Most commercial cleaning business owners measure growth by one thing: new contracts. More janitorial contracts mean more revenue, and more revenue means a bigger business, right?
Not necessarily.
Growing a cleaning business isn’t just about winning more work. It’s about making more money from the work you already have. The real measure of success isn’t your top-line revenue—it’s your cleaning business profit margin.
A Tale of Two Cleaning Companies
Let’s look at two janitorial businesses. Both look like successful cleaning businesses on paper, bringing in $1 million a year in revenue. But there’s a big difference in their bottom line:
- Company A has a 5% profit margin ($50,000 in profit).
- Company B has a 15% profit margin ($150,000 in profit).
Even though both companies bring in the same amount of revenue, one has three times the take-home profit. That means Company B has more money to pay its owners, invest in better equipment, hire great people, and grow sustainably—all without needing to chase more sales.
Why Profit Margin Matters More Than Revenue
Focusing only on revenue is risky. If your profit margins are thin, every new contract feels like a race to stay afloat. You might be growing on paper, but you’re working harder just to make the same (or even less) money.
But when you increase your profit per dollar of revenue, your business gets stronger. You rely less on constantly winning new contracts, and you create stability for your company and your family.
The Levers That Increase Profit
Most janitorial businesses leave money on the table without realizing it. Profit isn’t just about charging more—it’s about managing costs and increasing efficiency. Here’s how you can improve your margins:
1. Track and Control Labor Costs
Labor is your biggest expense. Time theft, inefficient scheduling, and overstaffing are some of the biggest threats to cleaning business profit margins. Using software to track hours accurately, prevent time theft, and schedule smarter can make a big impact on your bottom line.
2. Price Cleaning Contracts for Profit, Not Just to Win the Bid
Many cleaning businesses undercharge to stay competitive. But a contract that barely covers costs isn’t worth having. Understand your true costs (labor, supplies, overhead) before pricing a job.
3. Reduce Waste and Unnecessary Expenses
Small costs add up. Wasted cleaning supplies, fuel inefficiencies, and administrative bottlenecks can drain profits. Regularly review your expenses to cut what doesn’t add value.
4. Retain More Clients (Instead of Always Chasing New Ones)
Winning a new client is expensive—up to five times more costly than keeping an existing one. Focus on quality control, communication, and consistency to keep your best clients long-term.
5. Use Technology to Increase Efficiency
Spending hours on manual scheduling, payroll, or customer communication is a profit killer. The right software saves time, reduces errors, and lets you focus on growth.
What Profit Enables for Your Commercial Cleaning Business
A healthier profit margin reduces stress, increases financial security, and gives you control over your business’s future. With more profit, you can:
✔ Pay yourself and your team better
✔ Invest in marketing to attract higher-value clients
✔ Upgrade equipment to improve efficiency
✔ Save for unexpected expenses
✔ Take on less risk with new contracts
Growth Isn’t Just About More Sales—It’s About Smarter Sales
If you only focus on new contracts, you’re running on a treadmill that never stops. The real key to a thriving cleaning business is not just growing revenue, but growing profit.
Want to increase your margins and build a more profitable cleaning business? Swept can help. Learn more about how we help cleaning companies improve efficiency and profitability.
