Recession Fears Generate New Interest Amoung Entrepreneurs
With recession fears dominating daily headlines, entrepreneurs are increasingly directing their energies to more traditional low-tech investment alternatives. One industry that may surprise many as having witnessed a dramatic increase in interest is also one of the most well-established business-to-business opportunities in the economy: commercial cleaning.
For the past several years, companies like Jani-King have experienced a booming success in the commercial cleaning business, which has grown into a $65 billion industry. At the end of 2000, Jani-King International, Inc. reported an overall growth of 573 percent and an average annualized growth of 21 percent for the past decade. Industry experts estimate that the janitorial and commercial cleaning industry will remain one of the fastest-growing segments of the economy for the next decade.
“Commercial cleaning has remained in high demand due to the increased activity of retail, commercial, industrial, educational, heath care and office facilities over the last several years,” said Jerry Crawford, president of Jani-King International, Inc. “With the low start-up costs, moderate training, and minimal operating expenses, getting into the commercial cleaning industry through a franchise is the easiest route for entrepreneurial hopefuls.”
But don’t take Crawford’s word on the popularity of starting your own business through franchising: A study of entrepreneurship conducted by the Organization for Economic Cooperation and Development (OECD) found that 25 percent of U.S. households “are either starting a business, own a business, or are informally investing in a business.” And according to the U.S. Department of Commerce, buying a franchise is the average person’s most viable avenue to owning a business.
“The advantage of being a franchisee is that someone else has already taken a lot of the risks out of starting your own business, and they are handing you a business model that is already successful,” Crawford said. “The uniformity and emphasis on quality that characterize most franchise organizations like Jani-King have strong appeal to both the franchisees and the customers they serve.”