Foreclosure cleanup business is a niche business idea in the janitorial services industry. This business engages in the cleanup of foreclosed properties. Their service offerings include interior cleanup, yard cleanup, hauling of rubbish and debris, lock changing, and other general cleanups of the home and yard.

A foreclosure property is a piece of real estate that a mortgage lender sells to pay off a defaulted mortgage loan. Every foreclosure culminates in a public auction where the lender sells the property and anybody can purchase the property.

Steps to Write a Foreclosure Cleanup and Janitorial Service Business Plan

  1. Executive Summary

Amie® Foreclosure Cleanup & Maintenance Service, LLC is an American-based and licensed foreclosure cleanup cum janitorial service company. Our head office will be located in a standard office facility in the heart of New York City, New York.

We will engage in foreclosure cleanup for a wide range of clients. We will work towards becoming one of the largest foreclosure cleanup and janitorial companies in New York and the United States of America. Amie Nelson is the founder and CEO of Amie® Foreclosure Cleanup & Maintenance Service, LLC.

  1. Company Profile

a. Our Products and Services

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will be involved in;

  • Providing interior building cleaning services
  • Providing yard cleanup, hauling of rubbish and debris, lock changing, and general cleanup of a foreclosed property
  • Another related cleaning, maintenance, and repair services
b. Nature of the Business

Our foreclosure cleanup and janitorial service company will operate a partnership business model. We will work with investors and major players in the real estate market.

c. The Industry

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will operate under the janitorial services industry.

d. Mission Statement

Our mission is to provide highly professional foreclosure cleanup and janitorial services to a wide range of clients in the real estate sector in the whole of the United States of America.

e. Vision Statement

Our vision of to be listed among the top three foreclosure cleanup and janitorial services companies in the whole of New York.

f. Our Tagline (Slogan)

Amie® Foreclosure Cleanup & Maintenance Service, LLC. – Your Reliable Foreclosure Cleanup Plug!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will be formed as a Limited Liability Partnership (LLP).

h. Our Organizational Structure
  • Chief Executive Officer (President)
  • Project Manager
  • Admin and HR Manager
  • Sales and Marketing Officer
  • Accountant
  • Customer Service Executive/Front Desk Officer
  • Cleaners
  • Drivers
i. Ownership/Shareholder Structure and Board Members
  • Amie Nelson (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
  • Gloria Excel (Board Member) 14 Percent Shares
  • Dennis Molley (Board Member) 10 Percent Shares
  • Mack Trace (Board Member) 10 Percent Shares
  • Jane Moses (Board Member and Sectary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Ideal location for foreclosure clean up and janitorial services (thriving real estate market)
  • Highly experienced and qualified employees and management
  • Access to finance from business partners
  • Robust relations with property owners and properties investment moguls
  • Good returns on investment for investors.
b. Weakness
  • Financial Constraints
  • A new business that will be competing with well-established commercial cleaning services and other foreclosure cleanup companies
  • Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
  • New York is a thriving market for foreclosure clean-up and janitorial services companies and the real estate industry.
  • Good support structure for foreclosure cleanup and janitorial service companies.
i. How Big is the Industry?

The janitorial services industry that foreclosure cleanup business is a subset of is indeed large. Statistics has it that in the United States of America alone, there are about 870,916 licensed and registered janitorial services companies (foreclosure cleanup companies inclusive) and related businesses responsible for employing about 1,890,016 employees, and the industry rakes in a whooping sum of $61 billion annually with an annual growth rate projected at 4.0 percent.

ii. Is the Industry Growing or Declining?

All available data points to the fact that in recent times, the foreclosure cleanup industry is experiencing a decline. As of June 2022, the national foreclosure rate was only 0.2%. The report indicates that this was the tenth month in a row that the foreclosure rate was in decline, a far cry from the Great Recession when millions of Americans lost their homes.

iii. What are the Future Trends in the Industry

The real estate industry cum foreclosure cleanup and janitorial services are changing, and players in the industry are improvising. No doubt, technology and climate change (the go green initiative) will change the landscape of the foreclosure cleanup and janitorial services industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no existing niche ideas when it comes to foreclosure cleanup. This is because the foreclosure cleanup business is a niche idea in the commercial cleaning and janitorial services industry.

v. Can You Sell a Franchise of your Business in the Future?

Amie® Foreclosure Cleanup & Maintenance Service, LLC. has plans to sell franchises in the nearest future and we will target major cities with thriving real estate markets in the United States of America.

d. Threats
  • The arrival of new foreclosure cleanup and janitorial service companies within our market space
  • Unfavorable government policy and regulations.
  • Community resistance
  • Liability problems
  • Recession and stagnant economy et al.
i. Who are the Major Competitors?
  • Hurscorp Foreclosure Cleanup & Maintenance Service, LLC
  • Foreclosure Cleanup Services LLC – Woodbury, NJ
  • Black Tie Moving
  • JUSTJUNK® Toronto, ON
  • VRM Mortgage Services.
ii. Is There a Franchise for Foreclosure Cleanup Business? 

Well, for now, there are no known franchise opportunities for foreclosure cleanup and janitorial service business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Foreclosure Cleanup Business?

Yes, there are county or state regulations and zoning laws for foreclosure cleanup and janitorial service business. As a matter of fact, zoning laws are found in virtually every municipality in the United States, affecting land use, lot size, building heights, density, setbacks, and other aspects of property use.

In addition to that, it is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

  1. Marketing Plan

a. Who is Your Target Audience?

i. Age Range

Our target market comprises adults above 18 years old who have the finance to own a property or to do business with us.

ii. Level of Educational

We don’t have any restriction on the level of education of those we will work with.

iii. Income Level

The income level of those we will do business with will be between $70,000 and above $124,000. We will also be working with banks and mortgage firms.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will offer our foreclosure cleanup and janitorial service.

v. Language

There is no restriction when it comes to the language spoken by the people we will offer our foreclosure cleanup and janitorial service.

vi. Geographical Location

Anybody from any geographical location will be welcome to partner with us or do business with our company.

vii. Lifestyle

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will not restrict any investor or client from partnering with us or doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies
  • Host Themed Events That Catch Attention.
  • Tap Into Text Marketing.
  • Make Use of Bill Boards.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships with players in the real estate and brokerage industry.
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on the relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Amie® Foreclosure Cleanup & Maintenance Service, LLC. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each service carried out, In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the real estate and brokerage industry, and freelancers to help refer clients to us.

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need the required cleaning supplies means that Amie® Foreclosure Cleanup & Maintenance Service, LLC. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Amie® Foreclosure Cleanup & Maintenance Service, LLC. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees

At Amie® Foreclosure Cleanup & Maintenance Service, LLC., we offer foreclosure cleanup and janitorial service hence our service offerings do not accommodate return policy and incentives, but we will guarantee our clients that they will get professional foreclosure cleanup and janitorial service from us.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent services to our clients. We will work with an effective CRM software to be able to achieve our overall business goal.

  1. Operational Plan

We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include strategic partnerships with banks and mortgage firms that will boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Foreclosure Cleanup and Janitorial Service Business?
  • The office is open for the day
  • Documentation and other administrative jobs are conducted throughout the day
  • Marketers go out to market our foreclosure cleanup and janitorial services
  • If there is an ongoing project, the required team and machinery are sent to the field to carry out the project.
  • The team and machinery return to base (office) after the day’s job
  • Report for the day is written and submitted to the required authority
  • The office is closed for the day.
b. Production Process (If Any)

There is no production process when it comes to foreclosure cleanup and janitorial service business.

c. Service Procedure (If Any)

No, there are no defined service procedures for a foreclosure cleanup and janitorial service business.

d. The Supply Chain

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will rely on key players in the real estate and brokerage industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale suppliers of cleaning supplies, equipment, materials et al.

e. Sources of Income

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will make money from the following;

  • Providing interior building cleaning services
  • Providing yard cleanup, hauling of rubbish and debris, lock changing, and other general cleanups
  • Other related cleaning and maintenance and repair services
  1. Financial Plan

a. Amount Needed to Start your Foreclosure Cleanup and Janitorial Service Company?

Amie® Foreclosure Cleanup & Maintenance Service, LLC. would need an estimate of $120,000 to successfully set up our foreclosure cleanup and janitorial service company in the United States of America.

b. What are the Cost Involved?
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding and Promotions – $5,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $20,000.
  • Other start-up expenses including commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $30,000
  • Start-up Inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $30,000
  • Website: $600
  • Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will not build a new facility for our foreclosure cleanup and janitorial service; we intend to start with a long-term lease and after 5 years we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Foreclosure Cleanup and Janitorial Service Company?
  • Transportation cost
  • Cost of cleaning supplies, related materials, and cleaning equipment
  • Utility bills (internet, phone bills, signage and sewage et al)
  • Salaries of employees
e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital
  • Chief Executive Officer – $55,000 Per Year
  • Project Manager – $42,000 Per Year
  • Admin and HR Manager – $35,000 Per Year
  • Business Developer / Sales and Marketing – $32,000 Per Year
  • Accountant – $34,000 Per Year
  • Customer Service Executive/Front Desk Officer – $30,000 Per Year
  • Cleaners and Janitors – $26,500 Per Year
  • Drivers – $25,000 Per Year
f. How Do You Get Funding to Start a Foreclosure Cleanup and Janitorial Service 
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Source for soft loans from your family members and friends.
  1. Financial Projection

a. How Much Should You Charge for your Service?

At Amie® Foreclosure Cleanup & Maintenance Service, LLC. our fee will be based on the location and type of services we will offer.

b. Sales Forecast?
  • First Fiscal Year (FY1): $250,000
  • Second Fiscal Year (FY2): $320,000
  • Third Fiscal Year (FY3): $450,000
c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Amie® Foreclosure Cleanup & Maintenance Service, LLC. will be between 35 and 50 percent.

d. Profit Margin of a Foreclosure Cleanup and Janitorial Service Company 

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will collect initial service fees as the project progresses that will range from 60 percent to 70 percent aside from making profits off the total fee charged for foreclosure cleanup and janitorial services.

Please note that in planning our foreclosure cleanup and janitorial service project, we will make sure that the bottom line shows a suitable return for the money and effort we put into it as a company.

  1. Growth Plan

a. How do you intend to grow and expand? 

Amie® Foreclosure Cleanup & Maintenance Service, LLC. will grow by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical Locations)

Amie® Foreclosure Cleanup & Maintenance Service, LLC. plans to expand first to Los Angeles – California, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest and most thriving real estate market in the United States.

  1. Exit Plan

The founder of Amie® Foreclosure Cleanup & Maintenance Service, LLC. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.