A Journey Through the Plateaus of Growth

As kids, we were routinely asked, “What do you want to be when you grow up?”

I’m going to guess that no one said, “I want to be the leader of a janitorial company with hundreds of crew members who clean toilets each night!”

I honestly don’t think that’s ever happened!

However, when I’m at a BSCAI event, I’m surrounded by dozens upon dozens of successful leaders who are overseeing professional companies in the business of cleaning toilets and mopping floors.

Some of these leaders are overseeing smaller companies with 50 or fewer employees, while some are leading large, complex organizations with thousands of employees across multiple regions. But again, I’m going to venture that none of these individuals were aiming in this direction while in grade school or even college. In reality, there isn’t a traditional school curriculum that prepares someone to start on the path of becoming a successful building service contractor (BSC).

Yet we all seem to have the same questions:

• When will I start earning a profit so I can pay myself?
• At what point do I need a full-time operations manager?
• How do I find time to make sales when I’m spending 80% of my time on operations?

The questions are endless and seem to be different at every stage of company growth.

The Beginning of a Professional Approach

When BSCAI was formed in 1967, this was the first step in commercial cleaning companies becoming recognized as a professional industry. For the first time, there was an opportunity to share experiences, document best practices and set standards for an industry that includes thousands of independent operators across the U.S.

In 1971, one of BSCAI’s founders, Greer Heindel, made the observation that most of the peers that he met at conferences and events shared similar journeys of growth, challenges, opportunities and setbacks. He astutely identified that there was a distinct pattern that seemed to weave a common thread through the lifecycle of the businesses in this industry.

This led to his creation of a presentation called, “The Plateaus of Growth,” which helped new contractors look ahead to the stages of growth that will mark their future journey. Ultimately, this spawned the development of a publication that was co-authored by a collection of some of the best and brightest in our wonderful BSC community. This first edition came off the press in 2000.

A Playbook for BSCs That Stands the Test of Time

Twenty-four years later, this publication remains a solid playbook for BSCs on their journey from new business owner to established industry veteran. Regardless of an owner’s current stage, all have a common goal of creating a successful company — one that creates personal income while building a long-term value that can lead to an exit plan or be passed down to the next generation.

The 6 Stages of Growth

The plateaus of growth concept centers around six stages of growth that are somewhat inevitable in the journey of building a successful organization. Each stage is identified by a moniker that gives a hint to what the owner is experiencing, along with a revenue amount that is reflected at each stage.

• Stage 1                All the Hats                                       $0 - $500,000 per year
• Stage 2                All Alone                                           $500,000 - $1M per year
• Stage 3                Help!                                                 $1,000,000 - $2M per year
• Stage 4                The Old Smoothie                            $2,000,000 - $4M per year
• Stage 5                On the Launching Pad                     $4,000,000 - $8M per year
• Stage 6                In Orbit                                             $8,000,000+

The word plateau is used because of the tendency to get stuck at each stage. It can be a frustrating and exhausting process for the owner. Each stage requires a different mindset and skill set compared to the previous plateau.

Stage 1: A Singular Mindset

In stage 1, the owner/operator literally wears all the hats and is jugging everything from getting the business off the ground (corporate registration, establishing banking relationships, finding suppliers) to marketing and selling services and setting up new accounts.

This stage is a necessary evil and something every new owner/operator will encounter as they establish their new business. There is no getting around stage 1 — it’s a matter of how quickly and efficiently you can conquer it.

At stage 1, the mindset is pretty singular: “Get this thing off the ground!” The key skill set is really about task management, as in identifying and completing necessary tasks. This would include things like establishing a corporate entity, setting up a bank account and identifying suppliers.

Stages 2 and 3: Becoming a Swiss Army Knife

In stages 2 and 3, the owner is building the foundation of their company. They are simultaneously adding new accounts and frontline employees. In addition, they are implementing systems and processes that allow them to be more effective in running their operation. At this stage you are adding some staff members, but many are part-time and wearing multiple hats, just like you did!

The mindset in stages 2 and 3 starts shift to a multitasking Swiss Army knife. You are spending time during peak hours focused on adding and supporting clients. In off hours, you are working on systems and processes to help streamline your activities like timekeeping, payroll processing and inventory management.

You are also building your skill sets as a planner, organizer and manager, because your biggest challenge right now is time. You are constantly racing the clock and you need to maximize your productivity each and every day.

Stage 4: A Professional Organization

When you enter stage 4, the business starts to look like a professional organization. You are able to catch your breath and start running your business. Part-time administrative positions are now full-time positions with departmental oversight. The organizational chart now includes positions like payroll administrator, operations manager and office manager/client support manager. As the owner, your role is also changing from a doer to a leader.

Your mindset is now one of how to make your key staff members increasingly productive. Your skill set is becoming more of a coaching role and less as a direct contributor.

Stages 5 and 6: The Promised Land

Stages 5 and 6 are the targets that most owners aspire toward, but they are truly the toughest to reach. In these stages, the company is moving from the $5 million per year range and working toward $10 million per year and beyond. To make this leap, the owner truly must evolve and embrace the role of an organizational leader while trusting the daily operational tasks to a team of managers. At these stages, the company has become a more sophisticated operation with departments for key functions like accounting, human resources, sales and operations.

The journey to stage 6 is one that can take anywhere from five to 20 years and is a process that requires grit, determination and the ability to adjust and evolve from a boot strapper to a polished leader. The beauty is that the owner who once wore all the hats now has a wealth of knowledge and experience that allows them to a be an informed leader of a well-built organization.

Get “In Orbit” With Grit and Determination

Like any journey, navigating the plateaus of growth in the janitorial industry is filled with speedbumps and trapdoors. One day you’re knocking on the doorstep of stage 4, and then an unexpected event occurs, and you are squarely back to being a Swiss Army knife!

Thankfully, this industry is filled with many leaders who have experienced the challenges of company growth. Learning from them will help you maintain sanity and focus as you climb the plateaus. With industry support, grit and determination, you’ll be “In Orbit” before you know it.

For more tips and tools, visit BSCAI’s education hub.