Why should you start a home service business?

Pros & Cons of a cleaning company

Thinking of starting a cleaning company?

In this example we’ll go over the pros and cons of a cleaning company but this also applies to any home service business.

As a marketer, i’ve done advertising and grown a lot of home business over the years and home service business were the quickest to make money and easiest to setup and get proof of concept but there is one con which we’ll go over at the end.

For this example we’ll use a house cleaning company and call it “evergreen co”. Startup cost for a cleaning company is very cheap even at scale ($30k+ a month) your most expensive cost is labor and besides transportation the equipment is easy and cheap to get.

Below is the breakdown of equipment cost and links for evergreen co.

Startup equipment:

total startup cost is $431.

What is the potential of invest $431 dollars?

Well it depends on your business model. Are you a solo cleaner, do you have a helper, do you want to manage teams? Lets stick to a startup model and assume you will be a solo cleaner. On average 1 person can clean 3 small apartments, 2 medium size homes per day before getting burnt out. Pricing varies by location but for evergreen co a competitive initial/one time cleaning rate was $60 per hour and once you sign up clients to a recurring service you can give them a discounted rate for coming biweekly, monthly, etc.

One a single day if you’re cleaning two apartments your gross profit for the day would be as follows:

3 apartments 6hrs total ( $360)

2 homes 4-5hrs.($240-$300)

Now the challenge is to fill up your calendar and get to that first bottle neck. The numbers break down as follow assuming you’re working 5 days a week.

Gross Profit per month: $4800-$7200 💰

Gross Profit per Year: $57600-$86400 💰

Cons:

If you have have made it this far, thanks for consuming the content. My goal is to make short letters that are easy to digest. I’ve hinted the biggest con of starting a cleaning company throughout and that is the manual labor and as a solo cleaner that is you!

The biggest bottle neck as a solo cleaner is how much manual labor can withstand and the biggest labor at $10k+ a month is finding good reliable manual labor that your can trust. The need for cleaning is there specially in metro areas the biggest bottle neck is fulfilling the service.