Subscribe to keep reading
Get new posts and unlock the full article.
You can unsubscribe anytime.Window Cleaning Business Plan
- 30+ Business Plan Pages
- Investor/Bank Ready
- Pre-Written Business Plan
- Customizable in Minutes
- Immediate Access
Key Takeaways
- Achieving the target 80% Gross Margin requires rigorous control over direct labor costs, which should not exceed 15% of revenue.
- Operational efficiency is driven by weekly monitoring of Technician Utilization (target 75%+) and Service Density to manage the 29% variable cost structure.
- Sustainable growth depends on prioritizing recurring revenue streams while actively working to reduce the Customer Acquisition Cost (CAC) from $75 to $55 by 2030.
- Tight control over all seven core KPIs is essential to ensure the business hits its projected break-even point within 22 months, by October 2027.
KPI 1 : Average Revenue Per Job (ARPJ)
Definition
Average Revenue Per Job (ARPJ) shows the average price you actually collect for every cleaning service performed. This metric is vital because your target ARPJ must clear $100 to ensure you cover your 29% variable costs and fixed overhead. If you're below this, you're leaving money on the table or pricing too low for the work involved.
Advantages
- Shows true pricing power per service interaction.
- Helps confirm subscription tiers are profitable.
- Reduces reliance on sheer volume to hit revenue goals.
Disadvantages
- Can mask poor service density or route inefficiency.
- May incentivize upselling low-value add-ons.
- Doesn't reflect customer lifetime value (CLV).
Industry Benchmarks
For service businesses relying on recurring contracts, an ARPJ over $100 is a strong indicator of healthy unit economics, especially when variable costs run high. If your ARPJ dips below this internal threshold, you’re likely subsidizing jobs with volume. This number helps you compare the value of a small commercial contract versus several residential cleanings.
How To Improve
- Increase the minimum service threshold for new sign-ups.
- Bundle high-margin services, like exterior-only or gutter cleaning add-ons.
- Review and raise pricing on the lowest-tier subscription plans.
How To Calculate
You find ARPJ by taking your total monthly revenue and dividing it by the total number of jobs you finished that month. This gives you the average dollar amount you realize from each service call.
Example of Calculation
Say your total revenue for the month was $35,000, and your technicians completed exactly 300 jobs across all subscription levels. Here’s the quick math to see if you hit the profitability floor:
Since $116.67 is well over the $100 target needed to cover costs, this month’s pricing structure is working. What this estimate hides is the variance between your highest and lowest-priced jobs.
Tips and Trics
- Track ARPJ segmented by customer type (residential vs. commercial).
- If ARPJ drops, immediately check Tech Utilization Rate for efficiency leaks.
- Ensure revenue accurately reflects realized price, not just billed amount.
- Defintely review ARPJ monthly against the 29% variable cost coverage requirement.
KPI 2 : Tech Utilization Rate
Definition
Tech Utilization Rate tells you the efficiency of your paid labor force. It measures the percentage of time technicians spend actively cleaning windows versus total time they are on the clock. Hitting the target of 75% or higher, reviewed weekly, is crucial for controlling service costs.
Advantages
- Directly improves Gross Margin % by maximizing revenue generated per paid hour.
- Reduces the effective cost of labor, helping keep the Average Revenue Per Job (ARPJ) above the $100 threshold needed to cover costs.
- Allows accurate capacity planning, ensuring you don't overstaff relative to demand for your subscription services.
Disadvantages
- Over-optimization pressures techs to skip necessary prep or cleanup, potentially hurting service quality.
- It doesn't account for essential non-billable time like vehicle maintenance or mandatory safety training.
- A high rate might hide poor Service Density, meaning techs spend too much paid time driving between distant jobs.
Industry Benchmarks
For field service businesses like window cleaning, utilization benchmarks vary widely based on travel time. A good target for consistent, route-based services is usually 75% to 85%. If your rate dips below 70% consistently, you are paying for significant downtime that erodes your 80% Gross Margin target.
How To Improve
- Increase Service Density by clustering jobs geographically to cut down on non-billable travel time between appointments.
- Standardize job setup and breakdown procedures so techs spend less time preparing and more time cleaning.
- Implement better dispatch software to automatically assign jobs based on proximity and technician skill level.
How To Calculate
You track every hour paid to your technicians. Then, you track only the hours they were actively cleaning windows for a customer. Divide the active time by the total paid time to see the efficiency.
Example of Calculation
Say your team is paid for 400 hours in a week. If they spent 320 of those hours actively cleaning customer windows, the utilization is calculated to find out how efficient the labor spend was.
This 80% rate beats the 75% minimum target, meaning labor costs are well managed for that period.
Tips and Trics
- Mandate techs log travel time separately from service time in their time tracking system.
- Review utilization reports every Monday morning for the prior week's performance defintely.
- If utilization drops below 75% for two consecutive weeks, investigate route planning immediately.
- Ensure your subscription model (Recurring Revenue % target of 90%+) smooths out weekly utilization volatility.
KPI 3 : Gross Margin %
Definition
Gross Margin % measures profitability right after you pay for the direct costs of delivering the service. This metric isolates how efficiently your technicians use their time and supplies to generate revenue. You need this number to hit 80% or higher every month to ensure you have enough left over for overhead and actual profit.
Advantages
- Shows true pricing power on the service itself.
- Flags immediate issues with supply costs or labor efficiency.
- Helps set minimum acceptable pricing for new service tiers.
Disadvantages
- It completely ignores fixed overhead costs like office rent or marketing spend.
- A high margin doesn't help if your volume of jobs is too low to cover fixed costs.
- It can hide problems with technician utilization (KPI 2) if labor costs are poorly allocated.
Industry Benchmarks
For physical service businesses relying heavily on labor, targeting a Gross Margin % above 80% is the goal. If your margin sits closer to 65%, you are definitely leaving money on the table or paying too much for supplies. This metric is crucial because it tells you if the core offering is financially sound before factoring in growth costs.
How To Improve
- Lock in annual contracts with your chemical suppliers for volume discounts.
- Routinely audit technician time sheets to ensure non-billable prep time is minimized.
- Raise Average Revenue Per Job (ARPJ) by bundling services, increasing revenue without raising direct costs proportionally.
How To Calculate
You calculate this by taking total revenue, subtracting the Cost of Goods Sold (COGS)—which includes direct labor wages and cleaning supplies—and dividing that result by total revenue. You must review this calculation monthly to catch cost creep.
Example of Calculation
Say a residential client pays $150 for a quarterly service. The technician wage for that job was $25, and supplies used cost $5. Total COGS is $30. Here’s the quick math for the margin:
This means 80 cents of every dollar earned on that job goes toward covering your fixed costs and profit. Still, if your variable costs are closer to 29% overall, you need to ensure your ARPJ stays well above the minimum threshold.
Tips and Trics
- If margin drops below 80%, immediately investigate supply purchasing variance.
- Ensure you are tracking vehicle operating costs (KPI 6) separately from direct cleaning supplies.
- Use this metric to justify price increases when input costs rise unexpectedly.
- Compare margin performance across different service types (residential vs. commercial storefronts).
KPI 4 : Customer Acquisition Cost (CAC)
Definition
Customer Acquisition Cost (CAC) tells you exactly how much money you spend to get one new paying client. For ClearView Pro, this metric is critical because you are selling recurring subscriptions, not one-off jobs. You need to know if your marketing spend is sustainable relative to the long-term value of that customer. We are targeting a CAC of $75 or less by 2026, and we review this defintely every month.
Advantages
- Shows marketing spend efficiency versus new recurring revenue.
- Helps set realistic budget caps for sales and marketing teams.
- Allows direct comparison against Customer Lifetime Value (CLV).
Disadvantages
- Can hide poor onboarding costs if not tracked separately.
- Ignores initial customer service expenses required to secure the sale.
- Doesn't account for the time lag before revenue offsets acquisition cost.
Industry Benchmarks
For subscription service models like yours, a healthy CAC is often benchmarked against the expected Customer Lifetime Value (CLV). Generally, you want CAC to be less than one-third of the projected CLV. If your target CAC is $75, you need to ensure the average customer stays long enough to generate significantly more revenue than that initial cost, especially given the 29% variable costs on each job.
How To Improve
- Boost Service Density to reduce travel time and associated marketing effort per customer.
- Focus heavily on retention to increase CLV, making a higher initial CAC more acceptable if justified.
- Optimize online ad spend based on conversion rates by specific zip code targeting.
How To Calculate
CAC is simple division: total money spent on marketing divided by how many new customers actually signed up that month. You must include all spend—digital ads, print flyers, sales commissions, everything that drove the acquisition.
Example of Calculation
Say you spent $15,000 on marketing efforts in July, and that spend resulted in 200 new homeowners signing up for a recurring window cleaning plan. Here’s the quick math to see what that cost you per new client:
If you spent $16,000 instead, your CAC jumps to $80, missing the $75 target. What this estimate hides is the cost of servicing those first few jobs, so keep an eye on that Tech Utilization Rate too.
Tips and Trics
- Track CAC by channel (e.g., Facebook vs. local mailers).
- Always compare CAC against the expected Average Revenue Per Job (ARPJ).
- If CAC exceeds $75, pause the highest-cost acquisition channels immediately.
- Ensure your marketing spend only counts costs directly tied to closing the first sale.
KPI 5 : Recurring Revenue %
Definition
Recurring Revenue Percentage measures the stability of income derived from subscription clients paying on a fixed schedule, like Monthly, Quarterly, or Bi-Weekly. This metric tells you how much of your total revenue is locked in, which is the bedrock of predictable business valuation. For this window cleaning operation, you must target 90%+, reviewed monthly.
Advantages
- Provides highly accurate short-term cash flow forecasting.
- Allows better planning for capital expenditures since revenue is secure.
- Reduces the constant pressure to acquire new customers just to cover overhead.
Disadvantages
- Can hide underlying customer dissatisfaction if churn isn't tracked separately.
- Revenue growth becomes dependent on adding new subscribers, not just increasing prices.
- Long-term contracts can lock you into outdated pricing structures.
Industry Benchmarks
For subscription-based service providers, anything below 75% means you are still operating too much like a transactional business, making planning difficult. Top-tier subscription models often exceed 95%, but for local services, hitting 90% signals strong customer retention and operational efficiency. If you are below target, you are burning cash on customer acquisition unnecessarily.
How To Improve
- Offer a 10% discount for annual prepayment instead of monthly billing.
- Increase the Average Revenue Per Job (ARPJ) by bundling maintenance checks into the subscription.
- Automate service reminders and payment processing to reduce administrative churn friction.
How To Calculate
To find this percentage, take all revenue generated from active, scheduled subscription contracts during the period and divide it by the total revenue collected in that same period. This calculation must be done every month to monitor stability.
Example of Calculation
Say your window cleaning company brought in $60,000 in total revenue last month. Of that, $52,500 came directly from your scheduled monthly and quarterly service agreements. This shows a strong base, but there is still room to push that one-time revenue down.
Tips and Trics
- Ensure your accounting system clearly separates subscription fees from one-off upsells.
- If your percentage drops below 85%, pause new marketing spend until you fix retention.
- Segment this metric by customer type (residential vs. commercial) to find weak spots.
- Track the ratio weekly to catch sudden drops, defintely.
KPI 6 : Service Density
Definition
Service Density measures how many jobs you complete packed into a specific geographic area, like a zip code. This metric is crucial because it directly impacts how efficiently your technicians travel between appointments. High density means less driving time and lower vehicle operating costs, which is key for profitability in service businesses.
Advantages
- Lowers vehicle operating costs, specifically cutting into that 6% variable expense tied to travel.
- Increases the number of jobs a technician can complete per shift, boosting utilization.
- Improves customer satisfaction due to faster response times within concentrated service zones.
Disadvantages
- Focusing too narrowly on density can lead to ignoring high-value, low-density jobs outside the core zone.
- It doesn't account for job complexity or the Average Revenue Per Job (ARPJ) achieved in that zone.
- If the service area square mileage isn't updated accurately, the metric becomes misleading fast.
Industry Benchmarks
Benchmarks for service density vary wildly depending on whether you operate in dense urban centers or sprawling suburbs. For window cleaning, the goal isn't hitting a universal number but achieving the highest practical density that allows for efficient routing. You need to know the average jobs per square mile your best technicians achieve to set a realistic internal target for expansion.
How To Improve
- Geographically cluster new customer acquisition efforts within existing high-performing zones.
- Adjust pricing or subscription minimums to discourage scheduling single, isolated jobs far from the main route.
- Implement routing software that prioritizes minimizing drive time between appointments scheduled on the same day.
How To Calculate
To calculate Service Density, you divide the total number of jobs finished in a specific zone by the total square mileage of that zone. This tells you the job concentration, which directly impacts your variable driving costs.
Example of Calculation
Say you are analyzing Zone A, which covers 10 square miles in a target neighborhood. Last month, your technicians completed 150 window cleaning jobs there. We divide the jobs by the area to see the concentration.
A density of 15 jobs per square mile is much better than 3 jobs per square mile in a less developed area, because the reduced travel time saves on those 6% variable vehicle costs.
Tips and Trics
- Review this metric every week, as required, to catch routing drift immediately.
- Map density visually; low-density areas are prime candidates for marketing pullback.
- Ensure your service area boundaries align exactly with your CRM's geographic coding for accuracy.
- Track density alongside Tech Utilization Rate to see if efficiency gains translate to billable hours.
KPI 7 : Operating Cash Flow (OCF)
Definition
Operating Cash Flow (OCF) shows the actual cash your window cleaning service generates from its normal day-to-day work. It tells you if the core business is self-funding, separate from financing or investing activities. You must see this number turn positive consistently before October 2027.
Advantages
- Shows true operational liquidity, ignoring paper profits.
- Directly measures progress toward the October 2027 cash break-even goal.
- Helps you budget for immediate needs like technician payroll.
Disadvantages
- It’s easily manipulated by aggressive accounts receivable timing.
- It ignores necessary capital expenditures for new equipment.
- A positive OCF doesn't fix underlying poor gross margins.
Industry Benchmarks
For subscription service models, OCF needs to be positive before the overall break-even point because you’re relying on predictable revenue. While Net Income might show a loss early due to startup depreciation, OCF must show operational strength. Investors look for this metric to confirm the business model works without constant cash infusions.
How To Improve
- Drive Average Revenue Per Job (ARPJ) above the $100 target.
- Increase Tech Utilization Rate above 75% to maximize paid labor efficiency.
- Improve Service Density to cut vehicle operating costs, which are currently 6% of variable costs.
How To Calculate
You calculate OCF by taking your Net Income and adding back any expenses that didn't actually use cash during the period. This usually means adding back depreciation and amortization, which are non-cash charges against income. You must review this figure monthly.
Example of Calculation
Say your subscription service had a tough month and reported a Net Income loss
Related Blogs
- Window Cleaning Startup Costs: Budgeting Your Launch
- How to Launch a Window Cleaning Business: 7 Steps to Profitability
- How to Write a Window Cleaning Business Plan: 7 Actionable Steps
- How to Run a Window Cleaning Business: Essential Monthly Costs
- How Much Do Window Cleaning Business Owners Make?
- 7 Strategies to Increase Window Cleaning Profitability and Efficiency
Frequently Asked Questions
A healthy gross margin for Window Cleaning should be 80% or higher, based on the 20% combined cost of direct labor and supplies;