Vital Information
Start-Up Investment
Low - $4000 (solo operator)
High - $75,000 (buying a small operation or starting with a half dozen employees) _______________________________________________________________________________
Break-even time - One month to two years _______________________________________________________________________________
Estimate of Annual Revenue and Profit
Revenue $50,000 - $15 million (1 individual operation at low end, regional contractor at high end)
Income (Pre-tax) - $35,000 - $1.5 million _______________________________________________________________________________
Cleaning Up
The Chicago janitorial services business is one of the fastest growing industries in the United States, according to the Building Service Contractors Association International. With the ever-increasing number of buildings to clean, the U.S. Department of Labor predicts at 15.1% increase in janitors by 1995 when the total will hit 3.38 million. It's getting predicted that outside contractors will cover 30% of the market.
Most banks and insurance businesses (and numerous other kinds of commercial accounts) do not wish to spend their time hiring and supervising cleaning crews. They don't want to deal using the difficulties inherent to this industry, such as the extraordinarily higher turn-over ratio. But a client's unwillingness to handle the difficulties is what makes this business so potentially profitable and attractive as a start up company for you.
Start-Up Costs
Most Chicago janitorial service companies bill at the end of a month of service, so you will have enough capital to procure equipment and supplies for the first month to six weeks of service. If you're planning to begin with more than 1 contract and you wish to do it right, you'll most likely require at least $50,000 in seed cash and also the same amount in a line-of-credit to assist you grow. A lot of your start-up money will go for heavy-duty washing equipment.
If you are willing to start smaller and grow more slowly, you are able to most likely start for a lot less. If you do all the cleaning and marketing yourself and use your house as your office, you can get your business started on a wing along with a prayer. Some individuals start out part time, holding on to their full time jobs and cleaning at night and expanding contract by contract.
Profits will most likely be higher percentage when you begin because your overhead will be so low, involving only supplies, equipment and lining up contracts. As you expand and add other cleaners, you cut your profits in half and once you've hired additional cleaners, you will need supervisors, office space, along with a advertising staff to keep the whole megillah going. All of this can bring your profit margin down to as low as 10%.
Branching Out
Because of these low income figures,numerous contractors add other services ranging from parking lot maintenance to window washing in Chicago Janitorial Service Industries. Many clients prefer to use the services of an already tried and true service provider rather than have to shop around. Being the "supermarket" for building maintenance providers will increase your earnings and assist keep your clients happy.
Do not sit and wait for clients to come to you, be aggressive and don't be afraid to beat the bushes. As you move around your area, keep an eye out for real estate signs announcing new buildings and then call the landlords to find out the name of the building's tenants. Whenever you find out who the new occupants are going to be, ask to bid on their cleaning contract.
Be very professional and thorough when submitting a proposal. Find out what unusual challenges a new client might offer, extensive brass fittings, marble floors, a special wool blend of carpeting. If you are able to woo a possible customer using the breadth of your expertise, you stand a much much better chance of landing a lucrative contract.
You might want to staff specialists in specific areas, for example floor refinishing of sterile rooms (for computer rooms). Even if a possible customer has an in-house washing staff, you might be able to provide specialty services they are in need of.
Start-Up Investment
Low - $4000 (solo operator)
High - $75,000 (buying a small operation or starting with a half dozen employees) _______________________________________________________________________________
Break-even time - One month to two years _______________________________________________________________________________
Estimate of Annual Revenue and Profit
Revenue $50,000 - $15 million (1 individual operation at low end, regional contractor at high end)
Income (Pre-tax) - $35,000 - $1.5 million _______________________________________________________________________________
Cleaning Up
The Chicago janitorial services business is one of the fastest growing industries in the United States, according to the Building Service Contractors Association International. With the ever-increasing number of buildings to clean, the U.S. Department of Labor predicts at 15.1% increase in janitors by 1995 when the total will hit 3.38 million. It's getting predicted that outside contractors will cover 30% of the market.
Most banks and insurance businesses (and numerous other kinds of commercial accounts) do not wish to spend their time hiring and supervising cleaning crews. They don't want to deal using the difficulties inherent to this industry, such as the extraordinarily higher turn-over ratio. But a client's unwillingness to handle the difficulties is what makes this business so potentially profitable and attractive as a start up company for you.
Start-Up Costs
Most Chicago janitorial service companies bill at the end of a month of service, so you will have enough capital to procure equipment and supplies for the first month to six weeks of service. If you're planning to begin with more than 1 contract and you wish to do it right, you'll most likely require at least $50,000 in seed cash and also the same amount in a line-of-credit to assist you grow. A lot of your start-up money will go for heavy-duty washing equipment.
If you are willing to start smaller and grow more slowly, you are able to most likely start for a lot less. If you do all the cleaning and marketing yourself and use your house as your office, you can get your business started on a wing along with a prayer. Some individuals start out part time, holding on to their full time jobs and cleaning at night and expanding contract by contract.
Profits will most likely be higher percentage when you begin because your overhead will be so low, involving only supplies, equipment and lining up contracts. As you expand and add other cleaners, you cut your profits in half and once you've hired additional cleaners, you will need supervisors, office space, along with a advertising staff to keep the whole megillah going. All of this can bring your profit margin down to as low as 10%.
Branching Out
Because of these low income figures,numerous contractors add other services ranging from parking lot maintenance to window washing in Chicago Janitorial Service Industries. Many clients prefer to use the services of an already tried and true service provider rather than have to shop around. Being the "supermarket" for building maintenance providers will increase your earnings and assist keep your clients happy.
Do not sit and wait for clients to come to you, be aggressive and don't be afraid to beat the bushes. As you move around your area, keep an eye out for real estate signs announcing new buildings and then call the landlords to find out the name of the building's tenants. Whenever you find out who the new occupants are going to be, ask to bid on their cleaning contract.
Be very professional and thorough when submitting a proposal. Find out what unusual challenges a new client might offer, extensive brass fittings, marble floors, a special wool blend of carpeting. If you are able to woo a possible customer using the breadth of your expertise, you stand a much much better chance of landing a lucrative contract.
You might want to staff specialists in specific areas, for example floor refinishing of sterile rooms (for computer rooms). Even if a possible customer has an in-house washing staff, you might be able to provide specialty services they are in need of.
About the Author:
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