When you are in the market to buy a small business, deciding on the type of company you want to purchase is a big decision. For some buyers the decision is made easy based on their past experience. But, some Entrepreneurs use buying a small business as an opportunity to get into a new career and a new industry.
There are many great opportunities when it comes to independently owned small to mid-size businesses for sale. There are also a lot of great franchise opportunities available. If you are open to exploring the franchise opportunities available the commercial cleaning industry is an area you should consider. Commercial cleaning franchises are quickly becoming a popular choice among business buyers and here are my 6 reasons why you should consider one.
#1 - Industry Growth
The commercial cleaning industry has seen consistent growth even during the recession. It is estimated that revenues from commercial cleaning companies will exceed $67 billion this year. More and more companies are outsourcing their cleaning and are willing to sign ongoing agreements with a reputable provider. Commercial cleaning franchises provide instant name recognition to business clients looking for someone they can trust.
#2 - Home Based Opportunities
As you are researching potential franchises, keep in mind that there are some that can be run from a home office. Home based business opportunities are becoming a popular choice among many Entrepreneurs as not needing a physical office space can greatly reduce overhead costs. Having this flexibility is a great option. You can always start out working from your home office until you get the business up and running and then move into office space when cash flow allows. Growing your business in phases like this can be a great way to ensure your success because you aren't taking on a ton of debt and expenses right out of the gate. You're giving your business a chance to get started before you have to start paying someone rent.
#3 - Lower Startup Costs
On top of having the ability to run this business from your home to save on expenses, the commercial cleaning business generally has low startup costs. Of course there are some franchises that cost more than others but companies like Jan-Pro offer franchises with an initial investment as low as $3,100. Jan-Pro was ranked #12 on the 2014 Franchise 500 list and they have over 11,000 locations worldwide so you can get into an established, reputable franchise for a reasonable initial investment.
#4 - Proven Business Model
The commercial cleaning service business is nothing new. Companies have been successful in this industry for years and the business model is proven for the most part. With a franchise, the company has taken the time to put operating procedures in place as well as training and other essential functions to help you succeed. They have also done the leg work for you in terms of marketing by creating a brand identity. If you are buying into a larger franchise, they probably offer advertising and other types of marketing services that you would otherwise have to do yourself if you were an independent commercial cleaning company.
#5 - Stability
Many small businesses have to worry about the ups and downs of the economy when it comes to their revenue. In the commercial cleaning business you can expect a certain level of stability. The customers you'll be working with pretty much have to have your services in order to keep their facilities clean for their own employees and their customers. With that, while you may see some cutting back when times get tough, they will most likely stay with you unless you give them a reason not to. If you provide your customers with a high quality service and leave them satisfied with your work, you can expect your revenue to remain stable.
#6 - Not A Desk Job
There are many people that can't stand the thought of sitting behind a computer all day. If you're one of those people, there is one more reason for you to consider a commercial cleaning franchise it's not a desk job. Even if you don't want to be hands on and actually providing the services, as the owner your role could be traveling from job to job doing quality control. You could be in the field when you want to be and spend time at a desk when you have to. If you want a desk job, this business may also work since you could hire someone to be in the field. Also, there are some cleaning franchises that allow for absentee ownership. In that case you'd be able to check in occasionally and most of your work would be done from your desk.
About The Author: Peter Siegel, MBA is the Founder & Advisor (ProBuy & ProSell Programs) at BizBen.com and BizBenNetwork. He works with potential business buyers, business sellers, brokers, agents, investors, & advisors. Reach him direct at 866-270-6278 to discuss strategies regarding buying, selling, (or financing a puchase of) small to mid-sized businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Elizabeth McGovern: Escrow Services - SF Bay Area
McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Brad Steinberg, Broker - Laundromat Specialists
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Bob Baumgarten, Business Broker: Orange, LA Counties
National Business Brokerage is a full service brokerage company that has been serving buyers and sellers of Southern California businesses since 1994. We are dedicated to providing the highest standards of professional service for our clients. Phone Bob direct at 949-588-8727.
|Michael Floorman, Business Broker, BTI, San Francisco Bay Area
Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.
|George Lanza, Business Broker, At Plethora Business Sales
Plethora Businesses, a division of A Premier In Services, Inc., is a Business Intermediary Consulting Firm headquartered in Orange, California. Plethora specializes in the listing and sale of small and medium sized private businesses.
|Ranvir S. Sandhu, Esq. - Legal Services For Buyers And Sellers
I've worked at top Bay Area law firms and have extensive experience with business entity formation, mergers, dissolutions, conversions, employment matters, including experience in reviewing and negotiating transactional documents such as leases and purchase agreements.
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