Thursday 6 March 2014

Travel | How to Start/Run a Successful Commercial RealEstate/Construction Business



Travel

Try to stay local with your cleaning business in the beginning. A three-state (“tri-state”) area is a good idea for starting out. I say a three-state maximum because you do not want to put too much of a strain on your new company. I would also suggest that you stay out of town as little as possible in the beginning, so you do not acquire too many travel costs such as gas, food, and hotel/lodging. When employees stay out of town, you will be required to pay for their lodging, some of their travel time, and a food and gas allowance. This would be all right for a one-time cleaning project that is paying you $12,500, for a 50,000 square foot building at twenty-four cents per square foot, for example. You could take a small crew of people, equipment, and supplies in the work van, complete the job in four or five days, and receive your payment for this cleaning service soon after you get back to your home office. You would also know that after seeing what a good, quick job you did, that company will use your cleaning service again. Since big companies have jobs in many locations, the next job could be in your home area. If you decide to drive to this job on a daily basis, it can be stressful and costly, leaving you with very tired employees, reducing safety on the job and on the road. It also will make everyone’s day a lot longer.



If a job site for a one-time clean -up will only take four or five days, such as a new construction final cleaning, and is more than a two-hour drive away, it’s safer, cheaper, and a lot easier just to stay in a hotel each night, or to subcontract the job out to a cleaning company that’s already located in this area. Remember, when you sub out a job, you still profit and still make the client contact during the next bidding process.


Out-of-town jobs can also be thought of as a way to find some new cleaning opportunities. While you are on the road for an out-oftown job, talk to contractors on the job site, and others in and around town, to see what other building cleaning services are around. Find out what companies have a good reputation for cleaning. Contact building cleaning supervisors and other companies and ask them to mail or fax to your office some information regarding their cleaning company and past business contracts. Find out how their method of bidding differs from yours. Try to visit some other building cleaning companies’ offices and talk to the owners about setting up an agreement for subcontracting your building cleaning work in the area. You will also want to contact their cleaning suppliers so that you can order supplies without any delay when you are working in this town again. Give these companies your information and provide them with your reference list from jobs that you have bid on and completed in and near their town. If you are working on a construction site and your work day ends around 3:30 or 4:00 p.m., ask your work crew if they would like to make a few extra dollars. If they say “yes,” everyone should go back to the hotel, change out of their work clothes, and go out, door to door, passing out your cards and flyers to drum up more new business in this area. Ask the hotel manager if there is a local phone book you can take back to your office, so you can start doing cold calls and faxing when you get home. If you have done all this, you’ll have a system in place the next time you need to visit this town to start a new job or subcontract out a job.

Once you find some out-of-town companies interested in speaking with you about new cleaning jobs, set up an appointment for a job site or office visit. They can also fax their bid information to you if you don’t have time to visit the new job before the bid is due. Present them with your bid and hope for the best. Remember to always keep plenty of bids going out, most of them local. It’s best to send out at least twenty-five bids each day (in other words, at least three to five hundred a month). This will keep you and your staff working, and it will also keep your name and business information out there, whether you win every bid and contract or not. When you are ready to submit bids for this town, complete your pre-made or office store purchased bid forms with the necessary information and start faxing or mailing your bids out. Once you start another out-of-town job in the same town, try to set up everything you can with the good cleaning companies you met when you were there during the last visit. It is important to try to keep and use the same contacts over and over in the beginning so you can get to know them and there staff. Use them as your new out-of -town subcontractors and contacts for getting information and help. Let them know that you will do the same for them; that is, you can be their subcontractor once they call you with the job site address and starting date, when they get a job in your town or area. The out- of-town subcontractor needs the income from out-of-town cleaning jobs just like you do, so work together.


Again, you do not want to pick the lowest bid from the out-of-town subcontractors doing your work because, as you know, you get the service you pay for. On the other hand, you should not choose the highest bidder, either. Try to stay in the safe zone by picking the out-of-town subcontractor bid that is somewhere in the middle. Remember, one of the worst things that can happen to your day, is to receive a phone call around 2:00 pm or later, from an unhappy project manager or owner, saying she or he wants you to stop by today for a serious meeting because a property that’s located two hours or more away was not cleaned properly, this rarely happens but it is possible. Because you tried to save money by using a subcontractor with too little money in the budget to do a good job, you would now have a small problem. The benefit of picking the right subcontractor, especially on a daily out-of-town job, is that, if the contract is worth $ 40,000 per month for a daily cleaning job, and the subcontractor can do the work for $28,000 per month, you will still make $12,000 per month if he/she is consistent and dependable. All you have to do is make a two-hour drive to visit the site, pick up the check, do a quick inspection, or make a few phone calls each week to stay on top of things. The money you make will be worth the long drive each month (or even a short flight) to visit the job site and maybe fix any small cleaning problems or attend a short meeting.


Always try to use your most experience and professional people to fix any problems. Eventually, they may become the troubleshooter’s team for all of your large, out- of-town jobs. If you don’t want a small problem to become bigger, act quickly, within forty-eight hours or less. It is always going to be your responsibility to get the job done, because, again, the cleaning contract is in your name. If you need help fast because, for example, floors need to be stripped or rugs need to be shampooed as the result of an emergency, you can always find a specialty subcontractor on the internet, in the Blue Book, or in the out-of-town phone book you brought home from the hotel. As I said before, some cleaning contractors specialize in only one or two parts of the cleaning business, like carpet cleaning, window cleaning, or floor cleaning. This is their expertise and they will not do anything else. They are often the best at what they do. Other contractors, like me, prefer to be the best in all areas of the cleaning industry.

Sometimes bad weather or other conditions that arise during construction cause workers to bring in dirt, mud, snow, or salt on their work boots. This dirt will damage new the carpets on your one-time cleaning project, or new construction site, and the general construction contractor may contact you about this situation. If your contract or original bid did not cover removing mud tracked onto carpets, or if you had already finished cleaning and gone back to your home office before the damage was done, you must charge more money if you do this the extra work. You need to ask the property manager if she or he will add the additional money for time and labor to your contract as an extra fee. If you receive $ 6,000 in extra money for doing this difficult job, you might want to call a carpet subcontractor and pay about sixty percent ($3,600) of this extra money to have them clean the dirty carpeting.


Again, always check back with the general contractor’s office for approval before doing or subbing out any extra work. Get this extra cleaning approved in writing before starting if you can, and then call your professional rug cleaning subcontractor. If the extra money is not in your contract or in writing, the general contractor or property manager may not pay you for the extra carpet cleaning work. If you had arranged for a subcontractor to do the work, you would still have to pay the sub for cleaning the rugs, no matter what. You made an agreement with the carpet cleaners to do the work, and they did the work for you and your company, not for the general contractor. So you are the one who is required to pay them. This means you must make sure to try and obtain a signed documentation from the supervisor or foreman on the job site saying to go ahead, before you or a subcontractor do any extra work, if time allows and it is not an emergency. Have the foreman’s approval faxed to you for your records, and put it in the same file with the original signed contract. When the rugs are finished, call the job site to make sure the job is complete, that the foreman is happy with the work, and that the foreman will sign off on the completed work, so you can get paid and pay your sub.


Let’s talk about customer service now, because customer service can make or break a business. If your company’s customer service is not good, your client will consider bringing in another cleaning business that’s easier to work with. If you are not considerate of your clients’ concerns and inquiries, they will be upset because they are relying on you and paying you.

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