Commercial Contract Work, Be Careful What Ya Wish For...

Shane Deubell · May 20, 2015

Over last 10 months I've really done a great job signing up programs. Good timing too, this winter was the 1# coldest AND 2# most snow in recorded history. In Buffalo, thats really bad...

Sooo, in past i always tried to mix up some residential work with mainly commercial for cashflow reasons. Although its not a lot of money, residential does provide instant ca$h and pays the crummy bills.

This year tho with crappy weather and signing up a lot of contract work (invoices) we are in cashflow jail. Bookings are great, cash not soooo much.

Just something to think about, our job $$ average is highest its ever been but cash is at the lowest.
Those smaller jobs provide quick cash.

After July 4th the goal will be to focus more on residential/small commercial little more and add some balance.

Desk Jockey · May 20, 2015

I'm in a similar jamb.Too many large projects have me waiting on the mail man.

hogjowl · May 20, 2015

What a new concept for us to consider.

Shane Deubell · May 20, 2015

hogjowl said:
What a new concept for us to consider.

If 1 person reads it and thinks so then yes.
Its worth the 3 minutes it took to write it.

PrimaDonna · May 20, 2015

Residential is our cash cow.

Hit the tipping point (even more than we thought possible) the past two weeks.

Invoicing average of $2 k per day. 3 jobs per day. Handful of days 4 jobs. But, one day last week was over $4k on just one job. One truck running 1 or 2 man crew. It's mind blowing. I'm pinching myself.

Best part is, they ALL pay at the time of service. Money is in the bank on Friday.

hogjowl · May 20, 2015

Did you ever consider that working an extra job during the last part of the day means you'll get home later than usual?

PrimaDonna · May 20, 2015

Getting home between 5-6 instead of between 3-4 is doable.

Still plenty of time for happy hour.

hogjowl · May 20, 2015

Getting home later means less time to hear about my wife's and Saiger's day.

And I have extra money.

PrimaDonna · May 20, 2015

... But less time to nap.

1st world problems.

WillS · May 21, 2015

Commercial accounts are a killer for us to. Most locally managed commercial accounts we get payment immediately after the cleaning. Check or Credit Card please. For the larger commercials where management is based out of New York, etc. we have to give a 30 day grace period for payment. It always seems like we don't receive payment until the 29th day to. When you have 5 or 6 guys at a larger commercial cleaning and still have to pay them at the end of the week, it hurts waiting for that big check to arrive in the mail.

Residential is the best for quick cash and is still much larger than our commercial work. Only thing that sucks is processing a customer credit card on a Wednesday after 3pm to not get paid by Intuit until Monday morning... or bounced checks. Being new and putting money back into the business as much, the business lives paycheck to paycheck at times.

Shane Deubell · May 21, 2015

hogjowl said:
What a new concept for us to consider.

Actually, managing cashflow is one of the most important things to a growing business.
Ya have to be growing for it to be important though :winky:

hogjowl · May 21, 2015

And it's been that way for thousands of years.

Shane Deubell · May 21, 2015

hogjowl said:
And it's been that way for thousands of years.

What is your point?

hogjowl · May 21, 2015

You were extremely bored when you started this thread.

Or, you're trying to keep up with Saiger.

Shane Deubell · May 21, 2015

Not sure why you would say that.

Someone trying to make the transition from owner operator to employees and a couple trucks might not realize it.
Cleaner entering restoration/commercial work for the first time might not know how backed up you can get.

In either case you need to build up some good cash reserves.

Desk Jockey · May 21, 2015

Yea I'm constipated...well my accounts receivables are. In fact so is our billing.

I have 3-mold jobs from the last two weeks, a month of fire contents cleaning and 25-water bills that need to get though the system and have not yet been entered. Close to 100k :dejection:

I can't even complain to them, when we haven't even billed them yet. :errf:

Insert Toburen's Pogo statement, "We have met the enemy and he is us". :redface:

hogjowl · May 21, 2015

I just figured you were either bored, slightly inebriated or you thought you were on the porty board.

We weren't born yesterday.

Shane Deubell · May 21, 2015

Been pretty sick over last couple weeks, havent been able to have any beer lately :angry:

I was serious, EVERY topic has been covered 8 million times.
After 30 years im sure you know what is the best pre-spray.... although sometimes i wonder.

Shane Deubell · May 21, 2015

Desk Jockey said:
Yea I'm constipated...well my accounts receivables are. In fact so is our billing.

I have 3-mold jobs from the last two weeks, a month of fire contents cleaning and 25-water bills that need to get though the system and have not yet been entered. Close to 100k

I can't even complain to them, when we haven't even billed them yet.

Insert Toburen's Pogo statement, "We have met the enemy and he is us".

Welp, guess there is always the bright side.

At least its not THAT much :razz:

Desk Jockey · May 21, 2015

I just uploaded 121 megs of data so hopefully I can get paid for a 48k fire cleanup invoice (contents and structure cleaning) that's 45-days over due. :icon_neutral:

Shane Deubell · May 30, 2015

Nothing like college turnover season to cure the cashflow blues... :headbang:

WillS · May 30, 2015

Shane Deubell said:
Nothing like college turnover season to cure the cashflow blues...

How are you targeting them? Do you do flyers around the college area or is it just calls from them finding you online or previous work there? I have thought about targeting our University area and am curious about how you get that business?

GreenTechAgain · May 30, 2015

When I was in the printing industry, my boss was complaining to me how he was owed a million dollars in receivables.

Tough problem.

Anybody else have a $666.00 average ticket?

ronbeatty · May 31, 2015

Over the last several years we cut way back on restoration and restaurant work. The residential market is our best money, and we get paid on completion. It takes all the stress out.
And by the way, there is money to be made in carpet cleaning

Shane Deubell · May 31, 2015

WillS said:
How are you targeting them? Do you do flyers around the college area or is it just calls from them finding you online or previous work there? I have thought about targeting our University area and am curious about how you get that business?

In my case its student housing provided by the school. So it goes through the facility department

Shane Deubell · May 31, 2015

Never targeted them specifically, we market to larger employers. Dont look at industry, gives a nice mix that way.

windycitysteam · Jun 17, 2015

Google adwords is the best money I've spent in advertising to get commercial work.

Shane Deubell · Jun 17, 2015

I found that kinda tough for commercial carpet. Businesses generally search for carpet cleaners and not "commercial" carpet cleaners.

Desk Jockey · Jun 17, 2015

Watch your negative Adwords. You can waste a lot of money sending it to people that are not potential clients.

Dave Rampage · Jun 20, 2015

Shane,

After 30 days cash flow shouldn't be a problem. You will have checks rolling in every month. Are these commercial accounts not paying you?

Commercial Contract Work, Be Careful What Ya Wish For...

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