The building services contractor field can be a challenging one for entrepreneurs eager to make their mark. While opportunities abound, finding which niche(s) to fill right out of the gate has proved tricky for many. One of the biggest obstacles currently is margin compression. This happens when rising labor costs, selling, general and administrative expenses (or SG&A) occur without a proportional rise in revenue.

Nathalie Doobin, owner and CEO of Harvard Services Group, comments, "Stretched payment terms and labor scarcity are some of the obstacles that are currently increasing costs, yet long-term fixed contracts do not necessarily give vendors the ability to charge back for it." This is especially true when competitors may not completely understand their costs of capital or margin by job.       

A second major obstacle for entrepreneurs is indeed labor scarcity. However, as with most things in life, such a big challenge can also present a big opportunity. "Labor scarcity can encourage innovation through technology, when it helps with productivity," Doobin stated, adding. "The famous Habakkuk hypothesis claims that technological progress was more rapid in 19th-century United States than in Britain because of labor scarcity."

Doobin has spent her career driving innovation and building brands for such Fortune 500 companies as Merck and Pfizer before becoming an entrepreneur in 2012. Under her leadership, South Florida-based Harvard Services Group is today regarded as a leading janitorial services provider that strives to be one of the most transparent and metrics-based contractors in the industry.

For operators just starting out, she stresses the importance of having a network of business leaders, whether they are in the same industry or not, to bounce ideas off of and discuss challenges. "For the U.S. building service contractors industry, that network is the Building Service Contractor Association International," she said. "The association has a wide membership base from smaller, closely held family companies to large corporations."

Doobin also urges entrepreneurs to recognize areas of need and seize on them. "Right now, there is a niche opportunity in moving the conversation from green/sustainable cleaning to social responsibility within our industry," she stated. "I believe that to be socially responsible, you have to not only positively impact the environment, you should also impact your people and the industry."

Finally, it's important for new contractors to stand out from the competition as much as possible as early as possible. One way to do that is to establish a set of core values from the get-go. Studies have shown that a strong culture will positively influence such aspects of organizational performance as customer satisfaction and productivity.

After that, it all comes down to dedication. "Our commitment to service excellence is to work together with our clients to ensure meaningful Key Performance Indicators (KPIs) are achieved," Doobin concluded. "By reaching or exceeding these goals, clients will have tangible results of your service and performance."