By Zachary Shor
Starting a janitorial company seems easy. Buy some mops and brooms, incorporate the business, and you’re ready to go. Right? Not so fast.
The janitorial business does have a low barrier to entry. Almost anyone can afford to get one started. And, if you want to do all the janitorial work yourself, it won’t require additional capital to keep it going. But, if you want to grow the business and hire staff to do the work for you, that’s a different story.
I’ve been in the janitorial business over 10 years now and operate a successful company—but it wasn’t always that way for me. During the first five years, I struggled to get new clients. Many of my accounts were difficult to manage and not very profitable. I knew if the business kept going in that direction, I’d have to sell it and do something else for a living.
That’s when I finally realized something. Many of my initial assumptions about the janitorial business just weren’t true and belief in those “myths” was stopping me from growing my company. I wrote this article to debunk the myths so you can take your janitorial business where you want it to go.
Myth #1: I’ll never have to push a broom—I’ll hire someone to do the janitorial work for me.
Most janitorial companies start off as “mom and pop” operations. Unless you have substantial startup capital, this means you’ll be doing some of the janitorial work yourself in the beginning stages of the company. If you really want to learn the business, this is an important step. Don’t be afraid to get your hands dirty. You’ll get to know the reality of what your staff does every day to earn their pay.
Myth #2: I don’t need to know much about cleaning. After all, anyone can clean—all I need is a rag and a mop.
You need to expand your knowledge of cleaning on a regular basis to remain current with industry standards and advancements. Initially, you’ll need to learn about the chemistry behind cleaning. You will also have to become familiar with OSHA regulations and the EPA’s guidelines for cleaning and disinfection. So, keep an open mind and expand your knowledge. There are lots of resources out there to help—and there’s a lot to learn.
Myth #3: I can buy the cheapest equipment and supplies because the customer won’t know the difference.
Inexpensive, outdated equipment and supplies leads to poor results. Your customer WILL know the difference if you don’t use the proper equipment, supplies, and cleaning processes.
Myth #4: Sales shouldn’t be that hard. There are so many businesses in my area that need to be cleaned—I’ll get my fair share.
I wish that were true, but there’s a lot of competition out there. If you can’t find a way to differentiate yourself in the janitorial business, it will be much harder to win new business. And, if you don’t know how to pitch your company, you won’t close many prospects. There are many resources available online that can help you become a better salesperson. But first spend time developing your unique selling proposition. You have to figure out what makes you unique as a company.
The good news is that once you get a new janitorial customer, you should retain them for a long time if you keep them satisfied.
Myth #5: I can save money by doing by doing my own marketing.
The good news is that marketing in the janitorial business can be highly successful, and the ROI can be substantial if executed properly. But, do you know what type of marketing strategy to use? Telemarketing? Direct mail? Google advertising? I’ve had varying degrees of success with all three, but you probably won’t have the budget to do all three (especially in the beginning).
If you haven’t had any prior marketing experience, you may be spinning your wheels and wasting a lot of money trying to do it all yourself. Hire a company that has a track record of doing marketing for janitorial companies.
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Myth #6: I can win jobs just by being the lowest bidder.
There’s no way around it. To remain competitive in the janitorial industry you have to be price competitive. But, to win jobs and keep them, you have to provide your customer with more than just a good price. That means finding ways to keep quality up and costs down. Determine your pitch for each client by figuring out what you will do differently than the last cleaning company. Maybe you can bring in different equipment and supplies that will improve results; or, you’ve figured out a way to change the workflow that will reduce labor costs.
If you can demonstrate to your prospect how you’ll be different than the last company, AND submit a competitive bid, you’ll win a lot more jobs.
Myth #7: I don’t have to worry about getting additional capital when my business grows.
One of the biggest challenges janitorial businesses face is a cash flow problem when a growth spurt occurs. Anytime you start a new account you’ll have to outlay expenses for labor and equipment before you get paid. This will put a temporary strain on your cash flow. Opening a credit line can help.
Myth #8: Take any account—large or small—it’s all good.
When it comes to the janitorial business, size matters. If you want to be more profitable, go after larger accounts—this means accounts that require daily service. Don’t worry; there are plenty of mom and pops (I was one of them) that will service the smaller accounts. Sometimes it makes sense to take on a smaller account, but be selective and make sure it will be profitable—otherwise, you’ll regret it.
The key to success
At this point, you’re probably wondering what I did to turn my business around. It really wasn’t that complicated. I figured out who my ideal client was, and the size and type of business I wanted to go after. I decided not to go after any accounts that would be marginally profitable. I was able to demonstrate to my prospects why I was different and better than my competition. And I found ways to keep costs down so I could remain price competitive.
So here’s the key to your success: You have to be able to explain and demonstrate to your prospects why you’re different. You have to identify your ideal client and target those types of businesses. Work on developing a 30-second elevator pitch that you believe in. If you do this, I guarantee you’ll reach your goals faster.
Here’s to taking your janitorial business to the next level!
RELATED: The Freelance Movement in America—Why Now’s a Great Time to Start Working for Yourself
The post How to Start a Janitorial Business: 8 Common Myths Debunked appeared first on AllBusiness.com
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