The current trend of aggressive expansion in office space has boosted the demand for professional cleaning and maintenance services. As a result, companies that started out in this business a few years ago, with original investments worth several thousands of euros, are today running operations worth hundreds of thousands of euros and register profit margins between 30% and 35%.
"I chose this professional cleaning and maintenance business due to a rise in demand for specialised services on the Romanian market, along with the development of the real estate, office buildings and shopping centres market," says Nita Stelian, the general manager of ActivStedo company in Bucharest. The company first entered the market in 2001 and takes care of building management, monitoring and security.
Nita Stelian started his business when he was 46 and the first step he took was to research professional equipment, materials, substances and types of services required. He initially invested 10,000 euros in buying equipment, tools, materials and vehicles. All the profit derived along the way has been invested in equipment and retooling in order to keep up with the pace of the market. The price for the services provided is set depending on the type of services required, the surface area, traffic and the number of employees, the products needed for the services, as well as how frequently the services are performed and other additional requirements.
General cleaning services can cost a client between 55 and 200 euros per 100 square metres, plus additional service costs. Daily cleaning and maintenance services for a 100 square metre area range between 55 and 100 euros, while cleaning and finishing services provided after a builder or repair crew have completed their job range between 100 and 250 euros.
The turnover registered by the company in 2005 stood at 99,000 euros and increased to 133,000 euros in 2006. Nita Stelian anticipates a 35-38% increase for this year and a 30-35% profit margin. Sebastian Francu, sales manager and also director of Higiene Lacroix, which is based in Brasov and imports and distributes community hygiene and professional cleaning equipment and tools, started the business relying on his vast experience in company operating in the same field. At 35, he partnered with a friend to form Higiene Lacroix. The initial investment was money granted in the form of a personal loan and stood at around 10,000 euros, which was used to buy a car and a utility vehicle.
Higiene Lacroix sells products for public toilets (soap dispensers and toilet paper dispensers), equipment and tools for cleaning firms, as well as all the necessary products for the above-mentioned facilities. The company also offers the delivery of products to clients, installation of equipment and consulting services for choosing the best technical solutions and training courses for its major partners, which are offered free of charge.
Higiene Lacroix posted a turnover worth 150,000 euros last year and expects to derive a turnover worth 400,000 euros in 2007. The company registered a profit margin of 8.31% for its first year in business.
The business in brief
Research concerning professional maintenance equipment, materials and appropriate cleaning substances
Acquisitions included equipment, materials, tools and vehicles
Initial investment: 10,000 euros
Turnover starts at 100,000 euros and exceeds 400,000 euros
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