Profitable, Debt Free Cleaning Business - For Sale By Owner

Independence, MO (Jackson County)

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Asking Price: $89,500

Cash Flow: $47,000

Gross Revenue: $149,000


FF&E: $3,150

Inventory: N/A

Established: 2016

Profitable, Debt Free Cleaning Business - For Sale By Owner

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Business Description

This is an Independence, Missouri single member LLC, Cleaning Company that has shown a near 2000% growth over the past 3 years since it’s incorporation. The company is debt free and has been since early 2019. For Sale By Owner.

With a small staff they have accomplished big things by treating every client individually and delivering exceptional service. At this time the company services residential and janitorial clients.

Currently the residential side of the business is only bringing in a small percentage of total revenue and requires 90% of the effort. If a buyer were interested, the owner would entertain an offer on the business without the residential side (deduct $7000 from asking price).

All but two clients have net 30 terms, the other two have net 60. The company is currently invoicing for approximately $10,000-$12,000 per month with occasional one time cleanings which boost these numbers. Approximately $1050 of that being Residential clients. By 12/31/2019 the company is projected to have yearly gross revenue of $149,000.

The owner is valuing this business at 60% of expected revenue. In 2018, all cleaning businesses sold on average at 71% of revenue. The owner is asking below market rate in the interest of a quick sale as his next venture is beginning to take off.

The company services the greater Kansas City area:
Blue Springs
Lee’s Summit
Overland Park
Kansas City

The company currently services dental, orthodontic, law offices, general office buildings, apartment complexes, funeral chapels, private education buildings, restaurant front of house, churches, etc, plus several homes.

The company has 7 employees (6 cleaners and 1 operations manager).

At this time, the owner is completely uninvolved in operations and has stepped out into other ventures.

Operations Manager
The operations manager works from home doing scheduling, calculating payroll, answering staff questions, taking care of any client concerns, inventory and ordering supplies, inspecting, answering emails and phone calls. She currently works approximately 10-20 hrs per week @ $15 per hour. Upon sale of the business she will be moving and resigning but depending upon need would be willing to train for one week at her normal hourly rate.

Key employees:
Two key employees have been with the company for two years or more and each work 25-35hrs / week @$13/hr. They also train new employees on new jobs and are able to do site inspections.

Other employees
There currently are 3 other part time employees who range 10-20 hrs/week @$12.50-13/hr.

Upon sale, the new owner could easily transition the business to practically run on it’s own with minimal involvement as an owner operator, implement a new operations manager or by combining this company’s clientele and staff with theirs through a merger/acquisition if he/she already owns a cleaning business.

All employees have properly filed I-9 paperwork.

Supplies and Equipment:
Current service agreements and job types only require basic cleaning supplies such as:
Cleaning Cloths
Chemicals (green whenever possible)
Mop buckets
The company utilizes reusable products to be friendly to the environment and to keep costs to a minimum.
All supplies and equipment are included in the sales price.

The Part of the business’s sales process consists of listings on all the major platforms, just to name a few:
Angie’s List
A custom website (with 60+ directory back links for SEO)

With 5/5 stars reviews across all platforms, the company shows a great reputation. Additionally, they do offer residential as well as janitorial it does set them apart as most companies niche in one of the directions rather than both.

Detailed Information

Independence, MO
Included in asking price
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
The business is currently run out of a home office. Supplies are kept at that location. Office locations for suitable for this type of business in this area lease for between $600-$1200 per month if the new owner needed a different arrangement than what is working for the current owner. Equipment included: 5 complete cleaning kits Postcard marketing System ($799+ Value) Various cleaning chemical supplies Cleaning cloths, mop heads, window cloths Extra Vacuums Window Cleaning Equipment Misc brooms, dusters, mop heads/buckets (Home Based)
There is competition in this industry, but much of it comes from franchises. This company capitalizes on the fact that many businesses have had bad experiences with franchises and appreciate the level of care individually owned companies like this can give. The company only at this time utilizes W4 employees. This is a comfort to the businesses they work with that have had poor experiences with subcontractors.
Growth & Expansion:
The business is definitely positioned for growth as it only offers basic house and janitorial cleaning. Additional services such as carpet cleaning, hard floor care, windows, etc are quite viable as add-ons for existing clients as well as new acquired through increased marketing as has already been proven. The new owner could restart marketing efforts on day 1 (other projects have caused the current owner to pause marketing over the past 9 months).
Support & Training:
The operations manager will provide comprehensive transition training (if required) for one week at her normal pay rate and be available for up to a month after the sale closes for consultation from time to time on a reasonable basis via email or in absolute emergency by phone. Employees: 6 cleaners & 1 operations manager
Reason for Selling:
Seller needs to devote time to other ventures and operations manager is moving.
This business is Home-Based
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