Commercial janitorial franchise.. Anyone doing this???

[Switchin Lanes]

Hello, I am currently in the process of gathering info with this. I know this isn't necessarily fastlane but I figure it will give me a little more "free time" to actually work on the good stuff and also raise some capital. I am on my lunch break @ work typing this so I will come back and type in the details. Has anyone done this from scratch or is anyone currently doing this willing to shar some insight. I would really appreciate it.

smidget of background:
My older brother's fiance has been working through this company for 4 years. This is her only job and now she is at the point where she doesn't work at all but rather runs it like a business. Her intial input was 9k with a guarunteed income of 3k per month for a year. Fast forward 4 years later and she still has her intial 4 year old franchise but now her and my brother re-invested in another one @ 16k. She swears by it and I can honestly say she is living really well. Of course this is the outside looking in and I do pick her brain a lot. But if there's anyone here with actual expericence with this I'd looove to hear it.
Thanks
Charles

 

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[YMCMB]

I have also thought about this. I know its a popular business. Anyone have any insight?

 

[SlimTycoon]

What kind of insight would you like?

I have extensive experience in this business.

 

[MNentre]

I work with these people on a daily basis since I manage 4 commercial properties. It is not fastlane in my opinion. There is a lot of management that has to happen day to day. We havent been able to find a good cleaning company, so the owner definitely hears an earful from me.

 

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[SlimTycoon]

I work with these people on a daily basis since I manage 4 commercial properties. It is not fastlane in my opinion. There is a lot of management that has to happen day to day. We havent been able to find a good cleaning company, so the owner definitely hears an earful from me.

Cleaning companies are not different than any other business. Not all CPA's are good nor are all cleaning companies good.


It most certainly is fastlane. I know of a gentleman that built a janitorial services company to just under $1billion in annual sales in under 10 years. He did it by buying other janitorial companies and rolling them into one. I've spent years as an Investment Banker, doing just want I described. Believe me, doing roll-ups is a VERY FASTLANE strategy. You can build massive wealth in under 5 years doing the above.

 

[Rerun]

I know of a gentleman that built a janitorial services company to just under $1billion in annual sales in under 10 years. He did it by buying other janitorial companies and rolling them into one.

Can to share how you would go about acquiring so many companies so rapidly? I'm guessing you need massive investment capital to do this, whether it's your money or someone else's?

 

[JEdwards]

I work with these people on a daily basis since I manage 4 commercial properties. It is not fastlane in my opinion. There is a lot of management that has to happen day to day. We havent been able to find a good cleaning company, so the owner definitely hears an earful from me.

The reason why is because most owners look for the cheapest people possible. When you chase the dollar down, you end up with bad service.

Cleaning companies are not different than any other business. Not all CPA's are good nor are all cleaning companies good.


It most certainly is fastlane. I know of a gentleman that built a janitorial services company to just under $1billion in annual sales in under 10 years. He did it by buying other janitorial companies and rolling them into one. I've spent years as an Investment Banker, doing just want I described. Believe me, doing roll-ups is a VERY FASTLANE strategy. You can build massive wealth in under 5 years doing the above.

Rolling up a ton of companies is fast lane, but the op didn't mention rolling up companies to create an empire. They are just wanting to start one.

 

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[MakeItHappen]

Can to share how you would go about acquiring so many companies so rapidly? I'm guessing you need massive investment capital to do this, whether it's your money or someone else's?

The book Your First 100 Million by Daniel Peña talks about this. Maybe the book might be for you however the book doesn't come cheap... it costs $197 at the moment.

 

[SlimTycoon]

Can to share how you would go about acquiring so many companies so rapidly? I'm guessing you need massive investment capital to do this, whether it's your money or someone else's?

MASSIVE? No. Some? yes.

If you were to come up with $800K("yours", investors or SPECIALIZED LENDERS), believe it or not, you could acquire a $100 million/annual sales company. To answer your question. You'll use the profits from your "platform company" to reinvest in acquisitions. Buying 3-4 companies a year is not RAPID nor fast. That's what I like to call.... "about right".

Some Fortune 500 companies easily buy 12-15 companies a year. That's how MOST big companies become big. Google, Microsoft, Amazon....that's how they all get so massive. It's not purely demand for their products/services. ALL businesses have a plateau, ALL of them. You can only grow internally for so long. It's best to start off buying companies that way you don't hit your plateau to soon. There is a lot that goes on "behind the closed business door" that you'll never hear about unless you run in those business circles.

Most business books have people misdirected and confused about business and the way things are really done.






The least of concerns is the cash. There are dozens of ways to structure the deal to lessen capital outlay. DOZENS.

You can also raise private funding through private placements, etc.... I'll stop here because I could write an entire volume of books on buying companies.

 

[SlimTycoon]

The reason why is because most owners look for the cheapest people possible. When you chase the dollar down, you end up with bad service.




Rolling up a ton of companies is fast lane, but the op didn't mention rolling up companies to create an empire. They are just wanting to start one.

That is how you start 1 company.


Cardinal Heath is a $100 billion company. It's a combination of over 150 acquired companies rolled into ONE. That's not an empire. It's one massive company. :00


The point of me mentioning rolling companies was to make a point about the Janitorial Business being a good Fastlane opportunity.


I've been an investment banker for close to 15 years. I'm passionate about the deal process and doing deals. Excuse me for going off topic, I do apologize. I love high level business and talking about it.

:0)

 

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[Rerun]

Good stuff. Do go on...

Edit: Don't meant to encourage the thread from going too off topic and OP not getting his questions answered, but I like were this is going.

 

[InMotion]

The reason why is because most owners look for the cheapest people possible. When you chase the dollar down, you end up with bad service.

So true...this practice is so rampant it is unbelievable.

 

[JEdwards]

That is how you start 1 company.

I've been an investment banker for close to 15 years. I'm passionate about the deal process and doing deals. Excuse me for going off topic, I do apologize. I love high level business and talking about it.

:0)

The problem is most entrepreneurs will never get past one shop with a few employees. Most can dream of buying companies and rolling them up to some big conglomerate, but most will never even try.

 

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[Switchin Lanes]

Wow, Its great to see some actual activity on this thread.
Now please allow me to elaborate a little now that people seem to have interest in helping out.

I'm a recent college grad working a 30k a years job with a new little one. 30k was cool when it was only me. I was still able to stay up late nights studying, reading, making phone calls and all the things I needed to do to make progress on my businesses, but now I can't hustle as much on the side because of time being swallowed. While I know the franchise isn't fast lane at all. My intentions with this investment would be to help add capital with little time needed.

The smallest entry level investment is 3k. This investment guarantees me a net annual income of 6k. while this isn't a huge profit or gain. I will be afforded more time to away from the 9-5 which in turn can be added to my actual passion work.. becoming wealthy.
I am not a guru of any type and while I have read MJ'S book I am still green and crave knowlege to improve my situation. My brother's fiance actually earns 9k of passive income(she owns 3 franchises and delegates all aspects of the business) from this very same company. This makes me comfortable at least trying this at a entry level as I know they can supply my company with the intial business that my current situation wouldn't not allow intially at least.
Thanks for any input guys and excuse my ignorance. I am here to learn and I will be in the fast lane within 3-5 years I hope i can learn more here!

 

[Switchin Lanes]

I have many great plans but if this can be a current form of additional income to help me pay programmer,marketers..etc I wouldnt mind
thanks again

 

[theag]

The smallest entry level investment is 3k. This investment guarantees me a net annual income of 6k.

What? A passive ROI of 100% guaranteed? How does that work? Seems fishy to me.

 

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[Brant Gregory]

I have 30 year experience in this business.

 

[JAVB]

I just bought a Janitorial and Commercial Cleaning company for $500,000 - I've never been in this business. The company has been around for 20 years. It gets $900k/ in revenue. No office (lease) no big overhead. Just 14 employees. Lots of work that is sub-contracted. Clients with the company for 4,7,10 years. Owner netting $185k/year. My goal is to learn all about it, grow it, and apply all the improvements I see can be applied. Then acquire other local ones or grow it state wide. Would love to hear tips from other previous or current Commercial Cleaning business owners.

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