Niche Commercial Cleaning Business With Great Cash Flow
Cleaning | Janitorial · MI
About This Business
Available for acquisition is a large-scale, highly-profitable, independently-owned commercial cleaning business specializing exclusively in apartment turnover and common area cleaning for large apartment complexes throughout Southeast Michigan. This is a recession-resistant, specialized business with high profit margins, low overhead, experienced staff in place, and opportunities for rapid growth. The business is recognized as the leading provider of cleaning services in this very niche market. Its customer base continues to grow month after month primarily through word-of-mouth and name recognition within the tightly-knit property management industry. The customer retention rate is extremely high and is a testament to the value of the services provided.
There are approximately 40 part time employees, 2 operations managers, 2 field supervisors and an office manager handling day to day activities. The hours of operation are 8am to 6pm weekdays, with the business closed on weekends and holidays. All employees are provided with uniforms, equipment, and supplies, but use their own vehicles to get to/from the job sites. There is no significant equipment involved in this business and it could be run from anywhere within the service area.
Partners have never done any actual cleaning, and their own role in the company has become pretty hands-off as the operations managers have direct responsibility for staffing, training, scheduling, and managing the cleaning staff and daily workload. Unlike most contractor businesses, the business is not dependent on relationships between the owner and the customers. The company is well organized with very detailed records, an ongoing flow of business from 100+ properties, and experienced managers that have been with the company since day one. Professional website, marketing materials, clients' database, all equipment and inventory are included with the sale.
This would be a great business for a number of different owner types, both hands-off and hands-on. Perfect for a family, someone with sales and marketing skills, or anyone with a general business background. Very easy business to learn quickly.
Facilities: Business leases 1,180 sq. ft. suite at $1000.00 per month for the corporate office on a month to month basis. There is also a 480 sq. ft. satellite office in place at $520.00 per month.
Market Outlook
Competition:
This is a very niche service provider with little competition from established companies. Most competitors are "mom and pop" operations that cannot offer the professional image, man-power, organization, flexibility, and responsiveness that this business offers as a large company. Additionally, there's huge demand for this service and the market is massive. In the Detroit Metro Area alone, there are currently 255,000 apartment units, roughly 50% of which require turnover cleaning each year. Unlike most other recurring services in the commercial contractor industry, customers rarely seek bids from competitors and contracts continue for an indefinite period of time.
About the Sale
Support/Training: Owners are willing to stay on for 2 months to train and insure smooth transition. After that, they will remain accessible as advisors.
Terms: SBA prequalified.
Reason Selling: Other business venture
Highlights
- Specializes in apartment turnover and common area cleaning
- Approximately 40 part-time employees plus management team
- High customer retention and growing client base
- Professional website, marketing materials, and inventory included
- Leases office space on month-to-month basis