Starting a janitorial company is a fantastic way to become an entrepreneur! Like starting any business, however, you must first ask if there is potential for high profits.
On average a janitorial cleaning business makes about $110,000 a year. While this may be a lot for some, the phrase “a lot of money” is relative to you and what you are looking for. It also depends on where you are located, because while a $110,000 may be a lot in Wyoming, it may not be considered a lot in somewhere like California.
Janitorial cleaning business vs a maid service
While a janitorial cleaning business and a maid service may seem very similar at first glance, the two do have several major differences to them. These differences include:
1. Where they operate
Although janitorial cleaning services can operate in homes, they are generally reserved for commercial locations. A maid service, on the other hand, is generally more responsible for residential areas and homes.
2. Services they offer
Generally, maid services offer a more, for lack of a better term, aesthetic clean. In other words, maids are hired to make the area they are working in look better.
A janitorial service, on the other hand, is more often hired to clean in order to maintain a level of safety for an area. If a business hires a janitorial service, they aren’t as worried about the area looking good as they are with the area being germ-free.
3. How they operate
More often than not, a maid service will only send one person to complete a job. This is, of course, because that’s all that is needed, as residential spaces are smaller and the work can be performed rather quickly.
A janitorial service company, on the other hand, works in teams or crews to ensure that their job is done efficiently. This is often necessary because of the sheer size of commercial buildings.
How a janitorial service company makes its money
The goal of any business is to make money. Each type of business, however, makes money in its own way. The main way a janitorial service company is going to make money is by being paid to perform cleaning services for a business, or in some cases a private person.
Essentially, what happens is that a company with an office space will reach out to the janitorial service company in order to hire them to clean and disinfect their office space.
The janitorial service company will be responsible for providing its own supplies and equipment. The company contracting the janitorial service company will supply a list of requests as to what needs to be cleaned and what doesn’t.
How much does a janitorial service company make?
As mentioned previously, the average janitorial service company makes an average of about $110,000 per year. It is important to remember, however, that this is the average of every one of these companies in the country.
Some of these companies across the nation report earnings of up to $1 million every year! It all depends on a large number of factors.
Factors that affect how much a janitorial service company will make:
- Location: Where a janitorial business is located can make all the difference.
- Residential vs commercial cleaning: Most experts agree that the big money is in commercial cleaning.
- Cost of owning equipment: Where you buy your equipment and how much you pay for it will significantly impact how much you make as a janitorial service company
- What services you offer: The services that a janitorial cleaning service may offer can greatly affect how much profit it sees.
Deciding where to locate your janitorial service business can make all of the difference in your success. You have to decide what type of location works best for you before you get started.
Urban vs rural
The first important choice you are going to have to make when it comes to location is whether you want to start in an urban environment or a more rural environment
Most janitorial service businesses are located in urban environments. This is because an urban environment provides a large number of potential clients, most of which are commercial businesses, which is a huge aspect of any janitorial cleaning service.
Cost of living
Another aspect that is going to affect how much a cleaning business is going to make is what is known as the ‘cost of living’ in the area of operations. This is just what it sounds like. It is a measure of how much it costs to live in that particular area.
The cost of living will also affect how much a cleaning service is going to make. This is because in an area with a higher cost of living, clients expect to be charged more for services offered by businesses.
For example, the cost of living in San Francisco, California is significantly higher than the cost of living in Cheyenne, Wyoming. As a result, a janitorial service company in San Francisco is expected to make far more money than the one in Cheyenne.
This, however, does not mean that the one in San Francisco did better. Rather it may simply mean that they secured more money because they can charge more. But because of their location their costs, such as wages, rent, and supply costs, will likely be far higher.
2. Residential vs commercial cleaning
Although residential cleaning is more often performed by maid services, they are sometimes performed by janitorial service companies.
The important difference is that commercial cleaning has much more earning potential to it.
There are two main reasons why commercial cleaning has such a higher earning potential:
- The cost of necessary equipment
A residential cleaning service will generally require more expensive equipment than you would need for a commercial cleaning service.
This is because the necessary cleaning products for a residential cleaning service have to meet certain safety standards before they are acceptable for residential use.
In commercial cleaning, however, you can generally use commercial cleaning products. Essentially, these products tend to be purchased in large bulk amounts making them far less expensive.
By paying less for your products in a commercial cleaning setting, you are going to be increasing your profit margins.
- Prices charged
For both residential and commercial cleaning services, the price per hour hovers around $30 to $50. While it may seem that choosing between the two doesn’t matter because they charge roughly the same rate per hour, there is an important aspect to consider.
While both charge the same per hour, commercial cleaning will generally take far longer. Because of this, a janitorial service company will make far more per job when doing commercial cleaning.
This is incredibly important when getting started, a time where business may be slow and you aren’t having to rush to get the job done to make it to the next client.
3. Cost of supplies
No matter which type of cleaning a janitorial service chooses to focus on, they have to purchase the equipment necessary to perform their job.
If a cleaning service can keep its cost low, then it can effectively maximize its profit.
List of necessary equipment
- Paper towels
- Glass polishing cloths and sprays
- Mop and bucket
- Protective gloves
- Furniture polish
- Floor polish
- Trash bags
- Toilet cleaner
- Stain remover
How much a janitorial service company spends on this equipment will affect how much they make. Most take part in bulk buying and other tactics to keep equipment costs low and profits high.
4. What services it offers
The premise of supply and demand doesn’t solely apply to products. It also applies to services. By offering services that not many businesses in the area offer, a janitorial service company can greatly increase its profits.
Services that increase profit
There are some cleaning services that a janitorial cleaning business can offer that will make far more than others. Offering these types of services is the best way to increase your profit margins and make sure that you continue to make a profit.
1. Deep disinfecting.
Anyone can wipe down windows and vacuum a carpet, but by offering a deep disinfecting to your clients, especially during the time of a pandemic, you can effectively charge more.
Deep disinfecting is also fairly easy to do. All that is required is a disinfectant, such as bleach or any other disinfecting chemical, and some water to serve as a diluting agent.
They also will need personal protective equipment such as masks, rubber gloves, and ideally a rubber suit to protect your skin from exposure.
2. Swimming pool cleaning
Swimming pool cleaning isn’t generally something you think of when you think of a janitorial service. Rightfully so, as it generally isn’t something that most offer.
Those who do, however, enjoy great business because of it. Thousands of Americans own swimming pools, but most do not know how to clean them.
By hiring a small crew familiar with pool cleaning and then offering their services as pool cleaners to the surrounding public, some janitorial service companies greatly increase their profits.
3. Carpet Cleaning
Most people are unable to clean their carpets effectively. By offering a service to those looking to have their carpets professionally cleaned, a janitorial service company can capitalize on another open market.
Why should I start a janitorial service business?
A janitorial service business is one of the easiest and cheapest methods of entrepreneurship you could pursue.
It has low start-up costs, it doesn’t require a ton of experience, and is always a need in the market.
It also has many avenues of pursuit, so you aren’t stuck doing one type of cleaning repeatedly. Instead, you have several options available for pursuing to make sure you are loving what you are doing.
How do I start my own janitorial service business?
Like any business, you’ll need a name and a brand image to get you started. You should also go online and create your website. Next you will need a business headquarters to center yourself at.
Then you would need to invest in cleaning products and staff. Once you have all of that, start reaching out to businesses with offers from your company.
It will be a long road, but as long as you stay optimistic, you can do great things!
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Take your cleaning business in new and promising directions with The ABCs of What To Do Before Opening Your Cleaning Business.