Smart Tip
Never ask to use a customer’s phone or bathroom unless it’s an emergency.
Startup and Operations
Ask school-age youngsters what they want to do when they grow up and chances are slim they’ll say they want to be in the cleaning business. But when you talk to the owners of successful cleaning businesses, they’re full of enthusiasm about their chosen profession.
Most took a roundabout path to owning and running their businesses. For example, prior to starting her residential cleaning service in Orlando, Fenna Owens worked in the service department of a transportation company, and before that, she owned an automotive business that specialized in replacing brakes. In her personal life, she had used the same cleaning person for eight years and was pleased with her work. But when her cleaning person relocated and Owens had to hire someone else to do the job, she realized how challenging it was to find a quality service.
Smart Tip
Never ask to use a customer’s phone or bathroom unless it’s an emergency.
“I was paying somebody every week to clean my house, and if I put my finger on the mantel, I found dust,” she recalls. “I was also not really happy with my job. I had enjoyed working for myself [with the brake business]. So I started telling my friends that I was going to start a cleaning business, and some of them said to come to their house.”
Another residential cleaning service operator we talked to had been a preschool teacher and gymnastics instructor. She started her cleaning business when her marriage ended and she needed more money than she was making. Still another admits she had no job skills, and cleaning was all she knew how to do—so after working for an established company for a while, she left and started her own business.
Michael Ray started his janitorial service, Pro Building Services Inc. in Salt Lake City, to support himself and his family while he was working on a college degree in public relations. He had been a custodian for another company, where he was encouraged to start his own business by one of the vendor’s sales representatives. So, with an investment of less than $400, he took the seats out of his Volkswagen Beetle, loaded it up with equipment and supplies (including an old buffer his father-in-law gave him), and went looking for clients. His first customer was a small independent grocery store, and he did all the work himself. After he graduated from college, he decided he didn’t want to work in the public relations field; he wanted to continue operating the company he already owned. Today, his janitorial service employs more than 100 people.
Mike Blair was teaching at a college and doing some consulting work when he met someone with a carpet cleaning business for sale. He bought the business and realized he enjoyed being an entrepreneur. When he decided to move his family to St. George, Utah, there was no question that he would start another carpet cleaning company. He decided to buy new equipment for the new operation, and his startup capital consisted of $25,000, which he borrowed using the equity in his home.
Today’s cleaning industry attracts people from all walks of life with a wide range of skills and experience and an even wider range of available capital. It’s truly a something-for-everyone business.
The necessary qualifications depend, of course, on the type of cleaning service you decide to start. But for any type of service business, you need the determination to make the business work, a willingness to please the customer, and the dedication to provide a thorough cleaning job.
Many residential cleaning business operators are perfectionists. A significant number of them were prompted to start their own companies after unpleasant and unfortunate experiences with other services, taking an “I-can-do-it-better,-so-I-may-as-well-make-money-at-it” attitude.
Another critical requirement for the owner and the employees of any type of cleaning service is honesty. “Clients must have total trust in the people who come to clean their homes,” says Owens. This is important, whether they’re cleaning bathrooms every week, carpets twice a year, or dusting and vacuuming an office at night.
A residential cleaning service is probably the simplest business in terms of necessary cleaning skills. Janitorial services, carpet cleaning businesses, and other niche cleaning operations often require the use of special equipment and/or cleaning solutions for which you must be trained.
Privacy Act
Regardless of the type of cleaning business you start, chances are you’ll have the opportunity to learn very personal things about your customers.
“I am not there to read anything; I am there to clean the house,” says Orlando residential cleaning service owner Fenna Owens. “If anyone leaves delicate papers out, or anything else laying around, they don’t have to worry about it, because I’m not going to stand still and read it. It’s not mine, and it’s none of my business.”
If you accidentally find out sensitive information, never repeat it. “Don’t ever talk about your customers to other customers, especially if they know each other,” says Owens. “It’s nobody’s business what they have in their house.”
Wanda Guzman, who operates a combined residential and commercial cleaning service also in Orlando, agrees. “When you’re cleaning, you’re in the most private part of someone’s home. People have to feel safe that you’re going to keep their confidence,” she says. “Sometimes in offices people will leave important papers and files out. When that happens, my policy is don’t look, don’t touch.”
Beyond actually being able to do the work, a cleaning service operator needs some basic business skills. You need to understand the administrative requirements of running a company, you should be able to manage your time efficiently, and you must be able to build relationships with your employees and your customers.
None of the requirements of being a cleaning business owner are highly complex, nor do they require anything more than average intelligence. Many successful cleaning businesses were started on a shoestring, with just a few dollars’ worth of supplies and plenty of energy and enthusiasm. Of course, if you have capital available, your options are greater.
Predictable? Yes and No
The level of predictability in the cleaning business depends on your particular operation and clientele. With a residential or janitorial service, most of your business will be long-term contracts, where you’re cleaning the same home or business on a regular basis. You’ll likely do some one-time jobs, or occasionally do extra things for existing customers, but the bulk of your business will be on a routine schedule.
Carpet cleaners have plenty of repeat customers, but not at the same level of predictability as residential and janitorial services. The frequency of service is significantly less, since most consumers have their carpets cleaned one to three times a year, and businesses typically only slightly more often. Also, when the economy contracts, many customers will opt to extend the time between carpet cleanings.
For most types of cleaning service businesses, the best business is repeat business—in fact, for many, it’s the only business. Repeat customers will make up 75 to 90 percent of your accounts. This is the bread-and-butter of the industry, since one-time-only cleanings bring you one-time-only income. It’s up to you to turn these one-time jobs into repeat customers.
Smart Tip
Let your employees know you expect them to be polite and friendly, but they should avoid getting into long conversations with customers. They’re there to work, not to talk—and if they’re going to stay on schedule, they don’t have time for a lot of chitchat.
If you do a one-time cleaning as a residential or janitorial service, follow up with a telephone call one or two days after your visit to find out how the customer liked your service. Then tell the customer about your regular cleaning programs. Be friendly and gracious even if the customer says no. They may call you when they need a one-time job again, or they may change their minds about regular service at some future point.
Regardless of what part of the cleaning industry you’re in, trade shows and conventions are an excellent source of information. Exhibitors are eager to show off their latest products and show you how these items can enhance your business. For many homebased business owners, these shows may be your only opportunity to meet face-to-face with a sizable number of prospective suppliers and customers in a short time.
Check with industry trade and professional associations, as well as your suppliers, for information about upcoming shows. Ask for a list of exhibitors in advance so you can decide ahead of time which companies you want to contact. Keep an open mind while at the show, because you may find an unexpected sales or productivity tool. And if necessary, be willing to travel to attend the right show; it could be one of the best investments of time and money you make for your business.
You can choose from large, national shows sponsored by associations (for a list of associations, see this book’s Appendix) to smaller, regional shows that are often sponsored by manufacturers. Mike Blair, owner of AAA Prestige Carpet Care in St. George, Utah, recommends both types of trade shows to get a true picture of what’s going on in the industry and what all your resources are.
If you do carpet cleaning or another type of cleaning that typically isn’t done frequently, set up a system to remind customers when their next service should be performed, whether it’s annually, semiannually, or quarterly. They may not think to call you, but if you call them, they’ll most likely schedule a cleaning.
Some cleaning service businesses are strongly seasonal; others are not. Janitorial services are probably the most stable in terms of volume, unless they have customers in seasonal businesses. Residential services tend to enjoy a fairly consistent volume year-round, with perhaps some extra one-time-only cleanings around the winter holidays and some additional spring cleaning requests when the weather begins to warm up. Carpet cleaning services are typically busier in the spring and summer, with volume dropping in the fall and becoming very light in the winter. The seasonality of other types of cleaning services depends on what’s being cleaned and the climate of the region in which clients are located.
Franchise or Independent Operation?
It’s an advantage that franchises will work closely with you as you start your business and take it to the point where it’s running smoothly and profitably, especially in the beginning. But you may find that once you become established and are financially secure, a franchise agreement is a decided disadvantage.
A franchise is the way to go for people who want to own their own business but would rather choose an opportunity that has proved successful for many others rather than gamble on developing their own system. Also, most franchises provide a degree of marketing support—particularly in the area of national advertising and name recognition—that’s difficult for individuals to match.
Smart Tip
One of the most common cleaning mistakes is to apply a cleaning compound and then start scrubbing or rinsing before the compound has a chance to loosen the dirt or grease. Whenever you apply a cleaning compound, follow the manufacturer’s instructions, which will usually tell you to wait 30 seconds or longer before you wipe or scrub.
In the long run, you’ll likely invest far less money operating as an independent service than as part of a franchise. Also, as an independent, you’re not tied to any pre-established formulas for concept, name, services offered, etc. That’s both an advantage and a drawback. The advantage is that you can do things your way. The drawback is that you have no guidelines to follow. Everything you do, from defining your market to cleaning a bathtub, is a result of trial and error. As an independent owner, you must research every aspect of the business, both before and during your business’s lifetime, so you’ll start right and adapt to market changes. It’s very important to thoroughly investigate any franchise offering before you invest.
Buying an Existing Business
An alternative to starting your own cleaning service business is to take over an existing operation. This may seem like an attractive and simple shortcut to skip over the work involved in building a business from ground zero, but you should approach this option with caution.
You’ll find cleaning businesses for sale advertised in trade publications, local newspapers, and through business brokers. The businesses can often be purchased lock, stock, and barrel, including equipment, office supplies, existing accounts—and reputation. Be sure you’re getting the quality you’re paying for in all aspects.
Of course, there are drawbacks to buying a business. Though the actual dollar amounts depend on the size and type of business, it often takes more cash to buy an existing business than to start one yourself. When you buy a company’s assets, you usually get stuck with at least some of the liabilities, as well. And it’s highly unlikely that you’ll find an existing business that’s precisely the company you would have built on your own. Even so, you might find the business you want is currently owned by someone else.
Stat Fact
The demand for commercial and residential cleaning services in the U.S. is estimated by many analysts to exceed $160 billion and growing. Gains will be driven by a shift toward “do it for me” in the residential market and outsourcing of non-core functions in the commercial market.
Why do people sell businesses—especially profitable ones? There are a variety of reasons. Many entrepreneurs are happiest during the startup and early growth stages of a company; once the business is running smoothly, they get bored and begin looking for something new. Other business owners may grow tired of the responsibility, or be facing health or other personal issues that motivate them to sell their companies. They may be ready to retire and want to turn their hard work into cash for their golden years. In fact, some of the most successful entrepreneurs go into business with a solid plan for how they’re going to get out of the business when the time comes.
Above and Beyond
Regardless of the type of cleaning business you start, you’ll probably have the opportunity to do more for your customers than simply clean. Residential cleaning operators regularly alert their clients to potential problems, such as frayed electrical cords and leaky faucets. Commercial cleaners can provide similar observations. In fact, in early 2005 in Montreal, Quebec, a sharp-eyed janitor did more than point out a problem—he saved the life of a 4-year-old boy.
While taking out the garbage at a restaurant, the janitor spotted a car in the normally empty parking lot. He decided to check it out, and when he did, he realized the car was running and saw a plastic tube going from the exhaust pipe into the trunk. The janitor called 911, and when police arrived, they found the boy and his 28-year-old father in the car. The father was in the midst of a bitter divorce and custody battle with the child’s mother and was trying to kill himself and his son. Because the janitor was paying attention and took action, both the boy and his father were saved, and the father was charged with attempted murder.
Jani-King International Inc., a commercial cleaning franchisor, now trains its franchisees to assess potential building and workplace security threats and report them to authorities. “Our crews clean the same buildings night after night. We see the normal activity. We want our employees to understand how to spot suspicious activity and then how to report it,” says Jerry Crawford, the company’s president.
It’s also possible that the business is for sale because it has problems—and while that may not stop you from buying it, you should know all the details before you make a final decision. The following steps will help you:
• Find out why the business is for sale. Don’t accept what the current owner says at face value; do some research to make an independent confirmation.
• Examine the business’s financial records for the previous three years and for the current year-to-date. Compare tax records with the owner’s claims of revenue and profits.
• Spend a few days observing the cleaning operation. Monitor several work crews on the job.
• Speak with current customers. Are they satisfied with the service? Are they willing to give a new owner a chance? Ask for their input, both positive and negative, and ask what you can do to improve the operation. Remember, even though sales volume and cash flow may be a primary reason for buying an existing business, customers are under no obligation to stay with you when you take over.
• Consider hiring someone skilled in business acquisitions. He or she can assist you in negotiating the sale price and terms of the deal.
• Remember you can walk away from the deal at any point in the negotiation process—before a contract is signed.
Sometimes an owner who is selling a business will stay on after the sale for a time to help the new owner learn the ropes. Depending on the size and complexity of the business and your familiarity with the industry, you may want to negotiate this as part of your purchase contract.
Beware!
Always use caution when cleaning around computer equipment and electronics, whether you’re in a home or an office, especially when you’re using chemicals. Never unplug electrical cords, and be careful not to get any liquids on the devices.
Regardless of whether you start from scratch, buy an existing business, or purchase a franchise, you need a plan. In Chapter 7, we’ll talk about how to put that all-important plan together.