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Cleaning Business Owners: When Is the Right Time to Hire Staff?

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Introduction

Cleaning Business Owners: When Is the Right Time to Hire Staff

As a cleaning business owner, reaching the point where you need to hire staff can be both exciting and overwhelming. It signifies that your business is growing, and more clients are trusting you to deliver quality cleaning services. However, hiring staff comes with challenges that can quickly become a problem if not carefully approached. Hiring too quickly or without careful planning can lead to unnecessary problems that could slow your business growth.


If you're considering hiring or are already in the process, it’s crucial to understand when hiring staff can become a problem and how to avoid these pitfalls. In this post, we’ll explore the challenges of hiring staff and why, even though it might not make you more money immediately, it’s a wise long-term investment for your business.


Cleaning Business Owners: When Is the Right Time to Hire Staff


Why Hire Staff if You’re Not Going to Make More Money Right Away?

A common question I get from cleaning business owners is: "Why hire staff if I’m not going to make more money right away?"


Great question. The reason you hire staff, even if you’re not going to make more money immediately, is because it’s an investment in your business’s future.

When you bring on more staff, you’re freeing up your time to focus on growing the business—bringing in more clients, improving your operations, and enhancing your marketing efforts. By taking on more work, enhancing the quality of service for clients, and streamlining your operations, you expand your ability to scale and grow the business.


In the short term, your personal earnings may dip a bit because you’ll be spending time training and managing your new staff. However, in the long run, this decision will position your business for much larger opportunities and more revenue down the road. It's about laying a strong foundation for long-term profitability.


Example with Figures

How to know if it's the right time for your business to hire staff

Example with Figures:

Let’s break this down with an example to show how hiring staff can impact your business’s finances:


Current Situation: You’re currently handling 2 jobs per day for 5 days a week, and you charge $75 per hour for your services. Each job takes an average of 3.5 hours, so this results in:


2 jobs/day x 3.5 hours/job x $75/hour = $525 per day.

$525/day x 5 days/week = $2,625 per week.


You’re booked solid and turning away clients because you can’t keep up with the demand. So, you decide to hire an additional cleaner at $32 per hour, who will work 40 hours per week. That’s a cost of:

$32/hour x 40 hours = $1,280 per week in wages.


However, the total staff cost doesn’t stop at wages. You’ll also need to account for:

Travel Allowances:At $0.99 per km, travel allowances for your staff add to the cost. If your staff member drives 12 km per day on average between appointments (not from home to work or work to home), this would amount to:

12 km/day x $0.99/km = $11.88/day in travel allowances.

$11.88/day x 5 days/week = $59.40/week in travel allowances.


Superannuation: Superannuation is generally 9.5% of the employee's wages (in Australia). For a weekly wage of $1,280:

$1,280 x 9.5% = $121.60/week for superannuation.


WorkCover Insurance: WorkCover is a mandatory insurance that covers employees in case of injury. Let’s estimate the cost to be $20 per week (this varies depending on your state and the nature of the work).


Additional Equipment: Your new hire will need equipment. If the average cost of equipment (cleaning products, uniforms, etc.) for a cleaner is $15 per week, this should also be considered.


Portable Long Service Leave: If you offer portable long service leave benefits, let’s estimate this cost to be around $10 per week per employee.


Setting Aside for Tax: As a business owner, it’s essential to set aside money for taxes to avoid surprises at the end of the financial year. Setting aside around 30% of your profits for tax is recommended. Based on your additional revenue of $2,625/week, you should be setting aside:

$2,625 x 30% = $787.50/week to cover tax.


Now, here’s how the total costs and impact on revenue look:

Staff Wage: $1,280/week

Travel Allowances: $59.40/week

Superannuation: $121.60/week

WorkCover Insurance: $20/week

Equipment: $15/week

Portable Long Service Leave: $10/week

Tax Set Aside: $787.50/week

Total Staff Cost per week = $1,280 + $59.40 + $121.60 + $20 + $15 + $10 + $787.50 = $2,293.50/week


Sounds like a lot to consider. You need a good bookkeeper from the start of your business journey.

Impact on Revenue:

Your new hire can take on 2 jobs per day (working 3.5 hours per job), generating $525 per day or $2,625 per week in additional revenue.


$2,625 from the new hire + $2,625 from your own work = $5,250 total weekly revenue.

While you’re paying your new cleaner $2,293.50 per week in total costs (including wages, travel allowances, superannuation, tax, etc.), you’re earning an extra $2,625 in revenue from the new hire.


This results in: A net increase in revenue of $331.50 per week, which covers the new hire's total costs and still leaves you with additional income.


In the short term, you might experience a dip in your personal earnings due to the time spent training and overseeing your new hire. But in the long term, you've expanded your capacity to serve more clients, which leads to increased growth and higher profits.


When can hiring staff become a problem?

Hiring staff is a major step for cleaning business owners — but when is the right time to hire staff? While it’s essential for growth, bringing on a team too soon (or without the right systems) can create more problems than solutions. Here are some challenges to watch out for.


1. Insufficient Cash Flow to Support New Hires

If your business is not generating enough consistent income, hiring staff can put a strain on your finances. You need to ensure that your cash flow can support wages, training costs, and other expenses before making the decision to hire.

How to Avoid This: Before hiring, evaluate whether your business is financially stable. Consult with your bookkeeper to ensure that you can comfortably cover new wages, and factor in the costs of training and integrating staff. Additionally, consider hiring casual staff to provide more flexibility. Although casual employees may have a higher hourly rate, you avoid the costs associated with public holidays and only pay them for the work they actually complete. This can help reduce the financial strain, particularly when you're still managing fluctuating workloads or uncertain business conditions.


2. Lack of Effective Training

Hiring new staff without a structured training program can result in poor quality work, ultimately affecting client satisfaction and business reputation.

How to Avoid This: Before hiring, create a detailed training program that covers all aspects of the job—cleaning procedures, client communication, safety protocols, and any specific tasks that align with your business’s standards. It's important to set aside dedicated time each week to train the new hire.


To help with this, we offer employee training modules that you can access by subscribing to our mailing list. These modules will guide you through the process of effectively training your staff. This way, you can ensure that your new hires are set up for success from the start.


3. Overestimating Demand

It’s easy to get caught up in excitement when business is booming, but hiring staff when demand is unpredictable can lead to underutilized employees and wasted resources. Full-time staff may also come with additional costs, like paid sick leave, public holidays, and other benefits, which can put unnecessary strain on your finances during slower periods.

How to Avoid This: Ensure there’s consistent demand for your services before hiring. Instead of hiring full-time staff, consider hiring casual employees. While casual staff may have a higher hourly rate, they only get paid for the work they complete, and you’re not obligated to pay for sick leave or public holidays. This gives you more flexibility to scale your team up or down as demand fluctuates without the financial burden of full-time staff.


4: Lack of Proper Systems

If your business systems (such as scheduling, client communication, or inventory management) aren’t set up to handle the increased workload, hiring staff will only add more chaos.

How to Avoid This: Invest in reliable business management tools like scheduling software, CRM systems, and inventory management software before hiring. This will help you streamline operations and manage your team effectively.


5. Hiring the Wrong Fit

The wrong hire—whether they lack necessary skills, work ethic, or don't fit your company culture—can lead to inefficiency, low morale, and poor service quality.

How to Avoid This: Take time to carefully screen candidates. Focus on finding employees who align with your company values, possess the necessary skills, and show a strong work ethic. Instead of relying solely on gut feeling or interviews, use a structured approach by conducting cleaning trials. This allows you to assess how candidates perform on the job.


To make this process even easier, subscribe to our mailing list at the bottom of this blog, and you’ll gain access to our cleaning trial checklist. This checklist takes the emotion and uncertainty out of the hiring process by providing clear criteria to score candidates during their trial. The score they receive will help determine whether they are the right fit for the job, ensuring you make more informed hiring decisions.


6. Administrative Burden

The administrative side of managing staff—payroll, taxes, benefits—can quickly overwhelm you.

How to Avoid This: Hire a good bookkeeper at the beginning of your journey, an accountant and subscribe to our mailing list to get access to more information and helpful templates.



Still wondering if this is a good idea?

Cleaning Businesses in Australia: Key Statistics

Number of Cleaning Businesses

  • Commercial Cleaning: As of recent reports, Australia has approximately 38,605 commercial cleaning businesses, employing around 151,300 people. The industry is valued at roughly $14 billion, with a projected annual growth rate of 5.9% from 2025 to 2034.​

  • Residential Cleaning: There are about 17,676 residential cleaning businesses in Australia, generating an estimated $1.4 billion in revenue for 2025.


Business Structure

  • Sole Traders: A significant portion of cleaning businesses operate as sole traders. In 2023-24, there were 803,687 sole proprietors in Australia, accounting for 62.8% of all businesses.

  • Micro Businesses: An additional 693,558 businesses employed between 1 to 4 people, making up 25.7% of all businesses.​


Challenges in Scaling Cleaning Businesses

Scaling a cleaning business presents several challenges:

  • High Failure Rates: Approximately 15% of small businesses in Australia fail within their first year, with the rate increasing to 60% within the first three years .​

  • Operational Inefficiencies: Many cleaning businesses struggle with poor time management, inadequate supplies, and inefficient operations, which can hinder growth.

  • ​Financial Management: Challenges in managing cash flow, underpricing services, and delayed payments can impact profitability.

  • Competition: The cleaning industry is highly competitive, and businesses often face difficulties in differentiating themselves and retaining clients.​



Services & Software Recommendations

Bookkeeping: Nova Bookkeeping (Name drop us for a referral discount)

Financial software: Quickbooks

Scheduling software: ServiceM8

Klaviyo: Email campaigns

QR code generator: Print marketing should include a QR code for customers to book or get an instant quote. Make it easy for new clients to book with you.


Ways to Attract New Clients

Engage with Local Facebook Community Groups: Post in relevant local Facebook groups to connect with potential clients in your area. Share helpful tips or promotions that may catch their interest.


Letterbox Flyers with QR Codes: Distribute flyers featuring a QR code that directs potential clients to your online booking form (set up through ServiceM8) or provides them with an instant quote. This offers a quick and easy way for them to book your services.


Encourage Client Reviews: Ask your satisfied clients to leave a review on Google or Facebook. Positive reviews not only enhance your credibility but also improve your site's SEO, making it more visible when new customers search for cleaning services. The more highly recommended your business is, the more likely it is to stand out.


Referral Incentives: Motivate your existing clients to refer new business by offering them a reward. Create an email campaign or mention the referral offer while cleaning their home. When a client refers someone who books your services, both the referring client and the new customer will receive $30 off their next service.


Outdoor Signage with QR Codes: Create a sign for your home with a QR code and a list of your services, and place it outside where passersby can see it. Anyone walking by can easily scan the code to learn more about your services or book a cleaning.


Conclusion: Hiring for Long-Term Growth

Hiring staff can be a game-changer for your cleaning business, but it needs to be done with foresight. It may not result in an immediate increase in personal income, but it’s an investment in the future of your business. By hiring the right staff, you free up your time to grow the business, serve more clients, and increase your revenue over time.


As your business grows, make sure you have the financial stability, systems, and training programs in place to support new hires effectively. While there may be challenges in the short term, the long-term benefits of hiring the right team will drive your business to new heights.


Ready to scale your cleaning business? Now’s the time to assess your capacity, revenue, and demand. Start by consulting your bookkeeper, setting up effective systems, and preparing your hiring strategy. The right team can help you grow your business and serve more clients—but only if you’re ready for it!


You can do it! Remember, hard work pays off.

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1 Kommentar

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Anon17
2 hours ago
Mit 5 von 5 Sternen bewertet.

Very informative

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