How to Start a Commercial Cleaning Business

Part 1 - How to start a Commercial Cleaning business - Background

This business is needed because not all businesses can afford (or don’t want) to maintain in-house cleaning staff. These companies fill in the gaps needed to maintain a business without requiring the business to commit to the full costs and overhead of an employee.

Our guide is in 3 parts:

• Part 1 - How to start a Commercial Kitchen Cleaning business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a commercial cleaning business?

Costs to start a cleaning business are minimal. It can be started on a shoestring budget for less than $500. A larger company may budget up to $100,000 and start with professional cleaning equipment like floor waxing machines, floor washers, commercial mops and cleaning buckets, and cleaning and service vans.

What are the ongoing expenses for a commercial cleaning business?

Ongoing expenses for a cleaning company include cleaning supplies, utilities, insurance, and maintenance for transport vehicles. These costs may range from a few hundred dollars for smaller operations to many thousands of dollars (or millions of dollars) for larger companies.

Who is the target market?

Preferred client types are large commercial clients. Most cleaning businesses work with big chain restaurants. Undesirable clients are companies that have no need for ongoing cleaning services.

How does a commercial cleaning business make money?

These businesses make money by charging clients a fee for cleaning services.

How much can you charge customers?

Businesses can charge clients an hourly rate between $50 to $150 per hour, with a small crew of 2 cleaners typically charging $50 per hour. Smaller crews tend to take longer to complete jobs, however, so the total cost may be higher for the client. Cleaners can also charge a flat-rate for services. This makes sense when you know you can complete a job on time or under an equivalent hourly billing time.

For example, let’s say you know a job normally takes 10 hours to complete. If you charge the customer $50 per hour, you will end up with $500 in billable cleaning hours. However, you may decide to charge a flat fee for services of $600 to $750. The higher fee guarantees that you’ll finish on time and protects the customer from unexpected expenses due to longer-than-expected cleaning requirements.

The risk to the business is that a job may actually take longer than expected to complete, resulting in a partial or total loss of profit on the job.

How much profit can a commercial cleaning business make?

Profit margins for a cleaning company can be thin. Some companies only profit 1% to 5%. However, if you’re a smaller company working with a small cleaning crew, it’s entirely possible to price your services at a 20% to 40% profit. Local markets will dictate your pricing unless you offer value-added services that can’t easily be compared to the competition.

How can you make your business more profitable?

Making your business more profitable usually means specializing in one type of industry or offering value-added services. For example, you might specialize in cleaning hospital kitchens, which may require certain specialized knowledge of hospital cleaning procedures and processes (including sanitation requirements).

You might also choose to offer value-added services, like complimentary cleaning of blinds and doing laundry service for clients. You could also increase the value of your services by offering cleaning services for special equipment, like ice cream machines.

Day-to-Day and Growth

What happens during a typical day at a commercial cleaning business?

Day-to-day activities of a kitchen cleaning service include cleaning and maintenance of kitchens and related areas. Daily cleaning regimens include:

• Changing foil linings for grills, ranges, and flattops

• Disinfecting prep areas

• Wiping and cleaning grills, ranges, fryers, and underneath all equipment

• Washing can openers and meat slicers

• Wiping down walls and back splashes

• Mopping floors

• Cleaning machines

• Disinfecting waste disposal areas

• Running hood filters through the company’s dishwasher

• Washing and sanitizing walk-in coolers

• Deliming sinks and faucets

• Cleaning floor drains

• Changing pest traps

What are some skills and experiences that will help you build a successful commercial cleaning business?

Being a successful cleaning business means that you have staff that are well-versed in various cleaning methodologies, have good attention to detail, and are knowledgeable about how to mix and use cleaning products and equipment. This is a very labor-intensive job and, while not heavily skill-dependent, it does require stamina.

What is the growth potential for a commercial cleaning business?

Growth potential for this business is significant.

Small cleaning operations can be run by a staff of one person, but at least 2 to 3 is preferable. Larger operations can employ 10 to 50 employees, or even hundreds of cleaners. HOODZ and Janiking are examples of large cleaning companies that operate as a franchise.

What are some insider tips for jump starting a commercial cleaning business?

Focus on small business owners instead of large chain restaurants because large corporations may already have long term partnerships with professional (and established) cleaning services. Smaller companies may also have a greater need for services but can’t afford to hire a full-time employee. These may be smaller jobs but will form your “core clients.”

How and when to build a team

Building a team is necessary usually from the start. Unless you are working with very small businesses, it’s easy to get overwhelmed. Start by hiring a small cleaning crew and expand as revenue and profit allows. A small business can be started with just one or two cleaners. You can expand the business to accommodate anywhere between 10 and 100 employees. This would be considered a mid-sized company. Large commercial cleaners employ thousands of people or franchise the business.

Part 2 - Is a Commercial Cleaning business the right fit for you?

Part 3 - Action plan to launch your Commercial Cleaning business in 90 days