Janitorial Service; Things I wish I had Known When I was Starting Up.
When it comes to janitor service start ups, everyone has a different comfort level for how much money and time they are willing to commit to get things started. Be sure you are honest with yourself, lack of start-up investment capital or lack of time to invest in a new start-up can sink even some of the best new ideas before they become profitable.
1) If you do not have the time to invest, either do the business part-time or don’t start. Chances are you will need to put in even more time then you planned on initially. Working a janitor or janitorial service part time is a great idea because you still work a regular job and in your ‘off-hours run your business. This will give you stability and you can use the money your business generates to upgrade your equipment and grow your business. It helps you learn the ropes and learn how to walk before you run. Plus you are probably going to be slower and make some mistakes when you start. Wouldn’t it be easier to make them on a smaller scale.
2) Understanding small, medium, and large business models. Which business model makes the most money? Which business model has the highest margins? Which one is the hardest to operate?
You may be surprised at the answers to these questions. For the purpose of mutual understanding lets define exactly what we think small, medium and large businesses are.
Small businesses have 1 to 4 employees at a time. Usually this means one to two crews working and the owner of the janitor service usually works in the business as a crew manager. The owner bids the jobs, talks to clients and participates in helping to do the work. Usually you do smaller jobs (with higher per hour margins) and you don’t need a lot of work to stay busy. Your overhead is small and normally you run the office out of your home and have a dedicated business line or one or two business cell phones. You have a lot of control in the quality of the work and you typically don’t get very many complaints. A lot of owner operators find they can make a decent living and are quite comfortable to remain at this stage,
Medium businesses model (employees 8 to 16; 3 to 6 crews)
Thia is called the molting phase of business development. This is because you outgrow your previous stage, but you become more vulnerable as you try to adjust to the next phase. The honest truth is that this is the worst structure for a janitor service business unless your ultimate goal is to have a large business. In hiring a lot of new people you take on the risk that some of these employees may not perform to a high standard. The owner has a lot of responsibilities including customer management, human resource training, marketing, growing the business and keeping the company making a profit. You also have to increase your overhead, getting an office and hiring office help to do the scheduling and paperwork. Your per job margins may also dip as you scramble to find enough work to keep your employees busy. Remember you are the last one to get paid so typically you have to work the hardest.
Large business model (Over 25 employees more then 10 crews)
You know you have achieved a large janitorial service business model when you can take a day off, and still make the same amount of money. In a large business model you are no longer the manager. You have a manager that handles everything and is capable of running the office. You have structured your business so that things go smoothly without your intervention. Even though margins per employee per job may not be as high, you get really big accounts and you make a lot more money on each job. Plus you have more employees and you make a little bit off of each one. At this point, your janitor service business is well established, you have loyal large clients and a reputation. You also know what methods of advertising work and how to attract new business.
Wednesday
Marketing your Janitorial Service
Marketing your Janitorial Service: From Homespun to Number 1
Unfortunately,this article will not teach you everything you need to know about marketing a janitorial business. That will come only from a lot more study and years of experience. This article will show you how to get your business off to a great start and how to save a lot of money on your advertising costs.
1) The more creative you are with your marketing, the further you can stretch your advertising budget and the more likely you are to succeed. To be successful you need to do what everyone else is doing and what they are not. If you are on a shoe-string start-up, you have to be even more creative. One thing you could do is go to several business networking groups or a rotary clubs. When you are there, try to see if anyone in the group is looking for your janitor service. The more fiends you make, the more potential clients you have. Keep in mind that only friends will refer you to friends. A larger professional network is a great way to get jobs. Whey you use advertising always offer something for free or something unique. I knew a lady the successfully started a house cleaning business simply by offering to clean the first time for free. Clients had a risk-free way to evaluate her and her potential clients felt more obligated to give her a chance. This could also include a free evaluation or $100 off of the first 6 months or service.
2) Online advertising is also a very effective way to generate business. I have successfully generated 1000s of dollars of additional monthly income for several service businesses just by getting ranked on google and also putting up a free add on Google maps. I want to develop a separate section devoted to this soon because it is really a lot of fun and an effective way to make money if you know what you are doing.
3) Quantify the value of each lead, especially with paid advertising. If a new add costs $200 a month and generates 4 leads, this type of advertising costs $50 a lead. Conversions are what you are really shooting for, but taking leads is a good way to know quicker whether or not a particular method will work.
4) Customer referrals are great. You will normally have a higher percentage of these sales close and you will often not be bidding in a competitive atmosphere.
5) Help others, exchange leads, and get as close to referral centers as you can. One example of a referral center is a commercial real estate leasing broker. He has access to 100s of potential clients which could virtually help you get your business up and running in very little time. Since he meets knew business owner that are either moving or moving up, there is a lot of opportunity to get good janitorial leads. Also return the favor by referring the broker to your clients if you know they are looking to move or upgrade their facilities.
More to come. Wife is having a baby . . .
Unfortunately,this article will not teach you everything you need to know about marketing a janitorial business. That will come only from a lot more study and years of experience. This article will show you how to get your business off to a great start and how to save a lot of money on your advertising costs.
1) The more creative you are with your marketing, the further you can stretch your advertising budget and the more likely you are to succeed. To be successful you need to do what everyone else is doing and what they are not. If you are on a shoe-string start-up, you have to be even more creative. One thing you could do is go to several business networking groups or a rotary clubs. When you are there, try to see if anyone in the group is looking for your janitor service. The more fiends you make, the more potential clients you have. Keep in mind that only friends will refer you to friends. A larger professional network is a great way to get jobs. Whey you use advertising always offer something for free or something unique. I knew a lady the successfully started a house cleaning business simply by offering to clean the first time for free. Clients had a risk-free way to evaluate her and her potential clients felt more obligated to give her a chance. This could also include a free evaluation or $100 off of the first 6 months or service.
2) Online advertising is also a very effective way to generate business. I have successfully generated 1000s of dollars of additional monthly income for several service businesses just by getting ranked on google and also putting up a free add on Google maps. I want to develop a separate section devoted to this soon because it is really a lot of fun and an effective way to make money if you know what you are doing.
3) Quantify the value of each lead, especially with paid advertising. If a new add costs $200 a month and generates 4 leads, this type of advertising costs $50 a lead. Conversions are what you are really shooting for, but taking leads is a good way to know quicker whether or not a particular method will work.
4) Customer referrals are great. You will normally have a higher percentage of these sales close and you will often not be bidding in a competitive atmosphere.
5) Help others, exchange leads, and get as close to referral centers as you can. One example of a referral center is a commercial real estate leasing broker. He has access to 100s of potential clients which could virtually help you get your business up and running in very little time. Since he meets knew business owner that are either moving or moving up, there is a lot of opportunity to get good janitorial leads. Also return the favor by referring the broker to your clients if you know they are looking to move or upgrade their facilities.
More to come. Wife is having a baby . . .
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