2 Year Old Residential Home Cleaning Service Company with a
high-profit margin, expandable model, and over 80 percent recurring revenue.
This house cleaning business was started by the seller in 2018 and has grown from 0 to 150K in revenue in just 2 years. The clientele is 75% percent residential and the remaining 25% from commercial cleanings. They do regular house/business cleanings; move-in/out cleanings, post-construction cleanings, and deep cleanings.
The trailing 12-month revenues through July 31, 2020, were 150K, with earnings of 61K. COVID-19 only slowed their growth in mid-March to mid-May and is now steadily increasing again putting up bigger numbers per month than the same months in 2019. They believe they could have easily been closer to 240K in revenues and 95K in earnings without COVID-19. The owner works 40 hours a week doing office work and cleans only when needed.
They rarely lose a customer and have over 80% recurring revenues as a result which is very valuable. They provide the vacuums, safe and green chemicals, and on-time service.
All employees are W-2 employees and not subs. They pay their employees 13 to 15 per hour and charge between 37 to 50 per hour which is why they are so profitable. They have a 2-hour minimum charge for each cleaning.
This business is a great buy based on the following: Easy model to learn and grow, 80 percent recurring revenues, low cost of capitalization, growing demand, and a consistent increase in pricing. They have a 60% profit margin with a very simple business to manage. You would be hard-pressed to find a service company that requires skilled labor with these kinds of profit earnings.
This business has more than 260 recurring clients. They also have a 2nd office in Austin that the new owner can continue. They are on Angie's List, Facebook, and several other marketing websites. The seller has always used non-toxic high-quality chemicals.
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