Window cleaning company business plan

How to start a cleaning business, janitorial service, or a carpet cleaning business In this article you are going to learn how to start your own cleaning or janitorial, business or service. An office cleaning business, janitorial, or carpet cleaning service can be extremely profitable. It can be started part-time as a home-based business and built at your own pace.

Window cleaning company business plan

You might be surprised to learn that if you are selling a larger business, the banks will ultimately have the final say in the valuation of your business, based on guidelines set by the Small Business Administration SBA.

We sold a relatively large house cleaning business as a Going Concern some months ago. In addition, in the years preceding its sale, we maintained an open standing offer to buy smaller competing local maid services as Add-On Opportunities.

As a result of those transactions, and despite our previous experiences in finance, we learned a lot which might be useful to other companies or individuals interested in selling their house cleaning company. In such instances, the Buyer is most likely a competitor looking to add new accounts to his existing housekeeping business, or possibly someone seeking a jump start for a new venture.

Under such circumstances, your employees may or may not be transferred to and retained by the new owner. Such an enterprise is valued as a multiple of the yearly cash flows accruing to an owner. A company sold as a Going Concern is worth more than one in which the accounts are sold as Add-On Opportunity, so every seller likes to think of his or her company as qualifying for sale as a Going Concern.

Buyers, and Brokers and Bankers, determine whether your company qualifies as a Going Concern by assessing whether it can generate enough funds to an owner for a comfortable salary, plus an additional sum to accommodate a return on equity, plus provide a 1.

Simply invite some Business Brokers around to learn more about your company, and it will quickly become evident whether your company will qualify for sale as a going concern, or whether you should go it alone by marketing it as an add-on opportunity.

Most house cleaning companies will not qualify for sale as a Going Concern, because they lack scale. Many more will not qualify for any type of sale. The industry is incredibly fragmented and suffers from an incredibly high failure rate, so if you manage to sell your accounts as an Add-On Opportunity, then you should consider that a success.

Many companies end sadly with little of value remaining to sell when the business is wound up. These include part-time individuals who may have personally serviced just a handful of accounts, and companies which have provided such poor service so as to have chased off all but a handful of sulky underpaying customers.

The prerequisites for selling your accounts are that your customers must be happy and loyal, and they must be paying market rates. If they are not happy with you, then they will scorn your introduction of a Buyer. If they are not loyal, then your employees will intercept the customers, and foil your sale.

Indeed, many large housekeeping companies have standing offers to buy accounts of any competitor going out of business.

Part of the problem with selling a smaller company is that business brokers will not take your listing and bankers will not finance it, making it hard to find buyers willing or able to pay top dollar for a venture which cannot support a buyer from the get go.

So finding a Buyer is a prerequisite to formulating a valuation. A common misconception by Sellers is that franchisees might represent interested Buyers for their accounts. For a paltry enough price, possibly, but generally a sale to such a Buyer is not worth the bother.

Under perfect circumstances, it would seem that a franchisor might be willing to foot part of the acquisition costs, but we have never heard of such an arrangement.

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Your accounts only have a value if you can find a Buyer. While a successful local competitor might be your best bet, if you are available to continue on in the industry in a management role, there exists another possible class of Buyers worth considering: For such a person, especially someone starting a house cleaning business from scratch with no previous experience, a start-up set of accounts and an experienced manager can prove tremendously valuable.

If you qualify, then the market value of a collection of individual residential house cleaning customer accounts is 2 to 3 times the monthly revenue not profits from the total accounts. Of course, that assumes that you can find a Buyer, which may not be trivial, particularly if you do not live in a metropolitan area.

If you cannot find a Buyer, then the value of your accounts is precisely zero. Conversely, if you manage to find two Buyers and negotiate with them simultaneously over several weeks, then you will be in a position to realize the optimal value for the accounts.

window cleaning company business plan

For a Buyer, compensating you on the basis of a future multiple, allows him to mitigate the risk of purchasing unprofitable accounts. After the first visit the Buyer simply increases the price for any assignment which may be under-priced.

On this basis he will keep or lose each account on its own economic merits, based on a minimum acceptable profit margin. While this structure forces a Seller to accept most all of the risks of the transaction, most Sellers will find that a Buyer is generally willing to pay a higher multiple under such a scenario.

The issue of future or historic revenue is complicated by the fact that only a transaction in which the seller and the buyer have similar cleaning standards, will result in a happy ending.

If the seller specialized in detail oriented meticulous work, and the buyer tries to service the accounts with faster, not so particular cleaners, the already nervous clients will flee at a frightening rate. Conversely, if the seller provided fast, affordable service, then he will have appealed to price conscious customers.

When the buyer upgrades the cleaning quality, he will also be forced to raise prices to cover the additional time invested in providing the service upgrade.My name is Eric Loiacano and I started my cleaning company in After two years as an accountant I realized I wanted Or do you plan to operate the business form your home?

able specialize in maid service, carpet cleaning, window cleaning, gutter cleaning, basement and garage cleaning, post. Clean Office Pros janitorial services business plan executive summary. Clean Office Pros is a startup janitorial cleaning service specializing in office cleaning and serving the Kansas City, Missouri area/5(37).

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Starting a Window Cleaning Company – Sample Business Plan Template. 1. Get the needed knowledge. The first step to starting a window cleaning business is to get the basic knowledge.

Mar 08,  · How to Start a Cleaning Business. In this Article: Designing Your Business Making it Official Getting Set Up Building a Brand Community Q&A Are you thinking about starting a cleaning business?

There's great potential in cleaning services, whether you want to work in people's homes or on a commercial level. The biggest problem most entrepreneurs have with writing a business plan is that they don’t know where or how to start.

If you’re one of those who’s looking for a simple, effortless and straightforward way to write a great business plan, today’s your lucky day!

This article contains a long. Any business should have a clear business plan, and a window cleaning service startup is no different.

Your company can never simply rest, nor should that be your goal in business. Learn more about window cleaning business planning. Further reading on cleaning businesses. Start a .

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