Are Cleaning Businesses a Profitable Business to Buy?

Are Cleaning Businesses a Profitable Business to Buy?

When it comes to cleaning, is it really a profitable business to buy?

The cleaning industry in Australia is growing, and for good reason.

Over the past five years, demand for professional cleaning services has surged, driven by increased hygiene awareness post-COVID. As of 2024, Australia's commercial cleaning market is worth approximately $14 billion, with over over 38,600 businesses employing 173,500 people.

This steady growth has been fuelled by real estate development, rising commercial demand, and changing consumer habits. With people busier than ever, many are opting to outsource cleaning rather than spend their limited free time on chores.

With the rise of AI and automation, some experts believe we're entering the "era of services" - a shift where people prioritise paying for tasks that impact their quality of life. Cleaning is a perfect example. It’s a necessary but time-consuming job that most people don’t enjoy, making professional cleaning services more valuable than ever.

So, is it a profitable business? The demand is strong, and with the right setup, whether you run it yourself or manage a team, cleaning can be a reliable and scalable business.

 

Why Buy a Cleaning Business?

 

Cleaning businesses can service multiple clients from commercial, residential, end of lease cleans, waste mangement and more. Giving it a wide range of clients.

The entery level into a cleaning business is relatively low. A few cleaning products, some advertising flyers and you could have your cleaning business up and running. Buying an established cleaning business will give you a client base (that is time consuming to obtain), products, branding, teams and more. 

According to Jim’s Cleaning Group, more Australians are turning to professional cleaning services to keep their homes and workplaces in top condition.

With the right management and marketing, a cleaning business can generate consistent profits and expand through client referrals and repeat business.

Post-pandemic hygiene awareness has also transformed the industry. People are more conscious of germs and bacteria, leading to higher demand for deep cleaning and sanitisation services. Businesses that offer specialised cleaning solutions, such as disinfection services, eco-friendly cleaning, and mould removal, can differentiate themselves in the market and attract a loyal customer base.

 

How Much Can You Earn Owning a Cleaning Business?

 

Well it will always depend on the size. But the beauty of a cleaning business, you can continue to grow - theres plenty of places to be cleaned!

Earnings in the cleaning industry vary based on location, services offered, and business size. On average, small to medium-sized cleaning businesses generate between $50,000 and $200,000 annually, while larger operations can bring in significantly higher revenue.

Here are some recent listings on Bsale, so you can get an idea of the options to buy:

• Window Cleaning Business: Price: $50,000 WIWO, Operating only 2 days per week - net profit:  $45,000 per annum.
• Cleaning Air Conditioners: Price: $195,000 + SAV, PEBIDTA: Over $120,000pa
• Mining And Industrial Cleaning Business in QLD - Price: $5.4 Mil, 2024 Profits: $1.5M. This Industrial Cleaning business based in Northern QLD. It started small and hasn’t looked back since! Managing 15 mine sites. 

Many business owners start with a small team and expand as they secure long term contracts with commercial clients. Recurring cleaning contracts provide stable income, and businesses that diversify their services, such as offering industrial cleaning or eco-friendly solutions, often see increased profit.

Offering specialised cleaning services can command higher rates, with some businesses earning up to $100 per hour. 

For instance, Flourish Cleaning Co, a North Queensland-based cleaning business, has projected nearly $100,000 in revenue in its first financial year

So can a cleaning business be profitable? Yes!

 

What to Look for When Buying a Cleaning Business

 

When looking to buy any businesss, due diligence is essential. Key factors to consider when looking to buy a cleaning business include:

• Existing client contracts and revenue streams - a business with long-term contracts provides a steady cash flow and reduces the risk of income fluctuations. Reviewing the details of these agreements will help you understand client retention rates and overall revenue stability.
   
• Business reputation and online reviews - a strong reputation can be a major asset. Checking online reviews, client testimonials, and industry ratings will give you insight into the business's standing in the community and the quality of service it provides.
   
• The cost of equipment, supplies, and staffing - cleaning businesses often require significant investment in specialised equipment and supplies. Assessing these costs, along with staff wages, will help you determine ongoing operational expenses and profitability.
   
• Licensing and regulatory requirements for commercial cleaning operations - some cleaning businesses require specific permits or licenses, especially for handling chemicals or working in commercial and industrial settings. Ensuring compliance with local and national regulations will prevent legal complications.
   
• Growth potential and expansion opportunities - investigating whether the business has room for growth, such as expanding services, targeting new clients, or adopting new cleaning technologies, can indicate future profitability. A scalable business model increases long-term success.
   
• Verifying financial records, speaking with current clients, and assessing the operational workflow can help ensure you invest in a business with strong foundations.
  
   

How Much Does it Cost to Buy a Cleaning Business?

 

The cost of purchasing a cleaning business varies widely. Current market insights on Bsale show that the average cleaning business across Australia is priced at $350,000.

 Small home-based cleaning services can be bought for under $50,000, while well-established commercial cleaning businesses with multiple contracts can cost upwards of $1 Million. Factors influencing the price include brand reputation, number of employees, existing contracts, and equipment ownership. Conducting a valuation and reviewing business financials is crucial before making an investment.

Here are some examples of cleaning businesses currently listed for sale on Bsale:

• Profitable Blind Cleaning Franchise – Wanneroo, WA: This established franchise is priced at $99,000, offering a structured business model and ongoing support. (View Listing)

• Rug Washing and Carpet Cleaning Business – NSW: Listed at $375,000, this business is ideal for someone looking for a niche cleaning service with strong demand. (View Listing)

• Commercial Cleaning Business – QLD: Priced at $650,000, this business comes with a team of staff and established client contracts, making it a turnkey investment. (View Listing)

Highly Profitable businesses will always be more expensive. Cleaning businesses are usually valued at 1-3x the Net Profit depending on how stable the business is. 

 

Franchise vs Independent – Which is Better?

 

Choosing between a franchise and an independent business depends on your goals. A franchise offers brand recognition, a proven business model, and ongoing support but requires paying franchise fees and adhering to company policies.

Independent businesses provide greater flexibility and control but require more effort in marketing and gaining clients.

Franchise options like Black and White Home Services and The Local Guys Services provide structured training and marketing support, making them a popular choice for first-time business owners.

 

Are you Ready to Buy?

 

If you are looking for a business with stable demand and growth opportunities, the cleaning industry could be the perfect fit. With a range of businesses for sale, from small owner-operator businesses to larger franchise operations, there are many options to consider.

You dont necessarily have to work in the business as a cleaner, but you can buy a business with an entire team. 

Explore all the current listings available: Cleaning Business For Sale in Sydney, Melbourne, Brisbane, Perth, Adelaide,  Darwin, Hobart,  Canberra

Tags: listicle buying small business

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