8 Road Blocks to Success in Your Cleaning Business
Steve Hanson
All business
owners face road blocks throughout the life of their business. It's how
they deal with and overcome these road blocks that will determine their level of
success. The following are 8 common road blocks that cleaning businesses face.
- Not Having
a Business Plan
Take time to write a business plan. This forces you
to take a serious look at all areas of your business and plan for what lies
ahead. Some of the things you should be addressing in your plan are:
-= location
(home-based, lease an office, and timeline on any transition plan);
-= who are your
customers and how will you find them;
-= who is your
competition and how will you deal with them;
-= how many
employees will you have and how will you handle hiring and training;
-= management team
and advisory team;
-= exit plan;
-= financial plan
(cover 1 year, 3 years, and 5 years forecast of sales, expenses, cash flow, and
balance statement);
Your business plan
is a living document that should be looked at and updated on a yearly
basis.
- Not Having
a Marketing Plan
Your marketing plan will actually be developed in
your business plan, however a separate, more detailed marketing plan should
include a timeline on all marketing activities. Some things to consider when
developing your plan is:
-= who is your
target market? (office buildings, schools, retail, industrial, medical)
-= what services
will you provide? (general cleaning, window washing, carpet cleaning, hard floor
care, construction clean-up)
-= what is your
market area?
-= what is your
marketing budget?
-= what methods of
marketing and advertising will you implement?
-= what is the
timeline for each activity?
- Under
Capitalized
Most cleaning companies start on a shoe-string budget,
but if you're serious about growing your business, you'll need to have money to
invest in your business. Start by researching start-up costs for a cleaning
business. Some things that need to be considered are equipment, vehicle
expenses, insurance, office supplies, bookkeeping costs, advertising costs,
business cards and marketing materials. If you're going to hire employees, there
are many additional costs associated with this. This list is not all
inclusive - there are many more expenses that must be
considered.
You'll need to have additional funds in your checking account
to make sure all the day-to-day expenses are being paid in a timely manner, and
that you have funds to cover emergencies.
- Growing
Too Fast
Most cleaning companies are ready to take on any job
available just to have money coming into the business. If you're having a lot of
success adding accounts, it becomes exciting watching the income grow each
month. Proceed with caution however, as the result oftentimes is neglect of
existing accounts. Before you know it, you'll start losing accounts because of a
loss of quality service.
It's much easier to keep existing customers
than it is to find new customers, so be sure to take care of these existing
customers, and think of ways to sell additional services to them. Control your
growth at a slow and steady pace; you're much more likely to become successful
this way. At the same time you'll build a solid reputation for offering quality
service that will result in a large referral business.
- Inadequate
Hiring Practices
In the cleaning industry it's all too common for
small business owners to quickly hire "warm bodies" just to fill an opening. And
then the new employee is thrown into the job without the proper training and
left to fend for themselves. No wonder employee turnover rates are so high!
It's never a good practice to hire someone just to fill an opening.
Implement a structured interviewing process, and ask targeted questions designed
to get the employee talking about how they would handle different situations.
Find out more about the employees work history, find out why they left previous
jobs and how they interacted with co-workers and supervisors. If possible, have
another person conduct a second interview if the applicant appears to be a good
fit for the position. Check references, and conduct a criminal history check if
applicable.
Once the decision has been made to hire a new employee,
conduct a detailed orientation, discussing the company policies and procedures.
From there the employee should be fully trained on their job responsibilities.
They should be taken on a tour of the building(s) they are to clean, and should
never be left to do the job without adequate supervision and training during the
first week.
- Lack of
Employee Training
The best thing an employer can do in any industry
is to invest in training programs for their employees. Consistent training of
each employee is extremely important; otherwise you're likely to wonder why one
employee does a great job, and another is seriously lacking in the ability to
clean properly. The answer usually comes back to inconsistent
training.
Invest in a standardized training program. Make sure each
supervisor is thoroughly trained in the program and is taught how to train each
employee. The training program should be broken down into sections: trashing,
dusting, restroom cleaning, vacuuming, mopping, etc. After each employee is
trained on a section, have them sign off, demonstrating that they have been
trained and understand the procedures. By following each step consistently, it's
less likely that an employee will come back and say, "I was never told to do
that!"
Follow-up and review is equally important. Go back after 30, 60,
and 90 days and review each section with the employee. Repetition will help them
to retain what they've been trained to do.
Your training should not stop
there - have ongoing training for all employees throughout the year on
various trouble areas and also on safety issues. Also consider offering an
employee newsletter that addresses training.
- Lack
of Industry Knowledge
Many new business owners
started their business because they have worked in the industry previously. This
is usually true of owners of cleaning companies. Some were supervisors for
another company, and some might even have worked for a time as a part-time
custodian and decided that owning this type of business would be easy enough to
do.
Now that you are a cleaning business owner, it's time to dig deeper
into the industry and learn as much as possible in order to be one step ahead of
the competition, and to stay on top of industry trends. Some of the things you
can do to learn more about the industry is to subscribe to trade magazines and
read them religiously, join membership groups (www.TheJanitorialStore.com would be a great start), do
research on the Internet, and get to know other people in the industry. There is
no need to reinvent the wheel when you can learn from others who are willing to
share their success stories with you.
- Not
Knowing the Competition
Many business owners start their business
without giving a second thought to who their competition is and what they're up
to. Some of the things you should be aware of are:
-= who are they and
how long have they been in business? -= are they independent or a
franchise? -= what is their target market and are they in direct competition
with you? -= what are their strengths and weaknesses?
Knowing some of
these things can give you an edge when going up against them in a bid situation.
Also keep in mind that you don't always have to look at other cleaning companies
as competition. Consider becoming referral partners with companies who do not
directly compete with you on bidding contracts. For example, if you specialize
in cleaning office buildings and another cleaning company specializes in medical
facilities, you're each likely to get leads on other jobs that could be referred
to each other's specialy. Remember, being independent doesn't mean going it
alone.
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Copyright TheJanitorialStore.com. All Rights Reserved. Steve Hanson helps owners of small cleaning companies build a more profitable and successful cleaning business through his online community at TheJanitorialStore.com. Read inspirational cleaning success stories at http://www.cleaning-success.com, and sign up for weekly cleaning tips at http://www.TheJanitorialStore.com.
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for your cleaning business.
Business
Plan (pdf)
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Plan Template (pdf)
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Marketing Plan (pdf)
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