Starting a cleaning business is a massive undertaking and many struggle to get off the ground. But whatever stage your business is at, there are common challenges to be faced, whether it’s adjusting to rapidly changing technology or getting better at tendering for new contracts.
Christopher Joyce, CEO of Asepsis, has been in the industry long enough to know how to sidestep many of the pitfalls cleaning companies face. Ahead of a session on business strategy at the 2024 ISSA Cleaning & Hygiene Expo, he spoke to INCLEAN about some of the common mistakes businesses make when starting or expanding.
Lack of strategic planning
Many new businesses dive into operations without a clear plan. It’s essential to map out key milestones, timelines and resources to avoid getting lost in day-to-day activities. Businesses need to focus on strategic growth and have a well-documented process in place. This means understanding the market, knowing your strengths and aligning your efforts with your long-term goals.
“A lot of companies just say, ‘oh, let’s go for it’,” Joyce says.
“They don’t actually think the processes through. You need to step back and say, ‘Okay, how many days have I got to do this? What are my resources?’”
Overextending without specialisation
Another frequent mistake is trying to cater to every market segment without mastering any of them. Instead of spreading resources thin across various industries, businesses should focus on their core strengths. Specialisation allows a company to build expertise, improve service delivery and create a unique value proposition that sets them apart from competitors.
“Be more strategic and pick the clients you want to work with, like-minded clients. You can’t do everything, so focus on what you’re good at,” Joyce says.
Poor client understanding
Businesses often jump into tenders or projects without thoroughly understanding the client’s needs. This can lead to underperformance and missed opportunities. It’s crucial to build strong relationships with clients, understand their specific requirements and tailor services accordingly. This not only improves your chances of winning contracts but also leads to long-term partnerships.
“A lot of cleaning companies waste time doing tenders for companies they don’t understand,” Joyce says. “When you’re writing an executive summary, don’t just write out a history of your business. Talk about the client and show that you understand them, because if they feel that you’ve looked into their business, they’ll get a good feeling about you.”
Underestimating the importance of relationships
Success in business often hinges on who you know. Building and maintaining relationships with clients, suppliers and industry peers can be more valuable than focusing solely on the transactional aspects. Businesses should invest time in networking and establishing trust before pursuing new opportunities. Joyce says businesses shouldn’t waste time writing tenders for businesses they don’t already have a relationship with.
“I would never tender for someone I did not know. If I don’t know the client, I haven’t got a relationship. It’s a very, very risky way of winning a business.”
Failing to adapt to change
The business landscape is constantly evolving, with new technologies, regulations and market demands emerging constantly. Companies that fail to anticipate or respond to these changes risk falling behind. Staying informed about industry trends and being open to innovation can help businesses stay competitive and resilient.
“You’ve got to think about what disruptors there are and what game changers there are,’ Joyce says. “Too many people get blindsided by what was a likely effect of change. Disruptors might be things like AI, environmental changes or corporate social responsibility.”
Neglecting to focus on profitability
In the rush to secure contracts or clients, businesses may undercut their prices, which can lead to low profitability. It’s important to strike a balance between competitive pricing and maintaining healthy margins. Understanding the true cost of service delivery and setting prices accordingly is crucial for sustainable growth.
“I was working with a business recently and they were spending all their time tendering, tendering and tendering,” Joyce says. “Their strike rate was nothing. Because of that, they keep cheapening the price and got in the habit of undercutting themselves to win a business, but that kind of approach isn’t profitable.”
Inadequate marketing and positioning
Businesses need to know who they are in order to pitch themselves to clients. New businesses often struggle with how to market themselves effectively. It’s important to clearly communicate what sets your business apart and to target the right audience. This involves knowing your market segment and tailoring your messaging to resonate with potential clients. Joyce says this again highlights the importance of specialisation.
“Without a clear focus on a specific sector or project size, firms risk becoming ‘generalists’, which can dilute their brand and make it harder to stand out in a competitive market.”
Christopher Joyce will be presenting a free session “Am I thinking strategically about business?” On 11 September at the 2024 ISSA Cleaning & Hygiene Expo. Register here.
Photo by JESHOOTS.COM on Unsplash.
