So I own and manage a commercial janitorial cleaning service. I have a few accounts one being pretty large that brings in about 250k a year. Now I get a call from a guy who knew my dad (they cleaned together about 30 years ago) who is wanting to retire/give up his large account. Ideally he sells it but it’s not his to sell and they company is currently getting bids for a new cleaning company. He has been there for 50 years! He’s almost 70. Anyway he has a few employees and him who clean it. He tells me it brings in about 360k a year. Anyways how do I go about this? He said we could do a 3 year contract where he would get a monthly payment and once the contract is up I no longer pay him. Is it fair of me to see all of his numbers and payroll and revenue and such? I assume we need to go to a lawyer. We are hoping by having me and my crew joining him it should help persuade the place to keep him vs bring a new company. He knows all the ins and outs and This place is massive. We walked it all of what they clean in 2 hours! Any one been in a similar situation?!
Possibly taking over another cleaning companies cleaning contract. Need advice!
byu/TheKillaTrout inEntrepreneur
Posted by TheKillaTrout
3 Comments
Yes you should go to a lawyer. Set out the obligations of you both and deal with what happens if. Matters such as death, incapacity and decision making. Also have in your agreement a mediation system for any disputes.
I think yes get the legal contract but be gracious and respectful of the relationship. Shop the lawyers, they vary dramatically but I’ve gotten the most value from the lowest priced attorneys.
Okay, let’s cut through the noise here. It’s perfectly reasonable (and smart!) to want to see all the financial nitty-gritty before you even think about taking over. You need transparency on payroll, revenue, expenses, and any quirks that come with this specific job. Think of it as due diligence – you wouldn’t buy a house without an inspection, right? Treat this the same way.
A lawyer? Absolutely. They’ll make sure your interests are protected and that the agreement is airtight. A three-year contract sounds decent, but ensure it’s tied to performance metrics. You don’t want to be paying monthly if the account tanks due to circumstances beyond your control. And yes, the transition plan where your team shadows his crew is golden. The existing employees probably know the place like the back of their hands – leverage that institutional knowledge!
Also, while you’re cozying up to this big account, don’t forget the contract needs the final say. Make sure they understand the value you and your team bring beyond just a name change. Pitch your track record, reliability, and maybe even fresh ideas to improve the service.
In short: due diligence, airtight legal contracts, smart transition plan, and making a strong case to the account client. You’ve got this – just keep your eyes wide open and don’t skip the important steps in the hustle to grow.