If you have that entrepreneurial spirit and you’re wanting to get into a high-demand industry like the janitorial business, taking on a startup is a big challenge. Here’s a look at what it takes to become an independent business owner in the commercial cleaning industry, and why a franchise like ServiceMaster Clean is a better option.
Benefits of Being in the Janitorial Industry
The success of your janitorial business depends on your personal goals, finances and the specific market demand in your area. There are advantages in the commercial cleaning industry:
- Low startup costs: Starting a cleaning business typically requires minimal equipment and supplies, making it a relatively affordable business to start.
- High demand: Commercial cleaning services are in high demand, especially since the COVID-19 pandemic. More businesses are requiring services to maintain clean and healthy public spaces.
- Recurring revenue: Many of your customers will need your services daily, weekly, or monthly, which generates reliable income.
- Flexibility: Cleaning businesses offer flexibility in terms of scheduling, allowing you to work around other commitments if necessary.
Where to Begin?
A janitorial business opportunity can be lucrative if you’re ready to be your own boss. But you must plan well to get it off the ground.
- Research the industry: Learn about the janitorial industry by conducting research on the latest trends, demand, and competition in your area. This will help you develop a clear understanding of the business and the needs in your community.
- Create a business plan: Develop a comprehensive business plan that outlines your business goals, target market, marketing strategies, financial projections, and more. A well-written business plan will help you secure funding and guide you throughout the startup process. It’s advised that you consult both an attorney and a financial planner or accountant to ensure you have completed necessary tasks to start your business.
- Obtain necessary licenses and permits: Before you begin operations, it's essential to obtain the necessary licenses and permits required by your state or local government. There are cleaning certifications that you and your staff need for safety and best practices. Before starting your commercial cleaning business, it's crucial to research industry regulations and licensing requirements in your state or locality. This can include obtaining a business license, liability insurance, and workers' compensation insurance.
- Purchase equipment and supplies: Purchase the necessary equipment and supplies, such as cleaning agents, mops, brooms, and vacuums — to start your business. Stay apprised of the latest innovations in the industry to provide the best services to your customers and keep up with the competition.
- Hire employees: Determine the number of employees you’ll need to meet your customers' needs; hire and train them accordingly.
- Develop a marketing plan: Develop a marketing plan to promote your services and attract customers. You can use an integrated plan that involves networking, direct mail, social media, and traditional marketing. If you have the funding, you may consider hiring a marketing team to help promote your business.
- Establish pricing: Determine the pricing for your services based on industry standards, the complexity of the job, and the time it will take to complete. You need to stay competitive on pricing and possibly provide discounts for first-time clients.
- Money: Part of that plan needs to include your financial investment. It will take thousands of dollars to get business off the ground. Do you have the means to do that personally? Will you qualify for a business loan or maybe you will have to consider being in partnership with others to assist with financing. Plan out both your initial costs and long-term operating costs.
Cleaning Up, Profit-Wise
The commercial cleaning business itself, shows promising growth. IBISWorld places the value of the industry here in the U.S. at $90 billion.
But just because the industry is doing well doesn’t necessarily mean your small startup will perform well. One of the biggest problems you’ll face is the competition in the industry. If you’re not providing the same services and pricing as your competitors, this will be challenging. You’ve got to find a way to stand out among the competition to create and maintain a healthy customer base.
Competition is just one of the issues to determine your profit potential. You’ve got to examine a number of factors to manage costs such as your location, size of your business, pricing, and the performance of your cleaning crews. This is a very labor-intensive job, and often these physically demanding jobs create high turnover rates. If your crews are not efficient, it can damage your bottom line.
The Failure/Success Rate
If you ask the International Janitorial Cleaning Services Association about how successful your independent business might be, according to their website, 95% of cleaning and janitorial businesses will fail within the first year. They attribute some of the common problems to poor planning, subpar financial management, customer service issues and work ethic.
What should you expect? The success and failure rates in the commercial cleaning business can vary depending on factors such as market demand, competition, quality of service, pricing, marketing, and business management.
Know Your Risks
You will certainly face financial risks as a small business owner, but planning is the key to good performance. There are additional on-the-job risks including workplace hazardous. Your business must comply with various environmental regulations, plus, health and safety standards. Non-compliance can result in fines, penalties, or legal action.
ServiceMaster Clean is a Better Option
Now that it’s all been laid out for you, it’s clear that starting a commercial cleaning business from scratch can be very challenging. That’s why it makes more sense to be part of a strong franchise like ServiceMaster Clean. We’ve been an industry leader for more than 65 years, and our proven model has worked for more than 700 locations.
To launch your business, we have 10 steps that we guide you through from initial inquiry to opening your ServiceMaster Clean business. Much easier than all the details described for an independent startup with an uncertain future.
If you are ready to get started as a ServiceMaster Clean franchise owner, fill out the form and we’ll be in touch.