As a growth-driven CFO or a business owner, your focus is on building a sustainable operation; one that supports expansion, attracts investment or sets the stage for a successful exit. The key is knowing where to direct your time and energy.
The cleaning industry is not what it used to be.
The cleaning services market in Australia is changing rapidly. Advances in robotics, the Artificial Intelligence of Things (AIoT) and eco-friendly consumables are reshaping the industry, while clients now expect greater transparency, sustainability and performance.
For example, the robotic floor cleaning market worldwide was valued at about AUD 3.75 billion in 2020 and is forecast to reach around AUD 6.75 billion by 2025, reflecting an annual growth rate of 12-15%. Recent surveys show nearly 60% of cleaning contracts in the commercial sector now specify the use of environmentally friendly products, and AIoT is projected to grow at around 20% annually.
With the local market valued at around AUD 10 billion and growth on the horizon, now is the time to position your business for expansion across Australia or even overseas.
Embracing new technology is not only about reducing costs; it is about meeting evolving market expectations.
Robotics, AIoT and eco-friendly consumables are reshaping the industry.
Build for capital, not just cash flow.
Scaling a business is more complex than simply adding more jobs and cutting costs. Investors, banks and grant assessors look for a solid, data-driven financial foundation that demonstrates readiness for growth. This means consolidating all your financial information into a system that provides real-time insights into performance. While entry-level financial platforms like MYOB and Xero may work well for everyday tasks, they struggle with multi-entity reporting, demand planning and predictive analytics.
Here is what discerning investors and grant committees typically expect:
1.
In the cleaning industry, a DSO of 45-60 days is common due to extended payment terms; top performers often reduce this to around 30 days, which indicates faster cash collection.
2.
Many cleaning businesses see a cycle of 30-45 days; a shorter cycle means your investments in supplies and labour convert to cash more quickly.
3.
4.
Efficient businesses often achieve utilisation rates of 70% or above, with top performers reaching 80-90%, indicating effective use of your team.
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Having a system that reports on these key performance indicators in real time not only streamlines your operations but also positions your business as a robust asset ready for investment.
Franchising, acquisitions and diversifying.
With clear, centralised data, a range of growth opportunities becomes accessible. You might consider franchising your proven model to new territories, acquiring smaller competitors or complementary businesses when you can quickly assess their financial health, or diversifying into adjacent services such as specialised hygiene solutions or property maintenance. These strategic moves—backed by improved scheduling, stock control and job costing that standalone apps simply cannot match—are essential for long-term progress.
Growing does require upfront investment, and without real-time visibility on receivables, costs and margins, there is a risk of expanding without the necessary capital reserves. A robust Enterprise Resource Planning (ERP) system serves as a safeguard, ensuring that solid, up-to-date financial data support every step of your growth journey.
Getting your house in order.
If you are considering a sale, potential investors and acquirers will examine your systems closely. They want to see reliable, consolidated financials and scalable operations. A clean, integrated ERP system is not merely a tool, it is an asset that can significantly boost your company’s valuation.
“We use NetSuite and it works better than SAP, which is what our global brand uses.”
Kate Tomlinson
Paragon 28 CFO
This tailored implementation allowed the Australian division to maintain NetSuite while the global headquarters used SAP, saving millions on restructuring. Such operational clarity and integration are exactly what sophisticated investors seek.
What is your end game?
Whether you plan to eventually pass the torch or explore a new venture, achieving a high-valuation exit depends on having clean systems and scalable operations. A robust tech stack not only keeps your business running smoothly but also makes it far more attractive to potential buyers by managing complex financial structures—such as multi-subsidiary operations—with ease, something that entry-level platforms cannot handle.
A chapter in your own story.
If you are aiming to create a growth strategy for your cleaning business that delivers a stable, well-run operation supporting your community while also enriching your finances for a better future for you and your family, investing in a system that centralises your data is a decision you won’t regret. An integrated ERP will help you tackle cashflow challenges like delayed payments and seasonal dips while providing the insights needed to drive strategic growth; whether through franchising, acquisitions or preparing for an eventual exit.
Suppose you are dead set on making millions out of those mopping machines and want your future autobiography to include a chapter on taking smart, measured steps toward expansion. In that case, begin with getting your numbers in order.
When your data is clean, transparent and ready for investors, you are not just running a cleaning business like a legend; you are laying the foundation for lasting success.
Tired of chasing reports? Put your sheets together.
