Operational Differences Between Residential and Commercial Cleaning
There are vast differences in operations, expectations, profitability and sustainability when we talk about residential and commercial cleaning. The easiest way to define the differences is this:
COMMERCIAL CLEANING IS BUSINESS TO BUSINESS, where there is little emotion or sentimentality. It's just business! Objective and not personal!
RESIDENTIAL CLEANING IS BUSINESS TO CONSUMER which involves handling customers' personal, sometimes valuable items. More emotion is involved and this cleaning is much more subjective than commercial cleaning.
Some of the operational differences include:
TIME OF CLEANING ACTIVITIES: Here we have commercial cleaning which is primarily done at night. Residential cleaning which is done during the day. The newest trend we are seeing in commercial cleaning is the movement to day cleaning. This provides a serious saving for building owners in terms of energy costs and security. It however lowers productivity for cleaning personnel and productivity rate charts have to be re-evaluated if you have clients taking this direction. In other words, cleaning is done at a slower pace when working around employees who are at their desks or on the phone. This trend is not currently dominating the industry in the United States, however it is on the horizon for all of us.
CASH FLOW ISSUES: In commercial cleaning the cash flow situation is different in that you are paid monthly after invoicing a client. In residential cleaning, the customer usually pays the day of service. This can be a significant difference if you are a maid service expanding into commercial work. You must be prepared to support the payroll of your commercial division until you get paid. That can often be 30 days, sometimes more. If you are a commercial company, adding a maid service where you get paid daily is like a windfall!
PERSONNEL: As we all know, turnover and personnel are the biggest challenges we face in our industry. The differences in employee profile between residential and commercial cleaning can be huge. Part-time employees looking to supplement income can be perfect for commercial cleaning, while Moms who need to be home for school age children can work well for maid services.
DEMANDS ON THE BUSINESS OWNER: In this area we have lots of similarities in operating both segments of our industry. The need to be a strong manager in all aspects of growing a business is necessary. You must be mentally available to employees, customers and vendors. When you spend your day "putting out fires" you will accomplish very little else. Organization and delegation can be your key to survival.
HANDLING CUSTOMER ISSUES: When dealing with customers in the commercial sector, you will find that your communication is again, business to business. There is little or no emotion involved. Situations are addressed on a non-emotional level. When dealing with the residential customer, often expectations and performance are miles apart. Communication with ALL customers and written specifications for both residential and commercial customers can alleviate this potential for disaster. When investigating opportunities for growth and expansion, make certain to explore all areas for potential profit leaks and problems. Keep in mind that while expanding, you must NEVER DISRUPT OR DILUTE YOUR FOCUS ON YOUR PRIMARY SOURCE OF REVENUE.
Next in the series is: How Do I Manage Both Divisions at the Same Time??
Written by Sharon Cowan, President and CEO of Maid For Success, a coaching firm dedicated to helping maid services understand the opportunities in commercial cleaning and how to manage both segments. Sharon is a 20 year veteran of the industry who owned a successful residential and commercial cleaning company. She has been an award winner and lecturer for the BSCAI and is a Board Member of the Cleaning For A Reason Foundation. She can be reached at www.maidforsuccess.com
