Commercial Cleaning Business Overview
Commercial cleaning businesses provide essential cleaning and sanitation services to commercial clients such as offices, healthcare facilities, retail establishments, and industrial sites. These businesses help maintain safe and clean environments by performing tasks like sanitizing surfaces, cleaning floors, and managing waste. For someone considering starting this type of business, the appeal often lies in its accessibility.
For someone considering starting this type of business, it’s important to understand its flexibility and scalability. Entrepreneurs can start small, offering services as independent contractors, and grow their businesses over time by adding employees or expanding their client base. Additionally, this type of business typically requires fewer upfront costs than many other service industries, as most expenses are for cleaning supplies, basic equipment, and licensing. Since these services are needed across a wide range of industries, consistent demand offers stability for new entrants.
The most common business models in commercial cleaning include:
- Independent Contractor: Sole proprietors or small teams that provide services directly to clients.
- Franchise: Businesses that operate under an established brand with support and resources from the franchisor.
- Specialized Services: Businesses focusing on niche markets, such as medical facility cleaning or post-construction cleanup.
Related: Checklist To Start A Business
How Do Commercial Cleaning Businesses Make Money?
The primary source of revenue for commercial cleaning businesses comes from offering contracted cleaning services to commercial clients. Contracts are often negotiated to provide routine cleaning, such as daily, weekly, or monthly services. The price for these services typically depends on several factors, including the size and type of the facility, the cleaning tasks’ complexity, and the service frequency. Clients are usually billed on a per-job or subscription basis, ensuring a predictable and steady flow of income for the business. This revenue model’s simplicity, coupled with the ongoing nature of cleaning needs, creates a dependable income stream for business owners.
Additional revenue sources for commercial cleaning businesses include:
- Supply Sales: Selling cleaning products and supplies to clients for their day-to-day maintenance needs
- Equipment Rental: Offering cleaning equipment rentals to other businesses or individuals
- Emergency Services: Premium rates for urgent cleaning requests or after-hours services
Industry Statistics
The commercial cleaning and sanitation services industry falls under NAICS code 561720, “Janitorial Services.” This industry includes businesses that clean and maintain commercial spaces such as offices, healthcare facilities, and industrial sites. Below are some highlights and key statistics about this industry.
Industry Size & Growth: The commercial cleaning industry is projected to generate $75.3 billion in total revenue in 2024, with an average annual growth rate of 2.0% over the last five years. Ongoing demand for cleaning services in essential sectors such as healthcare and manufacturing has supported this steady growth. Industry revenue is expected to continue expanding by 6.8% annually through 2030, driven by the reopening of commercial spaces and advancements in cleaning technology, such as automated equipment and chemical innovations, which are expected to improve efficiency and expand service offerings (IBISWorld).
Number of Businesses: An estimated 885,000 commercial cleaning businesses operate, and low barriers to entry and high competition characterize the industry. While no single company dominates the market, many smaller businesses and franchises contribute to its growth. Franchised operations often provide training, marketing support, and established brand recognition, making them an appealing option for new entrants (IBISWorld).
Commercial Cleaning Average Profit Margin: The average profit margin for businesses in this industry typically falls within a consistent range due to the low fixed costs associated with operations. According to the IRS, janitorial services and related sectors maintain an average profit margin of approximately 8-14%, depending on the scale and specialization of the business. (IRS)
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Costs To Start a Commercial Cleaning Business
Starting a commercial cleaning business typically costs between $3,000 and $50,000, depending on the planned size and scope of operations. The lower range represents a small operation focusing on basic cleaning services, while the higher range reflects a larger operation equipped to handle multiple commercial clients.
Here are some of the more expensive items needed when starting a commercial cleaning business:
Equipment and Supplies: Commercial cleaning equipment costs between $2,000 and $15,000. This includes industrial vacuum cleaners, floor buffers, carpet cleaners, and pressure washers. Additional supplies like cleaning solutions, mops, buckets, and safety equipment add to the initial costs.
Vehicles: If a vehicle will be needed, a commercial cleaning van or truck typically costs between $5,000 and $25,000. The vehicle needs to be large enough to transport equipment and supplies between client locations. Some businesses start with a used vehicle to reduce initial expenses.
Insurance: Commercial liability insurance and bonding coverage ranges from $500 to $3,000 annually. This protects against potential damage to client property and provides coverage for employees.
These estimates provide a general idea of what it may cost to start a commercial cleaning business. Actual expenses will vary depending on the scale and type of services you plan to offer.