Put 1000 people into a room..

[Mikey P]

Selected at let's say holiday parade or county fair, that attracts a wide and varied middle income demographic, how many of them have what it takes to create and run a success mom and pop business?

 

[Nomad74]

10%... Maybe

 

[Jim Pemberton]

Define "Successful"

1. A business that generates enough profit to bring in an income with moderate management and attention, or at worst no "hands on cleaning work" after the first few years, and that sells for enough money for the owner to retire at a young enough age to enjoy retirement, experience some rewarding travel, and live a comfortable life.

2. A business that gives the individual or couple a comfortable income, pays for enjoyable recreation, provides for bringing up children and starting them off with a decent chance to succeed in the world, then can be liquidated at retirement age,while savings and investments, along with social security, allows for a pleasant, if not "dream like" retirement. In shorter words, the cleaner bought a good job, but didn't have a business that had a strong monetary value to sell in the end.

 

[steve_64]

Thought this thread was going to be a bad joke.

Why do you Ask because I don't really care but now I'm curious.

 

[Nomad74]

BTW, I don't count myself as a success when looking at Jim's definitions. I have two sick kids at home today and I'm praying I don't get sick also. I have a full schedule for the week. If I go down, business stops completely. I'll feel better about myself when I can attend a Mikey's Fest and not have to worry about the following weeks bills. But i've managed to stay in business so far, so I must be doing something right.

 

[FB7777]

Closer to 1-2% in my opinion

 

[Mikey P]

Closer to 1-2% in my opinion

Not like you to be so optimistic..


I'm thinking .4%

 

[steve_64]

https://www.google.com/amp/www.pewr...nk/2016/09/01/8-facts-about-american-workers/

Or ten percent who are self employed. Then decide what successful means.

 

[Steve Lawrence]

In today's economy in Michigan? Pretty tough. I don't think I could start out now.

 

[rick imby]

So the top 5% of net worth households in the US are worth 2 million or more. In my estimation that is the threshold for reasonable retirement. I'm guessing half made it there from small business self employment.

2.5%

Final answer...

 

[rick imby]

In today's economy in Michigan? Pretty tough. I don't think I could start out now.

When things are the bleakest is when there is the most opportunity. The economy in an area always has ups and downs---why anyone would choose to live in a depressed Michigan big city? I'm not sure. However leasing space in a booming area is not easy either.

 

[Jim Pemberton]

In the two scenarios that I gave, I would say that less than 1% reach financial independence at retirement as a result of the sale of the cleaning business. To be fair, most people don't start a cleaning business for that level of financial independence. So much for category 1.

In the second scenario, those that "bought a job" but did things well enough to live a "nice life", I would say 10% or better. If their wife had a reasonably good paying job, that skews the numbers higher. The point is that those who do the cleaning themselves until age takes its toll rarely get much for their business, but to be fair, those same people rarely intended to do that. So I can't call them unsuccessful.

If they did what someone earning a wage working for someone else should do, that is have savings and reasonable investments or property, then when they liquidate the business or give it to a family member or "helper" for a low sum, you can't say that they "failed".

Perhaps the best measurement would be did the business turn out the way the cleaner who started it intended to turn out in the end?

 

[The Great Oz]

The cool thing about people that can run a successful business is that you could drop them in any city in the world, and they would identify how they could make a profit there. Give them a hundred dollars and they'll be successful in three years.

Depending on the source of the statistics, 75% of all new businesses fail in the first year and 90% fail in three years.

Jim's #1 scenario is rare, I'll guess less than 1%. Those people tend to run either hugely successful money-makers or run multiple businesses, so they might skew the stats. The stats also say there is a 10% success rate in three years, meaning the business is still viable enough to pay taxes, but that includes a lot of businesses that are run as side gigs to regular job. If I don't include people who could run a business but don't want to, I'll say less than 5%.

The #2 scenario can certainly be considered a success if the owner uses part of his profits to invest for retirement, not expecting his business will be worth anything.

 

[Jim Pemberton]

The #2 scenario can certainly be considered a success if the owner uses part of his profits to invest for retirement, not expecting his business will be worth anything.

Thank you Bryan. I think you simplified that better than I tried to. Most cleaning businesses close and the assets are sold off at retirement.

 

[Mikey P]

Tougher but more inconvenient question..


Of that tiny percentage whatever it may be, what are the odds that their children are as capable.....

 

[Jim Pemberton]

Of that tiny percentage whatever it may be what are the odds that their children are as capable.....

I don't have hard numbers, but I've looked back on the customer's I know well, and interestingly enough, in most cases, the children did better than the parents.

The reason seems to be this:

1. If the kids were still willing to be around as adults and didn't leave for greener pastures, they were committed to the business, and already had a strong work ethic.

2. As in most generational businesses, the kids were more willing to look at new tools and technology, and more importantly, new means of marketing the business.

3. There are, of course, those that didn't do as well, and many who "ran the business into the ground". The typical case is where a son got fired from a job, or lost everything in a divorce, and was living with mom and dad or nearly so. He didn't really have any investment in the business, and the business was a gift given to someone who didn't have their own life in enough order to take on the responsibility. Drugs and alcohol also have taken their toll in second or third generation business.

But I have more success stories than failures, and most of took the business to a higher level.

 

[steve_64]

In today's economy in Michigan? Pretty tough. I don't think I could start out now.

I started in 06. This economy or consumer confidence is the best I've seen since I started.

 

[J Scott W]

Two questions ...

How many out of the 1000 in that room already are running what they would consider a successful business? I would think 10% +/- (assuming adults.) Not carpet cleaning but maybe working in some trade or some some retail business.

How much would you charge to clean the room big enough to hold 1000 people? Some "What would you charge question must be part of every discussion.

 

[Jimmy L]

With all of the beat down over being a O/O and someone else's opinion BLA BLA BLA...................At the end of the day I can say , I did it my way. I AM THE CAPTAIN OF MY OWN SHIP! AND I COULD GIVE A FOOK WHAT EVERYONE ELSE THINKS!

YOU IDIOTS...................MORONS.................BUFFOONS!

 

[SamIam]

In the two scenarios that I gave, I would say that less than 1% reach financial independence at retirement as a result of the sale of the cleaning business. To be fair, most people don't start a cleaning business for that level of financial independence. So much for category 1.

In the second scenario, those that "bought a job" but did things well enough to live a "nice life", I would say 10% or better. If their wife had a reasonably good paying job, that skews the numbers higher. The point is that those who do the cleaning themselves until age takes its toll rarely get much for their business, but to be fair, those same people rarely intended to do that. So I can't call them unsuccessful.

If they did what someone earning a wage working for someone else should do, that is have savings and reasonable investments or property, then when they liquidate the business or give it to a family member or "helper" for a low sum, you can't say that they "failed".

Perhaps the best measurement would be did the business turn out the way the cleaner who started it intended to turn out in the end?

Retire in Costa Rica it’s like your 200k is 12 million you live good!

Isn’t that a movie ?????

Shrunk

 

[SamIam]

Tougher but more inconvenient question..


Of that tiny percentage whatever it may be, what are the odds that their children are as capable.....

Ok don’t get me started about my kids again.

I’m actually happy they have jobs that pay well, have medical insurance, and have a retirement plan.

 

[Nomad74]

With all of the beat down over being a O/O and someone else's opinion BLA BLA BLA...................At the end of the day I can say , I did it my way. I AM THE CAPTAIN OF MY OWN SHIP! AND I COULD GIVE A FOOK WHAT EVERYONE ELSE THINKS!

YOU IDIOTS...................MORONS.................BUFFOONS!

You are in a special kind of incontinent mood today. Would a picture of me help?

 

[steve_64]

Tougher but more inconvenient question..


Of that tiny percentage whatever it may be, what are the odds that their children are as capable.....

Capable or willing?

I think many more are capable than willing.

 

[Desk Jockey]

I've always heard 1st gen starts it. Second gen grows it. Third gen fails it.

From this board it "appears" we have many successful cleaners. Or very good liars.

 

[Nomad74]

I've always heard 1st gen starts it. Second gen grows it. Third gen fails it.

From this board it "appears" we have many successful cleaners. Or very good liars.

The term is "Short sleeves to short sleeves in three generations" . You are correct.

 

[Lee Stockwell]

Selected at let's say holiday parade or county fair, that attracts a wide and varied middle income demographic, how many of them have what it takes to create and run a success mom and pop business?

More would qualify to run a tattoo shop than a regular service business.

 

[Dolly Llama]

1% if talking a biz that doesn't have to count on a spouses bennies and wages

..L.T.A.

 

[Jimmy L]

I know many CC's, plumbers and other service type businesses that are only one man ops or have a son working with them. There is nothing wrong with being independent and NOT a big business or even having one that dies with the owner.

I reference an old Anthony Bourdain episode watching a oriental man I believe in china who just made noodles in his apartment. He sold them to restaurants and that alone fed his family.

You can't judge a man by how many trucks he owns or employees.

So this discussion is offensive to 99% of us.

 

[Mark Saiger]

Not everyone is going to have the same motivation... Or the same motivators.

Will my son in law have the same drive or push to do what I do... My wife says NO!

I still say if you want to have and enjoy some of the things we have.... You are going to have to work or do without some things.

If most of the people we mentioned are in the room with us....and especially carpet cleaners ready to listen to another carpet cleaner... At least that shows motivation right there...

Then there is the motivation to take something home with you and modify to use and implement.

You can put your money in my tin cup on the way out.....

 

[FB7777]

Why so defensive Jimmy?

I'm not sure if you need a hug or an enema