I’ve been flogging the good, old “Whadya wanna be when you grow up?” question with my SFS students for over 20 years! You have two worthwhile options: You can either “stay small” OR “git big”? (Both of these business models can work.)
True, in SFS: Business Transformation we give you the Business Infrastructure to build a Critical Mass Business IF you wish. (And MANY of our grads have used the over 3,000 pages of SFS systems and procedures to acquire the ever elusive ‘Personal Freedom’!)
But what if you say, “Steve, I just can’t deal with the constant pressure (and problems!) that full time employees bring?” I feel your pain! So can you find your profitable “Sweet Spot” in the cleaning and restoration industry without hiring FT workers? ABSOLUTELY if you…
Focus on net profits and not gross income!
Sure, those six (or seven!) zeros at the bottom of your income statement may swell your ego. (And let you brag online!) But some multi-truck operators have less net profit (and personal ‘discretionary income’ in their pocket) than a small company 10% of their size! So some ideas…
- Raise your prices. Do NOT tell me, “Steve, I’m already the highest priced cleaner in my area?” Who cares? Not me! Raise your prices by 15-20% and you will double (or triple) your net profits. (Many of your clients won’t even notice!)
- Develop/promote “Additional Service Options”. Doing more work while you are already on each job is a no-brainer. But remember, your customers“can’t buy if they don’t know”! So you must “pre-orient” your clients on how they can spend more money with you!
- Hire part time workers. If they keep their regular job the “gotta keep ’em busy” pressure of FT employees goes away. Even better, you only schedule your PT people when you are making money. So you can pay them more per hour and they will love you!
- Focus on building routine, predictable cash flow. Dump the vicious “feast or famine” cycle of this industry. And yes, you can achieve regular contract accounts in both the residential or commercial sectors. Then for those late night/ weekend accounts get “Open Access” and follow #3 above with part time help!
- Develop a “Personal Disaster Plan”. Remember that bad things can happen suddenly to good people! Do you have at least 6 months living expenses in liquid funds? Health and life insurance? You should! And even more importantly…
- Build Strategic Partnerships. Find quality cleaning contractors that will cover for you without stealing your clients. Then you do the same for them. (These fellow “down-in-the-trenches” entrepreneurs may become your close friends!) These “partners will help you…
- Have the courage to say “No”! There are things in life that are more important than financial profit. So if you are going to be the only FT employee in your company you must block off time for your faith, family, friends and FUN!
The very best thing? These “Increase your Net Profit” ideas will help you make even more money when (and IF) you decide to ‘get big’!
NOTE: Whichever route you choose our five different SFS Training options will help! And please check out our Strategies for Success: Growing Your Business Facebook Group! (You don’t have to be a SFS grad to join us!)