Starting out, let me pick your brains please
- Thread starter gimmeagig
- Start date
gimmeagig
Member
Yes they do.They also sell Hydramasters.You've got the hydramaster cds.So it must be a good machine.The seller told me that the machine develops 190 degrees of heat and that that translates to about 120 degrees at the head of the wand running 200' of hose( aproximately ).He sais that is all you really need to clean.
My carpet guy that is doing my rentals right now has the Everest and he says the you need at least 240 at the machine or you would not be able to do a good job.Is that really true?
The more i learn the more confused I get.
This truck with the CDS is very clean looking and I don't get the impression that the seller is just dumping the machine.He seems pretty honest to me.But I do want to be able to get a great job done without killing myself because I'm held back by the equipment.
Thanks again to all of you.Getting info from you is a great help .
My carpet guy that is doing my rentals right now has the Everest and he says the you need at least 240 at the machine or you would not be able to do a good job.Is that really true?
The more i learn the more confused I get.
This truck with the CDS is very clean looking and I don't get the impression that the seller is just dumping the machine.He seems pretty honest to me.But I do want to be able to get a great job done without killing myself because I'm held back by the equipment.
Thanks again to all of you.Getting info from you is a great help .
Doug Cox
Supportive Member
I've had my CDS for 23 yrs. and used it daily until a few months ago when I bought a Genesis 59. I definitely like the extra heat but feel you can do a good job with a CDS. The thing you give up with a slide- in is space in the van where with the CDS you have much more room to transfer rugs. Theres give and take with either system. For simplicity, I would go with a CDS for starters and move up from there.
That's you're goal. That image of everything you ever wanted for you & your family is what you are working for. That is what you're striving to achieve.
I again highly suggest reading the E-myth Revisited, by Michael Gerber. It is a wealth of knowledge for the small business owner. Far more insightful and well versed than I could ever hope to be.
Research ? you don't know how much you don't know
If you are like me, you likely are about to invest a lot of money into your sure to succeed & bound to be highly lucrative carpet cleaning business. Hold on, Tiger! Before you waste a bunch of cash on ebay or let the smooth talkers at Jon Don talk you into buying or leasing a truck mount for more than you make in a year- GET THE FACTS. Talk to people in the industry, see about a ride along with one of them, find out all you can about the best methods, chemicals, equipment and your target market.
YOUR MARKET
Find out everything you can about who you're selling your service to. Find out how much they make, what they're gender is, how old they are, what colors they like best. Everything. Find out what they want out of a carpet cleaner. Find out what they're accustomed to paying & how often. Find out how many other cleaners are in the area you plan to service & how much they charge. Information is going to be your salvation. The more you know about your craft & your market the more complete your business plan will be. Don't worry, we'll get to that...
YOUR METHOD
Once your research has led you to the method you want to use, you will want to find people that use that method. Ask them questions, get the tips & tricks, find out how they maintain profitability. Ask them what they use. Ask them how they use they're equipment, what kind of down time they have, how much maintenance costs, ASK THEM WHAT THEY WOULD HAVE DONE DIFFERENTLY.
The fact of the matter is, unless you have prior experience not only in business but in actually cleaning carpet you truly don't know how much you don't know. IICRC certifications are a good start but not a substitute for real experience. Some things you have to have done to fully understand. Some people have a wonderful grasp on the theory of something but they can't actually do it. When you start out, even with education be prepared for this.
There is definitely a a lot to learn. Don't worry it will come with practice and education.
YOUR PRICING
There are about a million & 1 different theories on how to turn a profit in this business. The two main schools of thought are high volume (more market share) at a smaller profit margin & higher profit margin at a smaller market share. Of course theories about where a company should target their marketing and set their pricing vary greatly from town to town and company to company. As the owner, you will have to ultimately decide what is right for you. Here is a hint: You can work less hours and make the same amount of money as a higher priced company. Unfortunately, this is not always an option. We'll come back to this.
Every market has a niche to be filled. Perhaps the niche available is a volume based company or a environmentally friendly baby safe company. Your market analysis should have told you what needs the community has. Your initial fact finding will be the basis of every thing to come. Do your due diligence. It will pay dividends. I can not stress how important this step is. I know because I failed to do it. I could have saved a lot of money on equipment I didn't need, materials for services I never got the opportunity to provide (because the market was already flooded), and advertising that was geared toward the wrong type of client. Know your market, know which segment of that market you want and how to get your message to them. Don't worry we'll get to that...
The Proof is in the- PLANNING
The best start up plan is the one that allows for change. Prices fluctuate & things beyond your control happen and plans don't work out. It's part of life and business. You need a plan that doesn't hinge on any one factor. Flexibility is key now. You are still in the exploration phase, still learning what you need & want. Over time you will see things you didn't see before. Trust me.
You are now entering the most exciting phase of your business- The BEGINNING of the American Dream.
After your planning phase you will undoubtedly need to rethink a few things at a later date. At this point nothing is set in stone, its just a rough sketch of what you want it to look like when you're done. It can be reworked as needed and tweaked until you have you're masterpiece.
You're business plan should be based on your research and should contain realistic goals and conservative cash flow projections (estimates of how much you are going to make). In this one document you kind of sum up how you are going to do things. You describe your target market & how you will go about gaining their business. You discuss pricing and sales goals. You make cash flow projections & estimate how much you will need to spend to achieve the goals you set for yourself, and keep yourself from going bankrupt. You discuss the tools , equipment and chemicals you will use and the date you want to have them on hand.
This simple 1-5 page plan is going to be the first sketch of your masterpiece or the first shovel full of dirt out of your businesses' grave if you didn't run the numbers, do the research and double check everything.
Give it the attention it deserves but remember this plan is going to evolve constantly. Have an established cleaner look it over & critique it. After all there is no substitute for experience. Have a CPA look it over and give it a good analysis. That is why the are in business- To help you stay in business.
Your business plan is not something to ?just worry about later?, it gives you a frame of reference and a sense of purpose. It will help you track your progress and keep things in perspective. Failure to plan is planning to fail.
Email me if you want a copy of my business plan ? j.sweetland@insightbb.com. I'd be happy to share it. It's nothing fancy but does help keep me on track. You would be amazed at what setting (written)goals can do for your productivity, and decision making. Do yourself a favor and start on this as soon as possible.
Organization- not How but more importantly Why
Organization is going to be a challenge. You not only need systems in place on the job site to give predictable and uniform results on the job site but in the office as well. If you're a 1 man show be ready for some long nights. You will have checks to write, books to balance, jobs to schedule, invoices to deliver , invoices to collect on and materials to order & a million other things to do before you sleep. You will at times feel overwhelmed. Don't worry you'll get the hang of it. After your system has been put in place these things will come to be second nature and seem to be almost on auto pilot.
Organization is more than just a place for everything and everything in its place. Although that is a major part of it. If you have employees, a partner, an office staff or stock holders organization is the beginning of accountability. Who is responsible for what. Your organizational chart and positional contracts will undoubtedly help keep things orderly. People will still have to be trained and taught just how the system works but in the end, it will be a wonderful tool for helping your business grow and prosper. Every one will have a clear and real understanding of their purpose in the company and what is expected of them.
If you got the book or book on tape the E-myth Revisited- Read it or listen to it it will go int much greater detail. If you don't have it go to the library it's free and you'll have a much better grasp of the situation. I promise this book and help from some of the industry guru's has kept me afloat. I wish I had read it a year and a half ago when (before) I started out. It could have saved me a lot of head aches & sleepless nights. It may have helped me avoid some very common mistakes.
Equipment & Chemical Selection- the best you can afford
Equipment
I say if you're going to come out of pocket, only do it once. If you buy cheap equipment the savings will soon be eaten up buy down time, repairs and lost revenue. Not to mention the customers' perception of just how you present your company. Don't worry, we'll get to that...
I guess to put this in perspective, you can get a beat up, rusty old '82 Chrysler with 350k miles on it and go to your class reunion but wouldn't you rather pull up in a Lexus? I'm not saying that there is any thing wrong with the clunker but lets face it if you are going to buy something that your dream depends on why not buy the best you can? Maybe not the best available, but the best you can afford. Even though this contest was started by people with the best available they will gladly tell you it may not be the best business decision for everyone. You must be able to justify every purchase you make in business. Building a business does take time and effort, you can always trade in your '03 Chevy for a Lexus or Mercedes later. Buy something that will be dependable and will last. You may pay a little more but it will be worth it. Plan for the long haul. Buy a good piece of equipment and you only buy it once.
Chemicals
When selecting chemicals to use in your business safety and effectiveness should be the priority. In my opinion & experience paying a little more for solutions that dilute farther and produce better results are worth the cost. The money that is saved by trips to the supplier/shipping not to mention the value of happy ?lifetime customers? and the referrals they provide makes the low investment in premium products a worthwhile investment that saves labor and marketing dollars. Buy the best to be the best.
Money your company's life blood
As I'm sure you know there is going to be a significant outlay of funds to start your company. Over head & debt should be kept to a minimum. The goal for your business is to finance your dream not the bank owner's dream, not the smooth talker at Jon Don's dream, not AMEX's dream, your dream. For that to happen you must make the money come in (in larger quantities and) faster than it goes out. Your cash flow will determine your ability to survive.
I would recommend to any start up company that they have not only their initial chemical & equipment investment and six months of overhead + wages but a fully financed marketing campaign for a year. Don't worry we'll get to that... The most commonly over looked part of the business is how to let people know you are in business. This was a near fatal mistake for my company. I had all this equipment and all this (at least I thought at the time) knowledge and no customers... Needless to say, I had a problem.
A LITTLE MORE ON PRICING
Determine your cost of doing business on a monthly/weekly basis & divide by the # of jobs you average in that time and you arrive at your per job break even point. If your average ticket is not more than your break even point you have a serious problem. Raise your price & increase your marketing effort! On average you will need $75 per hour to scrape by. I don't know about you but I didn't go into business to ?scrape by? I'd say 25-60% above you're break even point is where you should target your pricing.
People naturally associate price with quality. You can get a beat up rusty '82 Chrysler for $250 obo or a nice '03 Mazda for $8500 or a new Lexus for $35k. How much can you afford? What market do you want to serve? Who would you assume has more disposable income the guy in the Chrysler or the guy in the Lexus? Who would you want to pull up in your driveway? Your research should have given you an idea of the niche in need of filling.
A few things to consider when you are trying to determine your break even point:
1.Insurance ? Liability, Workers Compensation, and Auto
2.Taxes- Federal, State & Local
3.Benefits
4.Marketing
5.Fuel & oil changes
6.Chemical usage + shipping if applicable
7.Franchise fees & trade association dues (if applicable)
8.Maintenance, replacement, & depreciation of equipment
9.Wages (for you & all employees)
10.Savings (winter is coming & asset building)
11.Loan & lease payments
12.The list goes on!
The actual numbers are going to be different for everyone. So you'll have to do the math on your own or hire a professional. Sorry, but the CPA's bill is a deduction!
Assets
Assets are every thing your company owns. Equipment not leased or leined, computers, everything that is owned out right. Savings accounts, and bonds are also assets. It is always a good thing to have some ready cash for a rainy day or unexpected expenses. Assets can also be used as collateral for loans if need be. Assets are a good thing get & keep as many as possible. Build your portfolio.
Marketing- your business' Heartbeat
If money is the life blood of your business marketing is the heartbeat. It is what pumps money into your company. If you want to work, you've got to work for it. Success is never easy. Even the self-employed work for some one or else they are just unemployed. Your business' success will depend on your ability to find and KEEP customers. Just because you have all the tools, know how and a plan doesn't mean the world will beat a path to your door. Trust me.
There are many facets of marketing. Everything you do as a business person is marketing. Your haircut & shave is marketing. Your being polite to the cashier at the grocery store & the way you answer your phone is marketing. Your direct mail to people you've never met is marketing. The thank you note and spotter left on the counter is marketing. The flyers, door hangers, yellow page ad, web site, refrigerator magnets, your clean & neatly trimmed fingernails are marketing. The professionally printed invoices & typed & bound letterhead commercial estimates are marketing. These are the things that separate you from your competition. These are what help make you different. You may notice that I haven't said a thing about cleaning yet. That is because before you can clean you have to find CUSTOMERS!
Now I can't tell you what to put on your door hangers, post cards and flyers but I can tell you it should include a reason to call, clearly explained benefits and what makes you different from the last guy that came in & they forgot. It should be memorable, informative, to the point and compelling. Before you can charge a mint to clean you have to prove or at least convince them you're worth it. It should get your foot in the door, the rest is up to you, your equipment & your method.
Now that you have the word on the street, what is working, what is not? Track what is generating new business & what is not. A simple talley sheet and the question ?How did you hear about us?? will do this. Follow that up with ?what about that particular piece made you call?? and you are on your way to fine tuning your marketing. Test, tweak, test again... rinse & repeat.
Once you've booked the job- go above & beyond their expectations. Wow them. Show up on time, pet the dog, talk to your customers, do what they are paying you to do and be polite while you do it. If they are kind enough to invite you back... REMEMBER THIER NAMES. Remember the dog's name. It will work wonders. I promise you when people welcome you into their home and you treat them with respect and dignity you will most likely get the same in return. Treat them the way you would want to be treated.
Don't half do any thing. If you're going to survive the critical first years in business, you'll need repeat customers & referrals from those first customers. Don't be afraid to ask for them either, you won't get any of the forward scheduling jobs that you don't ask for. I have found that just by asking for referrals and forward scheduling, I have increased my referrals by 35%. Not a bad return for half a breath, huh?
Call the next day & make sure everything is Perfect. If it's not go fix it. Let your customer know you want their business. Let them know they got their moneys worth and then some. Reinforce the request for referrals and forward scheduling option. Remind them of your guarantee if you have one. Ask about the dog, by name. Build the relationship, treat them like a friend, after all they did invite you into their home.
Customer Interaction- appearance counts
When dealing with customers, remember you are a guest in their home (and easily replaced by a phone call). There are plenty of people that would love to have YOUR CUSTOMERS' business. I'm not saying walk on egg shells just be polite and be professional. Treat them the way you would want to be treated. Take the time to address their concerns before and after the cleaning. Let them know you are ?their problem solver? and that their business is important to you.
First impressions are lasting impressions. Don't show up with dirt under your finger nails, smelling like the inside of a bottle with a 3 day shave and a hole in your shirt. Well dressed (for work) and well groomed. The same goes for your equipment. Appearance counts. Remember the '82 Chevy? If you have an '82 Chevy at least make sure it's well maintained. Let them know you will take care of their things by showing them how you take care of your own things.
The customers perception of value and professionalism in your service will directly affect how easy it is for you to sell your services. If presented right, the customer will sell it for you through referrals. Be sure to represent your self and your company well at all times. You never know when you will run into a customer or future customer. Present yourself in a positive manner in public.
Learn from your mistakes
Every one makes mistakes. No one is immune. What separates a fool & failure from a savvy & successful business owner is not repeating the same mistake over & over. When you foul something up, admit to it and make it right as quickly and effectively as possible. Handle problems while they are small and manageable. Don't let a simple problem snow ball into something out of your control. Get to it ASAP. To put it off is to accept the way things are & you want better for your customers , your bank account and your peace of mind.
When to grow
When your marketing has been tested & tweaked and has generated a good response you'll become busy. More than likely you start to think about adding new people & equipment. Well you may want to hold off on that for a moment or two. You may need to ask your self a few questions before you start buying more trucks & hiring people.
1.What is your current work load? Can you meet the needs your customers efficiently with what I currently have in place? Do you really have a need for this? Is the cost of the new addition really justified?
2. Are there accessories needed for the addition? What is the cost associated with them?
3.How much training will the new addition require? Consider this carefully when the addition is a new employee.
4.How will this addition improve your business? Will it effect productivity &/or quality? Can I incorporate this into my marketing?
5.What potential issues come along with the addition?
6.Is it going to last?
7.Do you have to go into debt to get it? If so, how much are the payments?
8.Is this hiring & or purchasing decision going to be a sound business decision 3, 6, 12, 18 months from now?
9.Are you already charging a premium for you service?
If I were to plan an expansion, my first step would be to raise my prices again. Use the extra income generated to finance more marketing to recover the slight dip in sales one may experience with price adjustments. Get booked up to acceptable level & maintain it.
My second step would be to find the TRUE COST of this expansion.
1.Do I need more employees?
2. Is the addition to the team going to effect the amount of time & money spent with my CPA & insurance agent? Can I afford another employee full or part time?
3.Do i need more equipment? How much does it cost to get it, install it & maintain it.
4.How much training is required for this equipment & what is it going to cost?
5. I would investigate other options. Weigh the benefits & draw backs of each and arrive at the best possible decision for my customers, employees & company.
6. Incorporate this decision into my business plan and track the progress.
Once the planning was complete, I would make the purchase /hiring decision. Implement a training program and once every one was up to speed put them or it to work. Marketing will again increase until everything is at a comfortable & sustainable level.
My next step would be to track the return on the investment. I would see if the estimated saving in chemicals &, man hours were actually what I hoped. If not, why ? Did the new hire leave me with more or less time at home at the end of the day? Did my cash flow situation improve? Are my customers experiencing an increase in quality as a result? Is this actually making me any money? If not I would definitely have a problem. It would be dealt with promptly to prevent further losses.
How big do you want to be?
Now that you have a basic over view of how to build a successful carpet cleaning business, you need to ask yourself how far do you want to take it? It's been said that quality has value and quantity has a quality all it's own. Do you want to be a volume based company with 5-25 trucks running 6 days a week or a quality minded owner operator with 1 truck and maybe a helper working part time? Only you can answer this. What does success mean to you?
I again highly suggest reading the E-myth Revisited, by Michael Gerber. It is a wealth of knowledge for the small business owner. Far more insightful and well versed than I could ever hope to be.
Research ? you don't know how much you don't know
If you are like me, you likely are about to invest a lot of money into your sure to succeed & bound to be highly lucrative carpet cleaning business. Hold on, Tiger! Before you waste a bunch of cash on ebay or let the smooth talkers at Jon Don talk you into buying or leasing a truck mount for more than you make in a year- GET THE FACTS. Talk to people in the industry, see about a ride along with one of them, find out all you can about the best methods, chemicals, equipment and your target market.
YOUR MARKET
Find out everything you can about who you're selling your service to. Find out how much they make, what they're gender is, how old they are, what colors they like best. Everything. Find out what they want out of a carpet cleaner. Find out what they're accustomed to paying & how often. Find out how many other cleaners are in the area you plan to service & how much they charge. Information is going to be your salvation. The more you know about your craft & your market the more complete your business plan will be. Don't worry, we'll get to that...
YOUR METHOD
Once your research has led you to the method you want to use, you will want to find people that use that method. Ask them questions, get the tips & tricks, find out how they maintain profitability. Ask them what they use. Ask them how they use they're equipment, what kind of down time they have, how much maintenance costs, ASK THEM WHAT THEY WOULD HAVE DONE DIFFERENTLY.
The fact of the matter is, unless you have prior experience not only in business but in actually cleaning carpet you truly don't know how much you don't know. IICRC certifications are a good start but not a substitute for real experience. Some things you have to have done to fully understand. Some people have a wonderful grasp on the theory of something but they can't actually do it. When you start out, even with education be prepared for this.
There is definitely a a lot to learn. Don't worry it will come with practice and education.
YOUR PRICING
There are about a million & 1 different theories on how to turn a profit in this business. The two main schools of thought are high volume (more market share) at a smaller profit margin & higher profit margin at a smaller market share. Of course theories about where a company should target their marketing and set their pricing vary greatly from town to town and company to company. As the owner, you will have to ultimately decide what is right for you. Here is a hint: You can work less hours and make the same amount of money as a higher priced company. Unfortunately, this is not always an option. We'll come back to this.
Every market has a niche to be filled. Perhaps the niche available is a volume based company or a environmentally friendly baby safe company. Your market analysis should have told you what needs the community has. Your initial fact finding will be the basis of every thing to come. Do your due diligence. It will pay dividends. I can not stress how important this step is. I know because I failed to do it. I could have saved a lot of money on equipment I didn't need, materials for services I never got the opportunity to provide (because the market was already flooded), and advertising that was geared toward the wrong type of client. Know your market, know which segment of that market you want and how to get your message to them. Don't worry we'll get to that...
The Proof is in the- PLANNING
The best start up plan is the one that allows for change. Prices fluctuate & things beyond your control happen and plans don't work out. It's part of life and business. You need a plan that doesn't hinge on any one factor. Flexibility is key now. You are still in the exploration phase, still learning what you need & want. Over time you will see things you didn't see before. Trust me.
You are now entering the most exciting phase of your business- The BEGINNING of the American Dream.
After your planning phase you will undoubtedly need to rethink a few things at a later date. At this point nothing is set in stone, its just a rough sketch of what you want it to look like when you're done. It can be reworked as needed and tweaked until you have you're masterpiece.
You're business plan should be based on your research and should contain realistic goals and conservative cash flow projections (estimates of how much you are going to make). In this one document you kind of sum up how you are going to do things. You describe your target market & how you will go about gaining their business. You discuss pricing and sales goals. You make cash flow projections & estimate how much you will need to spend to achieve the goals you set for yourself, and keep yourself from going bankrupt. You discuss the tools , equipment and chemicals you will use and the date you want to have them on hand.
This simple 1-5 page plan is going to be the first sketch of your masterpiece or the first shovel full of dirt out of your businesses' grave if you didn't run the numbers, do the research and double check everything.
Give it the attention it deserves but remember this plan is going to evolve constantly. Have an established cleaner look it over & critique it. After all there is no substitute for experience. Have a CPA look it over and give it a good analysis. That is why the are in business- To help you stay in business.
Your business plan is not something to ?just worry about later?, it gives you a frame of reference and a sense of purpose. It will help you track your progress and keep things in perspective. Failure to plan is planning to fail.
Email me if you want a copy of my business plan ? j.sweetland@insightbb.com. I'd be happy to share it. It's nothing fancy but does help keep me on track. You would be amazed at what setting (written)goals can do for your productivity, and decision making. Do yourself a favor and start on this as soon as possible.
Organization- not How but more importantly Why
Organization is going to be a challenge. You not only need systems in place on the job site to give predictable and uniform results on the job site but in the office as well. If you're a 1 man show be ready for some long nights. You will have checks to write, books to balance, jobs to schedule, invoices to deliver , invoices to collect on and materials to order & a million other things to do before you sleep. You will at times feel overwhelmed. Don't worry you'll get the hang of it. After your system has been put in place these things will come to be second nature and seem to be almost on auto pilot.
Organization is more than just a place for everything and everything in its place. Although that is a major part of it. If you have employees, a partner, an office staff or stock holders organization is the beginning of accountability. Who is responsible for what. Your organizational chart and positional contracts will undoubtedly help keep things orderly. People will still have to be trained and taught just how the system works but in the end, it will be a wonderful tool for helping your business grow and prosper. Every one will have a clear and real understanding of their purpose in the company and what is expected of them.
If you got the book or book on tape the E-myth Revisited- Read it or listen to it it will go int much greater detail. If you don't have it go to the library it's free and you'll have a much better grasp of the situation. I promise this book and help from some of the industry guru's has kept me afloat. I wish I had read it a year and a half ago when (before) I started out. It could have saved me a lot of head aches & sleepless nights. It may have helped me avoid some very common mistakes.
Equipment & Chemical Selection- the best you can afford
Equipment
I say if you're going to come out of pocket, only do it once. If you buy cheap equipment the savings will soon be eaten up buy down time, repairs and lost revenue. Not to mention the customers' perception of just how you present your company. Don't worry, we'll get to that...
I guess to put this in perspective, you can get a beat up, rusty old '82 Chrysler with 350k miles on it and go to your class reunion but wouldn't you rather pull up in a Lexus? I'm not saying that there is any thing wrong with the clunker but lets face it if you are going to buy something that your dream depends on why not buy the best you can? Maybe not the best available, but the best you can afford. Even though this contest was started by people with the best available they will gladly tell you it may not be the best business decision for everyone. You must be able to justify every purchase you make in business. Building a business does take time and effort, you can always trade in your '03 Chevy for a Lexus or Mercedes later. Buy something that will be dependable and will last. You may pay a little more but it will be worth it. Plan for the long haul. Buy a good piece of equipment and you only buy it once.
Chemicals
When selecting chemicals to use in your business safety and effectiveness should be the priority. In my opinion & experience paying a little more for solutions that dilute farther and produce better results are worth the cost. The money that is saved by trips to the supplier/shipping not to mention the value of happy ?lifetime customers? and the referrals they provide makes the low investment in premium products a worthwhile investment that saves labor and marketing dollars. Buy the best to be the best.
Money your company's life blood
As I'm sure you know there is going to be a significant outlay of funds to start your company. Over head & debt should be kept to a minimum. The goal for your business is to finance your dream not the bank owner's dream, not the smooth talker at Jon Don's dream, not AMEX's dream, your dream. For that to happen you must make the money come in (in larger quantities and) faster than it goes out. Your cash flow will determine your ability to survive.
I would recommend to any start up company that they have not only their initial chemical & equipment investment and six months of overhead + wages but a fully financed marketing campaign for a year. Don't worry we'll get to that... The most commonly over looked part of the business is how to let people know you are in business. This was a near fatal mistake for my company. I had all this equipment and all this (at least I thought at the time) knowledge and no customers... Needless to say, I had a problem.
A LITTLE MORE ON PRICING
Determine your cost of doing business on a monthly/weekly basis & divide by the # of jobs you average in that time and you arrive at your per job break even point. If your average ticket is not more than your break even point you have a serious problem. Raise your price & increase your marketing effort! On average you will need $75 per hour to scrape by. I don't know about you but I didn't go into business to ?scrape by? I'd say 25-60% above you're break even point is where you should target your pricing.
People naturally associate price with quality. You can get a beat up rusty '82 Chrysler for $250 obo or a nice '03 Mazda for $8500 or a new Lexus for $35k. How much can you afford? What market do you want to serve? Who would you assume has more disposable income the guy in the Chrysler or the guy in the Lexus? Who would you want to pull up in your driveway? Your research should have given you an idea of the niche in need of filling.
A few things to consider when you are trying to determine your break even point:
1.Insurance ? Liability, Workers Compensation, and Auto
2.Taxes- Federal, State & Local
3.Benefits
4.Marketing
5.Fuel & oil changes
6.Chemical usage + shipping if applicable
7.Franchise fees & trade association dues (if applicable)
8.Maintenance, replacement, & depreciation of equipment
9.Wages (for you & all employees)
10.Savings (winter is coming & asset building)
11.Loan & lease payments
12.The list goes on!
The actual numbers are going to be different for everyone. So you'll have to do the math on your own or hire a professional. Sorry, but the CPA's bill is a deduction!
Assets
Assets are every thing your company owns. Equipment not leased or leined, computers, everything that is owned out right. Savings accounts, and bonds are also assets. It is always a good thing to have some ready cash for a rainy day or unexpected expenses. Assets can also be used as collateral for loans if need be. Assets are a good thing get & keep as many as possible. Build your portfolio.
Marketing- your business' Heartbeat
If money is the life blood of your business marketing is the heartbeat. It is what pumps money into your company. If you want to work, you've got to work for it. Success is never easy. Even the self-employed work for some one or else they are just unemployed. Your business' success will depend on your ability to find and KEEP customers. Just because you have all the tools, know how and a plan doesn't mean the world will beat a path to your door. Trust me.
There are many facets of marketing. Everything you do as a business person is marketing. Your haircut & shave is marketing. Your being polite to the cashier at the grocery store & the way you answer your phone is marketing. Your direct mail to people you've never met is marketing. The thank you note and spotter left on the counter is marketing. The flyers, door hangers, yellow page ad, web site, refrigerator magnets, your clean & neatly trimmed fingernails are marketing. The professionally printed invoices & typed & bound letterhead commercial estimates are marketing. These are the things that separate you from your competition. These are what help make you different. You may notice that I haven't said a thing about cleaning yet. That is because before you can clean you have to find CUSTOMERS!
Now I can't tell you what to put on your door hangers, post cards and flyers but I can tell you it should include a reason to call, clearly explained benefits and what makes you different from the last guy that came in & they forgot. It should be memorable, informative, to the point and compelling. Before you can charge a mint to clean you have to prove or at least convince them you're worth it. It should get your foot in the door, the rest is up to you, your equipment & your method.
Now that you have the word on the street, what is working, what is not? Track what is generating new business & what is not. A simple talley sheet and the question ?How did you hear about us?? will do this. Follow that up with ?what about that particular piece made you call?? and you are on your way to fine tuning your marketing. Test, tweak, test again... rinse & repeat.
Once you've booked the job- go above & beyond their expectations. Wow them. Show up on time, pet the dog, talk to your customers, do what they are paying you to do and be polite while you do it. If they are kind enough to invite you back... REMEMBER THIER NAMES. Remember the dog's name. It will work wonders. I promise you when people welcome you into their home and you treat them with respect and dignity you will most likely get the same in return. Treat them the way you would want to be treated.
Don't half do any thing. If you're going to survive the critical first years in business, you'll need repeat customers & referrals from those first customers. Don't be afraid to ask for them either, you won't get any of the forward scheduling jobs that you don't ask for. I have found that just by asking for referrals and forward scheduling, I have increased my referrals by 35%. Not a bad return for half a breath, huh?
Call the next day & make sure everything is Perfect. If it's not go fix it. Let your customer know you want their business. Let them know they got their moneys worth and then some. Reinforce the request for referrals and forward scheduling option. Remind them of your guarantee if you have one. Ask about the dog, by name. Build the relationship, treat them like a friend, after all they did invite you into their home.
Customer Interaction- appearance counts
When dealing with customers, remember you are a guest in their home (and easily replaced by a phone call). There are plenty of people that would love to have YOUR CUSTOMERS' business. I'm not saying walk on egg shells just be polite and be professional. Treat them the way you would want to be treated. Take the time to address their concerns before and after the cleaning. Let them know you are ?their problem solver? and that their business is important to you.
First impressions are lasting impressions. Don't show up with dirt under your finger nails, smelling like the inside of a bottle with a 3 day shave and a hole in your shirt. Well dressed (for work) and well groomed. The same goes for your equipment. Appearance counts. Remember the '82 Chevy? If you have an '82 Chevy at least make sure it's well maintained. Let them know you will take care of their things by showing them how you take care of your own things.
The customers perception of value and professionalism in your service will directly affect how easy it is for you to sell your services. If presented right, the customer will sell it for you through referrals. Be sure to represent your self and your company well at all times. You never know when you will run into a customer or future customer. Present yourself in a positive manner in public.
Learn from your mistakes
Every one makes mistakes. No one is immune. What separates a fool & failure from a savvy & successful business owner is not repeating the same mistake over & over. When you foul something up, admit to it and make it right as quickly and effectively as possible. Handle problems while they are small and manageable. Don't let a simple problem snow ball into something out of your control. Get to it ASAP. To put it off is to accept the way things are & you want better for your customers , your bank account and your peace of mind.
When to grow
When your marketing has been tested & tweaked and has generated a good response you'll become busy. More than likely you start to think about adding new people & equipment. Well you may want to hold off on that for a moment or two. You may need to ask your self a few questions before you start buying more trucks & hiring people.
1.What is your current work load? Can you meet the needs your customers efficiently with what I currently have in place? Do you really have a need for this? Is the cost of the new addition really justified?
2. Are there accessories needed for the addition? What is the cost associated with them?
3.How much training will the new addition require? Consider this carefully when the addition is a new employee.
4.How will this addition improve your business? Will it effect productivity &/or quality? Can I incorporate this into my marketing?
5.What potential issues come along with the addition?
6.Is it going to last?
7.Do you have to go into debt to get it? If so, how much are the payments?
8.Is this hiring & or purchasing decision going to be a sound business decision 3, 6, 12, 18 months from now?
9.Are you already charging a premium for you service?
If I were to plan an expansion, my first step would be to raise my prices again. Use the extra income generated to finance more marketing to recover the slight dip in sales one may experience with price adjustments. Get booked up to acceptable level & maintain it.
My second step would be to find the TRUE COST of this expansion.
1.Do I need more employees?
2. Is the addition to the team going to effect the amount of time & money spent with my CPA & insurance agent? Can I afford another employee full or part time?
3.Do i need more equipment? How much does it cost to get it, install it & maintain it.
4.How much training is required for this equipment & what is it going to cost?
5. I would investigate other options. Weigh the benefits & draw backs of each and arrive at the best possible decision for my customers, employees & company.
6. Incorporate this decision into my business plan and track the progress.
Once the planning was complete, I would make the purchase /hiring decision. Implement a training program and once every one was up to speed put them or it to work. Marketing will again increase until everything is at a comfortable & sustainable level.
My next step would be to track the return on the investment. I would see if the estimated saving in chemicals &, man hours were actually what I hoped. If not, why ? Did the new hire leave me with more or less time at home at the end of the day? Did my cash flow situation improve? Are my customers experiencing an increase in quality as a result? Is this actually making me any money? If not I would definitely have a problem. It would be dealt with promptly to prevent further losses.
How big do you want to be?
Now that you have a basic over view of how to build a successful carpet cleaning business, you need to ask yourself how far do you want to take it? It's been said that quality has value and quantity has a quality all it's own. Do you want to be a volume based company with 5-25 trucks running 6 days a week or a quality minded owner operator with 1 truck and maybe a helper working part time? Only you can answer this. What does success mean to you?
adamh
Supportive Member
I live in the Boise area. Come down and do a ride along.
208-989-2878
Adam
208-989-2878
Adam
Numero Uno
Member
Between the prochem or the cds,the cds...my 2 cents...
Best of luck...
I guess,I should suggest the Butler website,refurbished units...
But if you want a slide in go for it...
An network with your buddy,the possibilities of doing places together should make it lucrative for him and profitable enough to start you up and going...Just be honest...I am sure it can be beneficial to you both,plus he has exp, to share...
Best of luck...
I guess,I should suggest the Butler website,refurbished units...
But if you want a slide in go for it...
An network with your buddy,the possibilities of doing places together should make it lucrative for him and profitable enough to start you up and going...Just be honest...I am sure it can be beneficial to you both,plus he has exp, to share...
Kevin B
Member
Roxy;
Why don't you give me a call sometime this week. I'd be happy to meet with you and discuss what direction your heading. If you plan on doing the 19.95 a room junk, don't expect me to entertain you. But, if you plan on buying good equipment and do good work, get certified, get trained, and treat this business right, i'll work with you. Quality cleaners drive up our value, cheap ones cut it down.
Get to know the guys over at LPM supply, they are a great group and will treat you right.
Why don't you give me a call sometime this week. I'd be happy to meet with you and discuss what direction your heading. If you plan on doing the 19.95 a room junk, don't expect me to entertain you. But, if you plan on buying good equipment and do good work, get certified, get trained, and treat this business right, i'll work with you. Quality cleaners drive up our value, cheap ones cut it down.
Get to know the guys over at LPM supply, they are a great group and will treat you right.
gimmeagig
Member
Hey Kevin,
Thanks for the offer.I'd love to take you up on it.I do want to do this business right and do quality work so I get repeat customers.I'm ordering courses and books and will take the IICRC classes as well.
I got your phone no off your website and I'll call you later this week.
Take care
Roxy
Thanks for the offer.I'd love to take you up on it.I do want to do this business right and do quality work so I get repeat customers.I'm ordering courses and books and will take the IICRC classes as well.
I got your phone no off your website and I'll call you later this week.
Take care
Roxy
Kevin B
Member
Call this number 208-765-0634
Ron Lippold
RIP
$$$$$$
Call me I have some Ideas for you. 505-620-4682
Call me I have some Ideas for you. 505-620-4682
gimmeagig
Member
Hey Jeremy,
Thank you for that very informative post.That was the longest and most detailed response yet, almost a book.I'll get a lot out of just that one not to mention all the others.Thank you for being so helpful everyone..I just signed up for membership here and am pretty exited about the fact that there is sort of a community in this new field I'm getting into.
Thank you for that very informative post.That was the longest and most detailed response yet, almost a book.I'll get a lot out of just that one not to mention all the others.Thank you for being so helpful everyone..I just signed up for membership here and am pretty exited about the fact that there is sort of a community in this new field I'm getting into.
