Andrew Rust

In a recent CMM article titled “Don’t Give Up on Your Cleaning Business,” the author passionately advocates for perseverance, encouraging cleaning business owners to push through difficulties rather than selling. While this advice may resonate with some entrepreneurs, it overlooks key factors that could make selling a cleaning business a prudent, strategic decision. Here are six reasons why selling your cleaning business might be the right move for you, and why holding on to it could, in some cases, be more detrimental than beneficial. 1. Burnout and mental health Owning a cleaning business can be exhausting. Many owners spend long hours managing operations, supervising staff, and dealing with customer issues, leaving little time to relax or focus on personal well-being. The physical and mental toll of constant problem-solving, managing employees, and maintaining consistent service quality can lead to burnout. When business owners reach a breaking point, the emotional and psychological costs of continuing often outweigh the financial rewards. Selling your cleaning business can provide much-needed relief. It allows you to take a step back from the stress and pressure, giving you the opportunity to focus on your mental health, explore new ventures, or just enjoy life without the constant demands of ownership. The decision to sell, in this case, is not about giving up; it’s about prioritizing your well-being over the struggle to keep a business that’s no longer fulfilling or sustainable alive. 2. Market conditions and industry saturation The cleaning industry has become highly competitive, with low barriers to entry. According to market researcher IBISWorld, there are more than 1.2 million cleaning businesses in the U.S., and that number is expected to continue growing. While this figure encompasses a wide range of cleaning companies offering residential, commercial, and specialized services, it hints at the competitive environment—and likely hiring struggles—you are seeing in whichever you operate. Industry experts place the number of commercial cleaning and janitorial services facilities providers at approximately 70,000. Within that group, many face the challenge of competing with numerous small operators and even larger, well-established companies and franchises. As the market becomes saturated, profit margins often shrink, making it more difficult to grow and thrive. If you’re struggling to maintain profitability in a crowded market, selling could be a smart way to exit while your business still holds value. Buyers often look for opportunities where they can step in with minimal risk. If your business has already established a consistent customer base, holds solid contracts, and has strong brand recognition, you could find a qualified buyer who sees the value in what you’ve built. Rather than enduring endless competition, trying to pivot in an oversaturated market, or forcing yourself to stay afloat in difficult economic conditions, selling your business can free you from these challenges and allow you to capitalize on your efforts before your market position deteriorates. Further, now is a good time to sell. The September 2024 rate reduction by the Federal Reserve marked the first reduction in borrowing costs since March 2020, encouraging more acquisition activity. The Building Service Contractors Association International (BSCAI) is also optimistic about merger and acquisition (M&A) activity in this industry. “With the election cycle complete, there is more clarity on future policy and confidence in an M&A-friendly environment for buyers and sellers,” the organization stated in its January 2025 M&A Update. A recent report by the accounting firm EY also states that M&A activity is likely to firm up in 2025, bringing many opportunities for business owners on both the buying and selling sides. 3. Financial flexibility and personal freedom The ability to enjoy more financial flexibility and personal freedom is another compelling reason to sell your cleaning business. Owning a business ties you to long hours and responsibility, often impacting your personal life, family time, and other passions. Selling the business can bring a significant, life-changing financial windfall, especially if it is a well-established operation with recurring clients or valuable assets. This liquidity can open doors to new opportunities, whether it’s investing in other businesses, retiring early, or pursuing personal projects that bring you joy. Moreover, many business owners are able to secure a substantial sale price, which may provide more wealth than continuing to operate a business with limited growth potential. For some, the freedom gained from selling a business is priceless, as the return from selling their cleaning business can provide the financial cushion to enjoy life on their own terms. 4. Scaling challenges Cleaning businesses often start small and, as demand grows, owners may find it difficult to expand without compromising quality or stretching their resources too thin. Scaling the business to meet demands can involve adding more staff, purchasing additional equipment, and managing larger operations—tasks that can be daunting and costly. The challenges of scaling may lead to a plateau, where the business no longer grows at the pace you desire. If you’ve hit a growth ceiling, selling your business could be an opportunity to walk away from the challenges and headaches of taking it to the next level. Buyers, especially larger companies or investors, may have the infrastructure and capital to take the business to the next level, allowing you to capitalize on the value you’ve created without dealing with the many complexities of expansion yourself. 5. Technology and automation impacts The cleaning industry, like many others, is experiencing increasing automation and technological advancements. From scheduling software to automated cleaning equipment, technology is changing how cleaning businesses operate. Adapting to these changes often demands substantial investment in new tools and employee training—ongoing costs that might not result in the expected return on investment (ROI). Many buyers are more prepared to navigate these technological shifts and will buy a business that has yet to embrace the full potential of automation. Rather than investing significant amounts of time and money into staying competitive, you can sell the business to someone who is ready to take on those challenges. 6. The true value of your business Another key reason to consider selling is that you may

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Andrew Rust

HEAD OF CORPORATE DEVELOPMENT & M&A, 4M BUILDING SOLUTIONS

Articles by Andrew Rust

Why You Should Consider Selling Your Cleaning Business

Business and Management

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