Commercial Cleaning & Maintenance Services

searcher profile

May 16, 2022

by a searcher from The University of Iowa - Tippie College of Business in Chicago, IL, USA

Has anyone evaluated commercial cleaning & maintenance services? What did you like / what did you not like?
I like: contract based, amount of target accounts, amount of services to offer both cleaning and then outside janitorial as well (offering landscaping, security, handyman, electrical, engineering and other services, etc),
Plus I like the idea of being able to subcontract labor where need be.
If anyone has experience or interest in discussing further, let me know.

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commentor profile
Reply by a searcher
in Alpharetta, GA, USA
Daniel I own a couple of these businesses. I am always looking for more to buy so I like the industry obviously. Some addl pros and cons

pros - high margins, extremely stable and recession resistant, low execution risk

cons - labor is a real problem right now and likely to be one for an extended period so be prepared to spend a lot of time interviewing new hires, convincing current employees not to leave, giving raises that you can’t pass along to new customers immediately. It can be managed but it’s stressful and ever present.

language barrier- I am fluent in Spanish, if you are not it will make it more difficult to manage your team. They will look at you and nod like they understand but they don’t and it won’t get done right

relatively small contract size - you are likely to have more smaller customers instead of fewer large customers so it’s more hassle factor

Still I like where your head is at. Go for it.
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Reply by a searcher
in Toronto, ON, Canada
I am based in Canada with experience in janitorial services so this may not apply to your region, but as Christian said labour is your largest expense and also your biggest headache. For the last 10 years or so wage inflation has been a real challenge and employees are demanding higher wages quicker than you are able to raise prices. Subcontractors demand significantly higher wages to compensate for their vehicle & gas expenses. It is also possible that employees may try to steal your smaller customers even if you have contracts in place. It doesn't happen often, but you should be wary of it.
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