Greater Details

This company cleans 25+ houses a week. The company has 6 Employees (1 full time and 5 part time) whom are all bonded and are hourly employees getting W-2’s making them 100% compliant with the State and Federal laws which many companies in their space are not. The full-time manager has been an employee for 7 years and is a salaried employee. 1 or 2 person teams clean 2-3 houses a day.  The manager of the business does the scheduling, assists with HR (hiring), does all of the in-home estimating,  local marketing, as well as the back-end administration for the business.  The owner developed a system whereas each cleaner with their daily schedule using Google Calendar including all access codes, cleaning materials/equipment, customer details/special requests, customized checklist, etc.  The owner assists the manager with hiring and all of the employees are provided with a cleaning supply kit which gets replenished on a weekly basis. Current owner does all financials for the company remotely using cloud-based payroll reporting and timekeeping, credit card processing for all payments, and real time CRM documentation. The new owner does not need any industry experience and needs no special licenses or permits besides being in good standing with the Colorado Secretary of State.

The company has a focus on high end customer service and is very responsive to customers’ needs.  They offer a 24 hour satisfaction guarantee, returning to fix or finish the job if need be. They also have an A + BBB rating and a great reputation.   This is a great base for the new owner’s ability to grow the company.  The heavy lifting is done.

Marketing and Advertising:  The owner has done only word of mouth marketing for 9 years aside from a weekly business networking/leads group meeting.  They are visible online and via phone directories. The company has no sales people, but does keep a list of all current and older customers that can be ‘farmed’.  Most growth comes from customer referrals and the weekly networking group.  The Website was upgraded in the spring of 2019.  The owner only spends $120 per month for Search Engine Optimization.  The website is not interactive for scheduling, however potential clients and potential employees can send inquiries via the website.  The owner is not a social media person but does have a company Facebook page to post to once or twice a month when it should be 3 times a week.  The owner pays for a cloud-based CRM system which can be used for marketing and drip campaigns and has been designed with scalability for the company specifically. This is a robust system that allows for multiple users to send emails, marketing campaigns etc. and is only $50 a month since the heavy lifting of set up fees has been completed by current owner.

Growth Potential:  This is a high profit margin company that can expand territories using this model.  It would be easy to grow this into a much more valuable operation without having to pay to become a franchise like some of the more expensive national companies are.  A new owner could add commercial cleaning or office cleaning.   The company currently has only 2 commercial customers and does zero nighttime cleaning.  The office can be accessed 24/7 so this could make sense.  Commercial cleaning requires W-2 employees whom are bonded and insured and the owner already has both of those.  It is a higher margin business also. All employees are part time and there is room to add new clients with current employees as well as add employees who want night/weekend work in commercial/office cleaning. New owner could potentially double the business in 1 year by doubling employees who work 25+ hours a week.

Employees: The company employs 5 part time employees paid hourly and get W-2’s. The Manager works full time and is a salaried employee. The company has several long-time employees but this industry always has turnover. The owner pays very well and has both men and women who have passed background checks and drug testing requirements.  The quality of the employees and their work also means that ownership has had few complaints that have been easy to correct through their guarantee.  All cleaners follow cleaning guidelines and procedures that includes a customized list of the preferences of each customer.  Each cleaner is bonded and insured for $5K per employee for theft and the company for $2M in overall damage/liability insurance. The owner also carries Worker’s Compensation insurance on behalf of the employees.  The current insurances have never been used.  A new owner can buy this company and save a lot of money in taking over the current insurances. The owner has an operation’s manual, attorney drafted employee handbook, as well as company training manual to assist in training new owner and adding staff to current system.

Competition:  There will always be competition, but the company has maintained a respectable share of the high-end boutique market and the owner believes they could easily be much larger.  The owner doesn’t have the time to either grow or to manage a bigger business while living out of state.

Location: The location of the office space is in South Denver but can be anywhere.  The office space is only $570/month total.

Other Considerations: The owner also has created a detailed training manual for both administrative work but for how to clean also.   The high-end competition is often a Franchise where they are more expensive.  This company allows the owner to make more money without the franchise cost up front or ongoing fees.   The quality of the work and training is better than the competition due to the employee onboarding and training processes in place.  The owner’s CPA firm uses QuickBooks which are in order and up to date.  The equipment will be included in the sale. The owner is confident in and will help ensure a smooth transition of the business. The owner believes that the business will grow by just executing the current model with a more hands on approach to marketing and development by new owner.

The seller is willing to carry a small portion of the sales price and will offer full warranties, indemnifications, and further states there are not any legal or other issues of any kind that they are aware of that are pending.  This is a turnkey profitable business.  The model is just waiting for a new owner to step into it. The owner is selling to be able to spend more time with family in one location instead of splitting time between two states every few months.

Plus, Denver is one of the best cities in the country to own a business like this based on population growth, size, and household income.  Colorado is #1 for Economic Growth in the US says US News and World Report.  Many magazines and articles have rated Denver #1 for leading locations for economic strength.  Here is “Area Developments” top 10 U.S. “Leading Locations”: 1. Denver. 2. Houston. 3. Grand Rapids, Michigan. 4. Greeley. 5. San Francisco. 6. San Jose. 7. Seattle. 8. Columbus. 9. Boulder. 10. Austin.

Thank you for your interest in this business.  Please email detailed questions to me at jce@companybroker.com or call me at 303-905-7607.

Sincerely,

Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com
jeff@businessbrokercolorado.com
Businessbrokercolorado.com & Jeffchapmaneisnaugle.com

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