Buy A Cleaning Business
Cleaning businesses range from small-scale operations that rely on the owners' personal relationships with each individual client to large companies with fleets of cars and teams of cleaners. Buying a cleaning business involves developing a sense of the type of company you want to buy and the scale at which you want to operate. If you are buying a big company, your decision will hinge in part of its systems and profitability. If you are buying a smaller operation, the purchasing process will involve meeting the clients and determining whether the relationships will transfer gracefully to your tenure as business owner.
buy a cleaning business
Verify that the clients of the cleaning business you plan to buy will still use the company's services if the company comes under new ownership. This is especially critical if you are buying a small, closely held company. Ask the current owner to provide the names and numbers of several clients. If he is willing, then contact these customers and speak to them honestly about the change, assessing whether their loyalty is strong enough to weather the transition. If the previous owner is unwilling to provide this contact information, treat his unwillingness as a useful puzzle piece when evaluating the overall feasibility of taking over his company.
Evaluate the operational systems of the cleaning business you are interested in buying. This is especially important if you are considering purchasing a large company with multiple employees. In this event, your success will depend on an overall approach to the cleaning and account management processes, rather than on the quality work of any single individual. Ask if you can follow a team around on its daily cleaning route, and evaluate whether the crew performs work in an organized and systematic fashion that can be replicated by multiple teams. Read the company's training and operations manuals to determine whether these documents contain information and instructions that create a foundation for an efficient, well-run company.
Review the books of the cleaning company you are interested in buying. Whether you are looking at a small company or a large one, examine ledgers containing information about daily, monthly and annual sales patterns, as well as ongoing and exceptional expenses. If available, look at profit-and-loss statements from multiple years. Factor in any changes that might occur when you buy the company to determine its potential profitability under your ownership. For example, if the current owner is doing most of the cleaning herself but you will be hiring an employee to go out into customers' homes, figure in this added expense when evaluating your potential earnings. Create cash flow projections detailing anticipated expenses and expected income to determine whether the cleaning business will earn enough income to meet your financial needs.
Whether you're looking to enter the contract cleaning business or want to grow your current commercial cleaning company, buying an existing firm could fast track your efforts. Before making an offer, however, there are many things to consider.
To avoid the possible pitfalls of buying a commercial cleaning business, conduct careful research before signing the dotted line. This goes beyond relying on the current owners' answers. They have a vested interest in making their company sound as great as they can. Instead, start by researching publicly available information (Google will be your best friend in this process).
If you feel reasonably confident about a company you want to buy, have your lawyer draft a confidentiality agreement for you and the prospective company. This will help them feel comfortable opening their books to you for a comprehensive appraisal of a business, known as due diligence.
Finally, two more people to consider during the purchase process are your accountant and attorney. Consulting these two professionals early and often is critical because they can save you from costly mistakes. They stand by your side in any business negotiation and will have your back if things go sideways.
2. ServicesExamine the services the company offers. What does it do well? What doesn't it do well (based on customer complaints)? Also, if you already own a business and this company's services don't either align with what you currently offer or fill a gap in your offerings, there's no reason to make the purchase.
It can make for an easier entrance into the industry or boost revenues for an existing business. Before signing a purchase agreement, however, you want to feel confident you've covered all the bases. Answering all of the questions above can make the difference between a sale that pays dividends and one that bankrupts you.
In 2021, thejanitorialstore.com was part of an acquisition by Armando Bello, Ricardo Regalado, John Disselkamp, Michael Dahlke, Saul Marchan, and Juan Padilla. Comrades in the cleaning industry. Their goal is to continue to expand on the resources accessible to its members, provide a personalized roadmap for sustainable growth, and make a positive impact in the cleaning industry. About Us -Vision - Mission - Story.
The Janitorial Store is a private, members-only resource for those serious about starting, improving and growing a profitable cleaning business. As 30 year veterans of the cleaning industry, we know that the business of cleaning can be incredibly challenging. The competition is fierce and the margins are low. It's a demanding business and it's tough to grow it and make it successful. Within the private members-only area, you'll find a huge selection of in-depth information that you won't find anywhere else on the Internet.
Others will tell you they bought an existing cleaning business that was already established in the community. They have a strong client base, good financials, full inventory of supplies and equipment, and commercial property with room for growth.
And still others are considering expanding their share of the market by acquiring another cleaning business. Whatever your motivation, there are many things to consider before buying a cleaning business.
First, it's essential that you have an attorney and accountant working for you that has your best interests in mind. They can guide you, analyze the profitability potential of the business, and recommend walking away or pursuing it further.
If you already own a cleaning company, chances are, you will be duplicating resources that you already own. Take a look at whether the additional assets are truly an asset, or if they are going to be a bigger liability. Many items can be factored in that make the business worth either more or less such as:
The Janitorial Store is a private, members-only resource for those serious about starting, improving and growing a profitable cleaning business. As 30 year veterans of the cleaning industry, we know that the business of cleaning can be incredibly challenging. The competition is fierce and the margins are low. It's a demanding business and it's tough to grow it and make it successful. Within the private members-only area, you'll find a huge selection of in-depth information that you won't find anywhere else on the Internet.
How you approach this step depends on whether the cleaning business is big or small, and how many big and small clients there are. Look at how long these clients have been with the company. Clients that have stuck around for two to three years have proven their loyalty and are likely to stay. But clients that have seen more than eight to ten years of commitment may retire soon.
A mix of large and small clients is the ideal clientele. A cleaning company getting a bulk of its revenue from one or two large clients might be fine, but having some small clients to balance out the mix allows for better job security, especially if one big client is due to retire soon.
Ask if you can speak personally with some of these clients. These conversations can gauge whether the clientele will remain largely loyal even when you buy the cleaning company, and allow you to build goodwill with them.
Most businesses run on commercial property, which is property specifically meant to generate profit or capital. How much capital or profit that property acquires depends on factors such as proximity to the primary demographic, the character of the property itself, traffic volume, etc. However, buying a commercial property is not just about location, location, location.
When you acquire commercial property, its value depends on its profitability and potential to continue that profitability. You can choose to keep the business in its current location or move it somewhere new once these two things are carefully evaluated.
All of the photos above are of Lathered Cleaning Company, a professional cleaning business that uses Jobber to run their business operations. Find out how they stay organized, schedule their crews, and impress their customers below:
The right cleaning supplies are crucial to the success of your service business. They not only help you work more efficiently, but also provide the support and professionalism you need to confidently grow your business.
When starting Dallas Maids (my first maid service), I quickly formed relationships with other house cleaning business owners. They graciously welcomed me to the cleaning community and some generously shared their expertise, helping lift Dallas Maids from zero to a million-dollar company. I am absolutely grateful for their mentorship! 041b061a72