business plan for facility management

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

• Sample Business Plans

Facility Management Business Plan

High demand, low startup costs, and a recurring revenue model make facility management a rewarding business to undertake.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Facility management encompasses a wide market and tapping into a specialized field can help you secure your financial goals quickly and easily.

Starting a business in facility management can get tricky if not properly planned or executed. A comprehensive business plan will offer a path forward and help you secure the funding.

Need help writing a business plan for your facility management business? You’re at the right place. Our facility management business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How To Write A Facility Management Business Plan?

Writing a facility management business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the facility management services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of facility management company you run and the name of it. You may specialize in one of the following facility management:

• Commercial property management
• Residential property management
• Healthcare facility management
• Educational facility management
• Sports venue facility management
• Describe the legal structure of your facility management company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established facility management service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Competitive analysis:, market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your facility management business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Maintenance services:

Outline the facility maintenance services your business will offer. This would include maintenance services such as,

• HVAC system
• Plumbing repairs
• Electrical system
• General repairs
• Routine maintenance tasks

Cleaning and janitorial services

:Outline the cleaning services you offer to maintain cleanliness in clients’ facilities. Mention specialized cleaning services like carpet cleaning, window cleaning, etc.

Security services

Quality measures.

:This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your facility management plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your facility management business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your facility management business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for facility management, such as cleaning and maintenance equipment, protective gear, mechanical equipment, fire safety tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your facility management business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your facility management services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the facility management industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your facility management business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample facility management business plan will provide an idea for writing a successful facility management plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our facility management business plan pdf .

Related Posts

Community Center Business Plan

Staffing Agency Business Plan

How To Write A Startup Business Plan

Best AI for Writing a Business Plan

Business Location Choosing Strategy

Frequently asked questions, why do you need a facility management business plan.

A business plan is an essential tool for anyone looking to start or run a successful facility management business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your facility management company.

Where to find business plan writers for your facility management business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your facility management business plan and outline your vision as you have in your mind.

What is the easiest way to write your facility management business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any facility management business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my facility management business plan?

The level of detail of the financial projections of your facility management business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a facility management business plan include?

The following are the key components your facility management business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good facility management business plan help me secure funding?

Indeed. A well-crafted facility management business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Complete Guide to Facilities Management

“Keep your team safe and working faster,” they said. “And let’s make sure to keep that all under budget, too.” No big deal, right? Wrong. When it comes to facilities maintenance , you’ve got a lot of juggling to do to keep everybody happy.

In this post, we’ll cover how you can make your department work more efficiently, serve the company better, and get more influence with the people that matter so you can keep being awesome at your job.

What if Facilities Management didn’t exist? 

As humans, we occupy space, and we are accustomed to our spaces working for us, not against us. We need these areas to be safe, functional, and comfortable. And there’s a lot to that. 

When everything goes to plan, this means that your job as a facilities manager is less stressful. No emergencies, easy-to-manage workloads, and fewer incidences.  A boost in productivity and reductions in absenteeism, downtime and wastage, not to mention the lack of accidents. 

It’s clear how important it is to have a well-maintained facility, but what if you don’t? What happens if you don’t have the resources you need to make it happen: adequate staffing, budget, training, equipment, etc.?

The impact on the Company

Your facilities management team is responsible for the overall well-being and functioning of the entire facility. You touch each and every department. Without you, equipment lifespans are reduced, inventory controls can fall by the wayside, bulbs can burn out, machines can overheat. Even worse, problems can get so bad that they bring your revenue-generating activities to a screeching halt. Facility safety also becomes an issue. You manage the security systems, fire systems, ventilation systems, and tricky and often risky elevator systems. If something is out of order, people’s safety is at risk. If someone gets hurt, that bill the company receives is going to hurt.  Depending on the situation, that bill could come in the form of a lawsuit, an expensive settlement, fines from a regulatory agency, and a whole lot of bad PR….or all of the above. It’s not worth the risk. The workspace becomes a non-working space very quickly. 

The impact on the Employee

No employee wants to feel unsafe or uncomfortable at work. Imagine working in an organization that has recurring equipment failures, or worse yet, extremely high incidents of injury at work. That would be terrible, but the same is true If employees can’t do their jobs because there is no space to work, the building is too hot or too cold, and the network keeps failing.  If these issues go on for long enough the company would have a hard time keeping employees too.

The impact on the Customer

Employees are not the only ones who suffer from poor facility management. Customers notice things, too. If buildings are in bad shape, equipment breaks down more often than it works. Orders can get delayed, the quality of your products and service decreases. Injuries become a regular occurrence. Your customers are going to pick up on this.  Their user experience will not be as good as it should be. Your brand, your reputation, and your source of income will be destroyed very quickly. Get it right, and your customer satisfaction jumps up too.

The scope of Facilities Management

Image source

• Real estate management: Your role here intersects with the property manager. You keep the building safe, repairs up to date, and oversee the teams that keep it running.
• Occupancy management: You use data and analytics to balance operational costs, effective use of space, employee well-being, productivity, and energy saving.
• Maintenance management: You and your team plan and carry out the maintenance for all assets in the company. You also deal with any unplanned work that comes up.  
• Asset management: The lifecycle of all assets falls under you. You are responsible for the installation and training to maintenance and repairs and ultimately working with senior management and Finance to determine the best time to replace assets. 
• Financial and performance management: Using the information gathered in your CMMS, you can manage your inventory, budgets and have a clear line of sight into how each asset is performing and the costs incurred each month. With Limble, you’ll get automatically generated maintenance reports for the most important data you’ll ever need. If you want to take it a step further, you can generate custom reports based on the criteria you choose.
• Building systems: Each building is unique. The majority of buildings come with fire systems and security systems, as well as HVAC. Some may have elevators, while others have been specially designed to suit your company’s needs. The management, condition assessments , and maintenance of these systems are up to you. 

Another popular way to look at facility management roles is to split them into two groups: Hard Facilities Management (Hard FM) and Soft Facilities Management (Soft FM) .

Hard facilities management services (space and infrastructure)

Hard FM services focus on the physical components of the work environment and infrastructure. Most of them fall under the maintenance department. Here is an overview of hard facilities management services:

• The plumbing system: This system plays an essential role in bringing water to a building and removing waste. Over time, blockages can occur, pressure builds up, and fixtures/piping must be replaced. As the Facility Manager, it’s your job to ensure that the plumbing system is regularly maintained and that the possible issues are fixed as quickly as possible. 
• Lighting and HVAC systems: You will work with your team to see if the lighting and heating fixtures need repair or replacement. It’s up to the team to decide the best solutions for cost and energy savings, comfort, and functionality. 
• Fire safety regulation compliance: Fire safety systems are required in most countries and must be regularly maintained and checked for compliance issues.
• Mechanical & electrical systems: Keeping the electrical system running well to keep up with other building operations. The same goes for mechanical systems like elevators and water pumps. You and your team ensure they work properly and do not cause safety incidents. 
• Structural maintenance: Regular usage or even poor design can lead to structural issues over time. When it comes to buildings, weather and other elements can start to take a toll on the structures. Wind, sun, salt, and extreme temperature changes all play their part. As a part of facility management, there should be a structural maintenance plan to identify, classify, and deal with possible structural problems. 

To successfully schedule, track, and manage all maintenance activities and work orders , facility management teams will often seek the help of computerized maintenance management software (CMMS) or Computer-aided facilities management (CAFM) software. We will discuss available software solutions in more detail towards the end of the article.

Soft facilities management services (people and organization)

On the flip side, soft facility management focuses on people and organizations. It includes services that create a more comfortable, healthier, safer, and visually appealing environment.  Common examples include:

• Waste management: If waste is not managed, garbage bins become overloaded, and things become smelly. This is never a good thing. Waste management gets the garbage into the correct containers. It sends it away to make sure that you stay within regulatory requirements and prevent trash overcrowding.
• Cleaning services: Custodial teams come in to clean common areas and perform other janitorial duties. Many companies will have their own janitorial staff, while others will choose to outsource.
• Space planning: Space planning and management is an important part of facilities management. Whenever your company hires more people, expands to a new floor, buys new assets that take a big chunk of space, and wants to remodel the existing space, they will turn to you to help organize the space so that it remains comfortable, safe, and functional. 
• Landscaping: Well-maintained grounds improve curb appeal and signal top-notch property management. Your team takes care of the seasonal and non-seasonal changes, such as planting flowers in the spring, trimming the grass during the summer, removing falling leaves during the autumn, or removing excess snow from the walkway in the winter.
• Pest control: These fall under your domain, be it scheduling seasonal pest controls or managing pest outbreaks if they ever happen.
• Building security: Having control of people going in and out of the facility is something that almost every building these days requires. It can also involve the management of restricted access areas inside the facility.
• EHS compliance: Defining and maintaining acceptable standards of comfort that might include temperature, noise, seating standards, and visual cues is imperative in every company. For example, selecting specific chairs that guarantee employee comfort for desk workers. Depending on the industry, EHS standards can differ widely. In a typical office setting, they may seem relatively tame. Still, in a pharmaceutical company where employees may be handling dangerous substances, standards will be different. EHS standards will change from business to business depending on the needs of the company. 

Free Building Maintenance Checklist

13 simple steps to improved productivity and reliability.

What do Facilities Managers do?

You have to be a jack of all trades to do this job well. The support of a great team and the right software will help take you to the next level of your career.  A facilities manager can have a dozen balls up in the air on any given day. As a facility manager, you touch so many areas: 

• Property strategy: What’s the current property portfolio of the company? Do you lease or own? As the world turns, more and more companies are adopting remote work policies where employees can work from home at least some of the time. How your company approaches this major shift in the culture of work will also impact your needs for employee-occupied space into the future.
• Space management: To piggyback on what was said above, are employees required to be in office? If not, there’s room for some creativity in space management. Perhaps changing to an “open office” layout where employees can “check out” a workspace as needed is a solution your company considers if employees work in a hybrid format.
• Communications infrastructure: We’re talking phones (no pun intended), network cabling, server storage, and beyond.
• General building maintenance : Depending on if your company leases or owns the building, maintenance responsibilities may shift. Many commercial building owners push a lot of maintenance responsibilities to the lease-holder, not everything and not all the time.
• Testing and inspections: This is a part of routine maintenance . You regularly check in on assets and alarms to ensure that everything is up to code and working correctly. You also need to make sure that you are compliant with OSHA and other regulatory agencies (like FDA, if applicable to your industry).
• Contract management : You have several service providers, and those contracts and relationships need to be managed. It’s your job to make sure these are kept up. Using Lmble makes managing vendors and their contracts easy!
• EHS(environment, health, safety): Health and safety live with you, and it’s your job to make sure that the workplace is safe for everyone in it. 
• Security: Be it the locks on the doors, the security monitoring team or cameras, and any other part of security, these all fall under your jurisdiction. 
• Facility Maintenance planning : Predictive and preventative maintenance are best practices to keep your organization’s assets in working order. The planning of these is a crucial part of your role. Using Limble, you can plan, schedule, and report on your maintenance and use this information to collaborate with Finance on budget forecasting.
• Managing renovations and refurbishments: The workplace is ever-changing. Offices get bigger or smaller, paint colors change, boardrooms are built. Renovations and refurbishments sit squarely with the facility professionals to manage. The same is true for capital projects. You will work with teams to build new facilities and expand the campus.
• Inventory management: Knowing what you have and what you need, and the value of your inventory is an integral part of maintenance and cost management. Limble makes it possible to see the value of your stock at the click of a button, and the customized reporting helps you break it down any way you need to.

And in case you wanted more, you’re not done yet! You are also responsible for: 

• Advising businesses on measures to improve the efficiency and cost-effectiveness of the facility.
• Supervising teams of staff across different divisions.
• Dealing with emergencies as they arise.
• Managing budgets; Planning for the future by forecasting the facility’s upcoming needs and requirements.
• Helping with office relocations.
• Drafting maintenance reports.

Should you bring FM in-house or outsource? 

Making the decision to outsource or keep your facilities management in-house is a complex one. It depends on the factors like the type of facility you run, the size of your maintenance budget, and existing team.

In-house Facilities Management 

Advantages:

• Oversight : You have complete oversight of everything happening and can make split-second decisions about how you and your team react. 
• Cost control : you can control the costs (to an extent) of the repairs by keeping inventory in stock or shopping around for preferred pricing when you need something. You are also paying your team at your rate, not contractor rates. 
• Planning ahead : You can use preventive maintenance to manage upgrades and cut back on unexpected breakdowns. Ideally, this helps with budget forecasting too. Having an in-house team can help connect the dots between systems across the company, so everything is accounted for when budgeting.
• Collaboration : Keeping your team in-house means that you can work with Finance to decide when the best time to replace equipment is based on performance and depreciation. This minimizes unnecessary spending and maximizes tax credits.  

Disadvantages:

• Specialized skills : As technology advances, maintenance work becomes more and more specialized. It’s hard to build a team with the right set of core competencies precisely because you will not have a guy for every little thing. This makes some outsourcing almost a necessity.
• Waste : You can potentially wind up having a ton of unused equipment and expertise in your team just to fix a few highly specialized assets. Seeing expertise and equipment not being used doesn’t bode well for you. 
• Lots of management : Building the right team and hiring the right people to do the job takes time and needs constant oversight. You are no longer just a Facility Manager. You are now a people manager, expected to lead and develop others. You’ll also be responsible for contractor relationships and management, not to mention the possibility of additional insurance needed. 

Outsourcing Facilities Management

• Cost savings : Cutting costs is often the biggest benefit of outsourcing facilities management. When you outsource, you are not paying for round-the-clock employees on your team who may not be needed daily. 
• Less risk : Reduce your risk and liability if something goes wrong. Outsourcing puts the risk on another organization. Make sure that you do your homework and partner with a team you can trust. 
• Flexibility : Bringing in the experts with their hyper-specialized equipment as and when you need them instead of trying to do it yourself and potentially causing more damage or having expensive resources on your budget. You save time and money. 
• More expensive than you think : Ironically, outsourcing can cause costs to get out of control. You can run into situations where you have multiple vendors working on the same problem. You have little oversight of the work, who’s delivering on what, and you are left with multiple invoices to pay. If the impetus behind outsourcing is cost-saving, it may not work out that way. Having great partners with solid communication is your best line of defense here. 
• Still requires internal management : There are vendors to manage — lots of them! Someone on your internal team will still have to keep track of the work that needs to be done, who the right vendors are, inventory, etc. It’s almost like you can’t get away from FM no matter what you do!

Some say that the best approach is a hybrid of in-house to manage the day-to-day with outsourcing for highly specialized projects. For example, your team can change the bulbs and fix the heating, cooling, and electrical issues that crop up. Still, you’ll bring in a plumber or machine repair technician for the big stuff. 

What could your facilities management department look like? 

Software solutions that make Facility Management simpler, better, and faster

There are a lot of software solutions out there to help you plan and execute facility management. Let’s walk through some of the better options out there so that you can make an informed decision about the one that’s right for you, your team, and your organization.  Don’t be worried if you do not see a clear difference between some of them at first sight. They do have a lot of overlapping features.

As with every other software on this list, different software vendors offer different levels of functionality. It makes more sense to look at the exact features you need than to focus on labels like IWMS, CMMS, or CAFM.

CMMS (Computerized Maintenance Management System)

A CMMS is at the top of the list.  Using a CMMS like Limble can be a great way to help keep all your ducks in a row. You’ll be able to track workflows, report on repairs, easily keep an eye on the budget and find ways to cut costs if you need to.  Imagine how great it will be to be called into a meeting last minute and easily give feedback on the FM team’s work. It makes maintenance vastly easier by streamlining and automating all maintenance processes.  Use your CMMS to: 

• Streamline your work order management
• Schedule and monitor all maintenance work
• Track spare parts inventory and forecast future inventory needs
• Effectively manage your assets
• Easily manage vendors and contracts
• Run any report you need or can imagine from your custom dashboards 

CAFM (Computer-Aided Facilities Management)

CAFM is software that helps facility managers execute core functions. CAFM technology combines business administration, behavioral science, architecture, and engineering concepts to optimize the functioning of your organization. It can be helpful to think of computer-aided facility management as a comprehensive commercial facility or building maintenance tool with many different facets and functions. It uses several different models to cover:

• information management
• maintenance management 
• physical building administration
• floor plans and space management
• leasing and real-estate management
• asset lifecycle management
• and administrative support

The core difference between a CAFM and CMMS is that a CAFM focuses on the physical space and things. In contrast, a CMMS focuses on the management of maintenance.  If you need more from your CAFM, you can combine it with a CMMS to give your team more support. 

EAM (Enterprise Asset Management) software

EAM software sits somewhere in between CMMS and CAFM. It gives a broader range of features than a CMMS, but most of them are focused on the maintenance department:

• work management
• labor management
• MRO inventory management
• contract management
• financial management
• reporting and analytics 

Enterprise asset management can be used by production-oriented organizations to plan, optimize, execute, and track all maintenance activities with the associated priorities, skills, materials, tools, and cost. And EAM software is designed to support that idea.

IWMS (Integrated Workplace Management System)

The easiest way to describe it is that it usually offers everything you can find in a CAFM software, and then some. You can think of it as an all-in-one solution for facilities management. Aside from the CAFM features listed above, IWMS can also include:

• flexible real estate and lease management features
• project management features
• environmental management features
• mailroom management features
• visitor management features

On its own, this software solution would be lacking. But when paired with another more comprehensive tool, implementing an IWMS has the potential to be powerful.

BMS/BAS/BEMS 

Let’s first explain the acronyms:

• BMS = building management system
• BAS = building automation system
• BEMS = building energy management system

BMS and BAS are often used interchangeably because they serve the same purpose. They combine hardware and software solutions to control different building systems like lighting, heating, HVAC, access control, etc. They can also be used to measure the performance and energy consumption of HVAC systems and other assets.  Facility managers have to keep an eye on energy consumption because it accounts for a big chunk of their facility’s operational costs. Building energy management systems help them measure energy consumption across the whole facility and find problematic systems and assets.  While BEMS and BMS can come together, they are usually standalone systems, implemented separately. That being said, they do work very well together. BMS/BAM primary function is to control building systems and assets. BEMS’ primary role is to collect and analyze energy consumption data (it can track everything from device electricity usage to water, gas, and steam consumption). Want to know more? Here is an article that discusses the differences between these systems in more detail. 

Building security systems

Security systems also come in different forms and offer a lot of diverse functionalities. You can use them to detect risks, record incidents, and perform risk analysis. They offer visitor management features ranging from facial recognition and badge scanning to video surveillance and capacity and occupancy tracking. As with most things, different software offers different functions. Rather than looking at the labels, think about the exact features you need and use those to help you decide what’s best for your team and organization. 

Moving your career in Facilities Management forward

Professional development in FM is just as important as it is in any other career. More now than ever, facilities professionals need an evolving set of skills to keep them sharp in a modern workforce.  Consider seeking out further training with online certification and degree programs to keep you competitive in today’s job market.  The International Facility Management Association (IFMA) offers training programs that are widely recognized by employers across the United States that have helped facilities managers get raises, promotions, and move their career forward. (For what it’s worth, Limble’s helped our customers get promotions too).

Facilities Management for today: Why it’s more important than ever

As the world continues to evolve, so does the need for better facility management. People don’t just go to an office with a desk and a chair; they go to a workspace focussed on employee well-being, automation, sustainability and impact, and evolving real estate models.  While all this growth and change occurs, software and other technologies are being developed to optimize building operations and create hyper-connectivity, regardless of where employees are.  Facility management for the modern world is now responsible for our spaces, physical and cyber security, well-being, resource consumption, and risk management. The work you do as a facility manager is vital to our future success.  COVID-19 has further proven the point of how essential it is. Facility management means that you need to be dynamic and flexible enough to install home offices remotely, set up workspaces that promote healthier lifestyles, or give enough space to distance from one another safely. You need to understand your organization’s sustainability requirements and environmental impact and find ways to reduce them.  The demand to be greener, safer, and more cost-effective trickles straight down to facilities management. Your ability to be agile and show your value will help bridge the gap between the C-suite, Finance, and Facilities. (We know you can do it)!

Before you go

We know that facilities management is one of the biggest and most critical roles in any company. You touch every department and more. Without you and your team, buildings could break, the equipment could fail, and employees and customers would be unhappy and at risk. Even though much of your work is behind the scenes, it is the lifeblood that keeps organizations running.  You really are our MVP! Want to know more about Limble CMMS ? Find out how it can support you and the work you do? Get in touch with us to set up a demo or start your free trial .

I am interested, pls whattsapp me 00971558984428

Good presentation. I want to start a career in facility management after retirement from a microfinance bank at 60,what steps do I need to take?

That is a really specific question 🙂 I’d suggest you read the following guide to get you started: https://limblecmms.com/blog/facilities-manager-roles-and-responsibilities/ . Good luck!

Comments are closed.

Request a Demo

• Space Management
• Seating Allocation
• Booking Application
• Request a Demo
• Customer Login
• Space Management Solution
• Seating Allocation And Booking App Solution
• POC’s Booking Application Solution
• Why POC System

How to Develop a Successful Facility Management Plan

Filip is an experienced search engine optimization writer with a demonstrated history of working in the marketing and advertising industry. He specializes in information technology, business management, and finance.

Learn about our

After completing her master's degree in English Language and Literature, Nevena began her full-time editing career in the marketing industry. Before this, she worked as an ESL teacher, translator, and fiction book editor.

Published March 3, 2023.

Facility management refers to planning and overseeing all the physical resources of your organization, such as buildings, equipment, furniture, and more. To ensure good facility management, you first need to create a plan to design, construct, maintain, and upgrade your facilities to maximize their value and achieve your business goals.

A facility management plan is a specific document that outlines the strategies and goals for managing your organization's physical resources.

A successful facility management plan can help you minimize costs and efficiently manage your physical resources. For example, a facility management plan can help in real estate decision-making by providing insight into your planning, design, and space management operations.

What Should You Consider for Your Facility Management Plan?

Developing a good facility management plan is easier said than done, as the factors around it can differ based on your company's goals. Nevertheless, you should consider these universal tips:

Provide Safety and Security

The safety and security of your employees, visitors, and assets should be your top priority when developing a facility management plan. You can achieve your organization's safety goals by implementing access control measures such as key cards, alarm systems, and CCTV cameras throughout the facility.

Another important element of creating a safe and comfortable workspace is adhering to safety regulations such as having fire extinguishers, smoke detectors, and wayfinding maps to exits in case of emergency.

■ Create an efficient wayfinding system with these best practices

Improve Communication

It's essential to ensure open communication between occupants, stakeholders, and other parties involved in your facility management. This can help clarify everyone's objectives and establish an open dialogue so that everyone's informed of any changes or improvements to the facilities.

In addition to boosting employee satisfaction , open communication will also allow your collaborators to express their concerns and doubts so you can address them before they turn into bigger issues.

Ensure Maintenance and Business Continuity

Planning for preventative maintenance, analyzing the elements that need maintenance or repair, creating budgets for these tasks, and preparing for unexpected problems are all key aspects to ensure your operations are uninterrupted.

To plan for maintenance and potential issues, you should consider implementing advanced maintenance management systems to better track and manage your assets. This will help to reduce costs and unexpected breakdowns to keep your business running smoothly.

■ Regular maintenance can allow for better facility management reports 

Optimize Space Utilization

 Space utilization is an important factor to consider when developing a facility management plan because optimizing space usage within your facility can boost employee productivity and reduce costs. Important space usage factors you should consider include:

• Office layout : Choose either an open or closed office layout based on your specific business needs.
• Design choices : Ensure your design creates an inviting environment within your facility while making the most out of the space.
• Eco-friendly spaces : Green workspaces can lower costs with more efficient energy use .
• Furniture and equipment : Make sure these elements are placed in the best positions where employees can easily access them and actually use them.
• Space flexibility : Opt for flexible workspaces that can easily be changed depending on your needs.

Taking these factors into account when calculating your space utilization rate can help ensure all areas of your facility are used to their full potential.

■ Ensure maximum space utilization using these key metrics 

4 Basic Steps for a Successful Facility Management Plan

If you're not sure where to start, take a look at these four basic steps for creating a successful facility management plan:

1. Identify the Current State of the Facility

By identifying the current state of the facility first, you create a baseline from which you can make decisions about budgeting, repair needs, and space utilization. It also provides insight into areas that need improvement, enabling you to focus your efforts on these critical points and maximize efficiency.

2. Prioritize Objectives

When developing a facility management plan, it's important to ensure it aligns with your overall business objectives to prevent wasting resources and halting progress.

If your business goal is to become more energy efficient, any facility improvements you make should reflect this goal. This could involve changes to the facility layout and implementing green workspaces.

By prioritizing your objectives, you can make sure your organization's efforts are focused on the right areas and your facility management contributes to your goals.

■ Improve your facility management with these essential KPIs 

3. Create and Implement a Plan

Once you've identified your objectives, you should conceive an actionable plan and set achievable timeframes.

If one of your goals is to switch to an open layout due to the benefits of open-space offices , your plan should outline the design choices, budgeting requirements, and furniture and equipment placement while specifying the expected completion dates for each point.

Once you have a plan in place, you should communicate it to everyone involved so they can perform their duties mindfully and with clear direction, thereby maximizing productivity and ensuring your objectives are met within the established timeline.

4. Monitor the Plan

Regularly monitoring the facility management plan is important to identify any shortcomings or inefficiencies and establish a success rate. This should involve regular check-ins with employees, creating maintenance reports, and changing the layout as necessary.

These steps will ensure that you can identify any issue early on and take corrective action quickly and efficiently while allowing for better decision-making in the future.

Automated Software Can Assist In Your Success

POC System: Office Space Management

When implementing a facility management plan, automated software like POC System's Space Management Software can be an invaluable asset. This useful tool offers the following features:

• Visual simulations to help with floor plan design 
• Streamlined booking of desks and meeting rooms
• Creating custom seating plans for maximum employee productivity
• Advanced analytics to evaluate the success of your objectives
• Real-time tracking of your current seating and office layout

These features can provide you with the tools you need to maximize space utilization and ensure your objectives are met within the set timeline.

4.7/5 (245 reviews)

Easily Create a Successful Facility Management Plan

Creating a successful facility management plan that aligns with your overall business objectives can be highly beneficial to your organization's bottom line. This process should involve prioritizing objectives, creating and implementing an actionable plan, and regularly monitoring the facility space usage.

While this can be a daunting task, automated software like POC System's Space Management Software can make it a whole lot easier. With this tool, you can quickly develop an effective facility management plan and ensure your resources are being used in the most efficient manner.

■ Book a demo to explore POC's features

Related Articles

Filip Dimkovski

Efficiency at Your Fingertips: 4 Benefits of an Office Automation System

Benefits of Space Utilization Analysis in Office Real Estate

How to Easily Implement Hybrid Working in Big Companies

Maximize Space Efficiency in Office Real Estate Portfolios

Improve Office Space Efficiency With Real-Time Data

Related posts, how to measure density for better space utilization.

Learn how to optimize your office space and implement a more efficient design by measuring the density of your office.

Utilization Rate Calculation: Get the Most Out of Your Space

An office that's not being used efficiently can waste valuable space, money, and energy. Learn how to improve the space utilization rate for your office.

Discover how to gather real-time data from your office real estate and how to analyze it to improve your office space efficiency.

Rearrange Your Office Space With Space Utilization Data

Think your office space needs some work? Find out how to use space utilization data to arrange your office for maximum productivity and efficiency.

From Concept to Reality: How to Make a Floor Plan That Works

A well-designed office can be beneficial for your business, but it's difficult to get it right. Here's how to make a great floor plan for a productive office.

How to incorporate plants into our work environment?

Hey, I am the office admin for a software company. Our employees spend a great deal of time in the office in periods around new releases and updates. Some have suggested we could make t

Create a Good Facility Management Report in No Time

Looking to create a good facility management report? Use these tips to get the job done and provide your business with all the required insights.

Discover the benefits of using space utilization analysis in office real estate to aid your decision-making and boost your company's bottom line.

How to Determine the Right Amount of Office Space per Employee

Providing each employee with enough office space is essential for maximizing efficiency. Learn to determine the right amount and optimize space utilization.

Space Utilization: From Calculation to Optimization

Improving your space utilization can help you realize the full potential of your office space. Learn the steps and benefits of boosting your space utilization.

Facilities Management Plan Template

What is a Facilities Management Plan?

A Facilities Management Plan outlines processes and procedures for managing a facility. It outlines strategies and goals for improving the efficiency, safety, and security of a facility and the people who work in it. It is important for facilities managers and teams to have a plan in place to ensure that the facility is managed in the most effective and efficient way possible.

What's included in this Facilities Management Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Facilities Management Plan template for?

This Facilities Management Plan template is designed for facilities managers and teams in all industries who are looking for a way to create a plan for managing their facilities. This template provides a structure for creating a plan that can be adapted to fit the needs of any facility. It can also help facilities managers and teams stay organized and on track to achieving their goals.

1. Define clear examples of your focus areas

Focus areas are the primary goals that the Facilities Management Plan is designed to achieve. These focus areas can vary depending on the goals and needs of the facility, but some common examples include enhancing facility management, optimizing maintenance processes, and enhancing facility security. It is important to clearly define these focus areas as they will serve as the foundation for the rest of the plan.

2. Think about the objectives that could fall under that focus area

Objectives are the specific goals that need to be achieved in order to accomplish the focus area. For example, under the focus area of enhancing facility management, objectives could include improving communication between Facility Managers and staff and increasing the efficiency of facility management. Objectives should be specific and measurable.

3. Set measurable targets (KPIs) to tackle the objective

KPIs, or Key Performance Indicators, are measurable targets that are designed to track the progress of an objective. For example, an objective of increasing the efficiency of facility management could have a KPI of decreasing the time spent on daily tasks. KPIs should be measurable, achievable, and relevant to the objective.

4. Implement related projects to achieve the KPIs

Projects, or actions, are the steps that need to be taken in order to achieve the KPIs. For example, if the KPI is to decrease the time spent on daily tasks, a project could be to implement a facility management software. Projects should be specific and achievable.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade Strategy Execution Platform helps teams create, execute, and measure their strategic plans. Cascade makes it easy to create a plan and keep track of progress, and helps teams identify areas for improvement and take action quickly. With Cascade, teams can see faster results from their strategy.

Facility Management Strategic Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Effective facility management is crucial for organizations to ensure smooth operations and maximize the use of resources. But developing a comprehensive strategic plan for facility management can be a daunting task. That's where ClickUp's Facility Management Strategic Plan Template comes in!

With ClickUp's template, facility managers and management teams can:

• Set clear goals, objectives, and strategies for facility management
• Streamline communication and collaboration among team members
• Track progress and make data-driven decisions to optimize facility utilization

Whether you're responsible for maintaining a single building or managing a portfolio of facilities, ClickUp's Facility Management Strategic Plan Template will help you streamline your processes and achieve your facility management goals. Start planning for success today!

Benefits of Facility Management Strategic Plan Template

When using the Facility Management Strategic Plan Template, you can experience a range of benefits, including:

• Improved efficiency and cost-effectiveness in facility operations and maintenance
• Increased productivity and satisfaction among facility users and occupants
• Optimal utilization of resources and assets, leading to reduced waste and improved sustainability
• Enhanced safety and compliance with regulations and standards
• Clear communication and alignment of facility management goals and strategies with overall organizational objectives

Main Elements of Facility Management Strategic Plan Template

Streamline your facility management strategic planning with ClickUp's Facility Management Strategic Plan Template.

Key elements of this template include:

• Custom Statuses: Track the progress of different tasks with statuses such as Cancelled, Complete, In Progress, On Hold, and To Do, ensuring transparency and accountability throughout the planning process.
• Custom Fields: Utilize 8 custom fields like Duration Days, Impact, Progress, and Team Members to capture relevant information about each task, enabling you to make informed decisions and track the impact of your strategic plan.
• Custom Views: Access 6 different views, including Progress, Gantt, Workload, Timeline, Initiatives, and Getting Started Guide, to visualize and manage your facility management projects in a way that suits your needs.
• Collaboration Tools: Leverage ClickUp's collaboration features like assigning team members, adding project leads, and organizing tasks into departments to ensure effective communication and coordination within your facility management team.

How to Use Strategic Plan for Facility Management

When it comes to managing facilities efficiently and effectively, having a strategic plan in place is crucial. Here are five steps to help you make the most of the Facility Management Strategic Plan Template in ClickUp:

1. Assess the current state

Before diving into the strategic planning process, it's important to assess the current state of your facilities. This includes evaluating the condition of the physical infrastructure, identifying any maintenance or repair needs, and analyzing the utilization of space.

Use the Dashboards feature in ClickUp to gather data and visualize key metrics related to your facilities.

2. Define your goals and objectives

Next, determine the goals and objectives you want to achieve through your facility management strategic plan. These could include improving energy efficiency, enhancing safety measures, optimizing space utilization, or reducing maintenance costs.

Create tasks in ClickUp to outline specific goals and assign them to the relevant team members.

3. Develop strategies and action plans

Once you have defined your goals, it's time to develop strategies and action plans to achieve them. This may involve implementing preventive maintenance programs, investing in smart building technologies, optimizing workflows, or streamlining procurement processes.

Use the Gantt chart feature in ClickUp to create a visual timeline and allocate tasks to team members based on priority and dependencies.

4. Assign responsibilities and resources

To ensure the successful implementation of your facility management strategic plan, it's important to assign responsibilities and allocate necessary resources. Identify the team members or departments responsible for each strategy or action plan, and provide them with the resources they need to execute their tasks effectively.

Utilize the Workload view in ClickUp to manage and balance workloads across your team, ensuring that everyone has a clear understanding of their responsibilities.

5. Monitor progress and make adjustments

Once your facility management strategic plan is in motion, it's crucial to regularly monitor progress and make adjustments as needed. Keep track of key performance indicators, such as energy consumption, maintenance costs, and customer satisfaction, and compare them against your defined goals and objectives.

Set up Automations in ClickUp to receive automated notifications and reminders for progress updates, and use the Dashboards feature to visualize real-time data and identify areas that require attention.

By following these five steps and utilizing the Facility Management Strategic Plan Template in ClickUp, you can streamline your facility management processes, improve efficiency, and achieve your desired outcomes.

Get Started with ClickUp’s Facility Management Strategic Plan Template

Facility managers and management teams can use this Facility Management Strategic Plan Template to create a comprehensive roadmap for effectively managing and maintaining facilities.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a strategic plan for facility management:

• Use the Progress View to track the progress of each task and ensure that the strategic plan is on track
• The Gantt View will help you visualize the timeline and dependencies of each task in the plan
• Use the Workload View to balance the workload and resources among team members
• The Timeline View will provide a clear overview of the project timeline and milestones
• Use the Initiatives View to list and prioritize key initiatives and projects within the plan
• The Getting Started Guide View will provide step-by-step instructions and guidance for implementing the strategic plan
• Organize tasks into five different statuses: Cancelled, Complete, In Progress, On Hold, To Do, to track the progress and status of each task
• Update statuses as you complete tasks to keep stakeholders informed of progress
• Monitor and analyze tasks to ensure the successful implementation of the strategic plan

Related Templates

• Workforce Development Strategic Plan Template
• Elementary School Strategic Plan Template
• Grocers Strategic Plan Template
• Improving Productivity Strategic Plan Template
• Claim Adjusters Strategic Plan Template

Template details

Free forever with 100mb storage.

Free training & 24-hours support

Serious about security & privacy

Highest levels of uptime the last 12 months

• Product Roadmap
• Affiliate & Referrals
• On-Demand Demo
• Integrations
• Consultants
• Gantt Chart
• Native Time Tracking
• Automations
• Kanban Board
• vs Airtable
• vs Basecamp
• vs MS Project
• vs Smartsheet
• Software Team Hub
• PM Software Guide

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

What Is Facility Management and When Should a Business Start Thinking About It? Maintenance cost escalating? Trouble tracking assets? Who ya gonna call? Maybe facility management is for you.

By Bryan Christiansen • Apr 19, 2019

Opinions expressed by Entrepreneur contributors are their own.

When you're running a business so small it fits into one tiny office, facility management is not something worth losing sleep over. But as your business grows, that one office of yours may turn into a building and a single machine transform into a production line.

Before you know it, you'll have a bunch of assets that need to be taken care of on an ongoing basis.

Related: How can entrepreneurs effectively manage their business inventory?

This is where facility management enters the scene: It ensures you a well-organized environment in which both your business and employees can thrive.

Facility management: the basics

At its core, facility management is a profession that focuses on the efficient maintenance of an organization's buildings and equipment in a way that offers the best value to the building owner and users alike.

It's also a multi-disciplinary support service that can be applied in any niche or industry. Among its many applications is that it can ensure safety, functionality and comfort in the built environment as well as compliance with existing legal requirements.

In North America, the facility management market is experiencing increased patronage from a wide variety of businesses: The Transparency Market Research 2017 report estimated a compound annual growth rate of 13.6 percent between 2017 and 2024.

Still, if you have never used professional facility management services before, you may be wondering if, or when, it should become the next step for your business. Here are the signs that it's time for a business to start thinking about adopting facility management:

1.Your maintenance cost is escalating.

It's an accepted fact that maintenance costs money, but these costs should not run down your business.

When you notice that repairs and servicing costs are rising inexplicably every year, some common money-wasters to check include abuse or under-utilization of existing equipment, wasteful stocking of inventory and spare parts and unused office space. Wired reported in 2013 that over the previous 30 years, the United States had added about 2 billion square feet of office space to its existing stock, which is not something today's highly mobile workforce needs. Having more space to maintain automatically increases your maintenance costs.

Another factor that quickly adds to your bottom line is poorly managed maintenance personnel and other staffing expenses. Over a 30-year period, while the operating and maintenance costs of a building account for 6 percent of total costs, personnel costs alone account for a staggering 92 percent, according to a British study reported on by Researchgate.

If you're running a system where you frequently call on independent plumbers, electricians, heating engineers and other technicians , the costs quickly pile up. Not to mention the fact that engaging these contractors also carries the risk of quality control issues, especially if:

• You have a very large facility.
• You are managing multiple locations.
• You have no real way to track whether tasks are being carried out properly.

One of our clients, Joe Romero from Myriad Genetics, had this exact problem. He had been hired as a facility manager and noticed that his predecessor had been tracking everything manually, which meant the company had no clue whether maintenance tasks were actually being completed.

When Romero implemented facility management software, he could see whether outside contractors were doing the work they were billing for. Long story short, he had to replace his primary maintenance vendor because he found out that that vendor was not doing the work he had been contracted to do.

Related: Top 3 Upcoming Trends in the Indian Facility Management Industry

Because of these problems, some businesses form an internal team or look for a single vendor to take over their back-office responsibilities. A good example is GoDaddy, which was able to realize 10 percent cost savings by employing integrated facility services . Another interesting note in that success story was how one reason GoDaddy went with integrated facilities services provider ISS was because ISS was already operating in all geographical regions GoDaddy was planning to expand to.

2. You're having difficulties in asset management and tracking.

Knowing that over 40 percent of small business track their assets manually or don't track them at all is concerning. While this practice causes minimal problems early on, real issues will start popping up as soon as you start to scale.

Facility management can help you manage and track assets and inventory better if you are experiencing any of the following:

• Asset register is inadequate or doesn't exist at all.
• It's becoming increasingly difficult to track the assets owned by the company.
• The organization cannot confidently declare its asset position.
• The current condition of any asset and its location is unknown.
• If any equipment, machine or tool were to go missing, no one would notice.
• You keep buying replacements for equipment only to find out later that you already had them.

Stanley Healthcare reported that a mobile solution for inventory tracking can reduce search times for needed equipment by 90 percent, as well as help a company realize significant cost savings by avoiding unnecessary inventory purchases (improving inventory invisibility) and equipment loss (shrinkage control).

3. You're seeing a rising backlog of uncompleted maintenance tasks.

Multiple research sources, like this one from Steelcase Global, confirm how employee engagement positively correlates with workplace satisfaction. In other words, happy employees are productive employees. Without a designated facility management service, however, it is only a matter of time before they become frustrated and distracted because of leaking taps, broken light bulbs or an air conditioning unit in the staff canteen that isn't working properly.

Even if these tasks are instructed to call appropriate services, these tasks are often put off untll later -- so they start piling up. Soon, the business is faced with a considerable deferred maintenance list and very little hope of resolving everything. Research from Rick Biedenweg and his colleagues at Pacific Partners Consulting Group discovered that every $1 deferred in maintenance costs results in $4 of capital renewal needs in the future, so this is something you definitely want to avoid.

Preventing the creation of a backlog of uncompleted maintenance tasks is just one of many responsibilities of a facilities manager .

4. Recurring safety issues

Recurring safety issues are an indication that you are operating in a potentially dangerous environment. The simple truth is that improving safety at your facility is not a matter of choice -- it is required by law. Every year, OSHA issues over 40 000 citations , with the most common repeated offenses being:

• lack of personal protective equipment (PPE)
• absence of a hazard-communication program for chemicals
• failure to maintain logs of accidents and injuries
• lack of safety training

Facility management takes these factors into accounts and can help you reach and maintain the highest levels of operational safety using a combination of technology and human expertise and following these extensive Environmental, Health, and Safety Guidelines .

Related: 5 HR Strategies To Promote Employee Health And Safety

When it's time for a change

If any of the above situations describes the current situation in your business, it's clear that time and valuable resources are being wasted. It doesn't matter if you are going to form an in-house facility management team or outsource everything to an independent contractor. The point is that you understand how facility management can result in significant cost savings, improved safety performance and better overall service delivery for your company.

Founder and CEO, Limble CMMS.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

• James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building
• They Designed One Simple Product With a 'Focus on Human Health' — and Made $40 Million Last Year
• Lock Younger Americans Don't Necessarily Want to Retire in Florida — and the 2 Affordable States at the Top of Their List Might Surprise You
• I Tried Airchat , the Hottest New Social Media App in Silicon Valley — Here's How It Works
• Lock This Side Hustle Is Helping Farmers Earn Up to $60,000 a Year While Connecting Outdoor Lovers With Untouched Wilderness
• Are Franchises in the Clear After the Expanded Joint Employer Rule Was Struck Down? Industry Experts Answer 2 Critical Questions About What's Next.

Most Popular Red Arrow

Most people have no business starting a business. here's what to consider before you become an entrepreneur.

You need to find the right business opportunity at the right time and take the right steps to beat the odds.

AI vs. Humanity — Why Humans Will Always Win in Content Creation

With the proliferation and integration of AI across organizations and business units, PR and marketing professionals may be tempted to lean into this new technology more than recommended.

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Who You Hire Matters — Here's How to Form a Team That's Built to Last

Among the many challenges related to managing a small business, hiring a quality team of employees is one of the most important. Check out this list of tips and best practices to find the best people for your business.

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.

Successfully copied link

• Create Labels
• FIND LABELS BY:
• Warehouse Rack Labels Durable, fully customized label options for every warehouse rack system, including long-range scanning.
• Warehouse Floor Label Kits The most durable bar code labeling solutions available, with permenant adhesive or mechanical attachment options.
• Warehouse Signs Browse location, identification and safety signage for both indoor and outdoor installation.
• Warehouse Cold Storage Check out labels and signs that can be installed in refrigerated or freezing warehouse environments as cold as -20°F.
• Bulk Storage Labels Designed to withstand abuse from forklifts and the inclement conditions of both warehouse environments and the outdoors.
• Outdoor Solutions Explore labels and signs engineered to last in even the outdoor spaces.

Maximize efficiencies across your warehouse with a customized warehouse labeling system.

When setting up a new Warehouse Management System (WMS), you want rack labels printed correctly and ready for easy, accurate installation. Get the most out of your WMS investment with durable, customizable warehouse labels and signs. Need help? Get in Touch ›

Explore Warehouse Management ›

• Utility & Energy Maintenance Tracking Explore durable asset tracking tag options for utilities and energy applications.
• Telecom Assets Explore telecommunication asset tracking options.
• Government & Civil Assets Explore asset tags designed for permanent attachment to government assets such as traffic signs, equipment and infrastructure.
• Manufacturing Assets Explore asset tags designed to last in harsh manufacturing conditions.

Track and maintain your assets to keep operations running smoothly.

Durable asset tags connect your equipment with your CMMS or FM software package. Set up your program correctly the first time with properly designed tags that last in your conditions and integrate properly with your software application(s). Need help? Get in Touch ›

Explore Maintenance Management ›

• Leak Detection & Repair (LDAR) Explore asset tags designed for fugitive emissions program asset identification and tracking.
• Traffic Sign Retroreflectivity (RRF) Explore durable asset tags for tracking traffic signs and other infrastructure assets.
• Gas Cylinder Testing Increase the accuracy of cylinder tracking for testing, certification and delivery.
• Cable Tracking & Testing Labels designed specifically for cable or hose applications requiring a durable bar code label.

Automate and error-proof your asset inspection process.

Uniquely and permanently identify equipment your teams need to inspect or maintain in the field to automate inspections and virtually eliminate the chance inspections are done on the wrong asset. Need help? Get in Touch ›

Explore Inspection & Audit Management ›

• Commercial Real Estate Explore asset identification and tracking labels for commercial real estate
• Education Explore asset tags designed for educational facilities and university property tracking.
• Government & Civil Assets Explore asset tags designed for permanent attachment to government assets.
• Healthcare Explore asset tags for hospital facilities, medical device tracking and sterile assets.
• Property Identification Tags Explore options for easy identification and tracking of property assets.
• Retail Explore asset identification and tracking labels for the retail market.
• Asset Management Control Portal Easily standardize asset management across your entire organization with a dedicated online asset label portal.

Work In Process Asset Tracking Tags.

Explore asset tags designed for tracking work-in-process items during the manufacturing process. Need help? Get in Touch ›

Explore Manufacturing WIP Tracking ›

Ensure compliance with any asset management standard.

Many government, military and original equipment manufacturers (OEMs) require their suppliers to mark in accordance with a specification or standard. Need help? Get in Touch ›

Explore Standards Compliance Marking ›

• Sunlight/UV & Weather Explore asset tags certified for installation in outdoor environments exposed to sunlight, weather and heat.
• High Temperatures Explore heat-resistant labels that withstand temperatures up to 1,200°F.
• Chemical Resistance Explore labels resistant to degredation from exposure to a wide variety of solvents, cleaners and other chemicals.
• Saltwater Explore asset tags for use in marine operating conditions exposed to saltwater spray.
• Abrasion & High Traffic Explore asset tags for use in abrasive conditions such as harsh industrial, desert or high-traffic applicaitons.

Get continuous asset tracking, even in the harshest conditions.

See why asset managers trust Metalphoto photosensitive anodized aluminum in applications where permanent identification is critical. Need help? Get in Touch ›

Harsh Environment Asset Tracking ›

Security Labels and Tamper-Evident Barcode Labels.

Explore tamper-evident and anti-counterfeit asset tracking barcode labels. Need help? Get in Touch ›

Explore Security Labels ›

Consumer Product Registration & Tracking Labels.

Durable, QR code labels that enable product tracking and easy product registration for consumers. Need help? Get in Touch ›

Explore Product Registration & Tracking ›

• Industrial Metal Barcode Labels, Tags and Stickers Asset identification with tracking options featuring unmatched durability for industrial environments.
• Durable Labels and Tags for Harsh Industrial Environments Explore barcode labels designed for permanent tracking of assets installed in harsh operating conditions.
• Firearm Tracking Explore durable firearm tracking options that increase accountability and enable compliance.
• Gas Cylinder & Tote Tracking Explore barcodes designed to permanently track gas cylinders and chemical totes.
• Utility Asset Labels Explore durable asset tracking tag options for electric, gas and water utilities.

On-Demand Metal Label Manufacturing System.

When you need to produce labels or nameplates in real-time, Camcode’s all-in-one On-Demand Laser System provides you with everything you need create them quickly and easily. Need help? Get in Touch ›

Explore On-Site Label Making ›

• UID Labels Explore tracking options that comply with Unique Item Identification (UID) standards such as MIL-STD-130 (USA) and STANAG 2290 (NATO).
• On-Demand Metal Label Manufacturing System Produce durable, ready-to-apply barcode labels where and when needed with Camcode’s On-Site/On-Demand Laser Marking System
• RFID Labels Explore radio-frequency identification (RFID) asset tags.

Labels that meet defense standards and last the life of your assets.

Track property, manage preventive maintenance, reduce operational costs, and more with UID labels that meet an array of government, industrial and military specifications including MIL-STD 130. Need help? Get in Touch ›

Defense & Law Enforecement Solutions ›

Label and track your education organization’s property with durable barcode labels.

Serialized asset tags that have the durability to last the life of your education items. Our barcode labels integrate seamlessly into the leading education asset tracking software solutions and virtually eliminate errors caused by manual data collection, ensuring accurate information. Need help? Get in Touch ›

Education Solutions ›

• Utility Explore durable asset tracking tag options for utility assets and equipment.
• Energy Explore durable asset tracking tag options for assets and equipment in power generation applications.
• Gas Utility Explore durable asset tracking tag options for natural gas production and distrbituion assets and equipment.
• Oil and Gas Explore durable equipment tracking tag options for oil and gas exploration, production and distribution.
• Bar Code Tags for Utility Pole Applications See how barcoded utility pole tags can automate mainteance, inspection and joint-use tracking.

Efficient asset management systems begin with Camcode bar code labels.

From meter tags used for meter maintenance systems to pole tags used to track inspection and treatment, utilities rely on Camcode’s highly durable anodized aluminum bar code labels. Need help? Get in Touch ›

Utility & Energy Solutions ›

• Government & Civil Explore asset tags designed for permanent attachment to government assets such as traffic signs, equipment and infrastructure.

Improve tracking and minimize risk with labels that last the life of your assets

Camcode asset tags are designed for permanent attachment a wide variety of government fixed-asset inventory items such as office equipment to outdoor street signs. Need help? Get in Touch ›

Government & Civil Solutions ›

• Medical Device Tracking / UDI Explore asset label options the FDA’s Unique Device Identification (UDI) rule for medical devices.

Durable asset tracking labels for the healthcare industry.

With durable medical asset tracking labels, you’ll reduce replacement costs, integrate seamlessly with asset management solutions, and eliminate manual data entry errors. Need help? Get in Touch ›

Healthcare Solutions ›

Reduce replacement costs and integrate seamlessly with durable asset tracking labels.

Construction, farming and mining equipment can see a lot of abuse. When tracking heavy equipment and its components, select an asset tag that is durable enough to last (and stay affixed) for the life of the equipment/component. Need help? Get in Touch ›

Heavy Equipment Solutions ›

• Manufacturing Explore asset tags designed to last in harsh manufacturing conditions.
• Manufacturing WIP Tracking Explore asset tags designed for tracking work-in-process items during the manufacturing process.

Labels that last the life of your manufacturing assets.

Manufacturers discovered long ago that Camcode asset tags and nameplates offer extremely durable asset identification and can be delivered quickly and cost-effectively. Need help? Get in Touch ›

Manufacturing Solutions ›

• Shipboard & Marine Explore asset tags for use in marine operating conditions exposed to saltwater spray.
• Laser-Markable Label Blanks Explore pre-fabricated, adhesive backed laser-markable metal blanks to use with your CO2 or fiber marking laser.

Modernizing shipboard marking.

Camcode’s broad experience in the identification products market and with ship marking are unique in the industry. Camcode produces millions of custom identification products every year and has traveled to over 250 sites worldwide to assess and mark equipment items. Need help? Get in Touch ›

Shipboard & Marine Solutions ›

Automate and error-proof your asset tracking processes.

Camcode barcode pole tags virtually eliminate errors caused by manual data collection, ensuring accurate information. This improves the productivity and effectiveness of a telecommunications company by reducing entry errors in the field. The results are increased revenue, lower expense and better management of risk and NESC requirements. Need help? Get in Touch ›

Telecommunications Solutions ›

• Outdoor Warehouse Solutions Explore labels and signs engineered to last in even the outdoor spaces.

Make it easy for workers to navigate the facility, cut down on travel time & congestion in aisles.

You can streamline picking & stocking processes and remove the guesswork of identifying the proper storage locations for inventory. Need help? Get in Touch ›

Warehouse & Logistics Solutions ›

Durable labels for sunlight and UV exposure.

Standard asset labels don’t surive extended outdoor exposure. For assets exposed to outdoor conditions, Camcode recommends Metalphoto® photosensitive anodized aluminum. Need help? Get in Touch ›

Weather & Sunlight Resistant Solutions ›

Labels with ultimate heat-resistance.

Anodized aluminum face stock labels that are trated with our proprietary XHT process to withstand exposure to temperatures up to 1200°F. Need help? Get in Touch ›

Ultra-High Temperature Resistant Solutions ›

Camcode offers several chemical resistant asset label materials.

Whether it’s hydraulic fluid, jet fuel, gasoline or a wide variety of industrial solvents, cleaners and acids, Camcode has a variety of asset tracking label materials that will remain scannable after prolonged chemical exposure. Need help? Get in Touch ›

Chemical Resistant Solutions ›

Proven saltwater resistance for asset tracking in marine applications

Asset tags used in ocean environments must be resistant to corrosion from salt spray. Camcode has worked with offshore oil rigs, shipping containers, Naval vessels, and ports around the world to tag and track assets deployed on or near the ocean. Need help? Get in Touch ›

Saltwater Resistant Solutions ›

Labels with engineered, proven abrasion resistance.

Asset tags in harsh industrial, desert or high-traffic public environments can be exposed to abrasive conditions that will render most standard asset tags unreadable. Select an asset tracking label that is proven to survive abrasive conditions. Need help? Get in Touch ›

Abrasion Resistant Solutions ›

Trusted for over 50 years by The US Armed Forces, NASA, Caterpillar and Boeing.

The most durable printed aluminum substrate available, ideal for prolonged exposure to the harshest outdoor environments. The durability for which Metalphoto is known is the result of a unique manufacturing process in which a silver halide image is embedded within the sapphire-hard, anodic layer of the aluminum. Need help? Get in Touch ›

Explore Metalphoto Products ›

DuraBlack® durable laser-markable aluminum for CO2 lasers.

Label blanks made of the most durable CO2 laser markable aluminum substrate on the market, ready to mark onsite and available with several attachment options. Need help? Get in Touch ›

Explore DuraBlack Products ›

AlumaMark® CO2 laser-markable aluminum.

Label blanks made of the only CO2 laser-markable aluminum that produces black graphics on a natural background. Available with several attachment options. Need help? Get in Touch ›

Explore AlumaMark Products ›

Teflon™ coated Metalphoto® barcode labels.

Camcode’s Metalphoto with Teflon is perfect for applications that require resistance to paint (including CARC) or contact with strong acids or caustics. Need help? Get in Touch ›

Explore Teflon Coated Products ›

Metalphoto XHT (Extra High Temperature) labels.

Anodized aluminum face stock labels that are trated with our proprietary XHT process to withstand exposure to temperatures up to 1200°F. The photographic-quality bar code and graphic images are sealed within the anodic layer of the aluminum, creating a very durable, high-quality and temperature-resistant metal asset tag. Need help? Get in Touch ›

Explore XHT Metalphoto Products ›

AlumaMark® BlackPLUS™ laser markable aluminum.

AlumaMark BlackPLUS is the most durable YAG/Fiber laser-markable aluminum on the market. This label is constructed of aluminum with an inorganic black colorant with satin finish, displaying silver graphics on a black background. Need help? Get in Touch ›

Explore AlumaMark® BlackPLUS™ Products ›

304 alloy or 316 alloy stainless steel.

Designed specifically for applications requiring resistance to frequent cleaning with strong caustics, such as food processing, medical, laboratory, chemical, textile, petroleum and marine environments. Need help? Get in Touch ›

Explore Stainless Steel Products ›

Brass labels and tags with a rich luster and striking appearance.

A popular choice for industrial and decorative applications, a robust and malleable metal that performs well in indoor and outdoor environments, offering excellent resistance to saltwater, corrosion, tarnish, chemicals and solvents, as well as extreme temperatures. Need help? Get in Touch ›

Explore Brass Products ›

tesa® Secure™ bar code labels for MIL-STD-130.

These poly-acrylic labels are strong yet flexible in many conditions, and feature UV resistance with a tamper-proof design. Need help? Get in Touch ›

Explore tesa PET Products ›

Premium polyester asset labels.

Durable gloss white polyester labels with permanent pressure sensitive adhesive to clearly mark and identify indoor assets, such as office equipment. Need help? Get in Touch ›

Explore Polyester Products ›

Vinyl asset labels and tags.

Aneconomical plastc label option with superior pliability, performing well for interior labeling applications. Need help? Get in Touch ›

Explore Vinyl Products ›

RFID asset labels and tags.

Radio Frequency Identification (RFID) tags are an ideal asset tracking system in certain applications, however before investing, consider the functionality, durability and security issues of RFID. Need help? Get in Touch ›

More About RFID ›

Metalphoto® is field proven to last over 20 years and meet the most demanding specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including MIL-STD-130 for Department of Defense UID data matrix bar code applications. Need help? Get in Touch ›

View All Certifications & Specifications ›

Federal Specification GG-P-455B(3)

This specification covers the requirements for photosensitive anodized aluminum sheets and foils. Need help? Get in Touch ›

View the Certification ›

Military Standard 130 (MIL-STD-130)

One of many standards that the U.S. Government has developed to guide individuals and companies within the DoD and outside the DoD on uniform engineering and technical requirements for military-unique or substantially modified commercial processes, procedures, practices, and methods. Need help? Get in Touch ›

Military Standard 130 Overview ›

Standardization Agreement (STANAG) 2290

Provides details on both the construction of the UII and the marking of items with a UII. Need help? Get in Touch ›

STANAG 2290 Overview ›

Underwriters Laboratories (UL) UL PGGU2

Provides details on the viability of using Metalphoto for marking and labeling system material components. Need help? Get in Touch ›

Metalphoto® meets Lockheed Martin UID specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including Lockheed Martin UID specifciations. Need help? Get in Touch ›

View Lockheed Martin Certifications & Specifications ›

Metalphoto® meets Boeing industry specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including Boeing Commercial Aircraft Company specifciations. Need help? Get in Touch ›

View Boeing Certifications & Specifications ›

Metalphoto® meets Honeywell industry specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including Honeywell, Inc. industry specifciations. Need help? Get in Touch ›

View Honeywell Certifications & Specifications ›

Metalphoto® meets BF Goodrich aerospace specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including BF Goodrich aerospace specifciations. Need help? Get in Touch ›

View BF Goodrich Certifications & Specifications ›

Metalphoto® meets SAE specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including SAE industry specifciations. Need help? Get in Touch ›

View SAE Certifications & Specifications ›

Metalphoto® meets NASA identification specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including NASA identification specifciations. Need help? Get in Touch ›

View NASA Certifications & Specifications ›

Metalphoto® meets CSA identification specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including Canadian Standard Association (CSA) identification specifciations. Need help? Get in Touch ›

View CSA Certifications & Specifications ›

Metalphoto® meets NATO identification specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including NATO identification specifciations. Need help? Get in Touch ›

View NATO Certifications & Specifications ›

Metalphoto® meets US DOD identification specifications.

Metalphoto satisfies wide ranging set of industrial, government and military specifications including US Department of Defense identification specifciations. Need help? Get in Touch ›

View US DOD Certifications & Specifications ›

• Create My Own Labels

What is Facility Management? Core Functions, Challenges, Trends & More

Table of Contents

• What is Facility Management?
• Importance of Facility Management in Business Operations
• The Facility Management Quality Standard: ISO 41001:2018
• Key Components of Facility Management
• Operations and Management Strategies
• Facility Management Challenges
• How to Implement an Effective Facility Management Plan
• Types of Facility Management Software
• Best Practices for Facility Management Regulatory Compliance
• Latest Trends in Facility Management: Challenges & Opportunities
• Looking to the Future of Facility Management
• Frequently Asked Questions

Key Takeaway

• Facility management is integral to ensuring buildings and infrastructure function optimally, impacting productivity, safety, and cost efficiency across sectors. This multidisciplinary field encompasses both hard and soft services, from maintenance to security, waste management, space utilization, and risk management, adapting to diverse building types and industry needs.

Have you ever wondered how businesses keep their facilities running smoothly and efficiently? Facility management plays a crucial role in ensuring that buildings and infrastructure are well-maintained and operating at their best.

Facility management involves overseeing the maintenance, security, and overall operation of a building or facility. It encompasses a wide range of tasks, from managing utilities to coordinating maintenance schedules and ensuring compliance with safety regulations.

Effective facility management is essential for the success of any business. By properly managing facilities, organizations can improve productivity, reduce operational costs, and create a safe and comfortable environment for employees and customers. In this article, we’ll explore the key components of facility management and how it can benefit businesses of all sizes.

Facility management is the coordination of people, processes, and systems to ensure the functionality, comfort, safety, and efficiency of buildings and their supporting infrastructure. This includes managing maintenance , security, cleaning, catering, waste disposal, and other services to support the organization’s core activities.

Facility management is widely used across practically every sector to manage a variety of types of buildings and facilities , such as:

• Office buildings
• Manufacturing plants
• Industrial facilities
• Laboratories
• Retail spaces
• Healthcare facilities
• Education facilities
• Government facilities
• Military facilities
• Restaurants

Significant sectors within facility management include healthcare , government, education, military and defense, and real estate, with real estate being the largest segment , followed by other unclassified industries. Education rounds out the top three and is followed by healthcare, military, and defense.

Government is the smallest sector in global facilities management, but it’s expected to experience progressive growth due to an increased government focus on infrastructure investments. 

The healthcare sector is expected to see considerable growth due to an increase in healthcare facilities​. Additionally, the real estate sector is expected to grow globally due to expansion in construction and development.

Hard Services vs. Soft Services

There are two main categories of facility management services :

• Hard Facility Management Services: These services refer to the physical assets and infrastructure within a facility that require maintenance and management. This can include services related to building systems (e.g., fire systems and plumbing), equipment, utilities (e.g., electrical, HVAC, and lighting), and building maintenance (e.g., replacing damaged doors or windows, roof repair, etc.).
• Soft Facility Management Services: These services refer to the non-physical aspects of facility management that focus on creating a positive and productive environment for occupants. This can include services related to space management, cleaning and waste management, security, landscaping, catering, risk management, and more.

Based on data from Mordor Intelligence: Soft Facility Management Market and Hard Facility Management Market

According to ToolSense , hard services account for more than half of the global market, driven by the continued expansion of the global infrastructure market and the rapidly expanding building and construction services industry. However, soft services are the fastest-growing segment, with a projected CAGR of 5.2% from 2024 to 2029 , compared to a projected 4.22% CAGR for the hard services segment during the same period.

Growth in the soft services segment of facility management is driven by increased investments in energy management, waste management, wastewater management, and similar services. Significant infrastructure development also creates additional demand for soft services. 

Facility management plays a crucial role in the smooth operation and success of any organization, yet it’s often overlooked. From maintaining buildings and equipment to managing space utilization and ensuring compliance with health and safety regulations, facility management is essential for businesses of all sizes.

One key reason facility management is important in business operations is that it helps to create a safe and comfortable work environment for employees by addressing issues such as proper lighting, temperature control, and ergonomic workstations. A well-maintained facility not only reduces the risk of accidents and injuries but also supports effective collaboration, efficiency, and productivity.

Additionally, effective facility management can help businesses save money in the long run. By implementing preventive maintenance programs and energy-efficient practices, facility managers can reduce operational costs and extend the lifespan of equipment and infrastructure.

Regular inspections and repairs can prevent costly emergencies and downtime, ensuring business operations run smoothly without unexpected disruptions.

Screenshot via ISO

ISO 41001:2018 , the International Standard for Facility Management Systems, is a quality standard specifically designed for the field of facility management. It’s the first international standard for facility management systems published by the International Organization for Standardization (ISO).

This standard provides a framework for organizations to establish, implement, maintain, and continually improve an effective facility management system. It covers a wide range of areas related to facility management, including strategic planning, stakeholder engagement, risk management, performance evaluation, and continuous improvement.

Implementing ISO 41001:2018 enables organizations to streamline processes and improve efficiency, ensuring that facility management practices are consistent, reliable, and meet the needs of stakeholders.

ISO 41001:2018 was amended in 2024 to incorporate climate change awareness and action changes, with the goal of integrating climate considerations into facility management systems. The current ISO 41001:2018 standard is set to be replaced by ISO/AWI 41001 , which is currently under development.

By achieving ISO 41001:2018 certification , organizations can demonstrate their commitment to providing a high level of quality in facility management. Certification requires a thorough audit conducted by a certified third-party auditing body. This process involves assessing the organization’s facility management system against the standard’s requirements to ensure compliance.

Once an organization obtains certification, it can display the ISO 41001:2018 certification logo, demonstrating to stakeholders and customers that the company adheres to international best practices in facility management.

According to the International Facilities Management Association (IFMA), which adopts the ISO’s definition of facility management , “Facility Management is an organizational function which integrates people, place and process within the built environment with the purpose of improving the quality of life of people and the productivity of the core business.”

It encompasses a wide range of responsibilities, from ensuring the facility’s overall maintenance and upkeep to managing budget and expenses related to facility operations , overseeing safety and security protocols within the building, and coordinating with vendors and contractors for repairs and renovations. Here’s a closer look at the key elements of facility management. 

Daily Operations & Maintenance

Facility managers are tasked with overseeing the day-to-day building operations, such as electrical systems, HVAC, plumbing, and landscaping. They are responsible for managing preventive maintenance activities to ensure that all systems run smoothly and minimize disruptions, as well as corrective maintenance needs as they arise. This includes managing janitorial and maintenance contracts with third-party vendors.

Facility managers also create detailed reports and maintain systems to track maintenance and repairs , safety and compliance, inspections, and other processes and functions.

Environmental Health & Safety (EHS)

The environmental health and safety, or EHS, aspects of facility management include:

• Ensuring that the facility complies with health and safety regulations (such as fire safety standards and codes)
• Conducting regular safety audits
• Implementing health and safety policies and procedures
• Responding to emergencies
• Creating cleaning schedules for employees and contractors
• Upholding all cleanliness and sanitation standards

These responsibilities are carried out with the goal of maintaining a safe environment for both employees and visitors.

Facility security involves protecting the building’s infrastructure, physical space, and hardware and software components from both internal and external threats. The security component of facility management includes:

• Overseeing the building’s security personnel
• Implementing security policies and procedures
• Conducting risk assessments
• Regularly auditing security systems and processes, such as ensuring that CCTV and video surveillance systems are operational
• Managing visitors, such as maintaining visitor logs
• Ensuring that visitors enter only through authorized access points
• Ensuring all restricted access areas are clearly marked
• Ensuring the facility’s safety and security policies are followed by both employees and visitors

Sustainability & Energy Management

The aim of sustainability and energy management is to minimize the impact of a company’s operations on the environment. According to a report by the UN Environment Programme (UNEP), “Buildings use about 40% of global energy, 25% of global water, 40% of global resources, and they emit approximately ⅓ of GHG [greenhouse gas] emissions.” 

Sustainability has become a key priority for many companies, and facility management is one of the primary areas where gains can be made . Sustainability and energy management includes:

• Conducting energy audits
• Implementing water conservation measures
• Utilizing sustainable building materials and practices
• Developing eco-friendly waste management practices, such as recycling
• Improving energy efficiency, such as by upgrading HVAC systems to more energy-efficient systems, replacing windows, and installing LED lighting
• Converting to renewable energy sources such as solar or geothermal
• Closely monitoring and analyzing utility usage and costs

These measures help reduce the operation’s environmental impact and can also reduce costs. For example, facilities that implement sustainable practices can lower their energy consumption, which translates to lower operating costs.

Asset Maintenance and Management

Asset maintenance and management is a function that often falls under the facility management umbrella. Predictive and preventive maintenance methods are vital to prevent equipment breakdowns before they occur​, and regular maintenance helps to extend the useful lifespan of equipment and infrastructure.

Keeping equipment in optimal working condition and optimizing equipment utilization can also help to reduce operational costs. Asset maintenance and management include:

• Maintaining an up-to-date inventory of assets, including the purchase date, lifespan, warranty information, maintenance schedules, and historical repair data for each asset
• Developing and implementing a preventive maintenance schedule, including routine inspections, cleaning, lubrication, adjustments, and replacements of parts before failure occurs
• Performing corrective maintenance when assets break down or malfunction, including diagnosing problems, initiating repair, and minimizing equipment downtime
• Regularly inspecting assets to ensure their safe operation and compliance with applicable regulatory standards
• Monitoring asset performance and efficiency
• Managing contractors or vendors who perform maintenance or repairs, including sourcing service providers, negotiating contracts, and overseeing the work performed
• Managing costs associated with asset maintenance, repairs, and replacements
• Reporting on asset performance, expenses, and other metrics

Space Planning and Utilization

Facility management oversees an organization’s physical space, which includes planning for efficient space utilization. This includes:

• Analyzing the organization’s space requirements considering the number of employees, the number and frequency of anticipated visitors, the nature of the work performed in the facility, and the need for collaborative and private spaces such as meeting rooms and private office space
• Planning and designing the layout of the space, including the placement of desks, offices, equipment, and common areas to maximize efficiency and support functional workflows
• Creating flexible and scalable space configurations
• Ensuring that the facility complies with health, safety, and accessibility regulations, such as maintaining clear egress paths, adhering to building codes, and incorporating ergonomic standards
• Integrating technology into the space to support the organization’s needs
• Managing costs associated with space utilization, such as utilities costs, maintenance costs, and rent or lease payments
• Ensuring that the space meets safety standards, such as creating accessible emergency exits, planning clear evacuation routes, and equipping workspaces with necessary safety equipment

Strategic Planning for Future Needs

Facility management plays a crucial role in the strategic planning for an organization’s future needs, ensuring that physical spaces and infrastructures align with long-term goals and adapt to changing requirements. This includes:

• Planning for renovations, expansions, or new construction
• Investing in energy-efficient systems and new technologies to reduce operating costs
• Ensuring facilities can accommodate company growth and changing needs, such as with adaptable infrastructure and scalable spaces
• Identifying and analyzing risks to the facility, such as natural disasters, security threats, and technology failures
• Developing risk mitigation plans, disaster recovery plans, and business continuity plans

The current presiding global facilities management organization, the International Facility Management Association, calls for facility management leaders to take a more tactical and strategic approach to protect the future of the company’s properties.

In its Strategic Facility Planning white paper, the IFMA calls for facility managers to carry out SFP (strategic facility planning) as it “helps to avoid mistakes, delays, disappointments, and customer dissatisfaction.” In addition to safety and maintenance responsibilities, facility managers are encouraged to look beyond their normal duties so that they can better support operational efficiency.

To do this effectively, managers must compile two things:

• Strategic Facility Plan
• Master Facility Plan

Let’s take a look at how each one can better strengthen the overall productivity of the business:

Strategic Facility Plan (SFP)

Developing a comprehensive Strategic Facility Plan (SFP) requires:

• An understanding of the core values or changing values of the organization and how facilities must reflect the values
• An in-depth analysis of the facility, including location, capability, and condition
• A fundamental understanding of how the organization’s goals might affect scalability in facilities

The manager can operate as a true strategic support system if they are able to confirm each and every one of these benchmarks with the appropriate departments while implementing effective day-to-day practices. It is through the use of this blend of current and future that all parties involved can tackle changes as they arise as effectively as possible.

Master Facility Plan (MFP)

The Master Facility Plan (MFP), also known as a Facilities Master Plan , is a framework for planning the “physical environments that encompass the buildings.” Let’s explore what a holistic master plan looks like, taking into account both day-to-day tasks and future space needs.

Here’s what a Master Facility Plan should include:

• Zoning, regulation, covenant assessments
• Space standards and benchmarks
• Program of space use
• Workflow analyses
• Engineering assessment and plan
• Block, fit, or stacking plans
• Concept site plan or campus plan
• Architectural image concepts
• Long-term maintenance plan
• Construction estimates
• Phasing or sequencing plan (the sequence or projects)

The MFP should be regularly reviewed and updated. Facility managers should engage all departments that impact their facility so they can support their organization as it moves forward profitably.

Like any other discipline, facility management comes with its fair share of challenges. Here are some of the top challenges faced by facility managers.

Cost Management

Cost management is a challenge for facility management because there are so many variables to consider. From maintenance and repairs to utilities and supplies, there are numerous expenses that need to be carefully monitored and controlled.

Additionally, unexpected issues can arise that require additional funds to address, making it difficult to stick to a budget. Furthermore, facility managers need to balance cost management with providing a safe, comfortable, and functional environment for employees and customers. This can sometimes require investing in more expensive solutions in order to achieve long-term cost savings.

In the face of economic instability and budget constraints, facility management may not be seen as a critical investment by businesses, which can create additional cost restraints. Effectively managing facility costs requires a strategic approach and constant monitoring to ensure that expenses remain within budget.

Technological Advancements

Facilities require constant updates and upgrades to keep up with the latest technology . This can be costly and time-consuming for facilities managers, as they need to continuously assess and implement new technologies to improve efficiency and productivity.

Additionally, technological advancements can also pose security risks, as more connected devices and systems, such as IoT devices and cloud-based systems, increase the potential for cyber attacks. Facilities managers must stay informed about the latest cybersecurity threats and implement robust security measures to protect their facilities from potential breaches.

Technological advancements are particularly challenging in facility management because they have the potential to streamline operations and enhance the facility’s functionality, but at the same time, they require a significant investment of time and resources to effectively manage.

Sustainability and Environmental Regulations

Sustainability requires a shift in mindset and practices toward more eco-friendly and sustainable operations . This may involve implementing new technologies, processes, and materials that can be costly and time-consuming.

Compliance with environmental regulations also adds another layer of complexity, as facility managers need to stay abreast of changing policies and ensure that their operations comply with these regulations.

The biggest challenge for modern organizations is balancing sustainability goals with operational and financial considerations. Sustainability initiatives often require long-term planning and investment, which can be difficult to prioritize in the face of immediate budgetary constraints.

Emergency Preparedness

Emergency preparedness requires a significant amount of planning, training, and resources to ensure that a facility is prepared for any type of emergency situation. Facility managers must conduct risk assessments, develop emergency response plans, provide training for staff, and invest in emergency equipment and supplies.

Additionally, facilities must comply with various regulations and standards related to emergency preparedness, which can be complex and time-consuming to navigate. In the event of an emergency, facility managers must be able to quickly and effectively respond to protect the safety of occupants and minimize damage to the facility.

The ever-changing nature of potential threats requires constantly updating and improving emergency response plans. This requires clear communication, coordination with emergency services, and the ability to make quick decisions under pressure.

Changing Needs and Demands

As mentioned above, changing needs and demands present a prominent challenge in facility management, requiring constant adaptation and flexibility.

Facilities need to be able to respond to shifting priorities, regulations, and technological advancements to meet the needs of employees, customers, and stakeholders. This means that facilities managers must constantly assess and reassess their strategies, processes, and resources to ensure they are providing an optimal environment for the people using the facility.

Failure to anticipate and address changing needs can lead to inefficiencies, dissatisfaction among employees and visitors, and ultimately, an impact on the organization’s overall success. Staying ahead of evolving trends and demands is essential for effective facility management.

Staffing and Hiring

Staffing and hiring require finding individuals with a specific set of skills and experience in areas such as maintenance, engineering, and operations. Additionally, facility management roles often involve a wide range of responsibilities, from ensuring compliance with safety regulations to managing budgets and overseeing projects.

Finding candidates who are not only qualified but also culturally fit with the organization can be a time-consuming process. Furthermore, turnover rates in facility management tend to be high due to the demanding nature of the job, which means that constant recruitment and training efforts are necessary to maintain a fully staffed and capable team.

Having a well-thought-out facility management plan is crucial for maintaining the functionality and efficiency of any building or property. Follow these key steps to implement an effective facility management plan.

• Inventory your current assets. Create a comprehensive inventory of all assets , equipment, and systems within the building. Identify any maintenance issues or areas that need improvement. This will help you prioritize tasks and allocate resources effectively.
• Audit your facility operations. In addition to assessing your assets , you should also evaluate your facility’s current operations to identify bottlenecks, inefficiencies, and opportunities for process improvements.
• Set clear objectives. Clearly define what you aim to achieve with your facility management plan, aligning with the overall organizational goals. Your goals and objectives could range from ensuring the longevity of physical assets to enhancing the well-being and productivity of occupants.
• Develop facility management policies. Policies will guide your workforce in ensuring efficient and safe operations. Policies should include emergency protocols, evacuation plans, emergency contact information, and safety measures. You can also establish policies for preventive maintenance, security, sustainability, information technology, procurement and vendor management, and disaster recovery. 
• Develop a maintenance schedule. One of the key aspects of facility management is maintenance. Develop a schedule for routine facility maintenance tasks such as HVAC system inspections , plumbing checks, electrical system maintenance, and general cleaning. Regular maintenance is crucial to prevent breakdowns and extend the useful lifespan of your assets.
• Implement technology solutions. Technology plays a significant role in facility management. The right facility management software to centralize data, streamline operations, and improve decision-making through analytics. Consider features like asset tracking, work order management, and predictive maintenance .
• Develop an asset tagging system . Facility management asset tags and labels integrate seamlessly with your facility management software to streamline work order tracking, equipment maintenance, condition monitoring, and reporting. Choose durable asset tags and labels, such as Camcode’s Rigid Metalphoto® Labels and Foil Metalphoto® Labels , that can withstand your facility’s operating conditions. For instance, Camcode’s Metalphoto labels have excellent resistance to chemicals, solvents, abrasion, extreme temperatures, and UV, offering an expected exterior lifespan of more than 20 years.
• Maintain comprehensive documentation. Keep detailed records of all facility management activities, including maintenance records, inspections, compliance documents, and training records. This supports regulatory compliance and can also aid in decision-making. 
• Train your staff. Make sure your facility management team is well-equipped to handle their responsibilities and tasks. Provide training on safety procedures, maintenance protocols, and how to use any technology solutions that are in place. Foster a culture of engagement and accountability, encouraging staff to take ownership of facility maintenance and efficiency. 
• Monitor and continuously improve performance. Track key performance indicators such as maintenance costs, downtime, and energy usage. Leverage this data to inform decision-making and adjust your processes to continuously optimize performance.
• Plan for the future. Be prepared to adapt your strategies in response to new technologies, regulatory changes, or shifts in organizational priorities. Your facility management plan should include a future needs assessment, capacity planning, and resilience strategies that can help your company mitigate long-term risks. 

Based on data from Fortune Business Insights

Managing facilities efficiently is crucial to ensuring smooth operations and maximizing productivity. Facility management software has emerged as a powerful tool that enables organizations to streamline their facilities management processes, improve asset performance, and reduce costs.

In fact, the global facility management market was valued at $1,260.0 billion in 2022 and is expected to grow at a CAGR of 6.7%, reaching $2,031.4 billion by 2030​​.

Facility management software helps organizations manage their facilities, assets, and maintenance processes more effectively. It provides a centralized platform where facility managers can track and monitor various aspects of their facilities, such as equipment maintenance, space utilization, energy consumption, and vendor management.

Facility management software comes in various forms, from software focused on a specific function such as asset management to comprehensive, integrated facility management solutions that encompass all the core functions of facility management. Here’s a look at the most commonly used types of facility management software.

Computer-Aided Facility Management (CAFM)

CAFM software is a tool used by facility managers to efficiently manage and maintain their buildings, assets, and workplace environments. This type of software integrates various aspects of facility management , such as space planning and allocation, maintenance management, asset tracking, and resource management and scheduling, into one centralized platform.

CAFM software streamlines workflows and improves overall productivity by providing real-time information on building operations and maintenance. With this software, managers can easily track key metrics, generate reports, and make informed decisions to optimize building performance and reduce costs .

The benefits of CAFM solutions include:

• Extending asset life spans due to preventive maintenance
• Increased safety
• Centralized data for strategic planning
• Cost savings
• Improved communication
• Reduction in energy-related expenses

Computerized Maintenance Management Systems (CMMS)

CMMS software , or a centralized maintenance management system , centralizes information about an organization’s maintenance operations. It helps optimize the use and availability of equipment such as vehicles, machinery, and other physical assets.

CMMS systems are designed to simplify the maintenance process by providing tools and features that streamline tasks such as work orders, inventory management, asset tracking, and scheduling.

At its core, a CMMS is used to track and manage maintenance activities, from routine inspections to major repairs. By centralizing all maintenance-related data in one system, organizations can better organize their maintenance operations, improve workflow efficiency, and reduce downtime.

Key features of a CMMS include preventive maintenance scheduling, which allows users to create maintenance schedules for equipment based on time or usage triggers; work order management, which enables users to create, assign, and track maintenance tasks; inventory management, which helps users keep track of spare parts and supplies needed for maintenance; and reporting and analytics, which provide insights into maintenance performance and help identify areas for improvement.

The benefits of a CMMS include:

• Increased efficiency
• Reduced equipment downtime
• Improved equipment and employee safety
• Cost control
• Predictive and preventive maintenance scheduling
• Accurate reporting and data analytics

Enterprise Asset Management (EAM)

Enterprise Asset Management (EAM) software is a comprehensive solution that helps organizations manage their physical assets throughout their lifecycle. These assets can range from equipment and machinery to vehicles and buildings. EAM software enables businesses to track, maintain, and optimize their assets to ensure they are operating efficiently and effectively.

Asset tracking is a key feature of EAM. It allows businesses to monitor where their assets are located, who is using them, and how they are being utilized. With this information at their fingertips, organizations can make more informed decisions about their assets and maintenance needs.

Another key function of EAM is maintenance management. It allows businesses to schedule routine maintenance for their assets, track work orders, and ensure that all maintenance tasks are completed on time.

EAM software also provides valuable insights into asset performance and usage. By analyzing data collected from the software, organizations can identify trends, make predictions, and optimize their asset management strategies.

The benefits of EAM software include:

• Reduced costs
• Improved asset performance
• Reduced breakdowns and downtime

Integrated Workplace Management Systems (IWMS)

IWMS solutions provide a comprehensive suite of tools to manage all aspects of facility and real estate management. They integrate functionalities for real estate management, capital project management, facility space management, maintenance management, and environmental sustainability.

IWMS software enables facility managers to streamline their processes, improve efficiency, and make data-driven decisions to optimize the use of their workspace. One key feature of an IWMS is its ability to centralize data and generate insightful reports on various aspects of facility management. This includes information on space utilization, maintenance schedules, energy consumption, lease agreements, and compliance with regulations.

An IWMS can also automate routine tasks and workflows. For example, maintenance requests can be automatically routed to the appropriate personnel, work orders can be scheduled and tracked, and inventory levels can be monitored in real-time.

An IWMS also helps organizations ensure compliance with health and safety regulations, environmental standards, and industry best practices. By providing tools for tracking and reporting on these aspects, facility managers can proactively address any issues and maintain a safe and sustainable work environment for employees.

The benefits of an IWMS include:

• Increased productivity and efficiency
• Reduced errors
• Informed decision-making backed by data
• Automation of routine tasks and workflows
• Improved safety

Facility management is subject to various regulations and laws to ensure safety, compliance, and efficiency within the workplace. These regulations cover a wide range of aspects, from health and safety measures to regulations related to equipment.

The regulations applicable to a specific organization depend on the industry, location, and size of the business. Regulations are set forth by multiple entities.

On top of international and federal regulations, state and local regulations may also apply to specific industries or across the board for businesses and employers. Needless to say, compliance is multi-faceted and incredibly complex, requiring a comprehensive management strategy. 

Let’s review some best practices for implementing and maintaining a strong facility management compliance program.

Understand What Regulations Apply

Facilities managers must stay informed about relevant laws, regulations, and codes that apply to their industry. Laws can vary depending on the location and type of facility, so it’s important to monitor updates and changes in regulations regularly.

As mentioned above, there are many regulations that facilities may be required to comply with, so the first step in developing a robust compliance program is to understand what regulations apply to your facility.

For example, the UK government introduced The Management of Health and Safety at Work Regulations in 1999, which apply to employers in the UK, while U.S.-based businesses are subject to OSHA (Occupational Safety and Health Administration) regulations and the Americans with Disabilities Act (ADA). There are also international and national labor laws created by the International Labour Organization (ILO) and the U.S. Department of Labor , respectively.  

The U.S. healthcare sector must comply with HIPAA (Health Insurance Portability and Accountability Act of 1996) regulations , and food manufacturing facilities , medical device manufacturers , and pharmaceutical facilities are subject to regulations set forth by the Food and Drug Administration (FDA).  

Start by identifying all applicable regulations and laws, considering organizational, reputational, and strategic risks.

Conduct Regular Audits

Conduct internal audits to assess your compliance with these regulations and the effectiveness of your security and compliance strategies.

Conducting regular audits of your facility can help you identify areas where you may be falling short of regulatory compliance. These audits should cover everything from fire safety regulations to environmental laws to ensure that your facility is meeting all necessary requirements.

Develop a Compliance Roadmap

Developing a comprehensive compliance plan requires a clear understanding of your compliance status and the regulations you need to comply with. This plan should outline the specific regulatory requirements that apply to your facility and the steps you will take to ensure compliance. Prioritize your actions based on the most critical compliance requirements and risks​.

It should also clearly define the responsibilities of all stakeholders involved. This plan should be regularly reviewed and updated as regulations change.

Develop Safety & Compliance Checklists

Develop safety and compliance checklists that clearly outline the steps to take in certain situations. Some commonly used safety and compliance checklists in facility management include:

• Fire safety checklist
• Electrical safety checklist
• HVAC system checklist
• Building security checklist
• Environmental compliance checklist
• General maintenance checklist

Of course, the checklists you develop will depend on the regulations that apply to your organization as well as your company’s internal policies and procedures. 

Each item on the checklist should be specific, measurable, and actionable, leaving no room for ambiguity. Regularly review and update the checklist to reflect changes in regulations, facility modifications, or lessons learned from incidents, and ensure that checklists are readily available to employees and stakeholders.

For example, you might post a fire safety checklist or evacuation plan near the emergency exits in your facility or attach durable instructional labels to equipment . These labels can be printed with essential safety, operational, or compliance steps to promote workplace safety and compliance.  

Provide Comprehensive Training

Educate your employees about compliance policies, procedures, and standards. All staff members involved in facilities management should receive training on regulatory compliance. This training should cover the specific regulations that apply to your facility and the procedures and protocols that need to be followed to ensure compliance.

Regular training ensures that employees understand their roles in maintaining compliance and are updated on any regulatory changes or updates to company policies​.

Maintain Documentation

Keeping detailed records of your facilities management activities, including maintenance schedules, inspections, and repairs, is essential for demonstrating regulatory compliance. Make sure that all documentation is easily accessible and up-to-date.

Establish Effective Communication & Monitoring Procedures

Establish effective communication channels for reporting compliance issues or concerns without fear of retaliation. Implement monitoring and auditing systems to continuously assess the effectiveness of your compliance program and identify risks.

Regular reviews and updates to the program are essential to adapt to changes in regulations and business operations.

Leverage Technology

Utilize regulatory compliance software (or facility management software with compliance management capabilities) to automate and streamline compliance processes. This can simplify the management of regulatory changes, policy updates, and compliance assessments. The right software can also provide valuable insights and analytics to improve decision-making and ensure continuous compliance​.

Implement Accountability & Corrective Action Plans

Establish clear procedures for enforcing compliance policies and taking corrective action in case of non-compliance. Accountability at all levels ensures that compliance is taken seriously and that any issues are addressed promptly to prevent recurrence.

Cultivate a Culture of Compliance

Clearly communicating your organization’s code of conduct and ensuring it reflects your organizational values, regularly communicating changes, and implementing effective training and employee engagement programs are all part of building a culture of compliance. Following these practices and the best practices outlined above helps to minimize compliance violations and promotes a positive working environment.

If you’re unsure how to ensure regulatory compliance in your facility, consider working with compliance experts who specialize in facilities management and have experience in your industry. These experts can provide guidance and support to help you meet all necessary requirements.

A variety of trends and technologies are shaping facility management, revolutionizing the way facilities are operated and maintained. Let’s examine some of the biggest trends in facility management and the challenges and opportunities they present for facility managers and operators.

Smart Buildings

The global smart buildings market has grown significantly. It was valued at $96.96 billion in 2023, and it’s projected to grow at a CAGR of 21.8%, from $117.42 billion in 2024 to $568.02 billion by 2032.

The rapid adoption of smart technologies marks a shift towards more efficient, sustainable, and user-friendly environments. This transformation is driven by the integration of Internet of Things (IoT) devices, artificial intelligence (AI), machine learning (ML), and other digital innovations into the physical infrastructure of facilities.

Opportunities

• Advanced analytics: These advancements produce vast amounts of data, from occupancy levels to energy usage patterns. This data, analyzed through advanced analytics, informs strategic decision-making, helping managers optimize space usage, reduce costs, and improve overall building performance.
• Automation: Smart building technologies can automate routine tasks, from HVAC adjustments to lighting control, based on real-time data and predictive analytics. This reduces manual oversight requirements and helps to reduce waste, promote sustainability, and lower operational costs, leading to more efficient facility management.
• Safety & security: Smart building technologies enhance building safety and security measures. Real-time surveillance, access control systems, and emergency response mechanisms can now be integrated and managed through a centralized platform, improving the ability to respond to incidents and ensure occupant safety.

While the benefits are substantial, the rapid adoption of smart building technologies also presents challenges, such as the significant upfront investment, potential cybersecurity risks, and the requirement for ongoing management and updating of these systems.

These advanced systems require facility managers to have a solid grasp of building information systems, and there’s a growing need for skilled personnel who can manage and optimize them.

Cloud-Based Solutions

Cloud-based solutions are a major driver in the industry, offering opportunities for efficiency, scalability, and integration. These solutions allow facility managers to access and analyze data from anywhere, make informed decisions in real time, and improve the overall management and operation of facilities.

• Lower costs: By utilizing cloud solutions, organizations can reduce the need for expensive on-premises hardware and the associated maintenance costs. Cloud services typically operate on a subscription model, which can be more affordable and predictable in terms of budgeting.
• Scalability: Cloud-based solutions can be easily scaled up or down based on the facility’s needs, allowing for efficient resource management. This scalability supports the organization’s growth without the need for significant additional investment in IT infrastructure.
• Integration: Cloud platforms can also facilitate the integration of various building management systems and applications, from energy management to security and maintenance. This integration can lead to more holistic and efficient facility management practices, and it can also enhance collaboration among team members, stakeholders, and third-party service providers.

As with any technology that relies on internet connectivity, cloud-based solutions introduce risks related to data security and privacy. Ensuring the protection of sensitive information and compliance with data protection regulations is paramount.

The effectiveness of cloud-based solutions is heavily reliant on consistent and high-speed internet access. Interruptions in connectivity can hinder access to the systems and data needed for facility management.

Sustainability & Green Initiatives

In the modern world, sustainability and Environmental, Social, and Governance (ESG) reporting have become crucial aspects of facility management, driven by both regulatory and societal pressures. With the increasing focus on corporate responsibility and environmental impact, organizations are being held more accountable for their operations and the effects they have on the environment and society.

Sustainability and ESG reporting in facility management play a significant role in ensuring that businesses are operating in a way that is not only profitable but also responsible and ethical.

• Measuring environmental impact: By collecting data on energy consumption, greenhouse gas emissions, water usage, and waste generation, companies can monitor their performance and identify areas where improvements can be made to reduce their overall environmental footprint.
• Transparency & stakeholder engagement: By disclosing information about their sustainability efforts and performance, organizations can build trust with investors, customers, employees, and the broader community. This can foster improved relationships with stakeholders and can attract socially responsible investors who want to support companies that prioritize sustainable and ethical practices.
• Competitive advantage: Companies that demonstrate a commitment to sustainability and ethical practices may also benefit from increased market opportunities, improved brand reputation, and a competitive edge in the marketplace.

Unlike financial reporting, there is no universal set of standards for reporting on sustainability and ESG factors. This can make it difficult for facility managers to know what data to collect and how to report on their sustainability performance in a consistent and meaningful way.

Another challenge is the complexity of collecting and analyzing data on sustainability and ESG factors. It involves tracking a wide range of data points, from energy and water consumption to waste management and indoor air quality, which may be spread across multiple systems and sources. This makes it challenging to aggregate and analyze in a timely and accurate manner.

Different stakeholders sometimes have differing priorities and expectations related to sustainability, which can be difficult to balance. 

Employee Well-Being

Today’s companies are increasingly prioritizing employee and occupant well-being , with initiatives aimed at creating productive and satisfying work environments through ergonomic workspaces and indoor air quality monitoring​​.

• Enhanced productivity: Properly designed workspaces that follow ergonomic principles can significantly reduce physical strain and discomfort, and good indoor air quality (IAQ) can improve cognitive function, reduce fatigue, headaches, and dizziness, and decrease absenteeism due to illness. This translates to higher levels of concentration and productivity.
• Reduced absenteeism and turnover: A healthy work environment can significantly reduce absenteeism related to health issues, as well as turnover resulting from dissatisfaction with the work environment. Lower turnover rates not only reduce recruitment and training costs but also contribute to a more experienced, cohesive, and efficient team.
• Enhanced corporate image: A company’s commitment to employee well-being reflects positively on its brand and corporate image. It signals to customers, clients, and partners that the company values its human resources and is committed to sustainable, responsible business practices.

The upfront costs of purchasing ergonomic furniture, upgrading HVAC systems for better air quality, and implementing other wellness-focused changes can be significant. However, it’s difficult to quantify and measure the direct impact of wellness initiatives on productivity, employee satisfaction, and health outcomes, which can make it challenging to monitor and adjust strategies.

Facility managers may find it challenging to demonstrate immediate returns on investment to stakeholders, as benefits such as increased productivity and reduced absenteeism may take time to become evident, making it challenging to justify further investment.

Space and infrastructure limitations can also pose challenges when it comes to implementing these initiatives. For instance, older buildings may have limitations that make it difficult to implement modern ergonomic solutions or improve air quality without substantial renovations. 

Flexible Workspaces

Flexible workspaces are work environments that are adaptable and can be easily reconfigured to meet the changing needs of a business or organization. These spaces are designed to enable employees to work in a variety of settings, whether it be in a traditional office space, a collaborative area, a quiet zone, or even remotely.

• Adaptability: By offering a range of work settings, employees can choose the environment that best suits their task at hand, whether it be a quiet area for focused work or a collaborative space for group projects. This can lead to increased motivation and efficiency in the workplace.
• Reduced overhead costs: With a dynamic layout that can be easily adjusted, companies can make more efficient use of their physical space and avoid the need for costly renovations or expansions. Hot-desking and shared spaces minimize unused office real estate, especially in companies that offer remote work options.
• Talent acquisition and retention: Modern, adaptable work environments are attractive to prospective employees, particularly the growing segment of the workforce that values flexibility and autonomy. This can be a significant advantage in talent acquisition and retention.

Flexible workspaces come with challenges, such as managing noise levels, ensuring adequate privacy, and maintaining a sense of community and team cohesion. For example, it’s often challenging to find the right balance between open spaces, collaborative areas, and quiet zones can be challenging. Too much of one type of space can lead to underutilization of others, affecting overall productivity.

It can also be difficult to manage shared resources efficiently, such as ensuring that all employees who need it have access to private office space at the same time or that enough conference rooms are available for scheduled meetings.

Data security is also a potential concern. With employees moving around and using different workstations, ensuring secure and reliable access to networks and data is more complicated. The risk of data breaches may increase if proper cybersecurity measures are not in place.

Increasing Building Standards

In recent years, building standards and regulations have become increasingly strict in order to promote sustainability, energy efficiency, and overall safety. Regulations such as California’s A.B.2446 , which requires new buildings to conduct lifetime environmental impact studies and make these findings public, signify a broader shift towards sustainability and transparency in the construction and facility management industries.

This trend is growing, as governments around the world are imposing stricter building standards to combat climate change, reduce energy consumption, and minimize facilities’ environmental footprints. While these regulations are important for the environment and public safety, they have a direct impact on facility management.

For example, A.B.2446 requires the entire building lifecycle to be considered from the start, from using sustainable construction materials and methods to optimizing operational energy consumption and sustainable methods for eventual decommissioning. The aim is to reduce embodied carbon emissions, which account for an estimated 11% of global energy-related carbon emissions, according to the Natural Resources Defense Council (NRDC).

According to the U.S. Green Building Council , “In the buildings context, embodied carbon refers to the greenhouse gas (GHG) emissions generated by the manufacturing, transportation, installation, maintenance and disposal of building materials.”

As mentioned earlier in this guide, ISO 41001:2018, the International Standard for Facility Management Systems, was amended in 2024 to incorporate climate change awareness and action considerations. These changes apply not only to facility management but all existing and upcoming ISO Management Systems Standards (MSS).

Companies pursuing ISO 41001:2018 certification will need to incorporate these considerations into their business practices. The amendments, added to Clauses 4.1 and 4.2 of the current Annex SL Standards , include:

• Clause 4.1: This clause, “Understanding the organization and its context requirements,” now has a new requirement that “The organization shall determine whether climate change is a relevant issue.”
• Clause 4.2: This clause, “Understanding the needs and expectations of interested parties,” now has an additional note, “NOTE: Relevant interested parties can have requirements related to climate change.”
• Energy auditing and benchmarking: Conducting energy audits and benchmarking building performance against industry standards can identify areas for improvement and track progress over time. Facility managers can manage these audits and implement strategies to improve energy use and reduce carbon footprints.
• Corporate branding and reputation: Companies that are proactive in adopting sustainable practices can position themselves as industry leaders in corporate responsibility. Communicating these sustainability efforts effectively can enhance customer loyalty and attract new customers who prefer to support businesses that are committed to environmental stewardship.
• Enhanced community relations: Implementing sustainability initiatives, especially those that have a direct positive impact on the local community, can improve a company’s relationship with the community. This might include efforts to reduce emissions, waste management practices that contribute to cleaner local environments, or the implementation of green spaces. For instance, companies can make a significant impact by implementing waste reduction and recycling programs, particularly in larger complexes and commercial buildings.

As public awareness grows, the pressure on lawmakers to pass stricter building codes and legislation to combat climate concerns.

Stricter building standards often require more advanced systems and technologies to be installed in buildings, such as energy-efficient HVAC systems, smart building controls, and renewable energy sources. Preventive maintenance becomes critical to ensuring systems operate at peak efficiency, reducing energy consumption, and prolonging the lifespan of building components.

Stricter building standards can also impact the overall design and layout of buildings, and maintenance procedures must be adapted accordingly. For example, buildings with more stringent fire safety regulations may require more frequent fire drills and inspections, while buildings with enhanced energy efficiency standards may need to have their systems serviced more frequently.

With the requirement to disclose environmental impacts, there is an increased need for accurate data collection, monitoring, and reporting. Facility managers must implement systems to track energy consumption, water usage, waste generation, and other environmental metrics. On the plus side, this data can also help identify opportunities for improvement and demonstrate sustainability efforts to stakeholders.

Facility management is a comprehensive discipline crucial for the successful operation and growth of organizations in every business sector. Effective facility management enhances the safety and productivity of workspaces and plays a pivotal role in reducing operational costs and environmental impact.

As we look to the future, the importance of facility management in enhancing business operations, reducing environmental impact, and improving the quality of work environments cannot be overstated. The ongoing development of new technologies and the increasing focus on sustainability and flexibility will continue to drive innovation in this field, presenting both challenges and opportunities in facility management.

What do facilities managers do?

Facilities managers are responsible for ensuring that the buildings and services meet the needs of the people who work in or visit them. They manage services such as cleaning, security, and parking, and ensure that the environment is safe and efficient.

Their role includes maintaining, operating, and improving buildings, ensuring that facilities comply with laws and regulations, and managing budgets and contracts related to building services.

How can you determine the success of facility management?

Determining the success of facility management involves measuring performance against specific goals and objectives. Key performance indicators (KPIs) might include operational efficiency, cost savings, compliance with regulations, occupant, visitor, or employee satisfaction, and sustainability metrics.

For example, cost savings can be measured by comparing the facility management budget to actual expenses and seeing if there are any reductions in costs. Efficiency improvements can be evaluated by analyzing how well resources are being utilized and whether there are any bottlenecks in operations. Regular audits, feedback from users, and comparisons with industry benchmarks are also crucial.

What is the quality standard for facility management?

The quality standard for facility management is often benchmarked against the ISO 41001:2018 standard. This international standard provides a framework for establishing, implementing, maintaining, and improving an effective facility management system, focusing on efficiency, safety, and sustainability.

What is facility management compliance?

Facility management compliance involves ensuring that a facility’s operations and practices align with all relevant laws, regulations, and industry standards. This includes everything from safety regulations to environmental policies to building codes.

Facility managers must stay current on compliance requirements and ensure that their facilities always meet these standards. Failure to comply with regulations can result in fines, penalties, or even legal action, making compliance a critical aspect of successful facility management.

What is a facility management plan?

A facility management plan is a comprehensive document that outlines the strategies and procedures for managing and maintaining a facility. It includes information on how the facility will be operated, maintained, and repaired to ensure that it remains in optimal condition.

The plan may cover areas such as preventative maintenance schedules, emergency response protocols, security measures, energy efficiency strategies, and budgeting for maintenance and repairs. A well-developed facility management plan is essential for ensuring that a facility operates efficiently and effectively and that it meets the needs of its occupants.

Questions about the article? Let us help!

Our sales engineers are experts in automatic asset tracking, tagging and identification,a nd can answer all your questions. Get in touch now.

You May Also Enjoy...

The articles here will be one category that is also tagged in this article so that users get articles similar to their interests. Blog Home ›

How to Build The Ultimate Preventive Maintenance Checklist (with PDF)

As of 2023, preventive maintenance remains the most common maintenance strategy used in just over 75% of facilities worldwide. Other forms of maintenance, such as reactive and predictive maintenance, are …

What is IT Asset Management, Why is It Important?

Technology underpins nearly every aspect of a modern organization. Whether it’s digital software or a physical asset like desktop computers, your organization relies on IT assets to stay productive and …

25 Best IT Asset Management Software Systems and Tools (2024)

From laptops to software licenses, your company relies on technology to run efficiently. However, even small businesses often find themselves overrun with a dizzying number of devices, subscriptions, and platforms. …

Keep Operations Efficient with Barcode Asset Tracking Tags

Facility planning: A strategic approach to a better office

Facility planning is essential for the modern office, especially given the rapidly changing landscape of today’s workplace. With more and more companies embracing remote work , hybrid work , and more flexible working in general, they need strategic solutions that come from good facility planning in order to maintain structure and productivity. 

In this article, we explore why and how facility planning can help companies stay profitable and better support their workers. Even in the midst of new and changing realities on the ground. 

Panel Discussion

Top strategies for hybrid office space planning with CBRE’s Susan Wasmund

What is facility planning?

Facility planning is the systematic process that smart organizations use to ensure they have the facilities and related resources necessary to meet both their short and long term goals. Sometimes referred to as strategic facility planning, it’s the key decision-making that companies use to future-proof their workspaces. 

The reality is that simply following space management best practices isn’t always enough for your facility. Without good strategic planning and foresight, companies often stay stuck in problem-solving mode, instead of anticipating new problems before they arrive. 

On the other hand, when companies realistically assess their current and future space and facility needs, they can put themselves in a much better position to weather any new storms. 

In other words, facility planning is what helps companies take a proactive approach to their workplace strategy and real estate management , instead of a reactive one.  It’s about bringing business goals in line with facility goals. It’s also about ensuring both the business and its facilities are ready for the future. 

Who is responsible for facility planning?

The facility planning process is complex, requiring a high level of collaboration in the workplace .

That said, facility needs are typically handled by a facility manager (FM), or a facility management team. FMs make great planners, because they typically have both the data and resources at hand to make smart decisions for the office. And because keeping things running smoothly and anticipating needs is ultimately their main goal. 

FMs are responsible for all aspects of facility management, including ensuring employees have the tools and space they need to do their jobs properly.  As such, they are in the best position to understand facility goals. This is especially true when they collaborate with either an executive or growth team to stay up to speed on overarching business goals as well. 

Moreover, the roles and responsibilities of FMs have been evolving since the pandemic, so that they are more and more becoming leaders in their organizations—again, priming them to be in the best position to make good facility plans. 

This is also one of the main reasons why facility management services are usually best handled in-house—either by a dedicated FM, or by using facility management software to disperse these tasks among invested team members.  

What are the four steps in facilities planning?

No matter who manages facilities planning for your organization, this process works best when it follows the following four steps.

1. Understand your goals

As we’ve mentioned, facility planning is about bringing business goals in line with both current facilities and any planned expansions. So before any planning actually takes place, the planning task force needs to identify what demands are being placed on them from the business, coupled with the realities of their existing facility.

Thankfully, these two perspectives often dovetail. 

For example, cost-effective sustainability is quickly becoming a goal of virtually every business. 

Improving space utilization —which can dramatically cut back on the amount of corporate real estate needed—can therefore keep everyone happy. 

Remember, business drivers will vary from company to company. This ranges from responding to changing markets or demographics, adopting new information technology, preparing for potential mergers, or opening new offices or storefronts, just to name a few.

And of course, virtually every company is concerned with growth. 

Identifying which goals are most important now is the critical first step to planning. To make this process work, everyone on the facility planning team needs to understand the mission, vision, and company culture. 

FMs should therefore be given the tools and access they need to evaluate the entire real estate portfolio . Then, they can then understand how the business plan and other items coming down the pipeline will impact their space needs.

Only when they are armed with this critical data can they understand if current facilities will meet demand, or whether construction projects—or maybe just a better desk booking system—should be planned for the near future.

2. Analyze and set benchmarks

Of course, planning doesn’t stop with simply understanding your goals. You also need to understand how to actually make those goals a reality. 

To properly plan a facility, FMs need to leverage any and all existing data about the organization’s existing space management.

This isn’t just about knowing what your square footage is; it’s about figuring out how those square feet interact with staffing concerns and long term goals. 

Specifically, FM need three tools to strategically analyze their existing workspace and make plans for change:

• Comprehensive reports and analytics that provide actionable insights into the existing needs of employees and real-time use of existing space, including occupancy and portfolio reports
• Scenario planning software, which makes it easy to virtually test out the impacts of reconfigurations before having to manually implement them
• Stack plans , which provide a high-level picture of how space is currently being used

Of course, this assumes there is already an existing strategy in place to maximize the three basic elements of space management —effective space planning, effective office use, and effective space tracking. 

When these systems are in place, and the right data is being collected, FMs can use them to perform gap analysis and set benchmarks. This will guide future facility management in the best way possible. 

3. Start planning

Once FMs understand both their goals and their benchmarks, they can begin the actual work of creating their master plan. This is when the challenging work of translating a facility plan into a business plan happens. It will look different, depending on the business drivers for your organization. 

To plan properly, FMs should first document their primary objectives, and then conduct a risk assessment of any plans. This assessment should include cost analysis, which can be done using scenario reports. 

At this stage, FMs can also benefit immensely from move management software . They will also need to develop a method for both gaining approval and reporting on results. 

Especially if their plans will include new working policies (such as implementing flexible seating arrangements like hot desking or office neighborhoods ), they may also want to seek input from both human resources and the employees themselves. 

In fact, companies should look to include all stakeholders in all aspects of the strategic planning process. 

4. Start acting

The more FMs are able to maximize the first steps of facilities planning, the easier acting on their plan will be. 

This is also where the right tools become essential. The best way to implement any new changes to a workplace or facility is with the right facility management software. Ideally, this is one that can integrate with your company’s existing integrated workplace management system (IWMS).

Finally, remember that strategic facility planning isn’t a ‘one and done’ occurrence. 

This is an iterative process. Any plans will need to be assessed, adapted, and maybe even rewritten on an ongoing basis. This will include continually relying on real-time data and comparing it against financial reports and other benchmarks. This will provide a picture of what’s working and what isn’t. 

What is the importance of facilities planning? 

There is a rise in types of work environments , the growing reliance on the digital workspace , and greater competition. As a result, we can only expect facility planning to become more and more important. 

When managed properly with the right tools, companies can expect to see the following benefits from strategic facility planning:

• Cost savings and improved sustainability, usually in the form of requiring less office space
• Improved employee experience and engagement, derived from new working arrangements that make better use of office space and enhance the digital workspace as well—critically important now during the Great Resignation
• Greater efficiency, thanks to the thoughtful analysis of how resources can optimized

Better still, these new changes will likely benefit other departments, potentially improving all aspects of using an office. For example, when FMs bring in better wayfinding systems to support any of the hybrid work models we’re currently seeing, they’re actually making the office easier to navigate for anyone who walks through its doors. 

In other words, when organizations are planning their facility, they are actually planning to future-proof their facility.

What are the dangers of not having a plan? 

Like Benjamin Franklin famously said, if you fail to plan, you are planning to fail. Winging it is simply not an option. Especially when you’re managing something as complex as even a small company—let alone complete enterprise facility management . 

As the pandemic taught us, things don’t always go to plan. But the companies that had a system in place for making and implementing plans were the ones that were able to more quickly adjust to the new reality. Companies that have the right approach to facility planning will always be more nimble and resilient than those that fail to plan in the first place. 

See OfficeSpace in Action

Get a personalized demo and create a hybrid workplace that works for everyone

OfficeSpace offers a software solution that makes facility planning easy. Reach out for a free demo. 

Photos: Thirdman , Sora Shimazaki , ANTONI SHKRABA production , Mikhail Nilov

How to write a business plan for a facility maintenance company?

Putting together a business plan for a facility maintenance company can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing facility maintenance company, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a facility maintenance company?

• What information is needed to create a business plan for a facility maintenance company?
• How do I build a financial forecast for a facility maintenance company?

The written part of a facility maintenance company business plan

• What tool should I use to write my facility maintenance company business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a facility maintenance company business plan is so crucial.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a facility maintenance company is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your facility maintenance company to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your facility maintenance company's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed facility maintenance company business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your facility maintenance company has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a facility maintenance company, let's take a look at what information is needed to create one.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a facility maintenance company

Drafting a facility maintenance company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a facility maintenance company

As you consider writing your business plan for a facility maintenance company, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your facility maintenance company.

Your facility maintenance company may discover that customers are increasingly expecting personalized services tailored to their specific needs. Your facility maintenance company may find that customers are increasingly looking for eco-friendly services or products that could reduce their environmental impact.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your facility maintenance company.

Developing the sales and marketing plan for a facility maintenance company

As you embark on creating your facility maintenance company business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a facility maintenance company

Whether you are starting or expanding a facility maintenance company, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A facility maintenance company might incur staffing costs such as wages for laborers, electricians, plumbers, and other specialized craftsmen. They may also have to pay for equipment such as ladders, power tools, and vehicles for transporting personnel and supplies. Additionally, they may have to pay for protective gear, cleaning supplies, and other materials necessary to perform the job.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your facility maintenance company, it is time to start creating your financial forecast.

What goes into your facility maintenance company's financial forecast?

The financial forecast of your facility maintenance company will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a facility maintenance company are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

Your facility maintenance company forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established facility maintenance company will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your facility maintenance company

The projected balance sheet of your facility maintenance company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your facility maintenance company projected balance sheet provides an understanding of your facility maintenance company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your facility maintenance company's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a facility maintenance company is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your facility maintenance company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the facility maintenance company is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a facility maintenance company.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the facility maintenance company, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your facility maintenance company business plan, let's have a look at the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a facility maintenance company business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a facility maintenance company business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your facility maintenance company's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your facility maintenance company's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your facility maintenance company's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your facility maintenance company, you may want to emphasize the potential customer base that could be accessed by the company. You could emphasize the proximity to major population centers and the access to transportation networks that could make it easy for the company to reach its customers. You might point out the availability of skilled labor in the area, as well as the potential for new business opportunities in the future. Additionally, you may want to discuss the potential for cost savings that your company could enjoy in the area due to lower overhead or tax incentives.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your facility maintenance company may offer customers a range of services such as maintenance and repair of lighting and plumbing, cleaning and janitorial services, as well as landscaping and snow removal. These services are important to keep a facility running smoothly and in good condition for those who use it. Additionally, your company may also offer preventative maintenance services to ensure that all equipment and systems are running optimally and efficiently for the long term.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When outlining your market analysis in the facility maintenance company business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your facility maintenance company, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your facility maintenance company targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include businesses that need regular maintenance on their property. This could include restaurants, office buildings, retail stores, and other commercial properties. These customers will have a need for regular services such as cleaning, repairs, and preventive maintenance.

In the competition subsection, introduce your main competitors and explain what sets your facility maintenance company apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your facility maintenance company.

5. The strategy section

When writing the strategy section of a business plan for your facility maintenance company, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your facility maintenance company could face financial risks. If the company experiences a downturn in the economy, it might not have the resources to continue providing services. Additionally, your company could face operational risks. For example, if a key piece of equipment malfunctions, it could lead to a disruption in services and may cause customer dissatisfaction.

6. The operations section

The operations of your facility maintenance company must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your facility maintenance company's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You could have key assets such as the maintenance tools used by employees and the vehicles used to transport them to the job sites. You might also have intellectual property such as the company’s logo and the maintenance protocols and processes that your employees use to complete their work.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a facility maintenance company business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my facility maintenance company's business plan?

In this section, we will be reviewing the two main solutions for creating a facility maintenance company business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your facility maintenance company's business plan

Using online business planning software is the most efficient and modern way to create a facility maintenance company business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your facility maintenance company's business plan

Outsourcing your facility maintenance company business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the facility maintenance company business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your facility maintenance company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your facility maintenance company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your facility maintenance company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a facility maintenance company. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a facility maintenance company? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Create a convincing business plan

Assess the profitability of your business idea and create a persuasive business plan to pitch to investors

500,000+ entrepreneurs have already tried our solution - why not join them?

Not ready to try our on-line tool ? Learn more about our solution here

Need some inspiration for your business plan?

Subscribe to The Business Plan Shop and gain access to our business plan template library.

Need a professional business plan? Discover our solution

Write your business plan with ease!

It's easy to create a professional business plan with The Business Plan Shop

Want to find out more before you try? Learn more about our solution here

All Formats

Table of Contents

Plan template bundle, 8+ facility management plan templates in pdf, 1. simple facility management plan template, 2. free facility management plan template, 3. free facility management business plan template, 4. facility management infrastructure plan template, 5. climate research facility management plan template, 6. free facility management service plan template, 7. free facility asset management plan template, 8. property facility management work force plan template, 9. facilities strategic asset management plan template, how to create the facility management plan, what are the uses of the facility management plan, what are the benefits of the facility management plan, what are the purposes of the facility management plan.

The facility management plan is the formal planning instrument used by the organization to manage the current and future operations of the club facility. The plan is to put together to make sure the efficiency of operation is increased, saving them money over the life of your facility and even expand the overall lifespan of your facility. The quality, safety, and sustainability of the plan must be in the facility management plan. And, the plan to achieve these strategies.

• Google Docs

• Apple Pages

Step 1: Adding the core competencies

Step 2: adding the role of the facility management, step 3: adding the security facility, step 4: adding the operational, step 5: adding the business continuity planning, more in business, simple credit facility agreement template, 100+ ultimate agreement template bundle, horse facility lease agreement template, credit facility agreement template, facility use agreement template, facilities management agreement template, facility management service level agreement template, facility agreement template, loan facility agreement template, facility lease agreement template.

• What is a Template?
• How to Create a Sales Plan + Templates
• 28+ Blank Check Template – DOC, PSD, PDF & Vector Formats
• 39+ Free Obituary Templates in MS Word | PDF | Apple Pages | Google Docs
• 41+ Christmas Brochures Templates – PSD, Word, Publisher, Apple Pages
• 23+ Christmas Brochure Templates
• 11+ Scholarship Profile Templates in DOC | PDF
• 4+ Hospitality Induction Templates in DOC | PDF
• 7+ Financial Plan Templates
• 10+ Operational Plan Templates
• 11+ Student SWOT Analysis Templates – PDF
• 9+ Training Plan Templates
• 7+ Production Evaluation Templates
• 5+ Shooting Schedule Template
• 5+ Budget Planner Templates

File Formats

Word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates.

Facilities management helps ensure the functionality, comfort, safety and efficiency of buildings and grounds, infrastructure and real estate.

Facilities management includes:

• Lease management, including lease administration and accounting
• Capital project planning and management 
• Maintenance and operations
• Energy management
• Occupancy and space management 
• Employee and occupant experience 
• Emergency management and business continuity
• Real estate management

Types of facilities management:  There are two basic areas: Hard facilities management (Hard FM) and soft facilities management (Soft FM). 

• Hard FM deals with physical assets such as plumbing, wiring, elevators and heating and cooling.
• Soft FM focuses on tasks performed by people such as custodial services, lease accounting, catering, security and groundskeeping.

This guide summarizes what sustainability-forward organizations look for in their ESG software platform to help achieve their goals.

Register for the guide on sustainability trends

For people to do their best work and feel engaged in their environments, they need to be in buildings that are safe, welcoming and efficient. Facilities management has a hand in everything that surrounds the people in facilities and on the grounds. Where they work, play, learn and live should be comfortable, productive and sustainable.

Superior facilities management will contribute to your organization’s bottom line, impacting the short-and long-term value of property, buildings and equipment. Your efforts can be crucial to:

• Space optimization
• Guiding capital projects
• Energy management and maintenance
• Lease accounting
• Workplace experience

People spend 87% of their time in buildings. See how to improve your operations to make their lives more comfortable and maximize efficiencies.

In its first worldwide integrated workplace management system (IWMS) MarketScape report, market research firm IDC highlights TRIRIGA for its innovation, flexibility, functionality and industry expertise.

Real estate is the second-highest cost for an organization and effective space management can result in cost savings up to 30%. ¹

The average capital project is 80% over budget and 20 months behind schedule, but adopting capital project management technology can lead to up to a 45% reduction in overall project costs. ²

Companies that rank high in employee engagement have 59% less turnover, 17% more productivity and 41% less absenteeism. 3

A smart building with integrated systems can realize 30–50% savings in existing buildings that are otherwise inefficient. 4

The technology in facilities management includes both software and systems. Vast amounts of data are generated by built environments through Internet of Things (IoT) sensors, wifi, meters, gauges and smart devices.

The most effective solutions enable facilities management departments to make good use of this data by infusing analytics and artificial intelligence (AI) into an integrated workplace management system (IWMS). These technologies deliver cognitive capabilities that make computer-aided facilities management possible—so you can analyze and learn from data, enabling you to achieve real-time visibility, perform predictive facilities maintenance and create more productive, cost-efficient environments.

Across numerous industries and company sizes, facilities managers have a wide range of important day-to-day responsibilities. These managers need to both plan ahead and also be ready for various tasks within any given day. While the manager’s responsibilities often include:

• real estate management
• capital projects and planning
• occupancy and space management 
• lease administration and accounting
• workplace experience

There are also ways to improve the performance of each responsibility that will fill the manager's schedule:

• deliver operational efficiencies
• create an environment conducive to productivity
• find and adopt technological solutions 
• guarantee regulatory compliance
• minimize risks to facilities and employees
• reduce energy consumption costs
• reduce the carbon footprint of the real estate portfolio

As many enterprises return to their offices, the workplace ideally becomes a destination where employees want to gather and collaborate—connecting safely with each other.

The new workspace in the post-pandemic world must to satisfy even more needs. Does productivity mean keeping face-to-face working or saving employees commuting time? Have a look at the advantages and challenges of building a hybrid workspace model.

Give employees a better workplace experience. “A great place to work” is being redefined by COVID-19, employee expectations and technology. That experience can still mean the difference between engaged, productive employees and a company facing turnover and even more disruption. Learn how to create that new experience .

See how ISS is transforming the facilities management of more than 25,000 buildings worldwide using TRIRIGA. Specific facilities management examples show the value of IoT as buildings and environments become more personalized, intuitive and easy to use.

With the onset of COVID-19, GRE was able to move 95% of IBM’s global employees from the office to home by using our own solutions. Now we’re preparing for the move back to the office, with the ability to monitor adherence to pandemic-related protocols and to verify health credentials.

Learn how an integrated workplace management system (IWMS) can increase the operational, financial and environmental performance of facilities and real estate.

Use data to make better-informed and data-driven decisions for intelligent real estate and facilities management.

Get intelligent asset management, monitoring, predictive maintenance and reliability in a single platform.

Read how as artificial intelligence gets integrated with building management systems and IoT devices, it has the potential to improve occupant experience, increase operational efficiency and optimize space management and asset utilization.

Explore how the workplace as a destination is changing the way facilities managers are optimizing space for safety, productivity and improved experiences.

Data and AI are increasingly critical tools in how organizations are evolving their facilities management. Simple, fast and flexible, IBM TRIRIGA is an integrated workplace management system that has the right mix of applications in one modular solution to maximize your building lifecycle while preparing you to meet future needs.

¹  Research and Markets  (link resides outside ibm.com)

²  McKinsey & Company  (link resides outside ibm.com)

³  Gallup  (link resides outside ibm.com)

⁴  American Council for an Energy-Efficient Economy  (link resides outside ibm.com)

Steps in Building a Business Continuity Strategy in Facility Management

Put on your risk goggles, crunch the numbers and reveal the true impact of disruptions, perfect your evacuation skills, identify your key allies, restore critical functions to bounce back, don’t leave any vulnerabilities unchecked, train like there's no tomorrow, spot threats before they strike, keep your plan supercharged, promote a culture of preparedness.

Ever had that sinking feeling when you realize your facility’s critical systems can fail, leaving you in a state of panic? Or that knot of anxiety that tightens when you discover a major equipment malfunction that brings operations to a grinding halt?

It’s like being in a high-speed car chase, but you’re driving with a blindfold on. You’re determined to keep your facility running smoothly, but all the while, you anticipate the looming disaster around the next corner.

But it doesn’t have to be that way. That’s where a business continuity strategy comes into play.

It’s your lifeline during times of crisis, outlining the procedures and guidelines you need to follow to keep your organization afloat.

But here’s the thing: many facility managers underestimate the importance of having a solid strategy in place.

You might think, “I can handle it when the time comes. I’ll deal with it on the fly.”

But that’s a risky mindset. Without a well-thought-out facilities business continuity plan, you’re putting your staff, resources, and even profitability at stake.

In this article, we’ll delve into the next-gen steps in building a business continuity strategy in facility management, exploring best practices, key considerations, and real-world examples.

Imagine you’re managing a corporate office building. You need to consider various risks such as fire hazards, power outages, natural disasters, or even cybersecurity threats.

Each of these risks has the potential to disrupt your facility and affect business operations. By conducting a comprehensive risk assessment, you can identify these potential risks and their potential impact on facility management.

Once you’ve identified the risks, it’s time to put on your detective hat and uncover the critical functions that are essential for your facility’s smooth operation. These critical functions can vary depending on the nature of your facility, but they often include security, HVAC systems, electrical infrastructure, and communication networks.

Prioritizing the continuity of these functions ensures that even in the face of disruptions, your facility can continue to operate efficiently.

For example, if a power outage occurs, identifying the critical function of electrical infrastructure will prompt you to have backup generators or alternative power sources in place to keep the lights on and essential systems running. Similarly, understanding the potential impact of a cybersecurity threat will lead you to prioritize the continuity of your facility’s data security measures.

Understanding the potential impact of disruptions is crucial for building a robust business continuity strategy.

That’s where the Business Impact Analysis (BIA) swoops in to save the day.

Think of it as your trusty sidekick, helping you crunch the numbers and reveal the true impact of disruptions.

First, you embark on a thorough analysis of your facility’s operations and processes. You leave no stone unturned, examining every nook and cranny to identify the critical functions that keep your facility running smoothly.

Whether it’s HVAC systems, security protocols, or maintenance procedures, you assess their significance and prioritize their continuity.

But it doesn’t stop there. The BIA dives into the financial and operational implications of potential disruptions. You put on your detective hat, investigating the potential consequences of a power outage, a cyber attack, or even a natural disaster. By quantifying the impact in terms of downtime, revenue loss, and customer satisfaction, you gain a clear understanding of the risks at hand.

Furthermore, the BIA uncovers the intricate web of dependencies and interdependencies within your facility. It reveals the domino effect that disruptions can trigger, highlighting the interconnectivity between various systems, departments, and stakeholders. For example, a failure in the electrical infrastructure can disrupt not only lighting and equipment but also impact security systems and employee productivity.

When unforeseen disasters hit, you want to be the expert who swiftly guides everyone to safety, creating a sense of security and preparedness.

Your emergency response plan is the ultimate playbook for handling various situations, from evacuation to sheltering and even lockdown scenarios. It’s like having a superhero team ready to leap into action, ensuring the safety and well-being of everyone within your facility.

For example, imagine a facility manager responsible for a large office building. He creates a comprehensive Emergency Response Plan that outlines the evacuation routes, designated assembly points, and roles for each team member during emergencies. They also set up communication channels, ensuring quick and efficient dissemination of critical information.

When an unexpected fire breaks out on one of the floors, His well-prepared response plan springs into action. Employees follow the clear evacuation procedures, emergency response teams act promptly, and communication channels keep everyone informed about the situation. Thanks to the well-rehearsed plan, everyone safely evacuates the building, and the fire is quickly brought under control.

By developing a top-notch emergency response plan, facility managers like you can instill confidence, protect lives, and safeguard the continuity of business operations, making them the real heroes in the world of Facility Management.

Key allies could include facility staff, tenants, vendors, local authorities, and emergency services. By involving them in the crisis communication plan, you create a united front to tackle any emergency head-on.

For instance, imagine a scenario where a major water pipe bursts in a commercial building, flooding several floors.

In this case, your key allies might include facility staff to coordinate immediate evacuations and shut off water supplies, tenants to inform them about the situation and safety measures, vendors to assist with repairs, and local authorities or emergency services to manage the overall response.

By integrating digital platforms for real-time communication, like mobile apps or group messaging systems, you ensure rapid dissemination of critical information during the crisis.

This approach enhances the facility’s responsiveness, minimizes disruptions, and showcases a coordinated effort that builds trust among stakeholders.

When the unexpected strikes and disrupts critical functions in facility management, it’s time to put our recovery strategies into action.

The goal? To bounce back stronger than ever and restore normal operations swiftly. Developing these strategies is a crucial step in building a robust business continuity plan for facility management.

First and foremost, we analyze the impact of the disruption and identify the critical functions that need immediate attention. With a clear understanding of what needs to be restored, we devise comprehensive strategies to get things back on track.

For example, if a facility is damaged due to a natural disaster, we might establish alternate facilities or activate remote work capabilities to ensure uninterrupted service delivery.

Collaboration is key in the recovery process. We work closely with our trusted vendors and suppliers, leveraging their expertise and resources to expedite the recovery. By forging strong partnerships, we can access necessary equipment, materials, and services promptly, minimizing downtime and ensuring a timely recovery.

When it comes to building a business continuity strategy in facility management, one crucial step is implementing preventive measures to ensure vulnerabilities are not left unchecked. This proactive approach helps safeguard critical systems and functions from potential disruptions.

To begin, it is essential to establish preventive maintenance programs for critical systems. Regular maintenance and servicing can prevent unexpected breakdowns and identify any underlying issues before they escalate. By staying ahead of maintenance needs, facility managers can minimize the risk of system failures and ensure smooth operations.

Another vital aspect is integrating redundancy and backup systems for key functions. Having backup systems in place provides an additional layer of protection against potential failures. Redundancy ensures that if one system fails, there is a backup ready to take over, minimizing downtime and maintaining continuity.

Conducting regular inspections and audits plays a significant role in identifying potential vulnerabilities. By regularly assessing the facility’s infrastructure, equipment, and processes, facility managers can detect any weak points or areas that require improvement. This proactive approach allows for timely corrective actions and mitigates the risk of unexpected disruptions.

Train Like There’s No Tomorrow

When it comes to building a solid business continuity strategy in facility management, one crucial step stands out: training and testing the plan. In this stage, we embrace the motto “train like there’s no tomorrow” to ensure our emergency response teams are prepared for any situation.

Regular training sessions are the backbone of our preparedness efforts. We gather our teams, share knowledge, and sharpen their skills in handling emergencies. Through interactive sessions, we empower our team members with the confidence and expertise to navigate challenging scenarios.

But training alone is not enough. We go a step further by organizing drills and simulations that put our plan to the test. These real-life scenarios allow us to assess the effectiveness of our strategies, identify areas for improvement, and fine-tune our response procedures. It’s like a dress rehearsal, preparing us to perform flawlessly when the spotlight is on.

Training and testing the plan are not just checkboxes to tick off. They are ongoing processes that ensure our facility management team is always prepared and ready to handle any disruption that comes our way. With each training session and simulation, we become stronger, more resilient, and better equipped to safeguard our operations.

By exploring technology solutions like facility management system software , organizations can gain a competitive edge in maintaining business continuity in facility management.

Automation and monitoring systems take center stage, allowing for early detection of potential issues. These systems can monitor critical functions, equipment, and infrastructure, providing real-time insights and alerts.

They act as a watchful eye, ensuring that any deviations or anomalies are promptly identified and addressed before they escalate into major disruptions.

Moreover, leveraging data analytics becomes a game-changer in proactive risk management. By collecting and analyzing vast amounts of data, facility managers can uncover patterns, identify trends, and predict potential risks.

This data-driven approach enables them to make informed decisions, implement preventive measures, and allocate resources effectively.

Integrating technology solutions not only enhances operational efficiency but also empowers facility managers to take a proactive stance in managing risks.

You’ve created a business continuity plan that’s your trusted companion in times of crisis. But here’s the secret to staying ahead of the game – keeping that plan supercharged through regular reviews and updates.

In the world of facility management, change is the only constant. That’s why maintaining business continuity in facilities management requires establishing a regular review process for your business continuity strategy.

Take a step back, gather your team, and evaluate the effectiveness of your plan based on real-life scenarios.

Did it hold up when faced with challenges? Were there any gaps or areas for improvement?

But don’t stop there. Embrace feedback from your team, stakeholders, and even external experts. They bring fresh perspectives and insights, helping you address emerging risks that might have flown under the radar. Their input can be invaluable in making updates and enhancements to your plan.

Let’s say your facility experienced a recent power outage that lasted longer than anticipated. During the review process, you realized that your plan lacked sufficient measures to handle extended power disruptions.

With this feedback, you can update your plan to include backup power solutions or alternative work arrangements to keep operations running smoothly.

Remember, a supercharged plan is a living document – one that evolves and adapts to the ever-changing landscape of facility management.

When it comes to building a business continuity strategy in facility management, engaging stakeholders and promoting a culture of preparedness is essential. It’s not just about having a plan on paper; it’s about fostering a mindset of resilience within the organization. This involves engaging facility management staff in the planning and implementation process.

By involving your team in the development of the business continuity plan for facility management, you create a sense of ownership and responsibility. Their input and expertise can uncover valuable insights and ensure that the plan reflects the unique needs of the facility. Through training sessions, drills, and regular communication, you can empower your staff to become active participants in building resilience.

But it doesn’t stop there. Collaboration with external stakeholders is equally crucial. This includes partnering with local authorities and emergency services. By establishing relationships and open lines of communication, you can tap into additional resources and expertise in times of crisis. They can provide guidance, support, and coordination during emergency situations, enhancing the effectiveness of your business continuity efforts.

Overall, engaging stakeholders and building resilience is about creating a shared commitment to preparedness. It instills a sense of confidence and readiness within the organization, ensuring that everyone is prepared to respond effectively to any disruption that may come their way.

As facility managers, it’s crucial to recognize the importance of building a solid business continuity strategy. By taking proactive steps such as implementing preventive maintenance programs, integrating redundancy systems, and conducting regular inspections, you can ensure smooth operations and minimize disruptions.

With FieldCircle , you can streamline preventive maintenance tasks, automate inspection processes, and stay ahead of potential risks. By embracing a proactive approach and leveraging technology, you can effectively manage your facility’s maintenance needs, identify vulnerabilities, and address them before they escalate into major issues.

These measures not only protect your business from unexpected downtime but also contribute to long-term cost savings and increased productivity. So, whether you’re a startup founder or a seasoned facility manager, understanding the difference these strategies can make is key.

Embrace a proactive approach, invest in preventive measures, and stay ahead of potential risks. By doing so, you’ll build a resilient facility management system that can weather any storm and keep your operations running smoothly.

Related Posts

Managing your facility space has to be no more difficult. But all you need is…

As an organizational function, facility management integrates processes, people, and places. Enhancing building operations and…

Book a Personalized Demo

Learn how your businesses can use FieldCircle to achieve more efficient, transparent, and profitable service operations.

By submitting your details, you agree that we may contact you by call, email, and SMS and that you have read our terms of use and privacy policy .

Got questions?

Give us a call on.

+1 512.601.5091

+91 120.796.1096

Or email us at:

[email protected]

Schedule a Demo

Business Continuity Planning for Facilities Managers

Facility Management should play a crucial role in Business Continuity – they manage the 2nd largest and most consequential business “assets” (after IT) on which day-to-day business operation rely.

Yet many Facilities Management (FM) departments are often excluded from the planning process, either because BIA surveys skew a focus toward IT dependencies and financial impacts, or because Recovery strategies lean toward alternate site configurations (under the assumption that a damaged facility will be a total loss).  Both of these perspectives ignore the fact that ‘total loss’ of a facility almost never occurs.

Then there are Facilities Managers who perceive little value in planning for potential disruptions – either under the assumption that response and recovery are part of their existing job duties (and don’t require planning), or that they can’t plan for what they can’t anticipate.  Both are short-sighted.

Having spent more than a dozen years as a Facility Manager (I began my involvement in Business Continuity in that role), I’ve learned that there is a great deal Facility functions can do to plan for recovery from disruptions; and FM can play a vital role in Response and Recovery activities – but only with advance planning and coordination with overall BCM objectives.

First, the typical “Loss of Building” scenario which many organizations use as a foundation for BCM Planning is an exaggeration: damage to facilities (other than small buildings and stand-alone facilities – like branch banks or retail stores) almost never results in a total loss.  Damage may occur, but the facility is seldom rendered useless.  (See our earlier blog for more on this subject).

There are things the Facilities Team can do to plan for a ‘total loss’, but they are limited.  I’ll touch on those planning requirements later.  Meanwhile, Facility Managers can plan the logistics in the event of building damage (a water or sprinkler leak, broken windows, an isolated power outage, small fires and other partial disruptions).

Prioritized Internal Relocation

Facilities Managers plays a vital role in helping to devise a Recovery Strategy for ‘partial loss’ (damage to a floor, quadrant or other portion of a building).  A sound BIA will enable the organization to determine their most critical business processes.  Facility Managers hold the key to determining where critical business process participants can move if their portion of a building is damaged.

Using the BIA’s prioritization results, the least critical process participants can move out (work from home, or just go home) and be replaced by more critical players.  Armed with floor plans designating the occupied space for each business process, Facilities Managers can work with the BCM team (or Incident Managers) to shuffle employees within the facility to reduce the impact of damage on those most critical processes.

Repairing Building Damage

Although overlooked as part of their day-to-day job, knowing whom to contact – plumbers, electricians, restoration companies and similar skilled trades and suppliers – is critical to responding quickly and effectively to facility damage.

A good Facilities Manager is adept at responding to day-to-day ‘crises’; they can be invaluable in during any disruption because they also know (or are responsible for) critical support functions:

• Physical Security (including access controls and security guards)
• Mail and overnight deliveries (and internal distribution)
• Adds, moves and changes of furniture and equipment
• Vending, catering and food services (IM and Recovery Teams can’t work on empty stomachs)
• Coordination with local Emergency Services (they should be on a first name basis with the Fire Marshall)
• Logistics (shipping, receiving, inventory and suppliers)
• Interaction with landlords and building owners.

Capturing that knowledge in a Business Continuity Plan assures access to those contacts under all circumstances (including damage to the Facilities Management Department, or absence of their staff!).

Temporary Facilities

Some impacts may render a facility temporarily uninhabitable (or off limits).  If only a day or two, work-from-home strategies may suffice – but they begin to lose their effectiveness in 3-5 days.  Knowing where local, alternate space may be available (workspace sharing or hoteling vendors, neighboring buildings or other tenants with extra space, for example) may provide better long-term temporary solutions.  Having a good working relationship with a landlord or building owner can pay big dividends in a disruption.  Having quick access to those contacts – within the Business Continuity Plan – will ensure adequate time to make phone and network connections to make such spaces usable.

In the unlikely event that a building is destroyed (a ‘total loss’) those same contacts will enable the organization to begin sourcing replacement facilities quickly.

Risk Mitigation

Electrical outages can be annoying (and costly) disruptions.  Adding a backup power generator can help mitigate the impact of those outages.  And FM can help determine not only the siting (where) but also the capacity (what) of generators – to serve both the primary objective (keeping the data center running) and secondary objectives: providing emergency power at the desk of critical business processes (like Customer Service or Order Fulfillment).

Need to shelter-in-place?  FM should have the best understanding of the most structurally safe areas of the building.

Planning evacuation gathering points?  FM can coordinate with other tenants or neighbors to make sure everyone isn’t planning to meet up in the same locations.

Flooding a problem?  There are as many ways to divert water as there are budgets to pay for them.  If you understand the financial impact of a possible flood, FM can help find a permanent or temporary means to mitigate some or all of the potential damage.

These are just a few of many areas where FM can help reduce the potential risks an organization faces – if they’re included in the planning process.

Decision Support for Incident Managers

Facilities Managers – often overlooked as a purely ‘administrative function’ – can be a highly valuable participant in Incident Management.  They have access to knowledge that no one else possesses.  They have established contacts with suppliers, vendors and trades that may be needed following a disruption.  And they have an understanding of the capacity (for people, electrical loads and HVAC) that may be crucial to determining long- and short-term recovery strategies.

Every Business Continuity Management program should include Facilities Management.  A smart Business Continuity Manager works hand-in-hand with their FM team to help build both their high-level strategy, and their Incident Management plans.  Just like the technical support provided by IT, FM possesses a set of skills and a wealth of knowledge that BC Managers can leverage both before and during a disruption.

• Business Continuity
• Business Impact Analysis
• Disaster Recovery
• Uncategorized

Recent Posts

• Enterprise Resiliency: Navigating Through Disruptions
• Orchestrating BC/DR Testing: Virtual – Emergency Operations Centers
• Insights into creating a successful Disaster Recovery Test – Part 3: Metrics
• Insights into creating a successful Disaster Recovery Test – Part 2: Preparation
• Insights into creating a successful Disaster Recovery exercise – Part 1: Objectives

Jim Mitchell

Related posts.

Enterprise Resiliency: Navigating T...

Orchestrating BC/DR Testing: Virtua...

Insights into creating a successful...

Aligning Cyber Incident Response Pl...

What Can You Do when your BCM softw...

Aligning BC/DR to CSIRP Challenges

Technology Modeling - the eBRP Way

eBIA - The eBRP Way

Threats, Impacts, BCPs

• Go to fnPrime »
• Visit our trade show »
• Branded Features »
• Data Centers
• Health Care
• Commercial Office
• Design & Construction
• Doors & Hardware
• Emergency Preparedness
• Energy Efficiency
• Facilities Management
• Grounds Management
• Maintenance & Operations
• Material Handling
• Outsourcing
• Building Automation
• Ceilings, Furniture & Walls
• Equipment Rental & Tools
• Fire Safety/Protection
• Paints & Coatings
• Plumbing & Restrooms
• Power & Communication
• Windows & Exterior Walls
• Nominate a Facility Champion  »
• BOM Energy Playbook »
• Leaning Into Solar Energy  »
• Maui Wildfire: A First-hand Account  »
• Job Listings & Salary Information
• Building Product Releases
• Case Studies
• Supplier Insights
• Vision Award Winners
• Reader's Choice Award Winners
• Product & Technology Innovations eBook
• Discover 18 Key Products & Services For Facility Professionals
• Press Releases
• Press Releases By Company
• Whitepapers
• Free Webcasts
• Premium Webinars
• Educational Resources
• ProFM Credential
• Upcoming Conference Sessions
• Building Operating Management
• Facility Maintenance Decisions
• Advertising
• Vision Awards Branding
• Email Management
• Press Release Archives
• Our Content On Your Site
• Media Resources
• Browse Keywords
• National Council on School Facilities » View Job -->
• Senior Facilities Technician » View Job -->
• Facilities Superintendent » View Job -->
• Director of General Services Administration » View Job -->
• Asset and Campus Operations Coordinator » View Job -->

Business Continuity Strategy: 10 Key Steps

To help focus managers and other parties in the development of a plan, Mellinger outlines 10 steps in that process. He acknowledges that all steps should carry the same level of importance, and certain steps apply to some facilities more than others, depending on the type of organization and region of the country in which the building resides.

Key 1: Obtain commitment from top executives . To sell top management on the need for a BCP, managers must engage people at all levels of the organization.

"(Business continuity planning) covers an entire organization," Mellinger says. "It takes everybody."

Managers know too well the challenge of obtaining support, particularly monetary support, for initiatives that do not have an immediate payback for the organization. But if managers can illustrate the potential business and operational impact of a disaster on all areas of facilities, managers will be more successful in securing funds, Mellinger says.

Key 2: Identify and quantify assumptions . Mellinger says the first step in this process requires managers to ask, "What are my organization’s key business functions, and what functions are absolute for the organization." Managers need to determine the operations and functions their organizations simply cannot do without and build a plan around restoring those operations as soon as possible.

"You need to know where the pain hits to develop recovery objectives," Mellinger says.

After determining an organization’s top functions, Mellinger says managers will realize the BCP tends to follow more of a strategic- or mission-driven model, rather than the organization’s business model.

Key 3: Actively manage risk . To identify the potential threats and hazards that could impact a facility, managers first should consider the location of their buildings. Managers then can use an equation to manage the risk of a potential disaster. Mellinger’s equation — Risk = Probably x Impact — helps managers determine the disasters or threats their BCP should address.

For example, most facilities can suffer a power outage, regardless of their location. But in California, the probability of an outage could be a four on a one-five scale, while in Minnesota, the probability might be a two on that scale.

If the California facility is a hospital, the impact of a power outage on operations also will be a four or five on a one-five scale. If the Minnesota organization is a K-12 school district, the impact would be smaller because of the predictable operations and occupancy of classrooms and school facilities.

In this scenario, managers of the hospital in California should make power outages a primary component in the BCP. The risk to the Minnesota facility does not warrant the time and resources to include recovering from power outages as part of the plan because of the low probability and low impact.

"Some things are improbable or so low impact that you don’t worry about them," Mellinger says.

Another component of actively managing risk is identifying single points of failure, he says.

"Look for the weak link in the chain," he says. "Look for the place where if you put some pressure on it, it’s going to cave."

Key 4: Keep people safe and secure . This key is critical for every manager in every facility. No matter the actions managers take during a disaster, they should maintain focus on the health and safety of occupants and visitors, Mellinger says.

In assessing occupant safety as part of BCP, managers need to consider evacuations, shelter in place, emergency kits, first aid, CPR, and the requirements for people with disabilities or other special needs.

Shelter in place is somewhat new to business continuity management, Mellinger says. The strategy provides occupants a place to go within a facility when they are told to remain in one area,

Key 5: Resume operations quickly and efficiently . Mellinger says the most important thing in a crisis is knowing the individual in charge. He suggests a chain of command that is six-people deep. Resuming operations effectively will require managers to involve what Mellinger considers the three pillars of the organization on which BCPs are built: human resources, information technology (IT), and facilities.

Key 6: Verify planning and validate its success . Drilling is the primary way building occupants will remember the proper actions to take in an emergency.

"If you don’t do it, it’s not going to get into peoples’ brains," Mellinger says. "You don’t remember what you don’t do."

Mellinger also suggests managers open a newspaper, find the worst possible thing that could happen to their facilities, and talk about the way their organizations would handle such a disaster. That type of dialogue also is a critical component in debriefing after responding to an event or a drilling session.

"Debriefing should be the next step in any incident you encounter, big or small, period," Mellinger says.

Key 7: Spread the word . Continuing with the communication theme, managers should develop awareness programs, involve everyone in the facilities, and collaborate with key departments. Collaboration is an important, yet uncommon, part of the BCP process, Mellinger says.

Key 8: Maintain the plan and ensure it is accurate . Managers should make sure changes within the three pillars of an organization focusing on BCP — facilities, IT, and human resources — are reflected in the plan. Managers also should account for changes to building systems and components to ensure technicians can address those systems appropriately before, during, and after a crisis.

Key 9: Debrief, review and revise after each disruption . Taking a close look at disruptions will help managers determine if a trend is occurring.

"Is there a trend?" Mellinger asks. "Is there something happening repeatedly? The only way you’re going to see (a trend) is with data."

Key 10: Don’t panic . Mellinger issued a call for calm during a disaster. Regardless of how effective and comprehensive the BCP, panic can deal a devastating blow to all the hard work that went into developing the plan.

Mellinger talks about three typical scenarios facilities face related to BCP. Some managers know they need to develop a BCP but think it is too labor-intensive. Another group believes maintaining the plan takes too much time. The third group has an effective BCP, but nobody knows what is in the plan.

Regardless of the state of an organization’s BCP, managers can take lessons from these 10 steps to better prepare for an emergency and return their facilities to normal operations more quickly.

Using partnerships and corporations to transfer farm assets

• Managing a farm
• Transfer and estate planning
• Utilizing partnerships and corporations to transfer farm assets

Quick facts

• Establishing a business entity, such as a partnership or corporation, can help with the process of transferring a farm business to the next generation.
• In Minnesota, there are two major categories of partnerships: partnerships and limited partnerships. 
• The two corporation entities available to farm businesses are S corporation and C corporation.

Developing any business entity is a complicated process. Seek assistance from a qualified legal expert and accounting assistance if you plan to explore developing a business entity.

Transferring the farm business to the next generation can be a daunting task. However, there are strategies and methods that can help simplify the process.

When operating as a sole proprietorship, it can be challenging to establish a transition plan. There are many individual assets that need to be accounted for such as machinery, equipment, livestock and land. It is difficult and time consuming to transfer separate, individual assets.

One possible solution is to establish a business entity such as a partnership or a corporation to accomplish the business transition. As members and owners of the entity, the parents are issued ownership shares or shares of stock in the entity. These shares can be sold, gifted or passed through an estate to the entering generation, over time, as a method of transferring the business. This does away with the need to transfer separate, individual assets. This also spreads out the parent’s income and thus tax obligations. It allows the entering generation the ability to acquire assets over time thus minimizing their need for large amounts of capital. 

In Minnesota, there are two major categories of partnerships: 1. partnerships and 2. limited partnerships. There are separate entities under each category which function differently.

1. Partnerships

There are two entities: general partnerships and limited liability partnerships.

General partnerships (GP)

Two or more people are required for the GP and are referred to as general partners. All partners are generally liable for all debts and obligations of the GP. There is no liability protection for their personal or partnership assets. Minnesota state law does not require a written partnership agreement. However, such an agreement outlining decision making and job responsibilities might be useful. If the name of the partnership is that of the partners (Henderson Family Partnership), the entity does not have to be registered with the State of Minnesota. The entity is taxed as a partnership, pass-through entity, with income allocated to each partner based on their ownership and included in their personal income tax.

Limited liability partnerships (LLP)

The LLP is similar to the GP with exceptions. All partners are general partners (no limited partners) but their liability exposure is limited to the assets they have placed into the LLP. Their personal assets are protected from liability exposure. The LLP is required to register with the Secretary of State in Minnesota. The LLP is taxed as a partnership, pass-through entity.

2. Limited partnerships

There are three partnership categories: limited partnership (LP), limited liability limited partnership (LLLP), and limited liability company (LLC).

Limited partnership (LP)

Two or more persons are required. There are both general and limited partners. General partners have no liability protection for their business assets but do for their personal assets. The limited partners’ assets in the LP as well as their personal assets have liability protection under the LP. The LP is required to register with the Secretary of State in Minnesota. and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LP is taxed as a partnership, pass-through entity.

Limited liability limited partnership (LLLP)

Two or more people are required. There are both general and limited partners and they have liability protection of both their LLLP assets and their personal assets. The State of Minnesota requires the LLLP be registered with the Secretary of State and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LLLP is taxed as a partnership, pass-through entity.

Limited liability company (LLC)

Requires only one person as a member of the entity. From a tax standpoint, the LLC can be taxed as a partnership pass-through entity or as an S Corporation. In addition, the LLC can afford tax savings via discounting assets and potential savings of self-employment taxes. The LLC provides liability protection much like that of a corporation.

The LLC has both members and managers. Members elect or appoint a board of directors. The State of Minnesota requires that the LLC register with the Secretary of State and the Minnesota Corporate Farm Law of Agriculture to comply with the Minnesota Corporate Farm Law.

The LLC can offer one additional level of liability protection by being registered in one of what are referred to as “protective states”. Although the list changes occasionally, some of the protective states include: Alaska, Arizona, Delaware, Nevada, New Jersey, South Dakota, Texas, Virginia and Wyoming. These states have written their LLC statutes to include an additional level of liability protection as long as the LLC members abide by all the statute rules. It is legal to register, for example, your Minnesota farm business in one of these protective states and still operate in Minnesota as you have been. You would need a contact in the state where registered. That contact would establish the entity on your behalf and at year end send you a K-1 form for income and you file your tax return just as you do now. This is a complicated process so seek expert legal help if you decide to develop an LLC in one of the protective states.

Registering with Minnesota Department of Agriculture

For the entities that are required to register with the Minnesota Department of Agriculture  for compliance with the Minnesota Corporate Farm Law, this is an annual requirement and there is a $15 fee required to file the documentations. In addition, land held in trust must also register annually with the Minnesota Department of Agriculture for compliance with the Minnesota Corporate Farm Law.

As mentioned, partnerships pay no income taxes. All profit/loss, capital gains and credits are passed through to the partners on a prorated basis, depending upon the percent of ownership. However, the partnership must file a Form 1065 informational tax return, which is due each year by April 15.

Advantages and disadvantages

An advantage over sole proprietorship is that the owners have ownership units or shares. These units or shares can be sold, gifted or passed through an estate as a means of transferring the business over time to the entering generation.

One disadvantage with a partnership, except the LLC, is that the death of a shareholder or willful withdrawal by a partner can seriously disrupt partnership operations. The partnership agreement, if put into place at time of formation of the entity, should clearly describe buy-out provisions or state how the remaining partners are protected, no matter how circumstances change.

Partnership tax laws

Partnership tax laws are similar to individual tax laws. A partnership can generally take over the depreciation schedule of contributed machinery or buildings. A partnership can claim the Section 179 depreciation expense which is passed on pro rata to the partners. Each partner can claim depreciation, which includes his or her portion of the partnership allocation plus any other personal Section 179 depreciation.

Partnership members are self-employed individuals and must pay self-employment tax on their share of earned partnership profits. Partnerships do not receive the favorable tax treatment on fringe benefits (medical, accident and life insurance, housing and meals) as do “C” corporations. However, it generally costs less to form a partnership than a corporation and partnerships can be less formal to operate.

There are two corporation entities available to farm businesses. They are: S corporation and C corporation.

1. S corporation

The S corporation offers a higher level of asset liability protection than a sole proprietorship and some of the partnerships. It must be registered with the Secretary of State in Minnesota. The S corporation is taxed as a pass-through entity with profits allocated to the stock shareholders based upon their ownership percentage. The income then shows up on the shareholders personal income tax. There is no double taxation issue.

Business operating assets can be placed into the S corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

2. C corporation

The C corporation also affords a higher level of asset protection than the sole proprietorship or some of the partnership entities. The C corporation offers longevity to the business because it is technically an entity onto itself with a life of its own. That is, people can enter and leave the C corporation and it continues on without interruption. It also affords many tax advantages regarding deductible expenses.

The C corporation however, can be subject to double taxation. The dividends paid to shareholders are taxed. If the corporation is not growing or acquiring new assets resulting in the corporation retaining earnings, those earnings can be taxed as well. Corporate tax rates are generally higher than other tax rates. Business operating assets can be placed into the C corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

One additional point that applies to both S and C corporations. Shareholders have to maintain an employer-employee relationship with the corporation. If the shareholders maintain personal ownership of what they consider corporate assets, charge corporate business expense against those assets, are audited by the IRS, they may be denied those expense deductions because the assets were owned by the shareholders, not the corporation.

A corporation is established under state law. Each state permits corporations the right to do business. A corporation consists of owners who are called shareholders. The shareholders are the basic decision making group. They elect a board of directors to act for them on most operational decisions. Majority vote governs corporate decisions. Ownership of 51 percent or more of the stock gives you control. Minority shareholders have little if any decision making control unless permitted to do so by the majority shareholders.

Once a corporation is created, it functions much as a self-employed individual might. Corporations must establish their own name and bank accounts. The corporation can become an employer, a lessor or lessee, a buyer or seller, or engage in any other business activity.

Reasons why farms incorporate 

• It is easy to transfer shares. Shareholders can gift, sell or pass through an estate, shares to others as they see fit. A majority shareholder can transfer up to 49 percent of the outstanding shares without losing control of the business.
• A corporation may simplify estate settlement in that it may be easier to value shares than individual farming assets.
• Self-employment (SE) tax can sometimes be reduced with a corporate structure. Instead of paying SE tax on all the Schedule F income as a self-employed individual would, the farmer becomes an employee of the corporation and social security taxes are paid only on wages they receive. See your accountant.
• A portion of meals and lodging furnished to employees of a C corporation are generally deductible to the corporation, but not taxable income to the employee. If lodging is provided on the farm and is a condition of employment, the home’s depreciation, heat, electricity and interest become deductible to the corporation. Remember the employer-employee relationship issue.
• Fringe benefits are deductible by C corporations. Health, accident and up to $50,000 of term life insurance is deductible to the corporation, but not taxable to employees.
• The corporation offers perpetual life, some economic efficiencies regarding capital acquisition, and provides income and social security tax flexibility. It can also provide continuation of a farm business through several generations.

Potential concerns related to the corporation

• Getting into a corporation is generally a tax-free event. Getting out is a taxable event. Don’t start a corporation unless you plan to continue it for many years.
• If the C corporation is profitable but is not growing and acquiring new assets, it can be troubled with retained earnings or excess profits. This can result in a tax obligation.
• Corporations have a different set of rules. Corporate meetings, extra record keeping, corporate income tax returns, reporting requirements, and quarterly tax estimates are part of corporate life. Complying with extra legal and regulatory requirements cost time and money each year.
• Minority shareholders have no power in directing the corporate business and can be easily “frozen out.” A majority shareholder (farming heir) can direct that no dividends be paid. Minority (non-farm heirs), may own shares that generate no income, and hence have no practical value.
• Corporate ownership of a house eliminates the use of the exclusion of gain or a sale of personal residence.
• Corporate ownership sometimes reduces independence and individual pride of ownership.
• It can be very difficult for a retired shareholder to receive any retirement income from an operating corporation. This is especially true if the retiree has no rental property, discontinues working for the corporation, and the corporation pays no dividends.

The farm corporation can be a valuable tool in tax planning and in the transfer process. However, it is a major commitment and a complex task to start a farm corporation. Before starting a corporation, make sure it fits your goals, objectives and business personality.

Self-employment tax on land, buildings and facility rent regarding entities

The US Eight Circuit Court of Appeals has ruled that if you are a member of any business entity (such as a partnership or corporation explained above); own land, buildings, or facilities that are outside that entity; and rent those items to the entity; the rental income is exempt for self-employment tax IF the rent is fair and reasonable.

This applies only to those states in the eighth circuit which include Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. With any of these laws, they are subject to change so seek legal advice on this matter.

Discounting business entity assets

An additional strategy that may be useful is the discounting of assets being placed into a business entity, such as any of the partnerships or corporations described earlier.

When you place business assets such as machinery or livestock into the business entity, you can elect to discount those assets. The main reason for discounting assets being placed into the business entity is to reduce the size of an estate in order to get below the federal and perhaps even the state estate applicable exclusion amounts. Doing so will reduce or eliminate any estate tax.

Justification for the discount is based upon lack of marketability of the assets due to a fractional ownership interest.

One disadvantage of discounting is that you have artificially lowered the basis of the assets in the entity. This can be a problem if the entity is discontinued and the assets are sold as a result. This could result in a tax obligation. If the assets are replaced due to use, this is not an issue.

Assets being discounted and placed into an entity should be appraised. If, at a future date, the entity is audited by the IRS, you can document the value of the assets placed into the entity. For machinery and equipment, simply take the depreciation schedule to the local implement or equipment dealer and ask them to put a value on all machinery. Have them put the values in writing on their dealership letterhead along with a signature and date. For livestock you can take a list to a livestock auction facility or someone who deals in livestock and would have a grasp of the values. The values should be put in writing and listed on their letterhead with a signature and date. For land, seek the help of a realtor who deals with ag land. Simply have them do an estimate or appraisal of the land, put it in writing on their letterhead, with a signature and date.

Note:  In late 2016, the Internal Revenue Service and the US Treasury Department enacted 2704 rules which drastically changed discounting rules and during which situations they may apply. If assets are transferred and then sold, discounting will definitely not apply.  If you are contemplating discounting any assets seek legal and accounting assistance to make sure you are in compliance with 2704 rules.

Business entities and maintaining homestead classification

When using a business entity for ag land ownership, caution must be used in order to maintain eligibility for the Minnesota Qualified Small Business Property Qualified Farm Business Property estate exclusion. In addition, utilizing limited liability companies (LLCs) as a business entity have new rules to comply with due to passage of the Minnesota Revised Uniform Limited Liability Company Act of 2015. The law states the land-owning LLC and its members must be the ones farming the land on behalf of the owner LLC. If the owner LLC rents the land to someone else, even another member of the LLC who then farms it personally, homestead classification is lost and therefore the qualified farm property estate exclusion is also lost. New LLCs must have complied with the new law as of August 1, 2015. Existing LLCs must have complied with the new law by January 1, 2018.

Ag land held in any trust, except a revocable living trust, as well as land in limited partnerships, limited liability limited partnerships, S and C corporations and LLCs must file documentation with the Minnesota Department of Agriculture under the Minnesota Corporate Farm Law in order to be eligible for the qualified farm property exclusion. The application must be done annually and there is a filing fee of $15 per application.

For more details on the Minnesota Homestead Classification requirements see maintaining farm land homestead classification and qualification . This is a complex area and there is a lot at stake regarding the qualified farm property estate exclusion so seek legal advice specific to your situation when establishing any entity that owns ag land.

Farm Service Agency (FSA) payments and business entities

Under the current farm bill, there are some restrictions regarding commodity program payments made to individuals versus entities. Entities that limit member’s liability exposure (all entities except the general partnership) are limited to one maximum payment limit regarding FSA commodity program payments.

This is a complicated issue. If you have any questions or concerns related to your situation, check with your FSA office for details of the program.

Caution: This publication is offered as educational information. It does not offer legal advice. If you have questions on this information, contact an attorney.

Gary Hachfeld, former Extension educator; David Bau, Extension educator and C. Robert Holcomb, Extension educator

Reviewed in 2017

© 2024 Regents of the University of Minnesota. All rights reserved. The University of Minnesota is an equal opportunity educator and employer.

• Report Web Disability-Related Issue |
• Privacy Statement |
• Staff intranet