Opening a business but there is a big compitition?

Question

I are planning on opening up a new service organization which
specializes in cleaning large office buildings. I have created a
corporation, and I developing a strong business plan which
focuses on value more than price. However, since designing
my business plan, the economy has shifted, and unemployment
has started to rise.

While marketing my cleaning service, I have discovered that
many of the large office buildings are empty of tenants – something
you were not expecting. If this was not bad enough, I have
found out that one of the larger national chains, which specialize in
cleaning office buildings, has now cut their price and are competing
with you for some of the same target customers.

1. What can I do to compete against a national chain of this
caliber?

2. Describe the niche I will target to stabilize my business.

Answer 1

Essentially there will always be bigger companies to compete with. Focus on your strengths. While I do not know what part of the country you are in or what those strengths are, here are some ideas:

1) Be more accessible. How many customers get to talk with the owner of the large companies? Have issues escalated to you and let customers know that issue will be escalated to you. Schedule account reviews every 12 months.

2) Do a better job than the big companies. Inspire your people. Give them pride and find creative ways to reward them. Their pride and workmanship is what will distringuish you the most from the competition.

3) Commercial landlords know each other. Ask for referrals.

4) Consider branching into the security business as well. Empty buildings are often being robbed by junkies trying to strip them of copper wiring. If you can solve two of their problems (cleaning and security) then you have a better chance of winning the account. Don't take this on if it stretches you too thin.

5) See if there are specialty niches you could profitably add.
a) fire / flood / water damage cleaning
b) mold removal
c) computer, keyboard & monitor cleaning

6) Consider adding (or partnering with) a home cleaning service. Give introductory discounts to employees of your commercial accounts to get things started.

7) I notice a lot of cleaning companies just throw away recyclables. You could be environmentally friendly and recycle office paper, cardboard, glass, plastic and aluminum cans. You might make some money and it could be a selling point for companies that also want to be environmentally friendly. You could either sell it as a service or make it standard.

8) If legal and feasible, open a little store in your office and sell professional cleaning products to the public.

9) Don't be a difficult company to work with. Empower your employees to make the customer happy.

10) This will be hard but try to get to know all of the "consultants" landlords use so they can recommend you:
a) bankers
b) insurance agents
c) security companies
d) landscape companies

11) Consider adding landscape maintenance to your portfolio. You clean the inside why not maintain the outside too?

Good Luck!

Answer 2

I'm not in marketing or business but:
1. Go to your local market, mom n' pop offices.
2. The smaller offices may not be able to afford the large commercial company or they may not provide service to a smaller office building.
If you get in with one or two local shops/offices word of mouth could start and other area businesses could pick you up. I hope I help a little.

Answer 3

I can tell you that I ran a small software company for 30 years against two giants in the industry I sold to, but I just gave better service and personal attention. They didn't work with a salesman, they talked to the owner.