Brian Robison's Hot Seat notes

Brian R

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Joined
Jun 13, 2008
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19,945
Location
Little Elm, TX
Name
Brian Robison
I had some people ask about how I am running my business so I did a hot seat on it.
Here are the notes I used...they are not pretty because I wrote them form my own use.

PM me with any questions.
Thanks to everyone who showed up.



Hot seat notes

1. I don’t pretend to know everything…this is just how I am doing some things that are working really well for me.
2. Been cleaning carpets pretty much my whole life with some down time a year here and a year there. Owned some Chem-Dry’s …worked for some Chem-Drys and started steam cleaning around 8 years ago in this area. I own my business now.
3. My business structure is really based on people helping people. There are two different carpet cleaners …in my opinion….There is the Craftsman and the Business man…now you can be really good or really bad in either dept but this is what I think the difference is.
4. The Craftsman is really into the cleaning aspects of the industry…really likes the equipment and process’ used…all the chems used and always looking for something better.
5. The Businessman is the guy who loves the marketing, speaking with customers…or clients, doing office work or has people to do the office work if it is too much.
6. I am the business man…I’m not a great business man…but at businessman nonetheless.
7. I think by me hooking up with some craftsman that do great work…IE o/os things tend to work out well.
8. Why not find that carpet cleaner businessman to find you the work, deal with phones and work that side of it and you do the craftsman part and split the income?...Or vise versa
9. Which one are you? Either way I think it is a win win.
10. Doing the carpet cleaning and the office will work fine if you don’t want to grow your business…but if you do then you have to have other people on your team.
Now here’s the money part

1. I split just about every job down the middle. The guys that work for me pretty much full time I split 50/50. Some of my lower end jobs …or out of the area I will go 60/40 because those are fewer and not worth a lot of money and my “Face” is not really on the job.
2. Every job that I get costs me money to get…even repeat customers have their cost. The guy cleaning doesn’t have to pay for the job, he just answers the phone and there it is, no mailing, no ads…whatever. But he does have the expense of doing the job and maintaining the equipment etc. So I believe that each have their equal expenses…at the end of the day anyway.
3. When I first started this, I had to cut my overhead way down by selling the van and all the equipment and of course that cuts out gas and chemical usage…repairs… you name it
4. I was losing what I figured to be about $2000.00 every month by jumping off the truck.
5. The thing is, I had time to work on getting more jobs to make up for that loss…for every extra $200.00 job that came in…I made an extra $100.00…And that’s what I did.
6. The best part is I can now work on my company to get more work…I can send these jobs to Cleaning Techs who may not have a lot of work …that they didn’t directly have to pay for those customers.
7. I do like to think that I have slightly higher end work…but definitely not always.
8. There have been some guys on the board who have gotten some crappy jobs from me but you have to take the bad with the good…as do I. whattyagonnado.
9. This is better for me than having employees because of the costs and liabilities involved…workman’s comp, payroll, taxes etc.
10. I pay the guys who work for me just like I would and accountant or a mechanic…they are vendors.
11. I have to 1099 anyone who makes over $600.00 from me and they have to have their own equipment and insurance.
12. And California subcontractor law states in part “they must do the job their own way and on their own time”. Which means I really can’t even have them do a job at a scheduled time…it just works out that it is the time the customer wants it….if you understand.
13. This is a reason why cable companies give you an 8 hour window sometimes.
14. The Cleaning Tech has no “loyalty” to me. If they want to keep a customer base and follow up with a customer…or “Steal” the customer after the initial job then they have the right to do that…I can’t stop them.
15. BUT, I keep the customer on file, follow up, remind and basically keep in contact myself…and that Craftsman carpet cleaner probably doesn’t care too much about keeping the records anyway or they wouldn’t be doing the work for me to begin with.
16. It just works out.
 

ACE

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Aug 22, 2008
Messages
2,513
Location
Lawrence, KS
Name
Mike Hughes
The problem I see with using subcontractors is that they really are all going to do it their way. When you change subs your customers are going to notice the difference. My customers call me out if I do anything different: why is there one tech instead of two, why didn’t you vacuum under furniture? Ect…. Owner occupied residential would not be my target market If I wanted to sub everything out.

As a craftsman, I can’t be too far removed from the work and want total control of how the work is preformed.

I do see the beauty of subcontractors from a business perspective. It eliminates all the variables (Volume, labor hours, fuel, deprecation, overtime, and employment taxes) that make it so difficult to know how profitable any giving job really is. I just don’t think you can switch from employees to subcontractor without making a fundamental change to your business model.
 

Royal Man

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Joined
Oct 8, 2006
Messages
4,989
Location
Lincoln NE
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Dave Yoakum
ACE said:
The problem I see with using subcontractors is that they really are all going to do it their way. When you change subs your customers are going to notice the difference. My customers call me out if I do anything different: why is there one tech instead of two, why didn’t you vacuum under furniture? Ect…. Owner occupied residential would not be my target market If I wanted to sub everything out.

As a craftsman, I can’t be too far removed from the work and want total control of how the work is preformed.

I do see the beauty of subcontractors from a business perspective. It eliminates all the variables (Volume, labor hours, fuel, deprecation, overtime, and employment taxes) that make it so difficult to know how profitable any giving job really is. I just don’t think you can switch from employees to subcontractor without making a fundamental change to your business model.


Brian,

That is what I have been wondering. Do you have guidelines and an in dept procedures manual to insure uniformity?

Take Mcdonalds for instance. They don't have the best food. But, what they offer is uniformity.

The hamburger you buy in one end of the country will be the same as one bought in Timbuktu.

This insures confidence and trust in their product. (At least you know what you are getting)

Even when I just had a few cleaners. I had a procedures manual for the cleaners, supervisors and the telemarketers.
 

Brian R

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Joined
Jun 13, 2008
Messages
19,945
Location
Little Elm, TX
Name
Brian Robison
No procedure manuals and not a ton of control.

I do expect quality when it comes to clean and customer service...If the guy doesn't perform....He doesn't get more work. Simple.

You do have to "let go" with this business model....And I'm ok with that. Letting go was the hardest thing I did...I to was a perfectionist and didn't think anyone could do the work I did....Turned out I was wrong...dead wrong.

If you get a sub who depends on his business to survive....You will find a guy willing to do just as good of a job...Unless he's a dirtbag of course....which happens more times than not.

It's not easy doing it this way...And I have changed it up a bit ....As you may have noticed.

My main sub in Sacramento is controling the company now...For the day to day operations etc. I don't do much of anything except keep the website stuff going. I still have control over the phone and Service Monster.

I bought some Low Moisture equipment for myself for 2 reasons

1. Quality Subs in the Dallas area are hard to find.

2. I missed cleaning a bit and needed some excercise. lol

My main plan now is to build this area...Which I am...and lease it out or maybe just find a guy to run it with his wife etc.

I'll either move on to the next area and do the same. Or go back to Sacramento and work from there.

The beauty of subs is I can work it from anywhere. I can be in Sacramento CA and start an area in Reno or whatever.

I will need to do more investigating the next time and find a money area with not a ton of carpet cleaners.

The challenge will be to find a guy who will do the sub work...That's always the challenge.
 

Hoody

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Joined
Oct 24, 2007
Messages
6,358
Location
Bowling Green, Ohio
Name
Steven Hoodlebrink
How do you go about your selection process when hunting for subs ? Do you use the internet, yellow pages, what ? How do you approach cleaners, and how do you "sell" them on working for you ?
 

ACE

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Joined
Aug 22, 2008
Messages
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Location
Lawrence, KS
Name
Mike Hughes
Hoody said:
How do you go about your selection process when hunting for subs ? Homeless Shelter Do you use the internet, yellow pages, what ? How do you approach cleaners, and how do you "sell" them on working for you ?MD 20/20

Honestly Brian, I just don’t get your business model.
If you want to be a national contractor why not follow the well proven model of going after government and big commercial contracts? You will have a much easier time finding subs for janitorial, mowing, floor care and commercial carpet cleaning.
The logistics and money will be much better.

Start here: http://www.fbo.gov/
 

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