The cleaning business in the UK is growing steadily and various reports indicate that at the moment, this business is worth between 3 billion and 9 billion yearly. This makes it be an extremely competitive business.
So, if you’re planning to start a cleaning business, and thinking to yourself is it worth starting a cleaning business. Don’t just back down, as it is very profitable but at the same time very competitive market to be in, but worth starting.
In this post, we’re going to talk about the positives and negatives of a cleaning business in the UK and how you can profit from it.
The cleaning business may be widely spread across the UK, but this doesn’t mean that you cannot enter this lucrative business. With proper planning and strategy, you can start small and grow into a thriving business within a few years.
However, you should be ready to face some challenges as it’s not easy. From managing the day-to-day activities of the business, looking for cleaning, and delivering top-notch services, you will have to dedicate more time and manage to get the business running.
Without much ado! Let’s narrow down to the pros and cons of running a cleaning business, and find out if its worth starting a cleaning business.
Pros of starting a cleaning business
- Low start-up costs
When compared to other businesses, starting a cleaning business is comparatively low. This is because you only need a small capital and a few cleaning supplies to get started. Additionally, you can start with a few workers and expand as the business expands.
For the business to succeed, you need to market it in the right way and even create a website where you can be found easily. Also, ensure that you provide the best services in order to retain and increase your customer base.
- It is very flexible
This is a very flexible business as it allows you to multitask. You can be self-employed and at the same time be the manager of your cleaning business. This means that you can work for yourself, do the marketing, and even arrange meetings with clients.
With this business, you will have total control of your schedule and choose the people that you want to work with.
- Potential to Generate a lot of income
If you thought that a cleaning business isn’t as profitable as any other business, then you will have to think twice about it! A cleaning business is profitable, as you can generate more than £ 2000 per day and up to £400,000 annually depending on how big you want to grow.
This is possible if you offer different daily cleaning services to both residential and commercial clients.
If operated in the right way, a cleaning business can be a great source of income and you will run it on your own terms and rules. And if you want to generate more cash, then you will have to expand your business and offer the best services in your area of operation.
- There are a few overhead expenses
The best part of starting a cleaning business is that there are just a handful of overhead expenses. As a cleaning business owner, you won’t undergo a lot of expenses as you will be the manager, sales executive, marketer, and probably the cleaner or one of the cleaners as you start.
Therefore, you may not have to pay for expenses such as business premises, workers, or company vehicles or pay huge electricity bills. You may have one or two workers to start with and a few tools to start with. There will be no or little fuel needed or rent as you start unless you start big.
- Rising demand for cleaning services
Cleaning is not something that you choose to do when you want to but it is becoming a necessity. In the market, there is a general perception that individuals with good disposable income are the only ones who can afford a cleaner. But not the majority of the working class because of their recession situation. This is not true as the working class needs a cleaner as much as the elite one does.
With the changing lifestyle and increased workplace pressure, people prefer hiring a cleaner to tidy up their house for 2 to 3 hours once a week for just £45 to £90 depending on the size of the house and type of cleaning.
- No experience is needed
Unlike other businesses that needs one to have knowledge or experience about running them, a cleaning business doesn’t need that. As long as you’ve got the capital and passion to run a cleaning business, you can definitely flourish and make your business profitable.
Go out, do research about the market and your competitors, meet clients, promote your business, and deliver the best services. All it takes is hard work and dedication to get it done. Always stay ahead of the game to beat your competitors as this business is very competitive.
- Great growth potential
Whether you start your own cleaning business or buy from a company or person, the growth potential is very high. All you need to do is to ensure that you deliver the best services and create a relationship with your customer.
Also, encourage referrals by offering discounts to customers who bring them. Have a growth strategy in place and expand your services as well to fully capitalize on your clients.
- Repeated services
Cleaning is not a one and done thing but a regular thing that will have to be done again and again. So, this is a venture that will constantly bring in income and you can fully depend on it as your source of living.
Don’t offer all services but focus on one area and offer the best services that you can. With this in mind, you will not only maintain your clientele base but also expand it.
- You can work from home
No office, no problem! When you start a cleaning business which ever one that is, you don’t have to worry a lot as you can operate it from home. All you need to have is the right cleaning equipment and legit business in place with the right documentation. But as you grow and expand, a physical office is required and employees for growth.
- Great digital potential
With the massive digital potential that we’ve got today, operating a cleaning business has been made very easy. From outstanding platforms for cleaning companies to project management tools for cleaners and many other cleaning tools out there, running a cleaning business has been made easy.
Just choose the right tools and you’ll be on your way to success.
Cons of starting a cleaning business:
- Low income at the beginning
One of the greatest challenges of starting a cleaning business is that it generates very low incometo begin with. This may not be painful considering that you only need to start the business with a small capital, but it is still important if you want to grow your business.
This means that you may struggle at the beginning before you get clients. But with time, you will figure out and know how to run with the low income as you continue to progress.
- Managing teams can be really challenging
If you have employed some cleaners, managing them properly is vital if you want to succeed. There may be some ups and downs but you’ve to work out and come to an understanding.
Also, you need to monitor the workers and ensure that they are providing the best services possible. If they are not up to the task, then it will be your duty to train them.
- It is difficult physical work
Cleaning is a physical job and you need to be fit in order to flourish at it. Do repetitive movements and carry heavy supplies before going out to customers. Also, test your employees and ensure that they are up to the task.
- It is very competitive
Let no one lie to you that the cleaning business is not competitive. This business is very competitive and you need to be at your best to compete favourably or be left behind. Discover your selling points and offer exceptional services to stand out from the competition.
Potential Cleaning Business Turnover and Profit
When you begin, it is important to know your expected cleaning business profit potential. This will help you to properly manage the business and understand whether you can operate profitably or not. So, what is a profit margin? This is the ratio of net income to revenue.
The revenue is the total amount of money the business generates when it offers cleaning services. While the net income is your revenue less the expenses involved.
Below, we’re going to discuss how you should calculate your revenue, expenses, and profit margin.
- Calculate your revenue
The amount of money that you charge your clients vary depending on the competition, the products that you’re using, and the size of the house that you’re cleaning. For instance, you may charge your clients £20 per hour for cleaning services.
If you clean their house for 3 hours a day, that will amount to £60 and if its two workers doing the cleaning, that will be £120. So, £120 is your revenue.
- Calculate your expenses
After determining your revenue, you now need to find out how much you spent while cleaning the house or office. For instance, if you pay your employees £8 per hour, that will be £24 for 3 hours and £48 for the two workers.
For those who have a travel a distance in order to offer their services, fuel expenses should also be included. In this case, let’ say that fuel costs around £1.
Another expense is the cleaning supplies used. If the client offers cleaning supplies, then this should not be included, but if you have to purchase your own cleaning supplies, then you should include the cost. For instance, the cost of cleaning products may be around £55, but you will have to average it out over so many houses that you use the products for.
- Calculate the profit margin
In order to know your profit margin, then you will have to calculate the net income divided by the revenue. In this case, our net income is £120 minus £55, which equals to £65. Therefore, when we divide the net income by revenue, we come to a profit margin of 65%. Always try to ensure that you get higher revenue and lower expenses to have a higher profit margin.
Cleaning Business Profit Potential
The figures below are just an estimate of your possible income. They are not meant to show data concerning actual costs, sales, income or profits but reflect revenue based on particular factors.
Also, the actual results will differ from one house or office to another depending on the cost of advertising in the area and the amount charged for different cleaning services.
Est Number of Cleans | Est Annual Revenue | ||||
Daily | Weekly | 52 Weeks | £90 per clean | £110 per clean | £140 per clean |
2 | 8 | 416 | £37, 440 | £45, 760 | £58, 240 |
4 | 16 | 832 | £74, 880 | £91, 520 | £116, 480 |
6 | 24 | 1, 248 | £112, 320 | £137, 280 | £174, 720 |
8 | 32 | 1, 664 | £149, 760 | £183, 040 | £232, 960 |
10 | 40 | 2, 080 | £187, 200 | £228, 800 | £291, 200 |
12 | 48 | 2, 496 | £224, 640 | £274, 560 | £349, 440 |
14 | 56 | 2, 912 | £262, 080 | £320, 320 | £407, 680 |
Now are you still wondering isit worth starting a cleaning business? Of course these are estimates. And your business maybe different depending on prices you charge, and how badly you want the business to succeed.
The above figures are based on an estimate of a regularly scheduled house and office cleaning. The figures do not show the income potential from additional add-on sales from extra services that you will probably provide such as cleaning the inside of appliances, spring cleaning’s, property maintenance, cleaning the windows, professional floor care, new construction cleaning, etc.
If your just starting a cleaning business take a look at the businesses we recommend to start
Conclusion
A cleaning business can be just as profitable as any lucrative business if the right steps are undertaken to start and grow it. Even with stiff competition, a dedicated person can start small and expand quickly within a very short period of time.
All you need to do is to study the market and see how you can compete favourably with other cleaning business in your target area.
Unlike some businesses that need huge capital or workforce to start-up, a cleaning business just needs a low start-up cost, it’s very flexible, no experience is required, and the overhead expenses are low.
However, the business is extremely competitive, needs a lot of physical work, and generates low income in the beginning.
Regardless, proper management of the cleaning business can generate profits if you properly work out your revenue generated and expenses.