We are approved!

[WillS]

We finally got approved for our first business loan! It has been 3 years now we have been opened and are ready for our next step. I've been waiting to get approved as we are using some of this money to move into a small office & warehouse space.

MY main reasoning for this space is I need to hire 3 more guys so I can run all the trucks full time and from 7am to around 7pm, 6 days a week. I just can't have all these people coming to my house anymore in the mornings to stock up shit etc. Also an easier place to clean rugs!! We have no debt, so this will be a bit of a change. I can basically begin to use this as working capital on top of getting whats needed for the office space.

I finally got all the machines repaired, new machines ordered, everything stocked with the additional money I had as back up. Trucks are tuned up, everything is ready to go. This is going to be a big change for me, but it will be nice being able to have an office to go to in the morning, and I won't be cleaning anymore! (Unless there is an f up or someone calls in I'm sure).. Me and one of my other business partners will be full time on marketing (me) operations (him). Our other business partner (this partner only owns 7%) is coming back from his trip to Thailand soon and will be doing more HR/Sales/etc. type work. Excited as hell!

 

[Desk Jockey]

Congrats sounds exciting!

 

[BIG WOOD]

That's awesome Will. Can you give us some pointers as to being in a successful partnership with this type of business. All the conversations of a partnership in carpet cleaning that I've discussed have others frowning on that.

So what have you done differently to make it successful?

 

[mirf]

Very nice. much success.

 

[WillS]

That's awesome Will. Can you give us some pointers as to being in a successful partnership with this type of business. All the conversations of a partnership in carpet cleaning that I've discussed have others frowning on that.

So what have you done differently to make it successful?

Both of my partners are friends from college. One moved down here at the same time I did, the other moved down here a few years later.

Myself and my other partner own 46.5% of the business. He started it originally after working for another cleaner making low money, being paid under the table, etc. I had money saved (about 15k) when we started it and invested into the machines, truck, etc. He worked at it full time while I worked another job. A year later we got so busy, I was able to quit my other job. Our third partner that owns 7% invested 10k into the company after we were operating for 2 years. The only way I would add partners is by a cash investment. Even now, I don't want to lose anymore % of what I own and that is why I opted for the loan today.

Basically, when we added the additional partner that invested 10k, we did a contract to where he is a silent partner. He can not make business decisions, and just collects his 7% off profit every quarter. Me and my partner that own 46.5% collect our investment on profit at the end of each year. The rest goes into the business account for reinvestment. I would say if you are adding a partner that doesn't know about the business, etc. best idea is to have them as a silent partner collecting their % off PROFIT. He also has the option to increase his cash investment up another 10 to 15k to add another 6%... If he did this, he could only maximize his percentage owned to 13%. There is also a clause in our contracts that says, if we decide to sell the business, we are all in agreement.

 

[Desk Jockey]

I don't want or intend for this to sound condescending, but I am very proud of what you have accomplished!

 

[WillS]

Thanks man! I'm pretty excited about it. Not at some of your guys level but.. I would like to open another location in my home town area, Northern Nevada (Reno/Sparks) area one day. (Not Gville, cause I could never compete with the best of the best M.P.) but.. This office is helping us get one step closer.

 

[samson99]

That is great! I was watching your webinar from I think late last year and was fascinated by the role of social media in your success. My impression is that primarily Facebook promotions have driven your business success and it just kept building from there? Things have changed for sure.

 

[Mikey P]

FPA....

 

[BIG WOOD]

Both of my partners are friends from college. One moved down here at the same time I did, the other moved down here a few years later.

Myself and my other partner own 46.5% of the business. He started it originally after working for another cleaner making low money, being paid under the table, etc. I had money saved (about 15k) when we started it and invested into the machines, truck, etc. He worked at it full time while I worked another job. A year later we got so busy, I was able to quit my other job. Our third partner that owns 7% invested 10k into the company after we were operating for 2 years. The only way I would add partners is by a cash investment. Even now, I don't want to lose anymore % of what I own and that is why I opted for the loan today.

Basically, when we added the additional partner that invested 10k, we did a contract to where he is a silent partner. He can not make business decisions, and just collects his 7% off profit every quarter. Me and my partner that own 46.5% collect our investment on profit at the end of each year. The rest goes into the business account for reinvestment. I would say if you are adding a partner that doesn't know about the business, etc. best idea is to have them as a silent partner collecting their % off PROFIT. He also has the option to increase his cash investment up another 10 to 15k to add another 6%... If he did this, he could only maximize his percentage owned to 13%. There is also a clause in our contracts that says, if we decide to sell the business, we are all in agreement.

Why have you and your partner decided to collect your investment at the end of the year, and not quarterly like your silent partner?

 

[WillS]

That is great! I was watching your webinar from I think late last year and was fascinated by the role of social media in your success. My impression is that primarily Facebook promotions have driven your business success and it just kept building from there? Things have changed for sure.

We did build it in the beginning strictly on social media and referrals. I did the door hanger idea for the first week and some other random forms of solicitation and then went full on promoting online. 3 years ago it was nice because NO one was using FB to advertise. Now my ad dollars can run high at times pushing others ads out of the way. Phrasing your posts with good content and a good target will be beneficial no matter what.

 

[WillS]

Why have you and your partner decided to collect your investment at the end of the year, and not quarterly like your silent partner?

We did this as an agreement with the smaller share partner. He wanted a faster return on the investment upfront, because it is a smaller amount he receives then us.