A janitorial business lacks glamour and may seem "mundane", but it has proven to be a lucrative

business for those who start the business with strong attitude and the will  to work hard. 

Industry Outlook

This business has shown remarkable growth in the last few years. It has benefited from corporate
downsizing and increased reliance of businesses to outsource cleaning services. Contracting private
firms to perform this service has also become the best option for many businesses given the high
turnover rate of employees in this business. After all, it may not be easy to find a person who thinks that
pushing a broom for the rest of his or her life is the best career of all.

According to the Building Service Contractors Association International (BSCAI) http://www.bscai.org,

the business of cleaning and maintaining America's office buildings, retail, commercial, industrial,
educational, and healthcare facilities is huge business, and is estimated at $94.5 billion in 2003. Using
data from Marketdata Enterprises, it is estimated that the cleaning industry will be worth approximately
$128 billion by 2008 with an average annual growth rate of 7%.

BSCAI provides below other characteristics of this growing industry:

 No companies truly dominate the industry. Rather, it is populated by more than 56,000 cleaning
contractors, mostly small "mom and pop" operations. This figure includes roughly 16,800
commercial cleaning franchises and 2,100 residential cleaning franchises.
 

 In 2002, non-employer establishments – small sole proprietorships without payroll or

employees – according the US Census Bureau and the IRS, number approximately 427,553 and
represent receipts of over $5.9 billion.

 This is a "low tech" business characterized by ease of entry. Competition is intense, holding
down contract prices and, ultimately, profitability. However, the industry receipts have grown 6-
11 percent annually since 1994. Cleaning worker wages are low, contributing to high turnover.

Start-Up Strategies

According to the book "101 Best Businesses to Start", first year potential earnings for this business can
be $40,000. Breakeven time in the business can be rapid, and you may be able to achieve profitability
within three to six months of operations.

Your start-up costs can be as low as $5,000, or even less. It is even possible to start on a part-time basis
working from home with just a vehicle and a minimal amount of equipment, assuming that you will do
all the cleaning and marketing yourself.

Starting as a home business offers the advantage of allowing you to keep your expenses low until you
have established some accounts and attracted a customer base. It allows you to offer lower prices as
part of your initial business strategy. Working at home can also allow you to work flexible hours
primarily on a part time basis or increase your hours of operation.

If operating from home is not an option, choose a location that that allows your customers to easily visit
you. Rent or lease a space with adequate parking space and with enough space to allow you to
efficiently and safely store your equipment and supplies. Your office need not be extravagant or lavishly
furnished; the main consideration should be to have a space that will allow you to operate your business
cost-effectively. You may also want to think about the potential of your office space to accommodate a
growing business.

If you plan to start small, the Canada/Manitoba Business Service Centre recommends that you consider
the following factors:

 Start small and keep things as simple as possible. 

 Know your limits (what services you want to offer), and how you will go about getting and
keeping accounts. 

 Understand the requirements and capital necessary to succeed in the industry, and be prepared
to expand your business with more expensive equipment as the need arises. 

 You must have working capital to give yourself a realistic chance at surviving in this industry.

Experts, however, recommend that you should have at least $50,000 in capital to start this
business right. You will need heavy-duty equipment, marketing, and most of all, payroll if you plan to
hire employees at the onset. Most contractors bill at the end of the month and you would need
resources to cover your weekly payroll.

Like any other business, there are various steps to starting a business. You need to decide and register
your business name. Get the appropriate business registrations and licenses by visiting your local county
or city hall and inquiring on their requirements for starting a business. If you intend to work from home,
you need to consult the zoning guidelines governing your residential area to check whether starting this
business from home is allowed.