The Building Service Contractors Association International says that the cleaning services business is one of the fastest-growing in the United States. The U.S. Department of Labor says that by 1995, there will be 3.38 million janitors. This is because there are more buildings to clean than ever before. People think that 30% of the market will be taken care of by outside contractors.
Most banks, insurance companies, and other businesses don't want to spend their time hiring and managing cleaning crews. They don't want to deal with the problems that come with this business, like the very high rate of turnover. But the fact that clients don't want to deal with problems is what makes this industry a good choice for you as a start-up business.
Start-up costs
Most cleaning companies send out bills at the end of the month, so you'll have enough money to buy equipment and supplies for the first month to six weeks of service. If you want to start with more than one contract and do it right, you'll probably need at least $50,000 in seed money and the same amount in a line-of-credit to help you grow. A lot of your money to get started will go toward buying heavy-duty cleaning equipment.
You can probably start with a lot less if you are willing to start small and grow slowly. You can start your business on a wing and a prayer if you do all the cleaning and marketing yourself and use your home as your office. Some people start out part-time while keeping their full-time jobs and cleaning at night. As they get more contracts, they move to full-time.
When you first start out, you'll probably make a higher percentage of profits because your costs will be so low. You'll only have to pay for supplies, equipment, and contracts. As you grow and hire more cleaners, you cut your profits in half. Once you have hired more cleaners, you will need supervisors, office space, and a marketing team to keep the whole megillah going. All of these things can reduce your profit margin to as low as 10%.
Getting out there
Because of these low profits, many contractors offer other services, like cleaning windows or taking care of parking lots. Many clients would rather use a service provider they already know and trust than have to look around. Being the "supermarket" for building maintenance services will help you make more money and keep your clients happy.
Don't just sit around and wait for clients to come to you. Be proactive and don't be afraid to beat the bushes. Keep an eye out for signs advertising new buildings as you walk around your neighborhood. Then, call the landlords to find out who lives in the new buildings. When you find out who is moving in, put in a bid for their cleaning contract.
When you send a proposal, be very professional and thorough. Find out what unusual problems a new client might present, such as a lot of brass fittings, marble floors, or a special wool-blend carpet. If you can show a potential client how knowledgeable you are about a wide range of topics, you have a much better chance of getting a lucrative contract.
You might want to hire experts for certain jobs, like refinishing the floors in sterile rooms (for computer rooms). Even if a potential client already has a cleaning staff, you may still be able to help them with special needs.
Worker, Worker, Who has the workman?
Have a plan! The industry's turnover rate is between 200 and 300 percent per year. Most of your staff will be students or part-timers who are only there for a short time. Most people don't see cleaning as a long-term career. They will stop working for you as soon as they get a better offer. You can do well with your cleaning business if you can accept this situation as a fact rather than a problem and work within its limits.
You may have to work just as hard, if not harder, to find new employees as you do to find new clients. You might want to pay your employees for recommending friends or family members who get hired and stay for a certain amount of time. State agencies that help people find jobs may also be a good place to look for potential employees.
Because of this problem, you will probably get a few of your cleaning contracts. Your clients couldn't deal with the high rate of turnover, so they hired you to take care of it. Your success will depend a lot on how well you can do this.
You might be able to keep some of your employees for longer if you pay them more and train them to move up. You might be able to provide transportation to more remote areas or pay employees who have to travel a long way to get to work. Recognition and praise are also things that can help keep older and disabled workers on the job.
If you send out your workers in groups, you might be able to break up the monotony by switching up their tasks and where they work. But get ready! Finding people to work in this industry is hard, but keeping them is even harder. In the janitorial services business, it is a hard fact that people come and go.
Because of changes in technology, the cleaning business could go through some big changes in the future. Japanese factories already use robots to sweep the floors, and steam jets are used to clean operating rooms in hospitals (this technology could be used for scouring bathrooms). But these changes are not coming up soon, and there is time and room for new cleaning services.
Roll up your sleeves and put in some hard work. There is a market for these services, and it keeps growing.
