Janitorial Service
Look around. Just about any place where you see a commercial facility, you’re looking at a cleaning opportunity. While residential cleaning services typically only clean residences, janitorial services clean businesses—offices, hospitals, restaurants, and schools, to name a few. And what a janitorial service lacks in glamour it makes up for in potential profits.
The demand for janitorial services is strong and will likely continue to be. It just makes sense that as long as there are commercial buildings, there will always be a need for someone to clean them. Even during recessions, janitorial businesses do well.
While it typically takes more than a residential cleaning service, the startup costs for a janitorial business are still relatively low. It’s possible to get started working from a homebased office with just a vehicle and a minimal amount of equipment.
But while residential services are pretty much “normal business hours” operations, janitorial services are almost the opposite. You’ll find some customers who want you to clean during the day, but most will prefer that you clean after their staff has finished their work and gone home.
With few exceptions, janitorial jobs are going to be substantially larger than residential cleaning ones—even if you start with very small customers. “If you took someone who was used to cleaning homes and put them in a large office building, they would hesitate and think they couldn’t do that huge space,” says Michael W. Ray, owner of Pro Building Services Inc., a janitorial service in Salt Lake City. The key is to not be intimidated; just break the work down into tasks that can be done in a logical, reasonable order.
Who Are Your Customers?
Though not all businesses will hire an outside janitorial service company, their facilities all need to be cleaned. Not only must they meet health code requirements, but they also want to make a favorable impression on their customers. Offices and office buildings are the primary customers of most janitorial services, but you can also do well cleaning restaurants, schools (including colleges and universities), hospitals, medical offices, museums, retail stores, warehouses, and manufacturing facilities.
Many janitorial companies begin by cleaning small offices. The work involves dusting, vacuuming, removing trash, and cleaning restrooms and lunchrooms. When you’re ready, you can expand your services to include cleaning windows, buffing floors, and shampooing carpets.
After you get some experience with small offices, you can move up to larger facilities and other types of businesses.
What and how you clean depends on the customer and their type of business. For example, when you clean medical facilities, you’ll be cleaning the general office, public areas, and the examination rooms. You need to be aware of blood-borne pathogens, which are microorganisms that are present in human blood and can cause disease in humans, such as hepatitis B virus (HBV) and HIV. Take preventive measures to protect yourself and your employees. When handling any waste that may have been contaminated with blood, always wear latex gloves to reduce the risk of coming in contact with blood-borne pathogens.
Bright Idea
Consider backpack-style vacuum cleaners. Michael Ray says his Salt Lake City employees can vacuum three to five times the amount of space in the same time with a backpack vacuum as they can with a standard upright. Good backpack vacuum cleaners run about $250 to $450 and higher.
You might consider targeting the food-service industry. A growing number of restaurateurs are choosing to hire janitorial services rather than have their own employees clean their facilities. You’ll need to go in after the restaurant closes, and clean the waiting area, dining rooms, restrooms, and sometimes the kitchen. You’ll vacuum, mop, and clean all glass and light fixtures. If you’re responsible for the kitchen, you’ll need to clean the grill, other cooking surfaces, and appliances.
Who Are Your Competitors?
Because janitorial services don’t require a lot of cash or experience to start, this is a relatively simple business to enter. For the same reason, it’s also a competitive one. But if you clean well and provide exceptional customer service, you’ll succeed.
Of course, you’ll be competing against other janitorial services that range from independent, mom-and-pop operations to large corporations. To compete effectively, it helps to understand how these companies are structured and run. In fact, you’ll probably see a description of the company you want to build here.
Often, people will start a janitorial service with every intention of staying small, just to provide a way for couples and families to work together as they service accounts and earn a living. Sometimes the couples are middle-aged, or retired from their first careers. They may have only a few accounts, do the cleaning themselves, and don’t need any employees. By working from home and using general cleaning equipment rather than the industrial-quality variety, they keep their overhead low. However, these companies are often so small they can’t afford to buy insurance, which means they aren’t protected if something happens to their equipment or vehicle, or if they cause—or are injured in—an on-the-job accident. A janitorial service that’s adequately insured and bonded has a competitive edge over one that isn’t.
Large commercial cleaning companies and franchised operations generally have a name recognition you may find intimidating. They’re probably well insured and have top-of-the-line equipment and a sophisticated marketing plan. The real question is, How good is their service? One of the industry’s biggest problems is employee turnover, and the more employees a company has, the harder it is to monitor their performance and ensure that the work is being performed satisfactorily. To compete with a large operation, emphasize in your marketing materials that you provide top-quality, personal service, and that your employees are carefully supervised.
The issue of indoor air quality makes choosing the right vacuum cleaner increasingly important for janitorial services. It’s not enough to make the carpet look good; you must consider what the vacuum actually traps and what it allows to escape in the way of particles. Here are some points to consider when shopping for a vacuum cleaner:
Efficient filters. Filters play a critical role in preventing dust and soil particles from being redistributed into the air. Your best choices are HEPA or HEPA-type filters and machines that feature air-filtering processes that trap and hold dust, soil, allergens, and breathable particles.
Aggressive pile lifting and grooming. This opens the carpet to allow for more efficient removal of dry soil, dust, and debris. If the vacuum cleaner does this, you can eliminate the need to lift the pile as a separate step, which reduces labor costs.
Strong, consistent airflow. A powerful airstream will draw more dry soil out of carpet and carry it through the machine into the vacuum bag.
Airtight collector. Whatever container collects the soil should hold the soil and not release it back out into the air to settle on the building’s contents and be inhaled by building occupants.
Salt Lake City’s Michael Ray says that when he takes over a building and begins vacuuming with quality equipment, there’s a noticeable drop in the dust level within the first 30 days.
You’ll also be competing against in-house cleaning staffs. If a company you contact already has in-house custodians, don’t discount that company as a potential account. Stress your quality of service and point out that using your company is more cost-effective than maintaining an in-house staff. Many companies today are outsourcing as much as they can, and your sales efforts should put you in an ideal position to win the account if and when the company decides to restructure how they handle cleaning.
Equipment
Though it’s not ideal, it’s possible to start a janitorial service with as little as a mop, bucket, broom, vacuum cleaner, rags, and some all-purpose cleaner. As you grow, you’ll be able to purchase other equipment, such as a floor buffer, a carpet cleaning machine, and better-quality vacuums.
To avoid spending your limited capital on equipment you won’t use very often, especially in the beginning, consider renting machines as you need them. Another option is to subcontract jobs requiring special equipment to companies that focus on that type of work, such as carpet cleaning and window washing.
For most janitorial jobs, you’ll need a mop, mop bucket and wringer, push broom, baseboard brush, straw broom, pail, scrub brush, squeegee, 6-foot ladder, upright vacuum cleaner, three-prong adapter (to be sure you have power for your electrical equipment), hand scrubbing pads, dustpan, spray bottles, extension ladder, heavy-duty extension cords in either 50- or 75-foot lengths, wax applicator, wheeled trash can, and floor scraper/putty knife.
Floor Cleaning Equipment
In addition to regular vacuuming, janitorial services are often expected to clean floors, which means you may need your own special equipment. To make the best decision on a carpet cleaner, see the equipment section in Chapter 5.
Initial Equipment and Supply Checklist
All-purpose cleaning powders
All-purpose cleaning solutions
Brooms
Brushes
Buffing machine pads
Carpet cleaning machine
Cleaning carts
Company vehicle(s)
Dust cloths
Dustpans
Extension cords
Extension ladder
Feather dusters
Floor cleaning machine
Floor scraper/putty knife
Floor signs
Glass cleaner
Hand scrubbing pads
Ladder
Metal storage cabinet
Mop bucket and wringer
Mops
Pumice sticks
Security system
Signage
Soap
Sponges/pails
Spray bottles
Squeegees
Three-pronged adapters
Upright vacuum
Wax applicators
Wet/dry vacuum
Wheeled trash cans
You may also want to buy a floor buffer to wax and shine vinyl and tile floors. This machine also strips wax build-up before applying another coat of wax. A basic buffer operates at a speed of 175 to 1,500 RPM. A burnisher is a kind of floor buffer but operates at 1,000 RPM and higher. A new, low-speed floor buffer costs $475 to $1,200, and a burnisher costs $800 to $2,000. If your accounts have a lot of floor space that needs to be shined, a burnisher might be worth the investment. But if you only have a few accounts with uncarpeted floors, a basic buffer will be sufficient.
Chemicals
Most of the cleaning products you’ll use aren’t dangerous, but you still need to be concerned with issues such as chemical composition, proper storage and use, and environmental friendliness.
“We try to use products that are as safe as possible and yet still effective for the job we need them to do,” says Ray. “The strongest chemicals we have are spotters for carpet. Strippers for floor wax are also pretty strong, and so are toilet bowl acids.” Some tasks require more powerful compounds than others, and it’s important that every worker using dangerous products understand how to use them properly and with as little risk of harm to themselves, the materials being cleaned, and the environment as possible.
Follow the manufacturer’s instructions for storage and use. Be sure to provide your employees with proper safety equipment, such as eyeglasses or goggles to shield against chemical splashes, and gloves to protect their hands when they’re doing wet work.
Standard Operations
If you like a steady, dependable routine, don’t start a janitorial service. Owners in this business can never predict when their days will start or what hours they’ll work.
Typically, though, you’ll probably start about 9 A.M. Your first order of business will likely be answering customer complaints and questions regarding work your employees did the night before. Clients might complain that carpets weren’t properly vacuumed, windows weren’t cleaned, restrooms weren’t scrubbed, or paper towel dispensers weren’t filled. If the complaint is minor and can wait, have the crew supervisor or other designated employee in charge of that account take care of the problem on the next visit. If the problem warrants immediate attention, visit the account personally the day you receive the complaint and correct the problem.
Smart Tip
Keep a good backup file of temps you can call on short notice either to substitute for a sick or vacationing employee or as a permanent replacement if necessary.
The next order of business will be to make customer service calls. Just because customers aren’t complaining doesn’t mean they’re totally satisfied. You should be calling your customers regularly—ideally at least once a week—to make sure they’re happy and that there are no areas where you could improve your service.
Smart Tip
When cleaning restrooms, clean for health first and appearance second. Protect public health by minimizing germs, disease-causing microbes, and bacteria. Use clean tools and products appropriate for the specific cleaning job.
With your existing customers properly attended to, it’s time to get out of the office and call on potential accounts. As your business grows, you may eventually hire a full-time salesperson to handle this aspect of your business, but in the beginning, you’ll need to make sales calls yourself.
The cleaning work typically begins in the late afternoon or early evening. Depending on the size of your operation and the number of people on your staff, you may or may not be involved in the actual cleaning work, but it’s still a good idea for you to be visible when crews begin their shifts.
The typical janitorial service that cleans offices begins cleaning after the office employees have left for the day. If the office closes at 5 P.M., you may be able to begin cleaning as early as 6 P.M. But most clients don’t want you to begin cleaning until after all the employees have left the building, and if they tend to work late, you may not be able to enter the building until 9 P.M. or later. Some clients will want you to clean daily, others every other day, and still others may only need you to come once a week.
Night and Day
Though most janitorial work is performed at night after employees have gone home for the day, there will be times when you’ll need to supply workers during the day. A large office building may want you to have a custodian around during the day to maintain the restrooms and clean up unexpected spills. You may want to charge a slightly higher labor rate for this person than you do for your night workers, and be sure you choose someone who not only cleans well but also has good people skills.
Restaurants that cater to lunch and dinner crowds may prefer that you clean in the morning, rather than after closing. Customers that operate 24 hours a day will probably want you to clean during their slowest periods, which will vary depending on the type of business. Never assume the hours your customers want you to work; always ask to be sure.
Square feet cleaned per hour by one FTE, based on interior building area with medium obstructions:
Source: Cleaning & Maintenance Management magazine
Typically, your employees will be divided into crews of two to six, including a supervisor. The team’s supervisor should be someone who knows the job and cleans well, has been with the company a while (usually, but not always, longer than others on the team), and can represent your company well. Supervisors or crew chiefs generally earn one to two dollars more per hour than other team members.
Setting up teams not only speeds the cleaning process but improves efficiency, boosts morale, and promotes honesty. Teams are essential when cleaning large accounts because there’s so much work to do, and one person can’t handle it alone.
Teams should remain intact from job to job. Moving crew members from team to team is destabilizing. If a team is effective and all the workers get along well, keep them productive by not switching them around unless you really need to.
In general, team members share the responsibility of cleaning a facility with the supervisor. Divide them into two groups: one doing wet work and the other doing dry work.
Smart Tip
When you’re cleaning, keep moving forward. Plan your work so everything gets done on the first pass through any given space.
Wet work consists of scrubbing or mopping floors and counters, washing walls, cleaning sinks and toilets, and other tasks that involve water. Dry work is virtually everything else, from dusting to vacuuming to polishing floors. If specific team members prefer doing a certain type of work or are better at some tasks than others, accommodate them as much as possible. They’ll be happier, and boosting morale means boosting your bottom line.
Bright Idea
If a prospective customer is considering changing to your company from another service, find out why. If you know exactly what they weren’t satisfied with, you can pay more attention to those concerns.
Team members should also assist in maintaining equipment, which includes helping the supervisor clean the equipment at the end of each day (or, more likely, night). This is a chore that can be rotated among crew members. Be sure they understand that they’re responsible for immediately reporting to the supervisor any problems they have with equipment, either when they’re using it or cleaning it, or any other type of on-the-job problems.
In addition to your daily routine, you’ll need to plan and carry out a number of weekly and monthly procedures. It’s a good idea to maintain a quarterly master plan so you don’t forget anything and you properly schedule your time and your staffing.
A Little Help
When a customer asks you to handle a chore that’s not part of your normal service, you can do one of three things. One, you can explain that you don’t do that and risk damaging your relationship with the customer by forcing him to find another resource. Two, you can agree to do it, then scramble for the necessary equipment and skills to handle the job, and hope you’re pricing it reasonably. Or three, you can hire an independent contractor who specializes in that type of work.
Subcontracting special janitorial jobs can save you money on payroll and keep your equipment investment down. For example, you might want to subcontract your carpet cleaning work to a carpet cleaning company, or window washing to a window washer. Other services janitorial customers might occasionally need include ceiling cleaning, sandblasting, and pressure washing.
You would typically use an independent contractor for jobs that only a few of your clients request and that don’t need to be performed often.
Like any other business owner, you have to maintain your records and take care of administrative tasks. If you can’t find the time during the week, you’ll have to devote a few hours on weekends—but whatever you do, you must keep your financial records, including payroll and taxes, current and accurate. To make good operating decisions, you must know where your business is headed at all times. If you neglect these nuts-and-bolts tasks, your entire operation will suffer, no matter how high your sales are.
Laundry
Unless you plan to operate a small, part-time janitorial service, you’ll need your own laundry facility. “We use fresh laundry every day,” says Ray. That includes rags, towels and mop heads. He maintains an industrial-capacity washer and dryer in his office.
If you’re small, your washer and dryer at home may be able to handle your laundry load, or you might choose to use a commercial coin-operated laundry. What’s important is that you accurately estimate your laundry needs and are able to meet them. Remember, using dirty equipment won’t produce the quality results you’ve promised and your customers demand.
Maintaining Customer Records
Keep a file on each customer. It should include a schedule of the cleaning duties you perform for them. For example:
• Daily. Empty trash, clean restrooms, and restock paper products.
• Every other day. Clean windows, vacuum, and dust desks.
• Weekly. Mop floors.
• Monthly. Dust atificial plants and clean light fixtures.
• Quarterly. Clean carpets and dust corners and tops of shelves.
Consider writing dates next to each of these duties so you know just when a certain task needs to be done and when it’s actually performed. You may even want to give a copy of this schedule to your customers so they know just what you do and when you do it.
Bidding
When you sell your janitorial services, for the most part, you’ll be dealing with experienced businesspeople who prefer to work with professional suppliers. You’ll probably be asked to submit a written bid outlining the services you’ll perform and the prices you’ll charge.
Time it takes one FTE to complete cleaning tasks, based on 1,000 square feet of unobstructed floor:
Source: Cleaning & Maintenance Management magazine
Use the “Estimate Form” on page 57 to determine what services the customer wants performed and to calculate how much to charge for the job. After you’ve come up with an estimate, present it formally to the customer in the form of a proposal (see page 58).
Most businesspeople are reasonable and understand that you get what you pay for. Certainly they want to get the lowest price possible—just as you do on the goods and services you have to buy for your own company. But they realize that the lowest price isn’t always the best deal if it means sacrificing quality.
“They will try to get the lowest price they can for the service they want,” Ray says. “When they find they can no longer get the services they need, we see them willing to pay more.” The level of service required usually depends on the type of facility.
“The people who really care a lot about their buildings are people who have important and demanding clientele in them, or a company that has a top executive who operates from that building who says cleaning is important to him,” Ray says. Branch offices may be more focused on price than service, although they’re usually willing to pay extra to have the place polished before a visit from a headquarters big shot.
Although much of the bidding process seems to be centered on pricing, be sure to emphasize the quality of your service and the value you provide. However, you must deliver what you promise, so never promise more than you can deliver.
Beware!
Until you’ve developed some skill at estimating charges, be careful about committing yourself to long-term contracts. If you accidentally bid too low, you don’t want to have to do the job for a year or more at a loss.
Recognize your abilities—and your limitations. When you bid on a job, be sure you can handle it. Ask about the customer’s special needs, and pay attention to details. Courtesy, genuine interest in meeting the customer’s needs, and fair pricing will set you apart from the competition and help you build a reputation as a responsible operator.
Visit your prospective customers’ sites and don’t give an estimate until after you’ve seen the condition of the facility and have discussed with the client which services you’ll provide. Never just “guesstimate” over the phone; you could lose the opportunity to make a serious bid if your figure is too high, or the customer may question your integrity if your phone quote is significantly lower than the final bid you make after you find out what the job really entails.
Smart Tip
Even though you may not want to be in the disaster restoration business, your crew may be the first ones on the scene in the event of a broken water pipe or other problem. Be flexible, and do what you can to help your customers when they need you, even if it’s beyond your normal service package.
Ray says his normal approach is to work with property managers to establish the customers’ preferred procedures before putting together a proposal. Usually they’ll have put together a set of cleaning specifications, but you may need to ask how they want particular tasks handled, such as cleaning an office that has a lot of knickknacks, or what your responsibility is if people leave papers out on their desks at night (obviously, this happens often). You may want to establish a schedule for certain chores, such as rotating things that don’t need to be done every night to balance the overall workload.
Estimating a Job
The first step in preparing an estimate is to identify the variables that will affect the time it takes to perform the required cleaning work (use the “Estimate Form” on page 57). Those variables may include:
• Size, in square feet, of the area to be cleaned
• Layout of the facility
• Number of employees
• Construction materials (carpeting, tile, glass, etc.)
• Location and position of furniture, equipment, appliances, etc.
• Number of offices, restrooms, and fixtures to clean
• Location of storage areas
• Areas requiring special attention
Let’s get down to the nitty-gritty. Follow these instructions for floor cleaning, and your customers will sing your praises.
Stripping Old Wax and Dirt
1. Clear the floor of all obstacles, such as chairs, wastebaskets, and other movable items.
2. Sweep, dry-dust, or vacuum the floor completely.
3. Remove any heavy spot, dirt, or gum with a putty knife.
4. Mix the wax stripper and hot water according to the manufacturer’s recommendations.
5. Apply the solution to the floor with a mop, and let it stand for a few minutes.
6. Scrub the floor with a scrub brush, steel wool pad, or nylon pad, depending on how much dirt and/or wax you have to remove.
7. Mop up the dirty solution.
8. Rinse the mop well and pick up any remaining solution with clean water.
9. Let the floor dry thoroughly.
Helpful Hints
Remove dirt in corners and along baseboards.
Wipe up any splashes on the walls, furniture, and baseboards.
Never allow water to stand on a tile floor; tile that stays wet too long may start to lift.
Don’t attempt to scrub more than 100 square feet at once.
Waxing the Floor
1. Make sure the floor is clean.
2. Apply an even coat of wax or finish with a strong mop or wax applicator.
3. Wax evenly.
4. Let the wax dry for about 20 minutes. Apply a second coat if necessary.
5. Buff the floor if you use natural carnuba wax.
Helpful Hints
If you use a polymer finish, make sure to remove all old wax, resin finishes, and soap scum from the floor. Polymers won’t adhere properly to natural waxes.
Don’t apply wax with dirty applicators.
Don’t use an oily sweeping compound on floors.
Don’t let wax wear out in high-traffic spots. Touch up these spots from time to time.
Don’t let polish build up along baseboards.
• Availability and location of electrical outlets
• Frequency of duties
• Hours during which cleaning can take place
Floors are always a major consideration. They may require as much as 60 percent of your time. If floors are carpeted, how often will they need shampooing? If they aren’t carpeted, how often will they require scrubbing and refinishing? A fully carpeted office building will take one-half to one-third of the time to maintain than a completely tiled one will. A tiled floor is more costly to maintain because it requires more labor and more chemicals to keep it clean and polished. Another time-consuming task is cleaning glass surfaces. The more you have to clean, the longer it will take.
You also need to consider how crowded the area is. The more crowded it is, the longer it will take to clean. Scrubbing and polishing an empty ballroom floor will take much less time than cleaning an average office with the same floor space. Along with how much furniture is in the rooms, take a look at the amount of clutter. The greater the clutter on desktops, filing cabinets, window ledges, coffee tables, counters, bookcases, etc., the more time it will take to dust, because you must move these—items to clean both the item itself and the surface it’s on.
Confirm whether cleaning windows and window shades will be included in your contract. If so, calculate the dimensions of the windows and consider the accessibility from both sides. Window cleaning can be time-consuming; you may want to avoid this task or subcontract it to a specialist.
Smart Tip
When putting together a bid, don’t use the phrase “as needed” when describing task frequencies. Be specific about when various tasks are needed and what criteria are used to determine the need.
Once you’ve surveyed the premises, the next step is to map out specific jobs, deciding which tasks each worker or subcontractor will perform. Determine as best you can the time it will take to do the work, and don’t forget the time needed to set up your equipment and supplies, and to put things away. If you plan to supervise or do part of the work yourself, be sure to include your time as part of the labor cost in your final estimate.
When you’ve figured out the number of hours required for your personnel to do their jobs according to the customer’s specifications, you can calculate labor costs. If you’re bidding on a job that calls for a monthly fee, figure the number of hours each worker will work in a month. If the job needs to be done five times a week, figure 21 workdays in a month. If it’s to be done three times a week, figure 13 workdays in a month. Then multiply the wage rate for each worker by the number of hours you schedule for the job.
Next, calculate the cost of supplies. If you don’t have actual cost records, estimate your supplies cost as a percentage of labor. Later, as you do more business and develop records, you can prepare estimates based on actual costs. This process is explained in detail in Chapter 9.
There are times when it will be to your advantage to offer premium or reduced pricing. When a customer wants immediate results and requests extended hours or more services, charging extra is reasonable and should be expected. (If the customer thinks you should provide these extra services for free, you need to consider whether this is a customer you really want to have.)
A long-term project with its accompanying long-term income or projects that may lead to lucrative follow-up business may warrant discounts. In such cases, you can consider a discount as an investment or even as part of your marketing costs.
Be sure you have a sound reason for any deviation from your normal pricing structure. If you arbitrarily decrease your rate, clients may believe you were overcharging them in the first place. When you give a discount, be sure your client understands that you have made a well-thought-out business decision and that you expect a return on your decision.
Be Prepared to Answer Questions
Purchasers of janitorial services are usually professional buyers who are accustomed to negotiating commercial product and service contracts. You’ll impress them if you’re prepared to provide the following information about your company:
• How long you’ve been in business. When you’re new, emphasize the preparation and planning that has gone into developing your operation. If you have experience working for another cleaning company, stress that as well.
• Training program. Explain how you and your employees are trained to deliver top-notch service. If you have specific certification areas, such as in blood-borne pathogens, be sure to point that out.
• Insurance. Provide proof of liability insurance, workers’ compensation coverage, and bonding.
• Customer support. Describe your support program, including whom the customer can contact with questions or problems, and what hours you’re available.
• Billing. Explain your billing policies and procedures. Most commercial clients prefer paying monthly.
• Equipment and materials. Describe the modern equipment and quality cleaning products you provide that help your customers maintain their company image.
• Supplies. Discuss your program of providing disposable supplies such as paper towels, toilet tissue and seat covers, hand soap, plastic trash liners, etc. Be sure your pricing in this area is competitive.
• Security. Describe the measures you employ to assure your customers that you’re responsible and can be trusted with keys and access to their premises after hours.
Beware!
Workers’ performance often deteriorates after 6 to 12 months on the job. At this point, employees may either quit or need increased supervision.
• Attire and company identification. Explain your uniform and employee identification program.
• References. Provide a client list and contact information so prospective customers can verify your service history and integrity.
Cash Flow Issue
Unlike many other types of cleaning businesses, janitorial services typically don’t generate immediate cash flow. It will probably be at least 60 days or longer before you can write your first paycheck to yourself. You may get some one-time jobs like cleaning vacant homes, offices, or apartments for cash payment, but your most important source of income will be facilities you clean on a regular basis. You won’t be paid for this work in cash. Some customers will pay on the 10th of the following month to earn a discount, while others will take the full 30 days to pay. You can expect to wait 45 to 50 days after signing your first big contract before receiving any money. This is why your startup capital needs to include enough funds to operate for at least the first quarter while you wait to start generating revenue.
If you start with insufficient cash on hand, you’ll have a serious problem financing big accounts. You can’t afford to bid on large jobs until you have the equivalent of at least two months’ gross income from such a job in the bank so you can cover the labor costs for 60 days.
Smart Tip
Your security system supplier will provide you with exterior signs and window decals to warn would-be intruders of the existence of an alarm. These notices are strong deterrents—better that a thief bypass your operation for the next than to suffer the break-in.
And unless you have an abundance of startup capital, you’ll need to put every penny you possibly can back into your business to finance growth during your first critical year. You’ll also work long hours, bidding during the day and supervising employees and even cleaning in the evening and on weekends.
Security
Because most janitorial cleaning crews work at night, you have some security concerns that other types of cleaning businesses don’t. You must take the necessary steps to provide a safe environment for your employees and to protect your equipment.
If you transport equipment in your vehicle, always park in a well-lighted area, and keep the automobile doors locked at all times, except when you’re loading and unloading equipment and supplies. Consider installing an alarm on your vehicle; it will provide an additional level of security and may also earn you a discount on your insurance.
Do you keep your equipment in your home or garage? You may want to invest in a security system to prevent theft or vandalism. If you rent a mini-storage facility to store equipment and supplies, you probably won’t be permitted to use a security alarm for your unit. However, most storage facilities have a gate with restricted access for their customers. Keep a sturdy lock on the door of your unit. Also, confirm with your insurance agent that the contents are covered.
Bright Idea
Provide training on various safety issues for your employees. For example, you may want to hold a session on how to remain aware of your surroundings to ensure safety at a cleaning site. Your local police department can help you with this training or refer you to a good source.
If you have a commercial office where you keep your equipment, investigate your area’s crime history to determine the measures you need to take. Many commercial offices and storefronts have alarm systems already installed and included in the rental price. Most local police departments’ crime prevention officers or community relations boards will provide you with information on the crime statistics in your area and prevention information.
Since your employees will often be arriving and/or leaving in the dark, be sure your parking facility is well-lighted, and establish a policy that employees must enter and leave the building in pairs.
