Denver Cleaning Company-75% Residential & 25% Commercial, High Profit Margin
This house cleaning business was started by them in January of 2017 and has grown from 0 to 209K in revenue over just 3 years. It is 75% percent residential with 25% of the revenues coming from commercial cleanings. They do regular house/business cleanings, move in/out cleanings, post construction cleanings, and deep cleanings.
The 2019 revenues were 209K with earnings of 73K. 2018’s revenues were 168K with earnings of 74K. Both owners work the business. She works 37 hours a week doing office work and cleaning if needed. He works 20 hours a week as a cleaner. This has been properly adjusted in the add back spreadsheet in the data room below.
They currently have 6 regular commercial customers, 57 residential customers on a fixed schedule, and 15 residential customers whom call when they want them to clean their homes. 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 reimburse their employees for mileage for using their own vehicles.
All employees are W-2 employees and not subs. They pay their employees $17 to $18 per hour and charge between $37 to $50 per hour. They have a 2 hour minimum charge for each cleaning.
This is a home Based Business with two garages in their complex in Southeast Denver rented for storage and a staging area for the cleaners. The new owner can set up anywhere Southeast or South Denver. Typically these businesses use a storage facility until they get much larger and rent/buy an office with storage.
The sales price is only 150,000. The sales price includes the equipment and inventory. This means the business is priced at just over 2 times the earnings.
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 consistent increase in pricing. The owner has a system will allow the new owner to spend the majority of their time growing the business.