Posts Tagged ‘small business’

Did you know that the United States Government has contracts with small businesses worth over $1 trillion a year? They are the single largest “customer” for the janitorial industry. Add state and local government contracts to this and you have huge potential to add to your client base. Before you start the application process, you need to understand how getting a government contract works. As with most government decisions, winning a janitorial contract requires going through bureaucracy involving very specific procedures and requirements. Learn the steps in order to get a government contract. You may find that your business is not eligible for government contracts or that you don’t even want to try.

To obtain federal government contracts, you first need to register with the Central Contractor Registration (CCR), which is basically a database the government creates that collects, validates, stores, and disseminates data necessary to award contracts to businesses. To do this, you need what is called a DUNS number, which is a unique number assigned to your business to identify you. If you do not have one, you can get one at http://fedgov.dnb.com/webform. You will also need your Tax Identification Number (TIN), Taxpayer Name, Electronic Funds Transfer (EFT) information, and statistical information about your business. To resister, go to https://www.bpn.gov/ccr/default.aspx where you can also get answers to specific questions. As you can see, this is already a tedious and meticulous process, but a necessary one.

The next thing to do depends on your specific company makeup. If your company has 51% or more ownership by someone who is “socially or economically disadvantaged” or woman-owned, you need to register as “disadvantaged” or Sec. 8(a) certified. Many government contracts are awarded specifically to those companies who meet these criteria. You can find more information at the Small Business Administration (www.sba.com) on how to register for this status.

Another thing you can do is apply for a government grant. This is not a very common occurrence in this industry, but is not unheard of. For example, if your company hires the mentally-challenged individuals or ex-convicts, there may be some help to be found. Here is a link to an article on our site about grants that you may find helpful.

You can also sign up for PRO-NET, which is basically a listing from which government contracting officers choose vendors to meet their needs. PRO-NET is a free service offered through the SBA website at http://pro-net.sba.gov/ .  It is integrated with the CCR, therefore has access to the information you have already submitted when you registered. Believe it or not, they actually made this easy for you!

Another SBA-sponsored program is called The HUBzone Empowerment Contracting Program. The intent of this program is to provide federal contracting opportunities for businesses located in distressed areas. As long as you meet the specified criteria, this program maintains a list of preferred vendors from which Federal agencies choose their contractors. Again, the SBA website tells you how to obtain this status for qualified applicants. As you can see, the SBA is a valuable resource in your efforts to obtain government contracts.

Now that you have a feel for what is involved in just becoming ELIGIBLE for government contracts, our next article will move on to the specifics on how you actually bid them.

Copyright TheJanitorialStore.com. All Rights Reserved.
Steve and Jean Hanson helps owners of small cleaning companies build a more profitable and successful cleaning business through his online community at TheJanitorialStore.com. Read inspirational cleaning success stories at http://www.cleaning-success.com, and sign up for weekly cleaning tips at http://www.thejanitorialstore.com.

I wanted to share one of the great books I studied to get my cleaning business started. Start Your Own Cleaning Service (Start Your Own ) was put out by Entrepreneur magazine.  They are now on the 2nd addition of Start Your Own Cleaning Service (Start Your Own ).  This is a great book that has some great tips to get started with minimum cash up front.  Here are a few things the book covers:

• Current statistics and trend forecasts that keep you ahead of the curve
• The ins and outs of finding customers
• New ideas for hiring and training employees
• What equipment and supplies you’ll need (and where to find them)
• How to use technology to make your business competitive
• Up-to-date legal, tax and insurance requirements
• How to avoid common pitfalls
• Surefire tips for growing your business

The book only cost $11 bucks on Amazon.  The information I got from the book is priceless.

 Start Your Own Cleaning Service (Start Your Own )

So sales are slow and you need to pull out all the stops to get new accounts. Marketing, marketing, marketing. You have a good “product.” You manage it well. Your clients are happy. Operationally, you seem to be doing well. The problem is sales are down. What to do? How are you going to set yourself apart from the competition? How about some innovative sales ideas? Those are always good, right? Well, whatever increases your sales is good for business, right? Well, not always. There is a fine line between an innovative marketing idea and a gimmick. Good marketing is a long-term effort to further your business’s goals. Gimmicks may provide a short-term gain, but are they worth it in the long run? Gimmicks have also turned into scams, certainly something you don’t want to be associated with.

What are some common gimmicks in the cleaning industry? Probably the most well-known is used by unscrupulous carpet-cleaning companies. Known as the “bait and switch,” they will offer the client the “bait” of a low cost for their service. Once they are hired, they try the “switch” of add-ons to increase their sale. The “gimmick” is tempting the customer with low cost to get the sale. Offering introductory offers, coupons, free cleanings, and specials are acceptable means to attract clients. But when you take advantage of a customer and try to get them to upgrade to something they did not initially agree to, then you enter the world of unethical behavior. You can, however, offer clients introductory offers with the intent of making up for any losses by generating future revenue through continued service. Establishing trust with your clients is an important part of building your business. Even one poorly planned campaign can destroy your credibility if you aren’t careful.

Another pitfall of using gimmicks is you may be perceived as not being a “serious” company, as many people do see gimmicks for what they are: a sales tool. Too many special offers, coupons, cutesy ads, or other “gimmicky” promotions may have the effect of making you seem desperate, not a true competitor in your field. Do you want that reputation? You may see short-term results, but your long-term goals are not being met.

Promotional items do have their place in a marketing plan, however. The reason you see so many personalized pens, caps, coffee, etc. is that they work. It is a proven fact that such promotional materials result in far better name recognition than print ads. Pens are a staple of such types of promotion because almost everyone uses them at work, but here you run into the problem of differentiating yourself, since so many companies give out pens. Keep in mind, too, that you can use promotional items for current clients as well. It is well-established that it is far easier to keep a client than get a new one! So are these gimmicks? Some may think so, but others call them good marketing tools.

Finding the balance between what is simply good marketing and excessive use of gimmicks can be a hard one to find. The gray area between the two is subjective, so there is no definitive answer to whether a “gimmick” will work for your cleaning company or not. Unethical use of gimmicks is not only short-sighted, but eventually counterproductive. You need to determine any costs involved with any marketing idea, and weigh them against their benefit and how they fit into your long-term goals. Gimmicks should not be used as a crutch to get by, but a tool in your marketing arsenal.

Copyright (c) The Janitorial Store (TM)

Copyright TheJanitorialStore.com. All Rights Reserved.
Steve Hanson helps owners of small cleaning companies build a more profitable and successful cleaning business through his online community at TheJanitorialStore.com. Read inspirational cleaning success stories at http://www.cleaning-success.com, and sign up for weekly cleaning tips at http://www.thejanitorialstore.com