Low – $ 4000 (solo operator)
High – $ 75,000 (purchasing a small operation or starting with a half dozen employees)
Break-even time – One month to two years
Estimate of Annual Revenue and Income
Revenue $ 50,000 – $ 15 million (1 individual operation at low end, regional contractor at high end)
Profit (Pre-tax) – $ 35,000 – $ 1.5 million
The Chicago janitorial services business is 1 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% improve in janitors by 1995 when the total will hit 3.38 million. It is getting predicted that outside contractors will cover 30% of the market.
Most banks and insurance companies (and numerous other types of commercial accounts) don’t wish to spend their time hiring and supervising washing crews. They don’t wish to deal using the problems inherent to this industry, such as the extraordinarily higher turn-over ratio. But a client’s unwillingness to handle the problems is what makes this business so potentially profitable and attractive as a start up company for you.
Most Chicago janitorial service companies bill at the end of a month of support, so you will have enough capital to procure equipment and supplies for the first month to six weeks of service. If you are planning to start with more than 1 contract and you want to do it right, you’ll most likely need at least $ 50,000 in seed money and the same amount in a line-of-credit to assist you grow. A lot of your start-up cash will go for heavy-duty washing equipment.
If you’re willing to start smaller and grow more slowly, you are able to probably begin for a lot less. If you do all the cleaning and marketing yourself and use your house as your office, you are able to get your company started on a wing and 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 probably be higher percentage whenever you begin simply 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 earnings in half and once you have hired additional cleaners, you’ll need supervisors, office space, and a marketing staff to keep the whole megillah going. All of this can bring your income margin down to as low as 10%.
Because of these low profit figures,numerous contractors add other services ranging from parking lot maintenance to window washing in Chicago Janitorial Service Industries. Many customers 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 improve your profits and assist keep your clients happy.
Don’t sit and wait for customers 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 discover the name of the building’s tenants. Whenever you find out who the new occupants are going to be, ask to bid on their washing contract.
Be really professional and thorough when submitting a proposal. Discover what unusual challenges a new customer may provide, extensive brass fittings, marble floors, a special wool blend of carpeting. If you can woo a potential customer with 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 personal computer rooms). Even if a potential client has an in-house cleaning staff, you may be able to supply specialty services they’re in need of.
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