been profitable for years due to rising demand in both the residential and commercial sectors. 

→ In 2022, the global cleaning services market was $370.56 billion and is expected to grow 6.6% annually until 2030. 

The industry has limitless potential for savvy business owners.

Residential cleaning businesses have 10 to 28% profit margins, depending on efficiency and customer retention. 

Commercial cleaning businesses can access greater profits due to larger contracts and recurring cleaning schedules. For example, cleaning a 10,000-square-foot office at $0.11 per square foot would cost $1,100 per job.

Start-up costs for basic supplies, insurance, and licensing are low, $2,000 to $6,000, so there’s potential to become profitable quickly. And with the same supplies and a small team, a cleaning business can offer residential, commercial, carpet, and window cleaning, making it versatile and able to adapt to a changing market. 

→ A one-person cleaning business can earn $35,000-$50,000 annually, while a team can earn over $100,000.

 Some of the key factors to achieving early profitability are: 

• Pricing structures 

• Offering add-on services like carpet or window cleaning

• Optimizing schedules to maximize jobs per day 

• Invoicing appropriately, either hourly or a flat rate for services

Using tools that eliminate repetitive manual work and give you comprehensive operational visibility to understand your most and least profitable services and customers. 

Business management software designed for the cleaning industry—like Aspire—can improve invoicing, streamline operations, and unlock higher profit margins.

This is a growing industry for both residential and commercial cleaning business owners if they manage costs and invest in customer relationships.

Let’s get into the key factors and the challenges.

What are the main factors that influence cleaning business profitability?

Several factors affect the profitability of a commercial cleaning company, from start-up costs to market demand. Knowing these helps cleaning business owners to build sustainable operations and increase profit margins.

1. Initial Start-up Costs

• Low initial investment: A profitable cleaning business can be started for $2,000 to $6,000 for basic cleaning equipment, supplies (mops, vacuums, disinfectants), and a business license account.

• Entrepreneurs can reduce first-time costs in their first year of small business by starting with a business model that comprises residential cleaning and homeowner cleaning jobs, and scaling up over time by adding additional services like commercial cleaning.

2. Operational Costs

• Labor costs, such as employee wages and benefits, are the most significant recurring cost. Competitive pay and efficient scheduling are fundamental to managing costs.

• Liability insurance covers risks of damage to customer properties.

• Equipment and supplies like company vans, ongoing cleaning supply costs, and specialty equipment such as carpet cleaners or pressure washers.

• Advertising to attract new customers, including digital marketing (social media and Google Ads), targeting your market.

3. Market Demand and Competition

• High demand from residential and commercial cleaning services, driven by a post-pandemic global focus on hygiene, unlocked opportunities for cleaning businesses to grow.

• A competitive market requires businesses to differentiate themselves through service, niche offerings (e.g., eco-friendly cleaning), or flexible pricing.

4. Pricing and Profit Margins

• Pricing strategy has a big impact on profitability. Residential cleaning services use flat-rate pricing, while commercial cleaning businesses use per-square-foot pricing.

By managing these, you can improve your operations and become profitable in the long term.

Now, let’s explore how cleaning business owners can reduce costs and streamline their business for profitability.

How much revenue can a cleaning business generate?

The revenue of any service business depends on its size, services, and market demand. According to industry data, small residential cleaning businesses make $35,000 to $50,000 annually, and larger commercial cleaning businesses can make over $100,000 annually.

There's limitless potential with a growth-focused business plan and the right business management software. By implementing Aspire, Spectrum Building Services grew from a reported annual revenue of $7 million in 2023 to $12 million in 2024. 

“Aspire helps mitigate the challenge of growth,” said Steven Harper, owner of Spectrum. “I feel like we have an advantage because we do what we say we’re going to do, and we can show that within Aspire. Having the software and the tools to make that happen has opened up a market for us that we never really explored.”

1. Residential vs. Commercial Services

Residential cleaning businesses charge a flat rate of $150 to $250 per home. Five jobs per week at $200 per job would earn $50,000 per year before expenses.

By comparison:

Commercial cleaning businesses secure larger contracts. For example, cleaning a 10,000-square-foot office at $0.11 per square foot would earn $1,100 per job. With recurring contracts with add-on specialty services, revenue grows quickly.

2. Seasonal Demand

Residential cleaning services are highly demanded during spring and holidays, creating short-term revenue boosts.

Commercial cleaning contracts provide consistent year-round revenue with fewer seasonal fluctuations.

3. Additional Revenue Streams

Businesses can increase revenue by offering different types of cleaning, such as:

• Carpet cleaning

• Deep cleaning

• Eco-friendly cleaning

Upselling services to existing clients, like window cleaning or floor waxing, can increase income.

Cleaning businesses can maximize revenue by focusing on service diversification, efficient scheduling, and building a strong customer base.

Now, let’s discuss the common profitability challenges cleaning businesses face and how to overcome them.

What are the most common challenges to profitability?

Despite the high demand for cleaning services, being profitable can be tough. Cleaning business owners must manage operational inefficiencies and financial pitfalls to succeed long term and overcome market changes and unexpected challenges.

1. High Employee Turnover

When cleaning businesses have high turnover rates, recruitment and training costs increase.

Retain staff to reduce turnover and increase team efficiency by: 

• Offering competitive pay

• Providing bonuses and incentives 

• Cultivating a good work environment.

Finding and keeping good employees is essential for building a profitable business.

2. Inefficient Scheduling and Route Planning

Poorly planned schedules and routes waste time and increase operating costs, especially for residential cleaning businesses.

Modern technology, like Aspire’s business cleaning software, optimizes scheduling and route planning, reduces travel time, and increases productivity.

3. Underpricing Services

Setting your service prices too low to get customers eats into profit margins. Many cleaning business owners don’t account for overheads like:

• Supplies

• Marketing

• Employee wages

A data-driven pricing structure based on market trends and service demand ensures fair pricing and profitability.

4. Seasonal Fluctuations

Residential cleaning businesses may experience dips in revenue during slow seasons. 

Diversifying services or targeting commercial cleaning contracts keeps income steady year-round.

5. Competition and Customer Retention

In a competitive market, businesses must differentiate themselves through service quality or niche services like green cleaning.

Building customer loyalty through referrals and regular communication reduces client acquisition costs.

By addressing these challenges with solutions, businesses can be more profitable and stable.

Let’s explore how cleaning business owners can reduce costs and increase efficiency to overcome these challenges.

How can cleaning business owners reduce costs and improve efficiency?

Reducing costs and increasing efficiency are critical for cleaning business owners.

Cleaning business owners can streamline operations and increase profits through the savvy use of technology.

1. Optimize Scheduling and Route Planning

Use cleaning business software to plan routes that reduce travel time and fuel costs.

• Prioritise job assignments based on proximity to reduce downtime between jobs.

• Use dynamic scheduling to adapt to last-minute client changes or cancellations.

Aspire’s cleaning business software makes route planning and scheduling easy.

2. Invest in Technology and Automation

Use tools for invoicing, payroll, and client communication to save time and reduce manual errors.

• Customer relationship management (CRM) systems can track customer data, nurture leads, and improve retention.

• Use task management apps to improve team coordination and job tracking.

• Aspire’s QuickBooks integration is seamless, so accounting is easier.

3. Outsource Non-Core Tasks

Cleaning businesses on a growth track hire professionals for time-consuming tasks like bookkeeping, marketing, or IT support.

• Outsource services like deep cleaning or janitorial services to external contractors.

• Aspire’s MarketingPro integration simplifies digital marketing so businesses can cultivate new revenue from their existing client base with targeted direct and email campaigns.

Outsourcing non-core tasks allows owners to focus on operational improvements and balancing cost savings with service quality.

4. Reduce Supply and Equipment Expenses

Aspire’s vendor management features help reduce costs by making bulk ordering and inventory tracking easier with cloud-based management. Business owners can also: 

• Buy cleaning supplies in bulk or partner with wholesalers to get discounts.

• Regularly maintain equipment to avoid costly repairs or replacements.

• Switch to eco-friendly supplies that reduce waste and attract environmentally conscious customers.

5. Train Employees to Maximize Productivity

Engage in ongoing training to cultivate managers from your existing team, and teach efficient cleaning techniques that save time and resources.

• Focus on time management and teamwork during onboarding and ongoing training.

• Reward high-performing employees with incentives to boost morale and retention.

A well-trained team reduces errors and increases customer satisfaction and overall efficiency.

Now, let’s get into the long-term strategies that cleaning business owners can implement to be profitable.

What are the long-term strategies for sustained profitability?

Long-term strategies are key to a profitable cleaning business. From customer loyalty to market trends, these will drive growth and success.

1. Build Strong Customer Relationships

Retain customers by offering loyalty programs or discounts for repeat customers.

• To keep customers engaged, personalize communication through follow-ups, holiday greetings, and satisfaction surveys.

• Proactively deal with complaints or issues to build trust and long-term loyalty.

Building long-term relationships increases customer retention, reduces acquisition costs, unlocks ongoing profitability, and contributes to a successful cleaning business.

2. Diversify Service Offerings

Expanding into complementary services can attract different customers within your existing market, such as offering: 

• Home cleaning

• Post-construction cleaning

• Green cleaning or office sanitation 

Highlight the demand and benefits of home cleaning services, like customized cleaning plans and professional expertise, which equals overall happiness.

• Adjust services based on customer needs and market trends for maximum relevance.

• Introduce seasonal or event-based packages like holiday cleaning or move-in/move-out services to generate extra income.

Service diversification gives you a steady income stream and caters to different customer needs.

3. Invest in Marketing and Branding

Keep your website updated with client testimonials, clear service listings, and online booking.

Use social media to show before-and-after photos, client success stories, and special offers to engage potential customers. Encourage reviews and referrals by offering incentives, increasing credibility, and sparking word-of-mouth growth.

Consistent marketing is key for commercial cleaning businesses to increase brand awareness and attract a broader customer base.

4. Focus on Employee Development

Provide ongoing training to empower employees with exceptional skills and new technology proficiency.

Reduce employee turnover by creating a positive work environment with:

• Competitive pay

• Benefits 

• Recognition programs

A skilled and engaged team means high-quality service and long-term business growth. Business owners can build leadership by promoting a loyal and motivated team from within.

5. Use Data-Driven Decision-Making

Data-driven decisions improve operational efficiency and allow for more innovative business investments.

• Track KPIs like profit margins, customer retention, and employee productivity.

• Research market trends to find high-demand services or underserved areas.

Tools like Aspire provide commercial cleaning companies with real-time, actionable data that makes it possible to adjust operational strategies before they affect profitability.

Let’s see how Aspire can help cleaning business owners grow and be profitable.

How can Aspire help increase cleaning business profitability?

Aspire’s cleaning business software helps users optimize, reduce costs, and increase customer satisfaction. By streamlining processes like scheduling, invoicing, and client management, Aspire helps cleaning businesses become more efficient and profitable. 

Data-driven insights ensure every process contributes to a business’s growth.

Automate scheduling and dispatching

Aspire users can optimize routes and schedules with a single click to reduce travel time and fuel costs.

Automated tools to ensure on-time service delivery and no scheduling conflicts, and Aspire’s dynamic scheduling adjusts to last-minute changes so businesses can stay efficient and reliable.

Improve job tracking and management

Monitor job progress in real-time from a central dashboard with customizable data visualizers. 

Users can assign tasks and adjust as needed for smooth operations, pushing property task lists to the offline-capable mobile app. 

Aspire allows businesses to handle last-minute client requests without disrupting workflow, and keeps teams in the field informed without the chaos of texting and calling. 

Enhance customer retention with CRM tools

Track client interactions to personalize communication and build relationships.

Automate follow-ups, contract renewal reminders,  and satisfaction surveys to keep clients engaged.

Aspire’s CRM tools make building a loyal customer base that supports long-term profitability easy.

Boost cash flow with better billing and payment systems

Automate invoicing to reduce manual errors, save time, and see aging and past-due invoices at a glance with Aspire’s color-coded system.

The customer portal makes online payment easy via either credit card or ACH bank transfers.

Aspire reduces delays and ensures a consistent cash flow for financial stability.

Leverage data insights for smarter decisions

Get detailed reports on revenue, employee performance, and client preferences to find growth opportunities by looking at high-demand services and client needs.

Use Aspire’s insights to refine workflows and optimize operational strategies for long-term profitability.

Reduce waste and control costs

Use Aspire’s purchasing assistant to monitor resource usage and inventory to reduce waste and prevent stockouts.

Aspire’s vendor management tools allow bulk purchasing and tracking expenses to reduce overhead costs.

Scale your business effortlessly

Aspire not only gives cleaning companies the tools to ignite growth but also has the structure and capacity to grow with them. 

Users can onboard new clients and new service areas without operational bottlenecks and maintain efficiency, service quality, and profitability during growth.

By using Aspire’s software, you can unlock more profitability and operational excellence.

It’s your turn now

When done right, starting or growing a cleaning service is profitable. This guide has given you the tools to succeed, from understanding the profitability factors to overcoming the challenges.

Aspire’s cleaning business software makes operations more manageable and efficient to drive lasting revenue. Whether scheduling, customer relationships, or data insights, Aspire gives you the edge in the cleaning industry.

Ready to take the next step? Our blog offers tips on offering additional services, such as growing your cleaning business or choosing the right business structure.

When you’re ready to transform your business and increase profits, book a free demo with Aspire. See how it can help you streamline workflows and increase customer satisfaction and long-term success.