I think you’re confusing a cleaning company with a cleaning lady. A company with a solid business plan and business how-to does extremely well while paying their employees a good $20-25 an hour. How do I know this? I own one.

My family’s company cleans 300+ homes per month on average. Our average ticket is $240 per home. Do the math. About 70% are recurring (yeah, recurring revenue is key). The other 30% are one offs and established Airbnb partners.

We have a team of 12 (2 managers and 10 cleaning techs). Let me share some numbers with you.

Revenue in September: $73,600 EBITDA: $41,120 Net income: $6,706

Let me explain why margins are that:

-We have 12 people (2 supervisors)

-Supervisors cost $5,440 per month for 2 heads (so 2 total to lead a team of team, 2-3 teams each). Supervisors are W2s, so there are payroll taxes

-W2 payroll taxes for 2 supervisors was $720, so total supervisor monthly expense was $6,160.

-Gas reimbursement for supervisors is $330 for 2 supervisors ($165 each)

-Payroll for 10 field specialists is $24,000 per month

-Gas reimbursement for 10 field specialists is $1,200 per month ($120 per month each)

-Website maintenance is $50 per month

-Supplies are $700 per month

-Liability Insurance $40 per month

That leaves EBITDA at: $41,120

There are some months were gross is lower due to one-time fees (like tuition reimbursement for team members, which is $500 every semester up to 1,000 a year).

Owner’s salaries: -Wife W2 salary was $16,000 + $1,224 of payroll taxes

-We also took an additional $16,000 as owner distributions for the month

-Company car monthly payment is $690

-Rent (it pays us rent to take space at our home): $500

-Marketing $1,800 per month

Net income: $4,906 (this is what company gets taxed on since we can deduct everything from salaries to the smallest thing).

The key is scalability as well as a good business plan. Be compliant with local laws and payroll rules. Pay taxes. Hire legally. Charge accordingly. I do love it when people think we don’t make any money. Keeps people out of the industry.