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Operational
Considerations
Human Resources. Employee turnover will be your biggest headache in this
business. This is the biggest reason why many corporations and businesses
are outsourcing janitorial services to get rid of this perennial problem.
The very reason why you get the account is also the biggest challenge of
your fledging new business.
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While the general skills needed to work in this field provide a wide pool
of potential employees, employee turnover can be as high as 200 to 300
percent a year. After all, no one aspires to work and set a career with a
broom for the rest of their lives. Your best bet to hold on to people longer
is to pay above minimum wage and to train for advancement. Otherwise, you
can try employing part-time personnel or transients such as students who can
work flexible, albeit irregular, hours.
Prices. According to the book
“101 Best Businesses to Start”
by the
Philip Leif Group, you should “expect labor to eat up about 55 cents of
every dollar you bring in. Really efficient firms in nonunion areas bid
around 60 cents a square foot per year.”
Your pricing will be affected by a number of factors. You need to
determine how many employees are needed for the task. The number of
employees needed to clean a manufacturing facility is different from
executive offices. The size of the area that you need to clean is another
determining factor. A facility employing 500 workers in 10,000 square feet
of floor space takes longer to clean compare to the same-size facility with
250 workers. You also need to know the level of difficulty in cleaning the
area, and this includes determining if the space is carpeted, age of the
carpeting, how the facility is heated and air-conditioned. Also find out the
cleanliness level required by the client, as well as the frequency that you
need to perform the duties required.
Before you set your prices, be sure to visit and inspect the facility
thoroughly. Discuss with your clients their expectations regarding your
service and know what they really need from you. It is important that you do
not price yourself out of the market, so be sure to compare your prices with
your competitors. Keep in touch with what your competitors are charging and
what services they are performing so that you can gain an edge in the
marketplace.
Finding Suppliers. A key part of this business is establishing business
relationships with suppliers of cleaning equipment and general tools. You
can buy in bulk from various wholesale suppliers the various cleaning
supplies that you need such as glass cleaner, disinfectants and general
all-purpose cleaners. Brooms, brushes and ladders can be purchased from your
local hardware store. Be sure to compare the price and quality of the
supplies that you use to make sure that you are always getting the best
deal.
Marketing Your Janitorial Business
The first step to marketing your business is deciding who your potential
customers are and determining the types of services you could offer. Ask
yourself whether you want to specialize in cleaning restaurants, warehouses,
or go after a diversified portfolio of clients. Determine what sets you
apart from your competitors, and try to attract the customers you want by
marketing your business.
Like any service business, marketing your janitorial business depends on
the perceived quality of your offering. After all, you are not offering a
tangible product that the customer can see, touch or feel. Most often, your
ability to attract clients will be based on how you present your business to
the customer, and the quality of your bid proposal (most new accounts are
won through bidding).
According to many janitorial service business owners, the best way to
market this business is through cold calling. Drive through the area to look
for newly opened businesses, buildings or facilities. Then introduce
yourself to the landlords your potential clients and request for an
opportunity to bid on their cleaning contract. While tedious and considered
difficult by first-timers, going out of your way to look for clients is the
surest way to get your business at the forefront of potential customers’
minds. Experts suggest that you should try to cold call at least three or
four times a week; and better yet if you could talk to new prospects every
day.
You will be able to draw up a better and more professional proposal if
you learn firsthand the needs of the potential customer, as well as the
layout of the facility. Call the contractor of the building to get an idea
of the materials used in the construction. For example, if you know what
kind of carpeting has been used in the building, you may be able to consult
a chemical manufacturing firm for advice on how best to clean that
particular blend of carpet. If the client uses in-house personnel to clean
the facility, present to the client various ways outsourcing and using your
business to perform this task can give them a superior cleaning service.
Networking is another effective strategy to get ahead in the janitorial
business. Aside from newly opened buildings, get a list of companies that
are downsizing or laying off cleaning staffs. These companies may be looking
at outsourcing this aspect of their business, and your company may be what
they need. Even if companies are not downsizing, get to know the building
management staff in various commercial buildings and facilities in your
area. They may not need your services now, but developing professional
relationships with building managers will allow you to be topmost in their
minds should a need for your services arise.
Word of mouth is another effective form of advertising a janitorial
service. It can be generated through favorable feedback from your existing
clients that will hopefully filter to other building owners or entrepreneurs
in your area. A recommendation of a trusted colleague or friend carries more
weight than any form of paid advertising.
If you decide to embark on advertising, you can try placing an ad in
newspapers or trade journals in your area. You can also try direct mailing
to potential customers, sending them information and brochures about your
business.
Remember that marketing your janitorial business should be part of your
daily activities. You need to market all the time, both in good times and
more so during bad times. Marketing takes time and you need to keep working
at it. It may take you up to three months of starting your business to get
an account. Oftentimes, your first account is quite small. But don’t
worry: persist in marketing your business until your client portfolio grows.
Customers who come and go characterize this business; hence it is
essential that you do not rest on your laurels and continue to grow your
client portfolio. Studies show that the average turnover of clients is
between two to three years.
(Editor's Note: For MORE BOOKs on How To Start A
Home Cleaning Service Business
please visit our Bookstore)
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