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FEB.01, 2021

Janitorial Services Business Plan Template

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Do you want to start janitorial services?

Are you looking for how to open a janitorial cleaning service? Well, janitorial services are basically commercial cleaning and maintenance services – which can be availed on an everyday basis as well as on a monthly and yearly basis according to the work nature.

The biggest reason behind the popularity of janitorial cleaning companies is that the business is extremely easy and cost-effective to start. Yet it promises considerable profits.

However, despite the simple startup, you still need to prepare a business plan for janitorial services before starting it. To help you in developing an accurate business plan, we are providing a sample plan of a startup, Cleaning Masters.

Executive Summary

2.1 The Business

Cleaning Masters will be a licensed and registered janitorial business start up based in New York. The business will provide day-to-day cleaning services to commercial buildings, medical facilities, educational institutes, and construction companies. Moreover, the company will also offer grand maintenance services that are not required one to two times a year.

2.2 Management of Janitorial Services

As janitorial services are required on a regular as well as an urgent basis, it is essential to have a proper plan for running your business. In your business plan, you must list the staff, equipment, and hardware support through which you’ll be able to manage your business.

In this business plan on how to start a janitorial business we’ll be providing all the details of Cleaning Masters so you can have an idea of business operations.

2.3 Customers of Janitorial Services

Before you think about how to start a janitorial cleaning company you should decide which segment of society you will be serving. It will enable you in devising customer-friendly policies as well as in acquiring the right equipment to perform the tasks.

2.4 Business Target

Our business aims at becoming the most renowned janitorial business in entire New York within five years of our launch. And to increase our staff and sales by 50% after four years of our launch. Moreover, we have also defined our financial targets that are demonstrated in the following graph.

Janitorial Services Business Plan - 3 Years Profit Forecast

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Company Summary

3.1 Company Owner

Cleaning Masters will be owned by Jack Gibson. Jack had been associated with the cleaning industry for nearly four years. He has served in several managerial positions but has decided to start his own business now.

3.2 Why the janitorial services are being started

Jack wanted to start a business to get recognized in the business world. He had experience in the cleaning profession. And he had several new ideas to run a cleaning business in a different and better way. Therefore, keeping in view his interest, he started a janitorial business.

3.3 How the janitorial services will be started

Step1: Draft a description cleaning services business

Before starting a janitorial business you should write a business plan. You can either get your business plan written by some professional business consultants or you can write it yourself if you possess the required skillset.

To give you an idea of how your business plan should look like, we’re providing a sample business plan for janitorial services. In this janitorial services business plan example we are basically providing the business plan made for Cleaning Masters.

Step2: Registration and licensing

After making a business plan, make sure to get your business registered. Moreover, look for the licenses and permits you’ll need to run your business.

Step3: Set up your business

The next step is to rent or lease a large space to convert it into your office and also to keep your equipment and machinery.

Jack decided to set up his office in a building that was previously used by a construction company. He purchased the following machinery in bulk to ensure that the business operations run smoothly.

  • Automatic cleaning equipment
  • Floor cleaning machines
  • Carpet extractors
  • Carpet and floor sweepers
  • Pressure washers
  • Steam and vacuum cleaners
  • Grout and tiles cleaning machinery
  • Disinfecting applicators and liquids
  • Brushes, pipes, buckets, microfiber cloths, protective kits, and other general items.

Step4: Promote, market, establish a strong web presence

Along with other preparations, you should start marketing and promoting your services. To get introduced to a larger population it is essential to also establish a strong social media and website presence.

Janitorial Services Business Plan - Startup Cost

Start-up Expenses  
Legal $250,000
Consultants $0
Insurance $31,000
Rent $25,000
Research and Development $27,000
Expensed Equipment $56,000
Signs $4,000
TOTAL START-UP EXPENSES $393,000
Start-up Assets $320,000
Cash Required $328,000
Start-up Inventory $53,000
Other Current Assets $201,000
Long-term Assets $226,000
TOTAL ASSETS $1,128,000
Total Requirements $1,521,000
START-UP FUNDING
Start-up Expenses to Fund $393,000
Start-up Assets to Fund $1,128,000
TOTAL FUNDING REQUIRED $1,521,000
Assets
Non-cash Assets from Start-up $1,501,000
Cash Requirements from Start-up $362,000
Additional Cash Raised $52,000
Cash Balance on Starting Date $32,000
TOTAL ASSETS $1,947,000
Liabilities and Capital
Liabilities $29,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $41,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $70,000
Capital
Planned Investment $1,521,000
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1,521,000
Loss at Start-up (Start-up Expenses) $356,000
TOTAL CAPITAL $1,877,000
TOTAL CAPITAL AND LIABILITIES $1,947,000
Total Funding $1,521,000

Any questions? Get in Touch!

Services

Owning a cleaning franchise or your own cleaning facility gives you the freedom to introduce newer ways in the cleaning domain. Jack had several ideas to innovate cleaning processes with the help of technology. The services he decided to offer to implement his ideas are listed in this business plan template for a janitorial service.

  • Interior Building Cleaning and Maintenance

This service will include cleaning everything inside commercial buildings such as offices, educational institutes, etc. By everything, we mean all the curtains, furniture, floor, walls, staircases, washrooms, windows, and doors. Our offerings in this area will include

  • Floor Cleaning & Restoration
  • Window Washing
  • Wall & Wallpaper Cleaning
  • Carpet Cleaning
  • Furniture Cleaning
  • Furniture Polishing
  • Pressure Washing

We also offer pressure washing services to clean hard surfaces, passageways, decks, and outdoor floors.

  • Construction Site Cleaning

We will provide regular clean up services during the construction projects. That will also include removal of debris, mud, dust, adhesives, and other leftover substances after construction completion.

  • Hospital Cleaning: We have specialized staff and equipment to provide cleaning services to hospitals and healthcare facilities. We have the equipment and skills to disinfect and clean coronavirus rooms, mortuaries, and general wards.

Marketing Analysis of Janitorial Services

Before you open janitorial business it is essential to carry out a detailed and accurate market analysis. Marketing analysis is required to know your target customers, the prevailing market trends, and previous and forecasted market ups and downs. You can have a general idea of the janitorial business market by reading janitorial business plans available on the web. However, it is recommended to hire a professional to do accurate marketing analysis for your locality before starting a janitorial service.

5.1 Market Trends

Janitorial services have always been in demand. However, after the prevalence of coronavirus, the need for such services has increased manifold. These days, hospitals, offices, institutes, and corporations seek specialized janitorial services to disinfect their building off and on.

Note

According to IBISWorld, more than 1 million janitiral businesses are running in the United States. Collectively, they share a market size of $64 billion. These businesses are also a source of employment for more than 2 million people. Moreover, in the past five years from 2015 to 2020, this industry has seen a growth rate of 2.1 pc which is expected to increase more over the next five years.

5.2 Marketing Segmentation

Before exploring how to write a business plan for investors, you should draft a list of your customers. This practice will enable you to make important decisions like how many people to hire, what price to set etc.

The target customers of Cleaning Masters belong to the following groups:

Janitorial Services Business Plan - Marketing Segmentation

5.2.1 Business Offices & Buildings: Our primary customers will be small and large businesses that do not recruit permanent cleaning staff for their facilities. They are expected to avail of our services on daily basis.

5.2.2 Hospitals: Hospitals do contain private cleaning staff. However, due to coronavirus, they need specialized cleaners with proper training to disinfect their wards and mortuaries. Thus, we expect them to avail of our services too.

5.2.3 Construction Companies: Our third primary customers will comprise construction companies that will need us for post-construction cleanup.

5.2.4 Educational Institutes

Small and large education facilities will also avail our services for grand cleaning and restoration for their interior and exterior campuses.

5.2.5 Government Facilities (Museums, Parks)

Lastly, local government bodies are expected to avail of our services at different times for detailed and careful cleaning.

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Business Offices & Buildings 31% 38,000 40,000 43,000 44,000 45,000 10.00%
Hospitals 21% 24,000 26,000 28,000 29,000 30,000 10.00%
Construction Companies 19% 23,000 24,000 25,000 28,000 31,000
Educational Institutes 15% 20,000 21,000 22,000 23,000 25,000 10.00%
Government Facilities (Museums, Parks) 14% 17,000 18,000 19,000 20,000 21,000 11.00%
Total 100% 122,000 129,000 137,000 144,000 152,000 10%

5.3 Business Target

Our business targets are:

  • To earn a net profit of $28k per month by the end of the three years of our launch
  • To increase our staff, sales, and services by 50% by the end of the fourth year of our launch
  • To achieve and maintain a CSAT score of above 95% throughout our service years

5.4 Product Pricing

Our prices are more than our competitors because we’re using the latest technologies to do cleaning work. However, we still believe to attract more customers than our competitors due to our quick and high-quality service. And also because of our competitive advantages.

Marketing Strategy

To reach out to your target customers and to compel them to avail of your services, it is essential to have an effective janitorial marketing plan. Through this janitorial business proposal you can learn the competitive advantages and sales strategy that can prove effective.

6.1 Competitive Analysis

We expect to get more customers than our competitors due to the following features.

  1. We have the latest equipment and automative machines to carry out cleaning tasks efficiently and quickly.
  2. Our workers are highly collaborative and customer-oriented. We’ll always go the extra mile to assure clients’ satisfaction.
  3. Our customers can book our services through our website. Moreover, they will also be able to provide their feedback.
  4. We have developed a management system to keep a record of repeat customers so they can be given certain discounts and benefits.

6.2 Sales Strategy

  • We’ll advertise our startup through Google Local ads service and local magazines.
  • We’ll ensure to come in Google top searches by making our website search engine optimized.
  • We’ll offer a 40% discount on all of our services for the first two months of our launch.
Any questions? Get in Touch

6.3 Sales Monthly

Janitorial Services Business Plan - Sales Monthly

6.4 Sales Yearly

Janitorial Services Business Plan - Sales Yearly

6.5 Sales Forecast

Janitorial Services Business Plan - Unit Sales

Sales Forecast      
Unit Sales Year 1 Year 2 Year 3
Interior Building Cleaning/ Maintenance 43,000 45,580 48,315
Pressure Washing 37,000 39,220 41,573
Construction Site Cleaning 36,000 38,160 40,450
Hospital Cleaning 38,000 40,280 42,697
TOTAL UNIT SALES 154,000 163,240 173,034
Unit Prices Year 1 Year 2 Year 3
Interior Building Cleaning/ Maintenance $51.00 $59.16 $68.63
Pressure Washing $38.00 $44.08 $51.13
Construction Site Cleaning $44.00 $51.04 $59.21
Hospital Cleaning $47.00 $54.52 $63.24
Sales
Interior Building Cleaning/ Maintenance $2,193,000.00 $2,696,512.80 $3,315,632.14
Pressure Washing $1,406,000.00 $1,728,817.60 $2,125,754.12
Construction Site Cleaning $1,584,000.00 $1,947,686.40 $2,394,875.20
Hospital Cleaning $1,786,000.00 $2,196,065.60 $2,700,282.26
TOTAL SALES $6,969,000.00 $8,569,082.40 $10,536,543.72
Direct Unit Costs Year 1 Year 2 Year 3
Interior Building Cleaning/ Maintenance $48.00 $55.00 $64.00
Pressure Washing $34.00 $40.00 $47.00
Construction Site Cleaning $42.00 $47.00 $53.50
Hospital Cleaning $45.00 $51.00 $58.50
Direct Cost of Sales
Interior Building Cleaning/ Maintenance $2,064,000.00 $2,506,900.00 $3,092,147.20
Pressure Washing $1,258,000.00 $1,568,800.00 $1,953,940.40
Construction Site Cleaning $1,512,000.00 $1,793,520.00 $2,164,053.60
Hospital Cleaning $1,710,000.00 $2,054,280.00 $2,497,762.80
Subtotal Direct Cost of Sales $6,544,000.00 $7,923,500.00 $9,707,904.00
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Personnel plan

Janitorial business requires the owner to hire adequate staff. So that there are enough people to take cleaning projects even when some employees are already engaged. While writing a business plan for janitorial services Jack prepared a list of required employees, which we’re providing here.

7.1 Company Staff

  • 1 Supervisor to monitor large cleaning projects
  • 1 Accountant to maintain financial records
  • 2 Technicians to maintain the machinery
  • 1 Software/ Web Developer to manage software tools & websites
  • 12 Janitors & Healthcare Cleaners
  • 1 Sales Executive to establish a relationship with customers
  • 2 Drivers to provide transport
  • 1 Receptionist/ Call operator

7.2 Average Salary of Employees

 Personnel Plan      
Year 1 Year 2 Year 3
Supervisor $13,000 $14,300 $15,730
Accountant $11,000 $12,100 $13,310
Technicians $20,000 $22,000 $24,200
Software/ Web Developer $10,000 $11,000 $12,100
Janitors & Healthcare Cleaners $100,000 $110,000 $121,000
Sales Executives $9,000 $9,900 $10,890
Drivers $16,000 $17,600 $19,360
Receptionist/ Call Operator $7,000 $7,700 $8,470
Total Salaries $186,000 $204,600 $225,060

Financial Plan

Business Plan for Investors

One good thing about the janitorial business is that it doesn’t require you to spend huge amounts on startup. The main costs involved in starting a janitorial business are purchasing high-quality machinery and tools and providing specialized training to your employees. Besides, the business has other financial operations going along – such as marketing and advertisement, employee’s salaries, startup expenses, rent, and more.

To manage all the financial activities, it is essential to have a detailed and accurate financial plan. Jack hired a professional financial advisor to plan out things for him. It is recommended for you to do the same. However, if you need a rough idea of the costs involved in this business, you can have it from this starting a janitorial service business plan.

8.1 Important Assumptions

 General Assumptions      
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.16% 8.25% 8.28%
Long-term Interest Rate 8.33% 8.38% 8.40%
Tax Rate 23.90% 24.20% 25.02%
Other 0 0 0

8.2 Break-even Analysis

Janitorial Services Business Plan - Break-even Analysis

 Brake-Even Analysis  
Monthly Units Break-even 5340
Monthly Revenue Break-even $131,000
Assumptions:
Average Per-Unit Revenue $231.00
Average Per-Unit Variable Cost $0.61
Estimated Monthly Fixed Cost $170,200

Any questions? Get in Touch!

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss      
Year 1 Year 2 Year 3
Sales $6,969,000 $8,569,082 $10,536,544
Direct Cost of Sales $6,544,000 $7,923,500 $9,707,904
Other $0 $0 $0
TOTAL COST OF SALES $6,544,000 $7,923,500 $9,707,904
Gross Margin $425,000 $645,582 $828,640
Gross Margin % 6.10% 7.53% 7.86%
Expenses
Payroll $186,000 $204,600 $225,060
Sales and Marketing and Other Expenses $130,000 $134,000 $139,000
Depreciation $2,240 $2,300 $2,410
Leased Equipment $0 $0 $0
Utilities $2,700 $2,800 $2,900
Insurance $2,000 $2,000 $2,050
Rent $2,800 $2,900 $3,000
Payroll Taxes $29,000 $30,000 $31,000
Other $0 $0 $0
Total Operating Expenses $354,740 $378,600 $405,420
Profit Before Interest and Taxes $70,260 $266,982 $423,220
EBITDA $70,260 $266,982 $423,220
Interest Expense $0 $0 $0
Taxes Incurred $14,052 $53,396 $84,644
Net Profit $56,208 $213,586 $338,576
Net Profit/Sales 0.81% 2.49% 3.21%

8.3.1 Profit Monthly

Janitorial Services Business Plan - Profit Monthly

8.3.2 Profit Yearly

Janitorial Services Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Janitorial Services Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Janitorial Services Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Janitorial Services Business Plan - Projected Cash Flow

 Pro Forma Cash Flow      
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $54,000 $58,320 $62,986
Cash from Receivables $18,000 $19,440 $20,995
SUBTOTAL CASH FROM OPERATIONS $72,000 $78,480 $84,758
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $73,000 $79,000 $85,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $34,000 $34,500 $35,000
Bill Payments $16,000 $17,000 $18,000
SUBTOTAL SPENT ON OPERATIONS $50,000 $51,000 $53,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $52,000 $56,160 $60,653
Net Cash Flow $12,100 $14,000 $16,000
Cash Balance $23,000 $25,000 $26,000

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet      
Assets Year 1 Year 2 Year 3
Current Assets
Cash $262,000 $293,440 $322,784
Accounts Receivable $23,000 $25,760 $28,954
Inventory $4,000 $4,480 $4,900
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $268,000 $300,160 $337,380
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $19,000 $21,280 $23,940
TOTAL LONG-TERM ASSETS $23,000 $25,760 $28,980
TOTAL ASSETS $275,000 $308,000 $346,500
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable $18,800 $21,056 $23,667
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $15,400 $17,248 $19,387
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $14,900 $16,688 $18,757
Paid-in Capital $30,000 $30,000 $31,000
Retained Earnings $53,200 $57,988 $63,787
Earnings $191,200 $208,408 $229,249
TOTAL CAPITAL $274,300 $298,987 $328,886
TOTAL LIABILITIES AND CAPITAL $289,200 $308,000 $346,500
Net Worth $278,000 $303,020 $333,322

8.6 Business Ratios

 Ratio Analysis        
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 7.25% 8.03% 8.90% 3.00%
Percent of Total Assets
Accounts Receivable 9.18% 10.17% 11.27% 9.80%
Inventory 5.40% 5.98% 6.63% 9.90%
Other Current Assets 2.14% 2.37% 2.63% 2.40%
Total Current Assets 150.01% 151.00% 152.00% 158.00%
Long-term Assets 11.34% 11.39% 11.49% 12.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.93% 4.97% 5.02% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.61% 7.67% 7.74% 7.38%
NET WORTH 100.99% 101.80% 102.73% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 94.92% 97.48% 100.21% 99.00%
Selling, General & Administrative Expenses 94.45% 97.00% 99.72% 97.80%
Advertising Expenses 1.55% 1.59% 1.64% 1.40%
Profit Before Interest and Taxes 41.70% 42.83% 44.03% 33.90%
Main Ratios
Current 33 34 36 32
Quick 33 34.2 35.055 33
Total Debt to Total Assets 0.17% 0.17% 0.16% 0.40%
Pre-tax Return on Net Worth 73.58% 74.11% 74.85% 75.00%
Pre-tax Return on Assets 95.20% 99.96% 104.96% 111.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 33.50% 34.54% 35.61% N.A.
Return on Equity 55.30% 57.01% 58.78% N.A.
Activity Ratios
Accounts Receivable Turnover 7.7 7.7 7.8 N.A.
Collection Days 100 100 100 N.A.
Inventory Turnover 32.1 33.705 34.1 N.A.
Accounts Payable Turnover 15.4 16.1 16.8 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.4 2.5 2.6 N.A.
Debt Ratios
Debt to Net Worth -0.04 -0.03 -0.03 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $235,000 $248,160 $262,057 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.85 0.86 0.87 N.A.
Current Debt/Total Assets 1% 0% 0% N.A.
Acid Test 28 28.6 29.3 N.A.
Sales/Net Worth 2.1 2.3 2.3 N.A.
Dividend Payout 0 0 0 N.A.

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AUG, 21 ∙ 2018

Roofing Business Plan Sample

AUG, 15 ∙ 2018

Horse Boarding Business Plan Sample

AUG, 07 ∙ 2018

Locksmith Business Plan Sample

AUG, 02 ∙ 2018

Plumbing Business Plan Sample

JUL, 25 ∙ 2018

Home Inspection Business Plan Template

MAY, 30 ∙ 2018

Pressure Washing Business Plan Sample

MAY, 25 ∙ 2018

Drone Business Plan Template

APR, 25 ∙ 2018

Laundromat Business Plan Sample

APR, 21 ∙ 2018

Window Cleaning Business Plan Template

MAR, 31 ∙ 2018

Dog Walking Business Plan Sample

DEC, 18 ∙ 2017

Dog Daycare Business Plan Sample

DEC, 11 ∙ 2017

Lawn Care Business Plan Sample

JUN, 26 ∙ 2017

Real Estate Flipping Business Plan Template

DEC, 22 ∙ 2016

Handyman Business Plan Sample

NOV, 11 ∙ 2016

Barbershop Business Plan Sample

NOV, 11 ∙ 2016

Church Business Plan Example

OCT, 12 ∙ 2016

Computer Repair Business Plan Sample

MAY, 05 ∙ 2015

Salon Business Plan Sample

FEB, 11 ∙ 2015

Service Business Marketing Plan Sample

OCT, 17 ∙ 2014

Horse Training Business Plan Sample

SEP, 21 ∙ 2014

iPhone Repair Business Plan Sample

FEB, 01 ∙ 2014

Сleaning Service Business Plan Sample

OCT, 30 ∙ 2013

Nail Salon Business Plan Sample

OCT, 04 ∙ 2013

Online Dating Business Plan Sample

AUG, 28 ∙ 2013

Hair Salon Business Plan Sample

AUG, 14 ∙ 2013

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