Episode 107 – Janitorial Business Plan
Janitorial Business Plan
In today’s podcast Mike coaches Shereen Morrison of Green Clean Living in the UK www.greencleanliving.uk on a couple of topics which basically add up to setting up a Janitorial Business Plan.
First and foremost with any business you have to know what you want from your company so that when opportunities come along you know if you should pursue them or not. Hence the Janitorial Business Plan.
Knowing your first and foremost goals will help you to make those decisions that come up wisely instead of taking the “You are offering me money for work and I need money so I will take the job”
It’s so easy to take any job that comes up because it’s hard to say no to work and money. But if you really want to build a janitorial business, you have to have a Janitorial Business Plan.
You need to pick a niche and master it and you can’t do that if you’re off doing any random cleaning job that happens to come your way.
That ties into a common misconception, just because it happens in a home, doesn’t mean it’s the same type of service. They are all very different business models and completely different niches.
Now that I have gotten that off my chest and assuming you really want this specific account. Let’s move on to the pricing question.
BONUS TIP: Pricing is the same as everything else.
Figure out your costs, always figure someone else doing the work not you. If you really want to be running a business and not just working for your business, you have to assume that all the work aside from running the business is an employee and therefore a cost.
Even if you don’t have employees yet, you need to build that into your pricing so that when you grow and add employees you can afford it!
Then you add your overhead like insurance, your office, vehicles, etc.
The you add profit. At least 10% no more than 30-40%.
Then once you have figured out what your price is, look at the marketplace and see if it’s comparable.
If your price is too low, then you can add additional profit margin. If it’s too high, then instead of cutting your profits or trying to force a market to accept your pricing, realize you are in the wrong market! Find another niche that works for you!
Just go for it
Look after yourself