Planning for Budget Contingencies in Your Cleaning Operation

Business coach and consultant Larry Galler says responsible owners must always be prepared for the unexpected, which is why contingency planning is needed. One step is to apply for a line of credit with the bank to help with significant emergencies, so long as the conditions are agreeable. This line of credit can be used to pay staff, replace a piece of equipment, or get the business through a dry patch. "The real expense isn't always the cost of the damaged structure," says Timothy Hull, director of operations for restoration and cleaning consultancy Violand Management Associates, but rather, "the business interruption, loss of use, or loss of income associated with the peril that is the most costly expense." To avoid these situations, businesses should conduct routine inspections of major mechanical systems and engage in preventive maintenance to reduce potential downtime. Hull says it is important to evaluate the return on investment when deciding to move forward with maintenance of a system. The right insurance policy also can reduce the associated financial losses of business interruption or liability claims from onsite accidents or other emergencies.

Cleaning & Maintenance Management (08/30/18) Kelly Zimmerman