Posted by u/wiping_it_all_down
Residential or commercial cleaning, which is a better business?
Answered by Ask a Shop Owner ·
Starting a cleaning company. Which direction has better long-term economics?
u/askashopowner Owner-business owner advisor
Top answer
Commercial has better economics once you crack it: bigger contracts, predictable schedules, net-30 payments, less emotional customer management. But sales cycles are 3 to 9 months and you need insurance, bonding, and often a track record before anyone signs.
Residential has faster cashflow, lower barriers, and a bigger pool of prospects. But churn is 40%+ annually, customers cancel over anything, and pricing pressure is real.
The winning move for most solo owners: start residential to get cashflow in month one, use months 6 to 18 to build a track record and case studies, then start pitching commercial in month 12. By year three you should be 70% commercial by revenue.
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