Brian R
Member
Re: I feel stuck
As long as you charge enough for everyone to make money.
As long as you charge enough for everyone to make money.
Shop to work from
- Thread starter daniel@procarpet
- Start date
Brian R
Member
Re: I feel stuck
I wouldn't jump ship either.... And I haven't. But there is always other stuff that can be done.
I wouldn't jump ship either.... And I haven't. But there is always other stuff that can be done.
daniel@procarpet
Member
- Joined
- Sep 7, 2008
- Messages
- 3,797
I am still biting at the opportunity to get this place. I know that I can double my business in one year without any equipment purchases just by buying this place and spending 20k on advertising (maybe not even that much).
My plan is to have an affordable rug cleaning shop in a great area with tons of visibility, well established successful businesses, and the right clientele. I want a kick ass shop to work from, gain exposure, and to separate my company from the hordes of cleaners. Let's face it things are getting tougher and more competitive. I either need to change things or do something else. I want to be rich. I don't want to just get by.
I want to clean rugs for people just to market all the other services that we offer (hardwood, tile, carpets, upholstery, and repairs). I have not actually sat down and figured out what my overhead would be with a venture like this. If I painted it and put nice signs up that alone would give me tons of exposure, but I would also want to market in the immediate area using guerrilla marketing tactics.
My goals would be 3-5k per month in rug revenue (that is very low and I could probably do 10 times that amount) and 15-20k in on site residential/commercial services within a year.
These people are pretty firm about wanting 100k for this place and it needs some work. I may ask them to provide a five year warranty on the roof and two year warranty on the hvac systems. Also it needs some plumbing to have drains installed.
This is a big step and commitment, but I am tired of being a bdcc. I know I don't want to play silly on line battles competing for price shoppers. I want a decent three truck company that brings in 25-30k per month just on referrals and repeats. That's not much to ask for initially.
I have the money to pay for the place with just enough to fix it up and market. I also have some wealthy individuals that could be investors if I needed them to. I would hate to do all this, drop a bunch on money, and then it just not work and be broke and have to sell the place for a lot less than what I paid for it. That is a real possibility. All I know is I am damn near thirty and know when I am 40 I want a real company and not be a bdcc.
The real question is where will my revenues come from. How much can I make cleaning rugs (my guess is I would just break even or I could do quite well). I would have a small marketing budget. I do know I did an 1100 dollar seal job and 520 seal job last week one day. Carpet cleaning is simply not a big revenue producer because competition has driven prices down and it's hard to stay super busy with higher pricing, but other services make jobs a lot more profitable including hardwood, tile, rugs, and upholstery. I want to be a dominant residential cleaning service in a small area and I feel having a shop will make it that much easier.
What I need is to speak to a business consultant that will explain in detail what my overhead would be from labor, utilities, and marketing.
Every time I think about this I know it could be great and I also know the building is def not worth 100k, but 10 years from now I could sell it for more than I am paying.
There are just too many positives about the location that I don't want to mention that make this a great spot that could really rock and roll.
Input?
If I did not go this route I would keep doing what I am but just be more focused. I think that may be better to just focus on bringing in more accounts that will generate more revenues with almost the same overhead I have now which is really low. I look at the purchase price spread out over 15 years by 125k dollars to be just under 700 dollars per month for killer publicity and exposure.
It's tough. I see the market and industry changing every day. More and more people are getting in. Hell there was even a hispanic carpet cleaning class taught here. The apartment work sucks and so does the commercial work with prices being being driven down with servicemaster headquartered here along with 20 ss trucks, cintas, and the 2k other companies. The only real dominant residential cleaning force here is SS and they absolutely suck with shitty customer service.
Lots on my mind. This is how I feel about it. If I get the place and do things right, no competitor will stand a chance unless they work almost for free and even then my pricing shouldn't even matter as long as it's fair. How would I feel if someone else ran with my idea? It would likely put me under or hurt me bad. I feel it would be money well spent. What if I did 250k gross with three trucks? Then it would be a great investment.
First I need to get the place and get it paid for then implement ,my ideas. I can't do a lease because I would need time at least a year to make things happen.
My plan is to have an affordable rug cleaning shop in a great area with tons of visibility, well established successful businesses, and the right clientele. I want a kick ass shop to work from, gain exposure, and to separate my company from the hordes of cleaners. Let's face it things are getting tougher and more competitive. I either need to change things or do something else. I want to be rich. I don't want to just get by.
I want to clean rugs for people just to market all the other services that we offer (hardwood, tile, carpets, upholstery, and repairs). I have not actually sat down and figured out what my overhead would be with a venture like this. If I painted it and put nice signs up that alone would give me tons of exposure, but I would also want to market in the immediate area using guerrilla marketing tactics.
My goals would be 3-5k per month in rug revenue (that is very low and I could probably do 10 times that amount) and 15-20k in on site residential/commercial services within a year.
These people are pretty firm about wanting 100k for this place and it needs some work. I may ask them to provide a five year warranty on the roof and two year warranty on the hvac systems. Also it needs some plumbing to have drains installed.
This is a big step and commitment, but I am tired of being a bdcc. I know I don't want to play silly on line battles competing for price shoppers. I want a decent three truck company that brings in 25-30k per month just on referrals and repeats. That's not much to ask for initially.
I have the money to pay for the place with just enough to fix it up and market. I also have some wealthy individuals that could be investors if I needed them to. I would hate to do all this, drop a bunch on money, and then it just not work and be broke and have to sell the place for a lot less than what I paid for it. That is a real possibility. All I know is I am damn near thirty and know when I am 40 I want a real company and not be a bdcc.
The real question is where will my revenues come from. How much can I make cleaning rugs (my guess is I would just break even or I could do quite well). I would have a small marketing budget. I do know I did an 1100 dollar seal job and 520 seal job last week one day. Carpet cleaning is simply not a big revenue producer because competition has driven prices down and it's hard to stay super busy with higher pricing, but other services make jobs a lot more profitable including hardwood, tile, rugs, and upholstery. I want to be a dominant residential cleaning service in a small area and I feel having a shop will make it that much easier.
What I need is to speak to a business consultant that will explain in detail what my overhead would be from labor, utilities, and marketing.
Every time I think about this I know it could be great and I also know the building is def not worth 100k, but 10 years from now I could sell it for more than I am paying.
There are just too many positives about the location that I don't want to mention that make this a great spot that could really rock and roll.
Input?
If I did not go this route I would keep doing what I am but just be more focused. I think that may be better to just focus on bringing in more accounts that will generate more revenues with almost the same overhead I have now which is really low. I look at the purchase price spread out over 15 years by 125k dollars to be just under 700 dollars per month for killer publicity and exposure.
It's tough. I see the market and industry changing every day. More and more people are getting in. Hell there was even a hispanic carpet cleaning class taught here. The apartment work sucks and so does the commercial work with prices being being driven down with servicemaster headquartered here along with 20 ss trucks, cintas, and the 2k other companies. The only real dominant residential cleaning force here is SS and they absolutely suck with shitty customer service.
Lots on my mind. This is how I feel about it. If I get the place and do things right, no competitor will stand a chance unless they work almost for free and even then my pricing shouldn't even matter as long as it's fair. How would I feel if someone else ran with my idea? It would likely put me under or hurt me bad. I feel it would be money well spent. What if I did 250k gross with three trucks? Then it would be a great investment.
First I need to get the place and get it paid for then implement ,my ideas. I can't do a lease because I would need time at least a year to make things happen.
Bob Foster
Member
- Joined
- Oct 8, 2006
- Messages
- 8,870
here is the thing.. well a few..
If you DONT do it, you will never know
If you DO do it, and give it the year or what ever you need, and it FAILS...then you should be able to sell the place for what you bought it for....That is if it is in fact worth what YOU THINK it is....or worse case...rent it out for a few grand a mth..or how ever much..
if you DO do it and it succeeds....well there ya go...
worse case...you may take 10 or 20 k hit....which sucks...but others have risked millions.....
If you DONT do it, you will never know
If you DO do it, and give it the year or what ever you need, and it FAILS...then you should be able to sell the place for what you bought it for....That is if it is in fact worth what YOU THINK it is....or worse case...rent it out for a few grand a mth..or how ever much..
if you DO do it and it succeeds....well there ya go...
worse case...you may take 10 or 20 k hit....which sucks...but others have risked millions.....
Brian R
Member
Desk Jockey
Member
It's a great plan but be sure that you are setting reasonable numbers.
I know you like that building but is there a better building for lease somewhere where you don't need to upgrade the building. It can get expensive to do all you want, don't be suprised if it doubles or triples what you're estimating off the top of your head.
Can you really turn those numbers without significant infrastructure? Rug cleaning is not as easy as carpet cleaning. Demanding a higher price comes with a reason, your risk is more and you will need higher skilled technician trained to clean these rugs.
To crank out the volume you're want to do you'll need more advanced equipment, more $$$$$ How many rugs per day to you plan to clean?
To bring in the those numbers, you're also going to need marketing $$$$$$ other wise you'll have a building, equipment to process the rugs, staff trained to clean the rugs but no rugs to clean. :shock:
I know you like that building but is there a better building for lease somewhere where you don't need to upgrade the building. It can get expensive to do all you want, don't be suprised if it doubles or triples what you're estimating off the top of your head.
Can you really turn those numbers without significant infrastructure? Rug cleaning is not as easy as carpet cleaning. Demanding a higher price comes with a reason, your risk is more and you will need higher skilled technician trained to clean these rugs.
To crank out the volume you're want to do you'll need more advanced equipment, more $$$$$ How many rugs per day to you plan to clean?
To bring in the those numbers, you're also going to need marketing $$$$$$ other wise you'll have a building, equipment to process the rugs, staff trained to clean the rugs but no rugs to clean. :shock:
I would expand as far as a could from my home biz(low cost) before sinking money into commercial building. Right now you have an advantage over all the "big guys" being a low cost operation and running out of your house (some big co. WILL envy the simplicity and cost saving you have). Do what you want though, and I hope you do well!
Bob Foster
Member
- Joined
- Oct 8, 2006
- Messages
- 8,870
Able 1 said:
Bang on.
Hoody
Administrator
Bob Foster said:
Bang on.[/quote:3e7s7ppe]
Are you still in your new building Bob?
Brian R
Member
Unless you have at least 3 rigs and crews, an office staff and other work for the building AND can warrant that cost to make more money.... I would stay in the home as long as possible.
If you think the building would be main source of advertising.... You may be right. I'm not sure anyone here could tell you either way.
But I would make sure that ad cost was for more than just the ad.
What Keith said.
If you think the building would be main source of advertising.... You may be right. I'm not sure anyone here could tell you either way.
But I would make sure that ad cost was for more than just the ad.
What Keith said.
