How to Start a Janitorial Service Business

Thursday, July 4, 2013

How to Start a Janitorial Service Business

A janitorial service business is hard work, but if you're willing to put in the time and effort, it can be a lucrative small business. Before you open shop, you will need to consider where you will store equipment, how to find qualified employees and how to attract your first customers.

Step 1

Find a location. Store equipment and prepare an office at home if possible to keep expenses low until you have established yourself. Check your local zoning laws to make sure a home business is allowed in your neighborhood. Rent an office space if you cannot start at home, but to reduce costs choose a location with just enough space to hold your cleaning equipment.

Step 2

Gather your supplies. Visit the cleaning equipment suppliers in your area and get quotes on how much it will cost to buy or rent each piece of equipment you’ll need. Keep in mind that you will need different cleaning supplies depending on your target market. For example, you’ll need different equipment for cleaning a large factory vs. an office building. Only buy equipment that you will use frequently for most jobs, such as brooms, ladders, brushes, vacuums and floor cleaners. Rent less necessary or specialized equipment until your business begins to flourish. Buy cleaning supplies in bulk from local or online wholesalers, but first compare the price and quality to make sure you are getting the most for your money.

Step 3

Hire qualified workers. Pay competitive wages to attract the best and most loyal employees. Employee turnover in the janitorial services industry is high, so offer perks to keep employees. Consider working with a staffing agency on a job-by-job basis if your projects will vary in size and length. This will prevent employees from becoming disgruntled during slow times.

Step 4

Market yourself. Determine whether you will specialize in cleaning specific types of businesses, such as restaurants, or offer a wider variety of cleaning services. Research services other local janitorial companies offer and consider how you can differentiate your business from your competition by offering specialized services, lower prices or other perks. Design marketing materials that clearly lay out your services and communicate the uniqueness of your business. Drop off fliers, door hangers and business cards to new businesses in your area as well as other businesses within your target market. Introduce yourself to managers of these locations in person or by phone and ask if you may bid on upcoming cleaning jobs.

Step 5

Present proposals to potential clients. When a potential client contacts you about bidding on a job, write a professional proposal. Visit the establishment or call the building’s contractor to learn about the location. Determine all of the location’s specifics, including size, carpet and flooring types, and other materials used in the space. Research how best to clean each aspect of the space, determine how many employees you will need for the job and how long it will take. Provide the client with an estimate and emphasize why your business will do a better job than local competitors. Research competitors' rates when first starting out to make sure you don’t overbid.

Things Needed

Tips

All janitorial businesses need to have a registered business name and a license. Visit your local city hall to acquire the necessary forms and materials.
Start your business small. Offer simple or specialized services, and expand your offerings as your business becomes more lucrative.

References (4)

Resources (1)

Cleaning Profit: How to Start or Expand Your Own Office Cleaning Business

About the Author

Megan Martin has more than 10 years of experience writing for trade publications and corporate newsletters as well as literary journals. She holds a Bachelor of Arts from the University of Iowa and a Master of Fine Arts in writing from The School of the Art Institute of Chicago.

Photo Credits (2)

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Thursday, July 4, 2013