Realities to consider before going all in..

Mikey P

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Far too many think it's just about getting some equipment and all the rest will follow...


What's your phone number, I'll call at some point today

Please consider and answer these realities you need to be aware of .



Costs involved for the first five years, or do you have a source of income to take care of you/your family while the business grows? All in on new equipment can exceed $120k

Seasonal work in certain locations, what will you do for income in the slow months?

Personality assessment- Are you a people person built for residential work or are you a recluse better suited for commercial work?

Home or office/shop? Where will you keep your work vehicle in the winter?

“Start with the end game in mind” business planning..

Are you handy with tools or will you be hiring a mechanic?

How’s your chemistry knowledge?

How’s your back, shoulders and joints?

Do you want to fly solo or hire help, and all the realities behind both choices.

Identification skills, some can, some can’t.




Let's start with those crucial truths..
 

Cleanworks

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I am a little more serious about moving this year. Listed my business for sale, very cheap. The people who have called are all of Indian ancestry and want to pay cash but have no experience at all.
 

Cleanworks

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Yeah, I understand, but if they have the cash, then don’t let your high horse cost you the sale.
I have a couple of friends interested somewhat. These no experience guys think it's going to be easy, sit back and and answer the phone. Doesn't work that way. You have to be out there Working your contacts, doing sales, etc. I just did a job for $2000 for 3 hours on the job site. Repeat customer, third time I've done that job. No push back about the money for hours spent. I can see these guys coming in and undoing that. Monday, I did a job for $2500 for 5 hours on site. I have a lot more like that. Just hate to see it go to waste. None of these guys have any experience doing residential cleaning or rug cleaning. If I have to I will take their money, give them their month or so training and let them loose.
 

todg

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You know the all-in people who fail by looking at brand-new equipment for sale on Facebook and here! Most people are either great with mechanical work, but can't talk the talk. As well as they can't sell horseshoes to a horse. The other factor I find is that folks work way too cheap. If you booked up as an owner/operator pass a week or two, your prices are too cheap. My first recommendation to newcomers in this business is to work a few jobs with someone else and see if it's for you. Also, when initially making revenue, calculate the money you were making before you were before you came to work for yourself and use that as a guideline. So for example, if you were making $1K per week working for Joe Shmo, that should be your goal at the end of the week for income...For me, it was like $500 per week 25 years ago! Also, remember as an owner/operator it's a racket! I charge basically what I believe something is worth to me, not what others do. I don't care about "competition" The Last bit of great information I can share, people are profilers, and the folks who hire you are calling you for that reason alone. It's not exactly skill or technique, but more power of suggestion. Great equipment and tools make you effective and efficient! Ask me I know! My average job is 1.5 hours set-up to break down. That's all I want! And I only offer Tile and Grout Cleaning and Sealing. Seriously for just about 25 years. At 59, I'm semi-retired! It's the sportsbook that keeps me employed! LOL
 

todg

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I have a couple of friends interested somewhat. These no experience guys think it's going to be easy, sit back and and answer the phone. Doesn't work that way. You have to be out there Working your contacts, doing sales, etc. I just did a job for $2000 for 3 hours on the job site. Repeat customer, third time I've done that job. No push back about the money for hours spent. I can see these guys coming in and undoing that. Monday, I did a job for $2500 for 5 hours on site. I have a lot more like that. Just hate to see it go to waste. None of these guys have any experience doing residential cleaning or rug cleaning. If I have to I will take their money, give them their month or so training and let them loose.
And the company will end up folding sooner than later! Well, maybe! Especially if you're a good judge of character! As long as you get the money for the business, that is what it is!
 

sassyotto

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Paul
the thought of *Build your business so you can sell it* days are pretty much over.

You can learn all you need to start a business on the internet

Grow a business now? Think employees mindsets these days.

Sure, there are a handful of businesses out there that have sold, but for the other 97 percent it will be pretty much worth the value of the equipment, if that.

Ever try to sell something to a carpet cleaner?

And today I have a positive attitude.
 

Mikey P

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Where's that new guy with all the equipment questions?


Has he figured out that a Rotary Extractor is for dumps, and dumps seldom call you back? and/or apartment complexes, an other great way for newbs to go broke....?
 

BIG WOOD

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Where's that new guy with all the equipment questions?


Has he figured out that a Rotary Extractor is for dumps, and dumps seldom call you back? and/or apartment complexes, an other great way for newbs to go broke....?
Apartment complexes are good for only one thing:
1. Cash flow



There's two things our businesses have an absolute need for:
1. Cash flow jobs
2. High profit bigger jobs which can be a few different things but hardly come every day:
-A special service that goes beyond your basic service of carpet cleaning
-Very big commercial jobs

If a newbie depends on apartment complexes only, their business will slowly fail.
 

Jim Pemberton

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Apartment complexes are good for only one thing:
1. Cash flow



There's two things our businesses have an absolute need for:
1. Cash flow jobs
2. High profit bigger jobs which can be a few different things but hardly come every day:
-A special service that goes beyond your basic service of carpet cleaning
-Very big commercial jobs

If a newbie depends on apartment complexes only, their business will slowly fail.

I have a few customers who are apartment cleaners.

Most have old units in old trucks and always on the edge of business collapse.

It isn't a model I'd recommend.

There are some who make it work, but very, very few.
 

Mikey P

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Apartments need to be handled like VCT, or sandwich franchises.

The owner stays home while his many crews/ locations each earn 30 to 50k a year and he takes 20%ish from each..

The workers are minimum wage
robots
 
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hogjowl

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Where's that new guy with all the equipment questions?


Has he figured out that a Rotary Extractor is for dumps, and dumps seldom call you back? and/or apartment complexes, an other great way for newbs to go
That’s an unfortunately inaccurate description of most markets. It may be accurate for yours, or it could be another self-aggrandizement that you’re known for, but in my market I see people of all economic categories living in soiling conditions that require rotary extraction.
 

Jim Pemberton

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Apartments need to be handled like VCT, or sandwich franchises.

The owner stays home while his many crews/ locations each earn 30 to 50k a year and he takes 20%ish from each..

The workers are minimum wage
robots

One of my local apartment cleaners calls his employees "inmates"

Another guy who seemed to do good for awhile had this scam:

He'd clean any apartment for 35.00.

BUT....

50.00 extra per room for dye stains, 50.00 extra per room for deodorizer, 50.00 for color repair, and 50.00 for carpet repairs.

Every job "needed" at least two of the four above mentioned services, and when a new manager came in and started pre-inspecting the jobs to make clear that most didn't have any of those issues, he simply had his employees "clean" every such job by spraying them with water and telling the manager they just were too abused and didn't come clean.

He made money for a while....but ultimately it caught up with him, he lost his accounts, and he went under.
 

Mikey P

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That’s an unfortunately inaccurate description of most markets. It may be accurate for yours, or it could be another self-aggrandizement that you’re known for, but in my market I see people of all economic categories living in soiling conditions that require rotary extraction.

I find the thought of $200k+ households living on floors that soiled, hard to imagine, but out west we don't fry 90% of our food.
 

hogjowl

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There's always exceptions..

But not enough for me to give up floor space to an RE that may get used once a year
You don’t “see” the need to use it because it’s not with you and all of us old-timers here know it’s not with you because of politics. It was your flavor of the month a few years back and you promoted the brush head attachment exclusively.
 
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Mikey P

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You don’t “see” the need to use it because it’s not with you and all of us old-timers here know it’s not with you because of politics. It was your flavor of the month a few years back and you promoted the brush head attachment exclusively.

When's the last time you saw anyone on FB using any RE?

Saiger's, who cleans way more carpet than I do, stopped using them too.


I've only needed to use my crb three or four times in my military carpets

My retired residential clients are not from the South, so just the white crb brushes are more than enough.

and just to make you more pissy, yesterday, I cleaned a small apartment LVP for $180 for a delightful elderly lady, and two synthetic rugs for $150 for a homeschooling mom of 4 boys

and sold $7500+ worth of premium Glides and tools to cleaners smarter than YOU!
 
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hogjowl

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Saiger told me himself just a week ago that he quit using them because RV wouldn’t help a cleaner Saiger was trying to help. While I understand his decision, I also notice he’s failed to say anything negative about the tool.
Mark can separate politics from utility. I would have expected “3.0” the be able to do the same.
You’re really not helping cleaners when you fail to recommend a tool one week and not the next only based on your anger issues.
 
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