Should I buy an existing commercial cleaning company or start one?
Buying gets you signed accounts, trained crews, supplier terms and a bid history from the first day, while starting gives you a clean slate and no purchase to finance. Thin accounts, or accounts that depend on the owner personally, are points to weigh on either path.
Starting a cleaning company looks simple: a few supplies, a van and a first client. The hard part is winning enough steady contracts to keep crews busy. A purchase buys that work already done. Whether it is the better path depends on how solid the existing accounts are, so weigh what you receive against the time and effort of building the same thing.
What a purchase gives you on day one
An existing company may come with signed service contracts, crews who know the sites, supplier terms, equipment and a record of past bids and insurance claims. Those are the things a new company spends years collecting. Ask to see each one rather than relying on a summary, and ask which of them stay if the owner leaves.
What starting from zero gives you
A new company has no inherited contracts or history to review. You choose the clients, the pricing approach and the crew culture, and you need no financing for a purchase. The cost is time. Expect to spend early months bidding for work, with no references to show. If you have strong industry contacts who would hire you, that gap shrinks.
When starting makes more sense
Weigh the starting path when the accounts on offer are few, short, or held together by the owner’s personal relationships. In that case the relationships may not follow the sale. Our guide on how to buy a cleaning business lists what to test before you decide.
A short test to apply
- Could the company keep its largest accounts if the owner stepped away tomorrow?
- Do crews stay with the company, or with the supervisor?
- Could you build the same account list on your own, and how long might it take?
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideHow to buy a cleaning business in Canada
- Expert answerWhat happens to the commercial lease when I buy a business?
- Expert answerShould I buy a business through a newly incorporated company?
- Expert answerWhat is the risk of buying assets from a company that owes its suppliers?
- Expert answerWhat are the pros and cons of owning a dry cleaner?
- Expert answerCan I buy a cleaning company’s accounts without buying the company?
- Expert answerHow do I keep a cleaning company’s crews and subcontractors after buying it?
Selling
- Expert answerHow do I clean up my financial records before selling?
- Expert answerCan a seller force me to take unwanted liabilities in a share deal?
- Expert answerShould I accept shares instead of cash for my business?
- Expert answerHow do I prepare a janitorial company for sale?
- Expert answerHow do I sell a cleaning company that depends on one big client?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
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