Repeat contracts, instead, are jobs that you provide a number of times for the same customer.New contracts are jobs you are providing only once for a customer (for example, a one-time carpet cleaning for an individual, i.e.There are 2 types of contracts: new and repeat contracts: Therefore, it can be as simple as a 3 hour carpet cleaning cleaning job, or a 2 days industrial cleaning job. This is arguably the most challenging part of your financial model, as you will need to forecast customer retention (contracts from repeat customers).Ī contract is defined as one cleaning job. Like any other service business, the first thing you must do when building financial projections for a commercial cleaning business is to forecast the number of contracts over time. In this article we’ll explain you how to create powerful and accurate financial projections for a commercial cleaning company with 15 employees.Īlso note that the charts and examples presented in this article come from our cleaning business financial model template. Whether you want to understand what’s your breakeven, your valuation or create a financial model for the business plan of your commercial (or residential) cleaning business, you’ve come the right way.
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