Bidding Proposals for Your Janitorial Service

Develop or purchase an impressive and professional-looking bid proposal package. It should include attractive fliers describing your service, a thorough cleaning specifications chart, a user-friendly service contract, and details about your service. Remember: failure to discuss itemized and detailed cleaning tasks in advance can lead to problems later on.

A cleaning proposal should include an annual, renewable contract quoting a monthly fee. Master the bidding process before you begin submitting proposals. Whenever you price your service too high, you may lose the contract. If you price too low, you may secure the contract and wish that you hadn’t.

Customers don’t feel obligated to help you construct and price your service fees. They figure if you are a qualified contractor, you will know how to submit an accurate price estimate for all the required services. A bidding formula takes into consideration all of your expenses, the desired net profit, and what the market will bear.

Start by estimating how many hours a night it will take to clean the building you are bidding. Next, determine what the going labor rate is for your city. Then, add your labor burden that includes all payroll costs. Next, add all of your anticipated expenses including chemical, equipment, and overhead (such as office supplies, phone, insurance, advertising costs, etc.).  Finally, you calculate a fair profit to add to your price. The net profit is amount of income available to you as the owner. 

A great resource to accurate bid an account is found here.

Another consideration is whether a customer desires a full and complete cleaning each time or whether they would be interested in a partial cleaning with just a trash pickup and rest room touchup on given nights. By offering these options, a customer experiencing severe budget constraints can then pick and choose service levels. Using a thorough bid checklist is helpful, especially in identifying customer expectations.

If you are making a tour in response to a Request for Proposal, make sure you have studied the proposal in advance. During the building inspection or bid walk-thru you must identify all the cleaning demands and needs. It helps to evaluate the quality of cleaning currently being provided and note all deficiencies.

If the prospect requires carpet and floor care services, can you offer these services or locate a sub-contractor who can perform the work for you? It is best to price additional services separately and invoice the customer as the service is performed. 

A bid proposal package should be customized for each prospect. Include information about your company, cleaning experience, management experience, scope of services, a detailed cleaning specification chart, advertising fliers explaining the advantages of using your service, the contract or service agreement, and possibly your insurance coverage. 

It is critical to outline and discuss all the cleaning duties with the customer before you start. If you omit certain items, a customer may come back later and claim you are responsible for cleaning certain areas that you were unaware of. 

Go here for a great low-cost introduction to the office cleaning business.

Marketing Your Office Cleaning Service

Starting a cleaning business requires taking positive action to locate prospects and close contracts. Learning to land your own accounts is the first step to success. 

Building owners hire janitorial services to experience the benefits of a professional cleaning crew. Owners and managers are interested in the appearance of their building, the safety and health of the occupants, and the affordability of the cleaning service. They also want to avoid legal repercussions from inadequate maintenance.

Before you begin marketing, develop a list of target accounts, normally within a 20 mile radius of your home or office. Besides saving on gas, there is another benefit of focusing on customers in your neighborhood. When you talk to a prospect you can assure them you live nearby and can readily assist whenever they might need you.

It helps to prospect accounts where you have prior contacts. For example, a great prospecting source is friends and relatives who work at a business and know that the business is not happy with its present service.

Determine the scope of your services prior to developing any brochures. Decide if you can offer window washing, carpet cleaning, or floor finishing services. Don't take on more than you can handle!

If you are starting out part-time, you should decide which marketing approaches best fit your capabilities. Learn how to develop a dynamic marketing system, approach prospects, handle the sales process, and negotiate contracts.

Excellent training at low cost is found here.
  There are several effective marketing approaches including:

1. Canvass your territory and leave a brochure and business card. This approach works quite well if you have a proven presentation.

2. Approach all the people you know (especially other company owners you do business with) and ask them for referrals. Tell your neighbor that you will buy them dinner if they help you land a contract at the business where they work. 

3. Phone prospects from a target account list available from many local libraries or from Info USA. Use a script that offers a free estimate. Consider learning the skills to hire and train your own telemarketer (available here). 

4. Networking with other business owners can be an effective way to locate customers. Your local Chamber of Commerce may offer networking opportunities. 

5. Visit general contractors, commercial realtors, owners of the various building trades, and janitorial supply firms. Make sure they have plenty of your business cards. Post your card on bulletin boards. 

6. Use a post card mail-out to reach your target account list. Make sure it is professionally designed as a direct response mailer. Offering a discount and free estimate for your cleaning services can attract new accounts.  

7. Implement a consistent follow up program for all persons previously contacted. Use post cards, phone calls, and emails. When the “itch cycle” hits, and they are ready to make a change, they will know how to contact you. 

8. Consider the advertising power of calendars, note pads, pens, and other inexpensive items from advertising specialty companies. You can find a list of the advertising specialty and promotional products suppliers in your local yellow pages. 

9. Ask for referrals from present customers. Once you secure a new customer, work extra hard to impress them and then ask for a letter of recommendation and referrals. The power of “Word of Mouth” advertising can never be overlooked. 

10. Consider a small, yet professional website. It may not generate a tremendous number of leads, but it definitely lends credibility to your service.

One final way to assess marketing responses is to track all of your closing averages. This could include: number of phone calls that must be made to set a bid appointment, numbers of mailers to generate a lead, number of appointments that must be made to locate a qualified prospect and number of bids submitted to secure a contract. Keep in mind that if customers are not rejecting your price about 20% of the time, this could indicate your prices are too low.

There is a lot to learn about bidding psychology. Contractors, who consistently bid too low, may do so just to get new contracts. They, in turn, may sell off these unprofitable contracts to unsuspecting new startup companies. It doesn’t hurt to remind a prospect that they usually get what they pay for. There can be a high turnover in contractors who over promise but can’t deliver the goods consistently.

Growing an Office Cleaning Business from Scratch

Let's assume you've done your home work, gotten your business named, licensed (if necessary),  and now your ready to go to work. Being a forward thinker, you know you'll need some help (after all, with your marketing skills, you're going to be BUSY).

Expansion will require adding employees, sub-contractors, or leased employees. If you plan on hiring your own employees, you will need an employer identification number (EIN) obtained from the Internal Revenue Service. They will also provide an information packet on how to start a business, along with all the federal requirements.

There are numerous U.S. Department of Labor employment regulations that must be met. Additionally, OSHA has safety requirements for using   cleaning chemicals, plus strict laws governing the handling of medical waste (www.osha.gov/SLTC/bloodbornepathogens/index.html).

Most states will require worker’s compensation insurance for all employees. This coverage pays medical bills and wages for full-time employees injured on the job. Another option is to use independent sub-contractors. However, there are specific IRS guidelines to be met.  Independent contractors must furnish their own insurance and worker’s comp. Subs would be paid a percentage of the contract (normally starting at 60%).

Many customers will require insurance coverage. General commercial liability pays your customer in the event you damage their equipment or facility. Each state has different premiums, but generally figure $800 to $1500 a year. 

Bonding covers you if one of your workers is convicted of stealing money or merchandise. Most insurance companies specializing in commercial insurance can also write a fidelity bond to cover your staff.

PEO (Professional Employer Organizations) or employee leasing companies provide an important service of assuming employer responsibilities. You recruit, hire, train, and supervise your own crews, but the leasing company assumes all employer responsibilities including payment of all payroll taxes. You furnish the payroll details and they compute and issue the checks as if your workers were actually their employees. The state employment agencies and the IRS recognize this service as valid. One source is Work Life (www.worklifefinancial.com/PayrollAdministration.aspx).

Start Up Nation (www.resourcenation.com) has over 100 links to receive free quotes on almost any business service. You can request quotes on bookkeeping services, website design and hosting, E-mail marketing, credit card processing, small business loans, legal services, telemarketing, answering services, mailing services, business insurance, buying a business, payroll services, background checks, worker’s comp. and employee leasing just to name a few.

By consulting with an experienced business mentor (go here), you can avoid costly startup mistakes. Again, the IRS web site has a large list of resources for small businesses. They also have links to each state website providing local rules and business regulations. Just make sure when you are starting a cleaning business that you are in conformance to all laws and local ordinances.

First Steps in Starting a Janitorial Service

Startup Basics

Small cleaning accounts may require service only once or twice a week. Larger buildings normally require nightly service. Most of the cleaning is performed after business hours. It’s best to start with smaller offices which one or two people can clean in 1-2 hours. Once you are comfortable managing small accounts, you may consider expansion. Simply market your services, add new accounts, and then hire and train more helpers.

The overall routine is not a lot different from cleaning your own home. You empty trash, dust surfaces and wipe spills, dust mop floors, wet mop floors, vacuum carpets, clean rest rooms, refill soap and paper dispensers, and clean entrance doors and drinking fountains.

Basic janitorial cleaning equipment might include a commercial vacuum costing $300-$450, along with a trash pick-up container, mop bucket and press, wet mop, dust mop, dust wand, scraper, and basic cleaning supplies such as all-purpose cleaner, spray bottles, towels, trash bags, bowl cleaner, cleaner-disinfectant, and glass cleaner. Your total supply requirements could run under $700 and would allow you to clean up to $3,000 a month in accounts.

A local janitorial supply store can assist you with choosing the correct cleaning products. Many of the large wholesale clubs and home improvement centers also carry cleaning supplies and tools.

Starting a cleaning business can be accomplished with a fairly low investment.  However, it can take 3-6 months before you are ready to start turning a noticeable profit. By keeping your day job, holding off on expenditures and conserving cash flow, you can weather the initial growth challenges. You still need a small nest egg to start your office cleaning service. 

One other great thing about starting your own janitorial service is that you don’t need all the funds up front.   As you land a new contract, you can purchase additional cleaning supplies and equipment.

Before You Start

You can conduct a market survey to confirm the timing is right to expand a cleaning service into your local community. Simply visit or phone small and medium sized businesses in your area. Inquire if each prospect is happy or unhappy with their current janitorial service. Record the responses so you can follow up with the unhappy prospects at a later time.

There are legal and business requirements to meet when starting a business. Your local Chamber of Commerce or Better Business Bureau (www.bbb.org) can advise you of licenses and registration requirements for your city. The U.S. Department of Commerce Small Business Administration (www.sba.gov) is a great source for help in establishing your business structure and meeting accounting, banking, and tax guidelines. You may want to contact an accountant or attorney to assist with the legal and accounting requirements.

For some great resources to start your own janitorial service go here.

Starting a Janitorial Service from Home

An office cleaning service can be extremely profitable. It can be started part-time as a home-based business and built at your own pace. There are several basis steps you will need to make. Here are some 'tips' to help you overcome common start-up and expansion problem.

I.  Overview

What Can I Expect?

Commercial cleaning has built-in job security. Every occupied building in every city has to be cleaned by someone. Why can’t that someone be you? Even though large national and franchise operations are definite competitors, small, independent janitorial companies account for 70% of the cleaning contractors.

When starting a cleaning business, you can begin part time, working from home with a fairly small investment. Once you have your own contracts, the income is steady and the profits can be substantial. According to the Bureau of Labor Standards janitorial services is one of the fastest growing segments of the commercial market.

Some contractors set an initial goal of earning over $5,000 a month by the end of their first year. Keep in mind that the first three to six months can be spent in building the business before actual profits are earned. As some would say, “don’t give up your day job” until your income is established.

More businesses are outsourcing their cleaning needs than ever before. Cleaning services protect a customer’s assets including floor coverings, rest room fixtures, and general furnishings. A professional cleaning service meets a valuable need by extending the normal life of a facility and its contents.

Is it right for you?
Self employment is not for everyone. You should decide if you have the management and entrepreneurial skills to start and run your own business. Here are a few traits that are required of successful business owners:

1. Determination – You will need lots of drive to handle business demands including sales rejection, setbacks, and startup obstacles. 
2. Salesmanship - You need to master the art of closing deals. Also, be ready to promote your business everywhere you go. 
3. Organization - You must plan your work and work your plan. Landing new accounts requires constant attention. You must stay focused on your priorities and avoid distractions. 
4. Performance – You must ensure consistent results on a daily basis. You need a team that is detail oriented and disciplined. 
5. Astuteness – You must attain the business skills to accurately weigh the pros and cons affecting every decision.

If you are investigating the purchase of a cleaning franchise, make sure you can live with the monthly royalty that is deducted from your income. Check to see if you can terminate relations if you become dissatisfied with the franchise control and rules. Check out litigation filed against the franchise and demand a full disclosure.


An alternative to buying a franchise is starting your own business and learn as you grow. It is possible to learn from the experts how to avoid the common startup mistakes. For more information on starting your own business, go here.

Just Spend the Money! Invest the Time!

My wife and I stopped by a local restaurant the other night for a light meal. The cost? Just about $20.00. The food was good, the time spent together - "great": at the end of the evening the meal and the $20.00 were gone, but the investment in the experience of building our relationship remained.

That is true of so much of life: a $20.00 bill almost 'vanishes' from a wallet. A few groceries, very little gas for the car, a couple movie tickets (maybe), order some popcorn and drinks - extra.

Twenty bucks, gone in a flash without thinking; and yet to invest $20.00 in building a future? Impossible for some, the best money ever spent for others. One of my 1st subscribers, and possibly my first book buyer, recently contacted me regarding bidding on another account. Like my friend Gina, who makes an extra $30,000/year office cleaning (her story is here), my subscriber/buyer runs her janitorial service as a part-time endeavor. She and her daughter make an extra $1,000.00 per month. She's grown comfortable in the business and now wants to bid on an account that will double her income. 

She spent $20.00 on a book that taught her how to earn an extra $1,000.00 a month, and sees unlimited potential. See, the Twenty Dollars was a Low Cost expense; the High Price was the willingness to do it.

If you want, you can pick up a used bike fairly cheaply, but if you want to use it to get healthy, that takes hard work.

How about you? Check out the opportunities here. The cost is LOW, But the price you're willing to pay for economic freedom.........?

New Lawn Care Business Guide & Window Cleaning Business Guide

Update on this book: My intent was to have this available in early January, but I wanted to add some more information and change the format to 'tie' things together better. It is ready as a downloadable file and is available at a discount as part of a package with the Office Cleaning Book and Bonus House Cleaning Guide, or available for purchase by itself.

I am so excited! I have had a number of subscribers ask me if we had ever provided business services other than office cleaning or residential house cleaning. The good news is that we have developed a number of side businesses: including providing lawn care service to both residential and commercial customers.

Providing lawn care service is a great way to enter the world of self-employment and to provide financial security. If you own a push lawnmower and a weed eater, plus a way to haul them around; I can show you how to start your own lawn care business. Start small, purchase additional equipment as you need it, and develop your own part-time or full-time lawn care business.

Why introduce a lawn care business guide now? Yes, it is Winter as I do this, but I'm bringing it up now for two reasons:

1. Lawn Care is more than mowing.  Winter seasons don't bring a total end in cash flow for lawn care businesses. In fact, Winter opens the door for soil preparation. In snow country, in fact, you can seed a lawn by spreading seed on top of the snow.

2. You need time to develop the business properly. When does your mowing season start? It will vary, depending on where you live and also upon what the customer wants done. Does your customer want Spring lawn cleanup? That's when their mowing season begins. Each customer is different, but if you're going to advertise do so a month or two before the official lawn care season starts.

Here are some of the reasons to consider a lawn care business:

Tax Write Offs:

When you work a normal job, your employer pays you your salary on your paycheck. When tax time comes, you may have a few deductions you can make but there is not much leeway. However, when you are self-employed, you can avoid paying many taxes. There are many ‘write-offs’ so you can reduce what you pay in taxes.

Efficiency:

If you are at ‘work’, you are at work. You may sit fooling around on the computer because you are stuck there for 8 hours per ‘shift’. Your boss may ask you to do tasks that are a complete waste of time, but you have to do them anyway which can definitely be frustrating.

When you are self-employed, one of the benefits is that your time spent is your time spent. You don’t have to work 8 hours, you just have to get your tasks done. You get straight to it and don’t mess around. Therefore your time is spent much more efficiently. Also, you can combine your personal errands with your work errands.

Make Your Own Hours:

As I said above, you don't have to come in at a certain time to start your job or leave at a certain time. You can set your own business hours. With a part-time business it is possible to schedule your lawn care business around another job.

Vacation:

You don't have to wait for your boss to approve your vacation, you schedule it as business allows. Plan ahead, pace yourself, and schedule the vacation that you desire.

Be Your Own Boss:

You don't have to answer to anyone but yourself (and your scheduled customers). If a customer is difficult to work with, discontinue your service. You choose your clients.

You Have Control of Your Income:

The more effort you put into building your business, the more you'll get out of it. This is the best business growth motivator I know of! At a regular job, you will most likely get paid your salary or hourly wage regardless of how hard you work. Oh, there may be raises and promotions, but there are limits as to how big these will be. And the reality is you have to wait for someone to offer these to you. 

When you work for yourself, the opportunities are limitless. Is a lawn care business your 'ticket' to the extra income or economic freedom you need?

NEW Book Now: Window Cleaning Business Guide

You'll be able to get both books here.