the 12 legged stool-are you over diversified?

[Mikey P]

Tom's comment in my Stone Hack thread got me thinking..


When I see these vans around town with a bullet list from bumper to bumper I immediately think "We do everything, poorly"..

1. Janitorial
2. Window Cleaning
3. Carpet Cleaning-Commercial and Residential
4. Tile and Grout
5. Oriental Rugs
6. Water Damage
7. Stone Polishing
8. Upholstery Cleaning
9. Air Duct Cleaning
10. Auto Interiors/Detailing
11. VCT Strip & Wax
12. Wood Floor Refinishing

I'm sure I missed a few that most shitty carpet cleaners try to branch into hoping to stay busy.
I'm a bit worried that Tom is not only going to drive his son nuts by growing too quick and not really becoming a King in each sector before moving on to the next.

You can't ask the average employee to be proficient in more than a couple of these service so a guy like Tom will need to hire a WD manager, a Rug Fag Pit supervisor, a true Stone Pro, a Crew Manager to orchestrate his maids and window grunts, a NADCA certified HAVC pro, a midget goober with a mytee pos detailer... and "Tom" himself better be bilingual too.


How do you plan your growth?
When are you satisfied with one division enough to move on and develop the next?

Should a one truck show really offer more than just carpet, upholstery and tile?
Should a easily bored "Tom" stay away from these boards, Round Tables and conventions and just stay focused one one at a time?


Tell us oh Jon Don Twins...How do we best manage our growth and expectations?

 

[Mark Saiger]

Well, I am at a position that I have done just so. Backed out of restoration for various reasons (some personal, some local business situations). I am going to do the small water damages...basically when I am available and I prequalify the people better. My brothers did the same. The got real picky and their profit margin increased 23% this year. Hope it works the same for me. Time will tell.

I am going to remain in my specialty field of Carpet, upholstery, tile and grout cleaning. I am finding that most of the other cleaners are fighting for the restoration in this smaller market and leaving all the carpet cleaning type services on the table....because I am told, they can't compete with me in carpet cleaning.

I just met "the green vans" late last night heading 2 hours away (part of their territory) to do what appeared to be a water damage while I was returning home with an empty trailer of my last bit of sold restoration equipment. I called a few of my local friends last night (brothers included) and we all felt the same....good for them. All the franchise businesses are having to travel a long distance and large territory to keep their people busy. I found, just too much money being spent to accommodate the insurance companies wants, and not much being left in our bank accounts.

Also just got an email forwarded from me from a local franchise owner with some changes being made and they are not too conducive to the smaller owner of that franchise. He is going to sell it and get out as well.

I am finding, it is not how much money you make....it's how much you keep and put in your savings account!

I wish everyone the best who is continually trying to expand and find success. I am just retooling my business so I can MAKE and KEEP more money with less work! I really think gathering info from others who share topics like this is a great way to reflect on their own individual circumstances.

OK...now I am going to go put the plow on the truck and plow some more snow....when will it end!

Mark Saiger
www.saigers.com

 

[Steve Toburen]

Tom's comment in my Stone Hack thread got me thinking... I'm a bit worried that Tom is not only going to drive his son nuts by growing too quick and not really becoming a King in each sector before moving on to the next.

Tell us oh Jon Don Twins...How do we best manage our growth and expectations?

If your biggest worry in life, Mikey, is fretting about Tom King's ability to manage his business growth you are a fortunate man indeed!

Actually, Mike, your point is well taken. Too often I find cleaners trying to be "all things to all people" and diluting both their energies and marketing message in the process. Here's a few questions I bring up to our SFS attendees as they try and chart their future course...

1. What is the population of your market area? How far are you willing to travel?

2. What size of "mature business" do you want to have? (This is where I try tactfully to show them that it is better to stay within their "comfort zone" management wise. Not everyone is capable of and/or will enjoy building a huge operation.)

3. Where can you make the most amount of money with the least amount of time/ money and emotional capital invested? (ROI should be based on more than just money.)

4. What/when is your "exit strategy"? Are your kids interested in taking over the company?

5. What does your family want? (From you and out of life?)

6. Where is your very own personal "Sweet Spot" in life as in what sort of day in business would make you just want to jump out of bed in the morning? And conversely, what kind of day and business makes you wake up with the sour taste of dread in your mouth? (And not that cheap Cabernet you downed last night!)

Just a few early Sunday morning reflections humbly submitted...

Steve

PS At the end of the day I honestly feel the greatest wealth someone can achieve is that ever elusive "Personal Freedom". Now your personal definition of success and how you choose to get there... ah yes, that is the challenge. But isn't it nice all of us as entrepreneurs have the freedom to chart our course?

 

[Shane Deubell]

Definitely agree with you mike on this one. We try and stay focused on tile/carpet and would like to sell more upholstery.
Training people in all these services is a total pia.

We do provide office cleaning but only to independent building owners with 100 or more employees on site. Only like 125 businesses here.

Good topic and look forward to seeing where people think the line is.

 

[Mark Saiger]

If your biggest worry in life, Mikey, is fretting about Tom King's ability to manage his business growth you are a fortunate man indeed!

Actually, Mike, your point is well taken. Too often I find cleaners trying to be "all things to all people" and diluting both their energies and marketing message in the process. Here's a few questions I bring up to our SFS attendees as they try and chart their future course...

1. What is the population of your market area? How far are you willing to travel?

2. What size of "mature business" do you want to have? (This is where I try tactfully to show them that it is better to stay within their "comfort zone" management wise. Not everyone is capable of and/or will enjoy building a huge operation.)

3. Where can you make the most amount of money with the least amount of time/ money and emotional capital invested? (ROI should be based on more than just money.)

4. What/when is your "exit strategy"? Are your kids interested in taking over the company?

5. What does your family want? (From you and out of life?)

6. Where is your very own personal "Sweet Spot" in life as in what sort of day in business would make you just want to jump out of bed in the morning? And conversely, what kind of day and business makes you wake up with the sour taste of dread in your mouth? (And not that cheap Cabernet you downed last night!)

Just a few early Sunday morning reflections humbly submitted...

Steve

PS At the end of the day I honestly feel the greatest wealth someone can achieve is that ever elusive "Personal Freedom". Now your personal definition of success and how you choose to get there... ah yes, that is the challenge. But isn't it nice all of us as entrepreneurs have the freedom to chart our course?

Thank you Steve,

I think I am going to print this to keep an eye on for awhile and see if I am focusing on what is important to me and my family, and be ready to make changes either way as needed.

Again, my best wishes to all on this.

What a great topic especially as we enter into the new year to make plans for next years business goals.

Mark Saiger
www.saigers.com

 

[Desk Jockey]

LOL We keep adding services, we will improve an old service and pursue it more and add two totally new but related services in 2014.

Not because we want to but out of necessity. In a smaller markets in order to support a company our size we have to do many things.

We are fortunate to have a tech or two that "own" that service and the other techs are utility players who know what to do and have the experience behind them even if they don't have the formal training that those that manage that service for us.

 

[Mardie]

Jack of all trades and master of non you say. Due to the fact that their are so many possible new services staring us in the face all the time it is an easy trap to fall into and I think the guys that are most vulnerable are newbies who are looking for work or old timers that suck at what they do so they are always looking for work. I just started VCT early last spring due to it being offered to me so many times and also it just keeps yanking at me. With the little bit of VCT work I have done it has just snow balled without any sales effort on my part. My carpet clients have recognised that my VCT work is on the same level as my carpet cleaning and this recognition as a company that provides a (superior result in all that they do) will reflect well and create its own snowball effect in other areas as well. I have found that it is good to let a new service find you rather than trying to create the new service. Also you cannot be good at one service and suck at another because that will just cause you more harm than good.

 

[Mikey P]

Steve I don't worry about our good pal Tom one bit



But that poor Jordan...oh boy...

 

[boazcan]

What we have found over the past few years is some services have lightened and others have increased.

We are no longer "actively" growing our soft surface cleaning (except commercial), but have found our sweet spot on hard surfaces. We do a better job than competitors, enjoy it more, and have better return.

Although we have learned how to clean/service many different surfaces, I do agree in the "jack of all trades". So we don't push that we can clean anything without legs.

I hope this year with the plans in place that hard surface will account for 70%+ of income

Sent from my DROID RAZR HD using Tapatalk

 

[TomKing]

I think I will chime in here.
First thanks for the attention I don't get a lot here in Indy.

I agree too many services can be bad.
We have 5 guys as of now and 3 have specific targets they are developing in.

I will be talking a little about this at MF10. We are going to talk about how to sell and brand multiple services.

Diversification is a must. Look at larger companies most have multiple revenue streams to help when on is not as strong.

We grew carpet 37% last year but it is not what carried us.

hay que ir chicos. LOL