Post by Kevin on Apr 7, 2007 9:40:22 GMT -5
A good email that came through from a Matt M. in most cases Matt you would get a response "Please ask your questions on the board, so we all can learn" and a link but a good question that is not previously covered.
The Question
How do we get to the $100,000 mark with my business? Currently it is my wife and myself, we do residential housecleaning and janitorial. Our gross account value is $33,000 We want to keep our business small but profitable. Thank you for your time. Any advice would be helpful.
Matt M.
The Answer
Matt,
I will go into a variety of things. The easiest way to get that $100,000, and what I post may be a easy approach, but you have hard work to do it. Also I am not the person to think small, and you should not be either. (Think SMALL, get SMALL) but this example I believe will get you on the right track.
First a couple of pitfalls
-Most services that I know spend all their time cleaning, they get a few good amount of accounts, and next thing you know they are working full time, busting their but 50+ hours a week cleaning on the night shift, sleeping in the daytime, when the daytime is when the real business happens. So first, if you and your wife are both cleaning, schedule it right now, a weekly day that one or both of you will concentrate on the business end. Getting more accounts, and paperwork. Now the weekly day, should be more like 5 weekly days, just marketing.
Make sure to read this link on bidding-click here
Matt,
What is your time worth? What is your wifes time worth? What is your time together worth? Enjoying her company, and not watching her clean toilets. You say you want to keep it small, I really can`t relate to that, because small to me, means stressful. I would prefer the term Medium Sized enough cash and accounts to provide a decent full enjoyable life, without the stress of large business situations. That sounds better to me, hopefully it sounds better to you also.
Back to time together, YOU HAVE TO BID ALL ACCOUNTS AS ANOTHER PERSON WOULD BE CLEANING THEM, AND WHEN YOU GET SUCH ACCOUNT, YOU HAVE A EMPLOYEE OR SUB CLEAN THEM, YOU MANAGE THEM, AND MOVE ON!
Surely, you understand this. Now the initial couple of days to get things set up. You or your wife cleaning and instructing whoever will be cleaning is expected. BUT as time goes by, you will move more into a operational training role, or you will hire someone to do this for you.
Back to what your time is worth. I value my time, at $100 a hour, I rationalize this because my ability to generate revenue. If I was a employee of yours, you surely would not put me in a 7 dollar an hour position of scrubbing toilets, you would put me out there making deals, and making money for your business. Same goes for you and your wife. You both have the ability to make a deal, so get out there and make deals that are PROFITABLE .
The Score Card
So what does it take to generate $100,000 for your business.
Simple you need a $100,000 a year in contracts or jobs
Depending on your profit margin and expense, lets say 40% you need $140,000 a year.
Lets look at some contracts and jobs, and their average price value, now the prices I`m listing are general, but the point in trying to get across is the SCORECARD, keep a scorecard as a BINGO card, cross them off when you get them, when you have you scorecard filled out SCREAM BINGO! and get another scorecard and play again!
1-5000 sq ft. Industrial $175 per visit 5 days a week YEARLY VALUE $45,500
1-Restaurant (similar to applebees) $85 per visit 7 days a week YEARLY VALUE $31,025
4 -Small Offices One Day a Week, Clean $50 per visit YEARLY VALUE $10,400yr
1-Medium sized office cleaned twice a week at $75 per visit YEARLY VALUE $7800
4- Residential- 1200 sq. ft. homes Bi-weeklys at $105 YEARLY VALUE $10,920
15- Window Washing Accounts weekly at $10 per clean YEARLY VALUE $7200
6-Floor Jobs Strip and Wax Quarterly at $250 per visit YEARLY VALUE $6000
2- Large Floor Jobs Quarterly, at $750 per visit YEARLY VALUE $6000
6- Carpet Cleaning Accounts Quarterly at $125.00 YEARLY VALUE $3000
12 MISC JOBS A YEAR, window washing, carpet cleaning, random residential, special cleanings, floor care, window washing, etc. $3000 year.
Now, I can go on and on with different categories for your BINGO card, and you can make the same card, the whole point is to have a card (GOALS) to cross off, and if you keep on crossing off the goals you will eventually SCREAM BINGO!
Just make sure you are both spending equal or more time promoting and managing your business, than you are cleaning for your business. If you follow that equation, you will always be ahead of the game!
The Question
How do we get to the $100,000 mark with my business? Currently it is my wife and myself, we do residential housecleaning and janitorial. Our gross account value is $33,000 We want to keep our business small but profitable. Thank you for your time. Any advice would be helpful.
Matt M.
The Answer
Matt,
I will go into a variety of things. The easiest way to get that $100,000, and what I post may be a easy approach, but you have hard work to do it. Also I am not the person to think small, and you should not be either. (Think SMALL, get SMALL) but this example I believe will get you on the right track.
First a couple of pitfalls
-Most services that I know spend all their time cleaning, they get a few good amount of accounts, and next thing you know they are working full time, busting their but 50+ hours a week cleaning on the night shift, sleeping in the daytime, when the daytime is when the real business happens. So first, if you and your wife are both cleaning, schedule it right now, a weekly day that one or both of you will concentrate on the business end. Getting more accounts, and paperwork. Now the weekly day, should be more like 5 weekly days, just marketing.
Make sure to read this link on bidding-click here
Matt,
What is your time worth? What is your wifes time worth? What is your time together worth? Enjoying her company, and not watching her clean toilets. You say you want to keep it small, I really can`t relate to that, because small to me, means stressful. I would prefer the term Medium Sized enough cash and accounts to provide a decent full enjoyable life, without the stress of large business situations. That sounds better to me, hopefully it sounds better to you also.
Back to time together, YOU HAVE TO BID ALL ACCOUNTS AS ANOTHER PERSON WOULD BE CLEANING THEM, AND WHEN YOU GET SUCH ACCOUNT, YOU HAVE A EMPLOYEE OR SUB CLEAN THEM, YOU MANAGE THEM, AND MOVE ON!
Surely, you understand this. Now the initial couple of days to get things set up. You or your wife cleaning and instructing whoever will be cleaning is expected. BUT as time goes by, you will move more into a operational training role, or you will hire someone to do this for you.
Back to what your time is worth. I value my time, at $100 a hour, I rationalize this because my ability to generate revenue. If I was a employee of yours, you surely would not put me in a 7 dollar an hour position of scrubbing toilets, you would put me out there making deals, and making money for your business. Same goes for you and your wife. You both have the ability to make a deal, so get out there and make deals that are PROFITABLE .
The Score Card
So what does it take to generate $100,000 for your business.
Simple you need a $100,000 a year in contracts or jobs
Depending on your profit margin and expense, lets say 40% you need $140,000 a year.
Lets look at some contracts and jobs, and their average price value, now the prices I`m listing are general, but the point in trying to get across is the SCORECARD, keep a scorecard as a BINGO card, cross them off when you get them, when you have you scorecard filled out SCREAM BINGO! and get another scorecard and play again!
1-5000 sq ft. Industrial $175 per visit 5 days a week YEARLY VALUE $45,500
1-Restaurant (similar to applebees) $85 per visit 7 days a week YEARLY VALUE $31,025
4 -Small Offices One Day a Week, Clean $50 per visit YEARLY VALUE $10,400yr
1-Medium sized office cleaned twice a week at $75 per visit YEARLY VALUE $7800
4- Residential- 1200 sq. ft. homes Bi-weeklys at $105 YEARLY VALUE $10,920
15- Window Washing Accounts weekly at $10 per clean YEARLY VALUE $7200
6-Floor Jobs Strip and Wax Quarterly at $250 per visit YEARLY VALUE $6000
2- Large Floor Jobs Quarterly, at $750 per visit YEARLY VALUE $6000
6- Carpet Cleaning Accounts Quarterly at $125.00 YEARLY VALUE $3000
12 MISC JOBS A YEAR, window washing, carpet cleaning, random residential, special cleanings, floor care, window washing, etc. $3000 year.
Now, I can go on and on with different categories for your BINGO card, and you can make the same card, the whole point is to have a card (GOALS) to cross off, and if you keep on crossing off the goals you will eventually SCREAM BINGO!
Just make sure you are both spending equal or more time promoting and managing your business, than you are cleaning for your business. If you follow that equation, you will always be ahead of the game!
