Want to maximize the control, profit and financial security of your cleaning business?
If so, aim to be the janitorial business owner who holds the cleaning contract with and works directly for the building owner – rather than a sub-contractor who simply performs the service for a large regional cleaning service or national maintenance management company.
Learn from the lobster.
You know which lobster – the unlucky, unwary one.
The unsuspecting crustacean, aka lobster, was placed into a pot of what was at first – lukewarm water, but soon met his unfortunate fate ; being out-smarted by the experienced cook who slowly but steadily increased the temperature of the water, one degree at a time – until boiling.
Result? One cooked lobster who didn’t recognize what was happening until it was too late.
Many of today’s janitorial businesses can be a lot like the unfortunate lobster in our story, only in this case, rather than a pot of water, these cleaning companies are lured into accepting one poorly structured sub-contracting agreement after another – until they’re financially ‘boiling’.
It’s true – an inexperienced or struggling cleaning business owners desperate to find more work, can quickly find they’re signing deals which consistently leave them on the ‘short end of the financial stick’.
That’s right, by accepting low profit, low control, high-frustration sub-contracting arrangements where the work is done for a large, often distant 3rd party middleman, local cleaning business owners can begin to wonder why they’re working harder than ever – but without ever seeming to get anywhere financially.
In many cases, fear is the culprit.
Uncertain how to find or land new accounts on their own, janitorial businesses may find themselves reluctantly but repeatedly agreeing to deliver cleaning services as a sub-contractor – falling into the easy trap of thinking ‘any work is better than no work – a misguided philosophy at best; and one with potentially devastating consequences.
So, what’s so wrong with sub contracted cleaning jobs anyway?
Well, maybe nothing, maybe a lot. Let’s say a 3rd party national maintenance management outfit calls and asks a local janitorial business to work for them as a subcontractor at three nearby bank branches. And, let’s further say these branches are just a few of more than 350 located nationwide the management company has signed on to manage for the customer (the party who signed the national deal with the building(s) owner).
If the agreement provides for enough travel, cleaning and supervisory time to reasonably and consistently deliver professional cleaning and at a price that not only covers all expenses, but provides for a reasonable profit for the nature and difficulty of the work as well, then there’s nothing necessarily wrong – if the cleaning business sub contractor doesn’t mind the lack of first position, direct contractual connection with the customer (the party who signed the deal with the management company).
That’s right, if they’re willing to play by the rules required by the 3rd party middleman and are comfortable accepting the terms of the subcontract agreement, then the arrangement, while not ideal, may be acceptable.
However, the problem occurs when the subcontracting agreement doesn’t provide the local cleaning business with either 1.) a sufficient amount of cleaning time (labor hours) to personally clean the building or to assign to an employee to properly clean or 2.) an adequate profit after expenses.
If either one of these two conditions occurs, the problem of having to take a virtual ‘back seat’ position in the deal (low-control) can quickly fade in comparison to the service and financial pressures of – too little time (cleaning) or too little money (profit).
It serves as another reminder that – busy does not necessarily equal profitable.
Unfortunately, this truth, which seems so reasonable and easy to understand, can quickly get lost in the rush or at times, near panic of a local cleaning business owner desperate to find new cleaning jobs.
These cleaning contractors can in some ways be compared to sailors lost at sea in a life raft, who after days of dehydration find themselves desperately, mindlessly drinking ocean water – satisfying their momentary thirst but while often creating even bigger, more dire consequences.
In a similar way, commercial cleaning companies who decide to grow by carrying out the ‘heavy lifting’ of performing the actual cleaning for a larger and/or more experience national cleaning or management companies – might soon find they’ve paid a high, long term price for a short term convenience.
Let’s look at an example NOT in cleaning – specifically, the difference between buying and leasing a car. There is always a price to pay for something done for you.
Don’t want to deal with the hassle of finding a buyer for your old car? No problem, the dealership will deal with that hassle so you don’t have to – for a price.
Don’t want to deal with having to do the homework of shopping around to compare lenders and rates for a loan? No problem, the dealership will help you there too by arranging for financing for you as you sit in a comfy chair in the shiny showroom – for a price.
So it is with all things – there is a price to be paid for every convenience, every hassle eliminated, any responsibility moved from your lap to someone else’s.
You don’t have to find the lead. You don’t have to attract the lead. You don’t have to make the sales presentation. These functions can be taken over by a 3rd party like a large regional cleaning business or national management maintenance company – but not without a cost.
On the other hand, being the contract holder – the party who holds the signed bid proposal and agreement with the actual owner of the building or buildings to be cleaned has a number of advantages including – not having to share profit dollars with an additional 3rd party, as well as, regular, direct contact with the customer.
If after thorough review a local cleaning business can find profitable subcontracting opportunities offered by reputable management companies; structured in a way that allows for adequate cleaning hours, profit as well as wage rate to keep the account consistently clean and staffed – then, taking a controlled percentage of these kinds of accounts, while not ideal, may be acceptable.
However, in general, we suggest independent janitorial business owners build their companies by learning how to find, land and keep cleaning accounts by and for themselves – rather than having to turn to outside, 3rd party national cleaning or management companies for work.
Hi Chandra, you've asked a good/important question, and it takes time and effort to answer it well. Here, I'll simply say that while I do not like having subcontracting to be more than about 25% of the total work that a cleaning business performs. That said, it can allow, for example, a new janitorial business to gain experience, and some initial revenue. But, the important thing we believe is to be sure that the work you do as a subcontractor, meets your profit expectations, and to feel confident you're dealing with a reputable prime contractor. Hope that helps Matt, CleanGuru Support
Hi I am Chandra a small business owner and about to start up my business. We do cleaning from houses to condos to commercial. I will like to get a sub contract to start of with. Please advise me accordingly. Your feed back will be greatly appreciated. Thank you Chandra
Hi Avery, I'm sorry, our primary focus is on developing software to help cleaning businesses manage their operations, so unfortunately, I don't have a guide on subcontracting to provide you. Again, sorry I couldn't have been of more help. Matt, CleanGuru Support
Hello, My wife and I were looking to subcontract janitorial work. We have a basic understanding of what needs to happen but is there a guide that you all have? Keep seeing people recommend doing it with minimum detail. Thanks for your help
Hi Wayne, Thanks for your message. CleanGuru offers software to help with Bidding, Invoicing, Scheduling and Timekeeping solutions. Each cleaning business owner sets up and has access to their own account. Every new CleanGuru Member enjoys a FREE 30 Day Membership. Next, we offer four (4) CleanGuru Plans to fit your cleaning business needs: Basic $49/mo., Pick ONE (1): Janitorial, Construction, Window, Move In/Out, Carpet, Tile, Disinfecting and Maid/Residential Deluxe $69/mo., Pick THREE (3): Janitorial, Construction, Window, Move In/Out, Carpet, Tile, Disinfecting and Maid/Residential MAX $89/mo., Get ALL EIGHT (8): Janitorial, Construction, Window, Move In/Out, Carpet, Tile, Disinfecting and Maid/Residential MAX Plus! $119/mo., ALL Eight (8): Janitorial, Construction, Window, Move In/Out, Carpet, Tile, Disinfecting and Maid/Residential PLUS Inspecting!! PLUS Video Coaching Series!! Hope that helps and please let me know if you have any questions. Matt CleanGuru Support 888-531-4878
McCoy MCKOY LLC we would like to hear what you have to offer or discuss. Right now we are Subcontracting with about 10 general contractors. Janitorial stripping and waxing. Looking Forward to hearing from you. Thank you have a great weekend.
NextLevel Commercial Cleaning LLC
You just saved me from making a grave mistake. Thank you
Hi Raymond, no, our focus is on developing software for cleaning businesses. But, thanks for asking. Have a good week, Matt, CleanGuru Support
I was checking into subcontracting janitorial services, is this something your company does?
Hi Patrick, Thanks for your notel Here are four (4) marketing strategies that can help make our marketing, advertising - more effective. 1. Decide on specifically who you want to clean; rather than a broad approach, consider targeting a certain type of bldg 2. Build a list of companies meeting the criteria.3. Call each to find out who is responsible for hiring the cleaning service 4. Use powerful direct-response marketing pieces to the attention of the decision maker, following a preset schedule. 5. Use powerful messages, we call them Measurable Guarantees of Performance (MGPs) in your marketing pieces; we want to make sure our message is more powerful than 'We are bonded, licensed and insured.' Hope these help and if you have any other questions, Iâ€™d be happy to help if I can. Matt, CleanGuru.com
Hi I owned a small cleaning business Iâ€™m looking to grow need help on getting accounts thanks?
Thanks Chester, I'm sorry to hear of the frustrations you described. I want to assure you, you're not alone - especially in the beginning - finding and securing new accounts can be a challenge. Here are four (4) marketing strategies that can help make our advertising - more effective. 1. Decide on specifically who you want to clean; rather than a broad approach, consider targeting a certain type of bldg 2. Build a list of companies meeting the criteria.3. Call each to find out who is responsible for hiring the cleaning service 4. Use powerful direct-response marketing pieces to the attention of the decision maker, following a preset schedule. 5. Use powerful messages, we call them Measurable Guarantees of Performance (MGPs) in your marketing pieces; we want to make sure our message is more powerful than 'We are bonded, licensed and insured.' Hope these help and if you have any other questions, Iâ€™d be happy to help if I can. Matt, CleanGuru.com
I got me a business license.I bought email list ,bought mailing list and sent them out, put ad in a numbers of newpapers, bought post card with pintedi compang.,also I went to an number of places and lelf business card.Next an thinking about subcontractor or just give up.I need all I can.
I AM GENERAL CONTRACTOR AND ALSO PROVIDE CLEANING SERVICE FOR RESIDENTIAL, COMMERCIAL AND OFFICE
Hi Paul, thanks for your note! I'd encourage you to check out our software and FREE resources at CleanGuru.com. And, if you have any questions, just let me know. 888-531-4878 M/F 9AM 5 PM EST I'd be happy to help if I can. Matt, CleanGuru Support
I moved here from NC to san jose , I would like to start up a commercial cleaning business.
Hi Natalya, we have a number of programs to help cleaning business owners including a bidding software, invoicing program and video coaching program. You can learn more about any of them at CleanGuru.com. Please call 888-531-4878 M/F 9 AM- 5 PM if you have any questions. I'd be happy to help, Matt, CleanGuru Support
I am interested in doin janitorial jobs how can I get started