tilt one back with Ivan Turner

[Mikey P]

Its 7am here in beautiful Kauai and I've got nothing better to do...

-Please describe the average company who comes to you for help..

-I've seem more then a few seen more than a few seemingly large restoration companies shut their doors in recent years, where do these big boys go wrong?

-How does a carpet cleaner thinking about offering restoration go about figuring out if his desired location can sustain another company?

-what are the three most common mistakes that same carpet cleaner will make in his first year?

-What are your favorite restoration franchises and would that carpet cleaner be a fool to not buy one if the opportunity was there?

-If a guy wants to go full rogue and design his own wrap and tell State Farm to kiss his ass, what are his odds of survival?

-What percentage of companies do not offer commercial or residential cleaning services, and what's your opinion on that?

-a business savvy guy fresh off the street with zero knowledge on the subject ( not even cleaning) should educate himself how and where?


Thanks for your time Ivan!!

 

[Ivan Turner]

Its 7am here in beautiful Kauai and I've got nothing better to do..

Answer: I would stroll along the beach wearing my straw hat, SBF 180, clam digger pants, plasitc shovel, sandals and black socks - Toburen style.

-Please describe the average company who comes to you for help..

Anwer: There really is no “average” most are diversified. Some just entering the game, others further advanced, but maybe hit a soft spot. Some are highly educated in the industry, others have just lost a sense of vision, which I hope to help redefine.

-I've seem more then a few seen more than a few seemingly large restoration companies shut their doors in recent years, where do these big boys go wrong?

Answer: I cannot speak for others. I will suggest however, that there may be a few of those “large firms” that simply achieved their dreams and realized it was time for a final curtain call. I am sure that there have been some that have also suffered and ultimately closed due to a heavy A/R load.

-How does a carpet cleaner thinking about offering restoration go about figuring out if his desired location can sustain another company?

Answer: I would suggest that he begin with some extensive research into the market. What is the market really worth in terms of potential revenues, who are the competitors today, who are the emerging competitors? A couple of excellent resources are; AM Best.com and III.org (insurance information Institute) There you will find what the market is worth.

-what are the three most common mistakes that same carpet cleaner will make in his first year?

Answer: Mike like you, I don’t listen to the rules, therefore I will list the top five common, yet easily preventable mistakes.

1. Over estimateing operational capacity: Marketing, advertsing and barking like a big dog (not that there is anything wrong with that, in fact that is an awesome trait to posess) on the front end, then work begins to flow in and he realizes that he lacks the operational capacity, to properly process quanity or type of losses. This could stem from a shortage of trained employees, lacking proper equipment. Etc. These mistakes are normally identified early on the business planning process. Therefore, the real answer is failure to plan.
2. Poorly funded: it takes a great deal of financial capitol to operate a restoration business. Restorers will usually be required to carry A/R, which can amass nippily, making money management a slipperly slope.
3. Lack of SWOT: Study of Stenghts, Weaknesses, Opportunity and Threats. Even for those that do conduct a SWOT Analysis, it is frequently done with lack of impartiality. It is not unusal for someone to under estimate their competitor’s strenghts and at the same time over estimate their own strenghts.
4. Lack of Situational Awareness: By this I mean owners sometimes enter the game and have not given adequate thought into where, how and when they fit into the process of restoration services. Usually unclear of how the insurance protocol really works and where to be postioned to capture leads throughout the protocol.
5. Lacks Differentiation: In the game of disaster restoration – branding and positioning are everything. If you simply immulate what the other people, especially the well-funded franchises are doing, you will remain in the unenviable position of being led and positioned by those franchises and strong leaders. Think like a Marketing Firm First, Restoration Contractor Second!
   
   -What are your favorite restoration franchises and would that carpet cleaner be a fool to not buy one if the opportunity was there?

Answer: I admire Servpro for the market share capture they have been experiencing for many years running. It is my understanding that last year 13 mil was allocated for marketing/sales. Therefore, they would be a sound choice for anyone wanting to take the franchise route. I also like PuorClean (could be wrong on exact name) for allowing independants to join and not be penalized (Royalty wise) on income generated prior to joining.

Would that carpet cleaner be a fool to not buy one?

Answer: Of course, he would not be a fool. Listen, entrenpenuers get into the business world for several reasons. Among the most common reasons are to fullfill a dream, passion, vision, leave a life that is better to his children that follow, to serve the needs of others and all kinds of other wonderful reasons. It can be difficult for an independant to buy, or even cross over, if the franchise or concept of the franchising idea is not congruent with his vision.

If a guy wants to go full rogue and design his own wrap and tell State Farm to kiss his ass, what are his odds of survival?
Answer: With a distasteful cheekiness like that, he probably has no business being in business. Never, ever under any circumstances burn bridges that you may one day need to cross back over. Wraps in and of themselves do not make the telephone ring. His survival rate is good so long as he is a great businessperson, with a moral compass that has been set to help and lead others and is very serious and dedicated to growing an awesome business in turbulent times. YOU DO NOT have to be on Vendor programs to survive, excel and earn your deserved peice of the lucrative insurance disaster restoration pie.

-What percentage of companies do not offer commercial or residential cleaning services, and what's your opinion on that?

Answer: I have the foggiest notion. I do know that Jeff Cross at Cleanfax publishes an awesome annual survey, which might answer the questions. I believe it was just released last month.

-a business savvy guy fresh off the street with zero knowledge on the subject ( not even cleaning) should educate himself how and where?

Answer:Thevery first thing he should do, is queitly, calmly, pick up the phone and call Jon-Don and register for the SFS program. In very short order, he will appreciate the fact that now he has a freind in the rain making business. (don’t ask me how I know that). For leveling the playing field and taking an average cleaning & restoration business and transforming it into a powerhouse, call that fella down there in the ShowMe State. (How is that for a shameless plug – Toburen style)? There are several other valuble resources available to the perceptive businessperson. Here is a resource list, in no particular order;

Totally Booked Unniversity – Jeff Cross
Industry magazines (all with malice to none)
Mikey’s Board and the members who collectively possess an enormous amount of knowledge and are enthusiastic about imparting knowledge and best practices absolutely FREE of charge.
Howard Partridge for Systemization
Lisa Wagner for Rugs & Education
Ken Snow for large-scale carpet cleaning operations
Terry Brevic for Cynicism coaching
Dusty Roberts and Barry O’connell for Rugs, Equipment, Education and a large group of rug experts to network with.
IICRC
RIA, and so many more.

Thanks for your time Ivan!!

You are very welcome Mike. It is my sincere hope that this will aid someone along the journey of cleaning and restoration ownership.

 

[Shane Deubell]

-what are the three most common mistakes that same carpet cleaner will make in his first year?

Answer: Mike like you, I don’t listen to the rules, therefore I will list the top five common, yet easily preventable mistakes.

1. Over estimateing operational capacity: Marketing, advertsing and barking like a big dog (not that there is anything wrong with that, in fact that is an awesome trait to posess) on the front end, then work begins to flow in and he realizes that he lacks the operational capacity, to properly process quanity or type of losses. This could stem from a shortage of trained employees, lacking proper equipment. Etc. These mistakes are normally identified early on the business planning process. Therefore, the real answer is failure to plan.
2. Poorly funded: it takes a great deal of financial capitol to operate a restoration business. Restorers will usually be required to carry A/R, which can amass nippily, making money management a slipperly slope.
3. Lack of SWOT: Study of Stenghts, Weaknesses, Opportunity and Threats. Even for those that do conduct a SWOT Analysis, it is frequently done with lack of impartiality. It is not unusal for someone to under estimate their competitor’s strenghts and at the same time over estimate their own strenghts.
4. Lack of Situational Awareness: By this I mean owners sometimes enter the game and have not given adequate thought into where, how and when they fit into the process of restoration services. Usually unclear of how the insurance protocol really works and where to be postioned to capture leads throughout the protocol.
5. Lacks Differentiation: In the game of disaster restoration – branding and positioning are everything. If you simply immulate what the other people, especially the well-funded franchises are doing, you will remain in the unenviable position of being led and positioned by those franchises and strong leaders. Think like a Marketing Firm First, Restoration Contractor Second!
   .

This part is great!

Although we are focused on commercial work, these are some of the same problems contractors run into with the commercial market.

 

[juniorc82]

Ivan, with all your years in the cleaning /rest. biz what would you say in hindsight is something you would have done differently? Also on a more local note (since you and I both run our companies in the same town), what are your thoughts on the Columbia market vs. Jc for cleaning services? I have took note of the Columbia market giving me a lot more noticeable returns on my advertising than Jc. With Jc losing a key employer like rr Donnelly and more than likely scholastic very soon as a carpet cleaner primarily would you find it wise to view Columbia as a primary market and jc as my secondary? Also when will you be doing a seminar in Jeff or nearby again? I would like to attend as I do the occasional loss and would love to learn the next step for becoming moore involved in restoration.

 

[Tony Neville]

The Columbia market is terrible!

Tony

 

[juniorc82]

The Columbia market is terrible!

Tony

lol not as bad as Jc tony! I am mostly commercial anyway and with businesses folding up left and right in jc its hard to get them to commit to any sort of solid maintenance schedule......Must not be that terrible up in there tony by the looks of that shiny new caddy I saw you cruising around in the other day

 

[Desk Jockey]

Gotta watch out for those Neville brothers!!!

 

[Ivan Turner]

Tony, are you really sporting a Caddy? Business must be good. I'm still stuck riding my old Lincoln Nav. Chavez - MIZZOU Rocks, Nuff said! Jon I would give some credence to anything the Neville boys say. They more often than not spot on market conditions. Jon, all you have to do is give me a call and I'll be happy to assist you in anyway I can.

 

[Ivan Turner]

Tony, are you really sporting a Caddy? Business must be good. I'm still stuck riding my old Lincoln Nav. Chavez - MIZZOU Rocks, Nuff said! Jon I would give some credence to anything the Neville boys say. They are more often than not, spot on regarding market conditions. One day I hope to take those giants across the river to settle some long held animosities Missourians have with them Jayhawkers. We will begin our odyssey in Lawrence and ride west towards Topeka. Jon, all you have to do is give me a call and I'll be happy to assist you in anyway I can.

 

[Desk Jockey]

LOL

 

[Tony Neville]

No that's all tongue in check we are having a blast here!

Living the dream in MO!

Tony

We won't talk about the caddy