Boot-strap Operations for Janitorial Services
When Hernando Cortes sailed across the Atlantic and landed in the New World, one of the first things he did was to burn his ships. There was no turning back. Either he and his men would succeed or they would die.
This is not how you should start-up your janitorial service business. For one, your fellow “sailors” are often your family, whom you shouldn’t put in a “sink or swim” situation. For two, Cortes had a wealthy investor (a king) and could afford to live without income for a while.
You may be asking, “So how should I start my janitorial service? What are some ways to venture into the “New World” without burning the ships?” Read on for some simple but wise ideas on boot-strapping your operations.
Start Small
Don’t quit your job today and then figure out how to start your business tomorrow. Millions of Americans have second jobs – why not let yours be your business? Since janitorial services are usually performed at night and on weekends anyway, it’s a great complement to a regular day job.
By beginning your business as a side job, you have the security (and income) of your current job and can afford to make the inevitable mistakes that come with beginning any business. It’s a lot easier to eat the costs of a job you underbid, knowing that you and your family will still be able to eat tomorrow.
Experience first, expertise later
“A ounce of prevention is worth a pound of cure,” as the saying goes. One of the best ways you can finance your janitorial service is by not making costly mistakes. Experience is truly the best teacher, and so your first foray into the business should really be about gaining experience. You may even consider working for another janitorial service so you can learn from their mistakes and make money to put towards your business in the future.
Virtual office
Your work will be done on-site and you can meet your clients there, too. You don’t need to rent/lease a building in the beginning. Depending on your business model, you may never need a designated building.
With a cell phone (preferably a smart phone) and a free email address, you can put on the face of professional without having the overhead costs of the associated building, etc.
The right customer
Some of your potential customers may want a janitorial service that’s more established with pretty vans and employee uniforms, but most of them simply want great service that’s consistent and competitive. Don’t break yourself or your business changing to suit some customers. In any relationship, there has to be a good fit between both people. Business-to-business relationships are the same way.
Employees
Don’t worry about hiring other people until the business is paying for itself and you. When you absolutely must hire someone, hire them as contractors – not employees. This way, you can pay them as you need them and you’re not committed to a certain amount every week.
Securing Operating Equipment
One of the biggest costs that you can’t avoid is the equipment to do the work. Here are just a few ideas on creatively acquiring them without paying full price.
Rent from another janitorial service
Call other janitorial services outside of your market area (and maybe even your potential competitors). Ask them if they would be willing to rent you their cleaning equipment. From their perspective, if they have down time they’re losing money with idle equipment. Renting to you may be a way they can make easy income.
Rent from rental stores
You may be surprised what rental stores have available. Even though you’re paying more by renting, it may be the cheapest way to start working without having to invest a large amount of money up front. You can save your profits, then invest in equipment when you have enough.
Buy from another janitorial service
Your competitors may be profitable enough that they’re buying new equipment. Or maybe they’re so unsuccessful they’re going out of business. Either way, you may be able to scoop up some great deals on their used equipment and make it last long enough for you to purchase better equipment down the road.
Buy at auction, online or otherwise
If you can’t find anything in your area, eBay and other sites may be good places to find deals on janitorial supplies and equipment. There are also sites like Craigslist where you can post requests for equipment as well as contact equipment sellers in your local area – for free.
Equipment Storage
Since you’re bootstrapping, you don’t have an office/warehouse. If you’re not renting your equipment, you’ll need a place to store it. Here are a few alternatives.
Van
Although perhaps not the safest option, you can simply keep your equipment locked in your van or work trailer (or whatever you use to haul the equipment to and from the work sites). You should have insurance on your equipment anyway, but be double sure to have adequate insurance in this case.
Shed
Although storing your equipment in a good storage shed behind your home may not be your glamorous idea of a thriving small business, it is a good option. Again, make sure you have good insurance and a great padlock.
Low-cost storage unit
A good option may be a small storage unit. The rent is minimal compared to renting an office/warehouse. Pick one with surveillance and on-site security for extra peace of mind.
A Series of Small Successes
Rome wasn’t built in a day and no business was built overnight. By building upon each small success – another client, another project, a financial milestone – you can build a profitable business without having to take out tens of thousands of dollars in loans and investments. By self-financing, avoiding mistakes, and gradually transitioning into your business, you can achieve success without the heartaches and fears that accompany many new start-ups.
You provide good tips in starting a janitorial service. I agree that it would be valuable information to learn about the business by being a janitor or cleaner first with another janitorial service to get an inside view of how to run the business, what mistakes to avoid and what improvements to make.