Did You Start a Business or Buy a Job? By Gary
Goranson
There are two basic ways that people get
into the residential cleaning business.
1. They decide to become self-employed and think that cleaning homes for a
living is an easy and inexpensive way to achieve that objective (I call it
"backing into the business"); or,
2. They go into the residential cleaning industry with the intention of
creating a real business right from the start.
Up until the last quarter century or so, virtually anyone cleaning homes got
into the profession for the first reason. A lot of them were people who had
few alternatives due to lack of education or skills in other fields. Many were
foreign nationals who were not legally qualified to work in the United States
and saw house cleaning as a relatively safe way to earn a modest living while
remaining undetected by immigration authorities. While it was often viewed as
a lowly occupation, with the changing face of the industry today that stigma
is being eradicated and a broad spectrum of individuals have opted to make
house cleaning their business of choice over retail and other service trades.
In the 1970s entrepreneurs began recognizing the tremendous potential of
turning what had been a growing but fragmented industry into a real business
opportunity. Most of the major residential cleaning franchise companies were
born in the late 70s and 80s as were many of today’s large and successful
independent services. Today it is not unusual to hear of companies generating
well into seven figure annual revenues with 20, 30 or more teams of house
cleaners. In fact, a single team of house cleaners can produce as much or more
in gross income as a lot of small companies in other fields generate in a
year.
THE “START WITH A MOP AND BUCKET” TRAP
The universal desire for people to “own their own business” has not gone
unnoticed by folks who see an opportunity to take advantage of these aspiring
entrepreneurs. Go on the Internet and you’ll find scores of sites suggesting
you can get into the cleaning business for about the cost of a family’s weekly
grocery bill and earn $25 to $35 per hour. You’ll find books and so-called
“kits” for anywhere from $10 to $75 purporting to show you how to do it. The
proliferation of these materials is, in my humble opinion, a scam and a stain
on the industry.
Since you’re reading this article in ARCP News you’re obviously already in the
business, so we’re not denigrating these materials to discourage you from
buying them. We’re raising the issue to highlight the perceived “low entry
cost” philosophy that drives many people into this business. It is true that a
cleaning business is one of the least costly enterprises to start and operate,
but as you well know it takes more than a few hundred dollars to do it
legitimately. One decent vacuum cleaner alone can cost that much. And the
biggest expense people drastically underestimate (and which the folks selling
books and kits fail to address candidly) is the cost of marketing to get
clients. You really can’t build a large and successful cleaning service
business by handing out a few business cards and posting flyers in
Laundromats.
My advice to people who lack sufficient capital to go into the business the
right way is to get a job with a successful residential cleaning company
instead of buying a job, which is in effect what they’re doing with the money
they’re investing. Even if they’re generating $25 to $35 per hour in fees,
that’s gross revenues from which they have to deduct all expenses incurred in
operating their business – and there will be expenses no matter how small the
business.
THE “I DON’T WANT TO DEAL WITH EMPLOYEES” TRAP
As a consultant to the industry I talk to folks every year who say, “I can’t
hire employees because my customers would drop me if I didn’t personally do
the cleaning.” When they tell me that, I ask them to think about what they
just said. After all, if the client fires you because you’re not personally
doing the cleaning, obviously they won’t have you cleaning their home ….
d’uhhh. Wouldn’t they rather have people you train and supervise cleaning
their homes than face the hit and miss prospect of finding someone else as
capable, dependable and trustworthy as they know you are?
For one thing, if you’re really that good a house cleaner, then you should be
more than capable of teaching your skills to other people to work on your
behalf. You just need to learn a new set of skills in recruiting, selecting,
supervising and managing people you hire. And while dealing with employees can
be a major challenge, this is a skill that can be learned regardless of any
lack of experience you may have had in this regard. You are only one person
and there are only so many homes you can clean in a day, week, month or year
doing it by yourself.
It doesn’t take a rocket scientist to figure out that hiring other people to
work for you creates an opportunity to multiply your productivity and income
exponentially. Sure it increases your cost of doing business, but any profit
you earn from other people’s efforts is over and above what you’re able to
earn without them. There’s no way you can earn $100,000 a year in profit
cleaning homes yourself. There are people in this industry who are earning
several times that figure by multiplying their earnings through the labor of
other people. And they don’t put in a whole lot more time in a day than people
cleaning houses by themselves.
YOU SHOULD NOT BE CLEANING HOUSES
If you’re going to build a successful residential cleaning service, you need
to spend your time working ON the business rather than IN the business. True,
most people start their business cleaning homes. There’s no better way to
learn the ins and outs of the business. And you want to learn the skills
necessary to teach others how to do the work effectively and efficiently. But
this is a job you want to work yourself out of as quickly as possible. If
you’re out there all day cleaning houses you’re not doing those other things
needed to make your business grow – planning, marketing, hiring, training,
managing.
You learned to clean houses as a professional. You can also learn the skills
necessary to create a substantial, successful and profitable house cleaning
business. Knowledge is power and investing in improving and expanding your
skills is the best investment you can make in your business. Active
participation in ARCP can certainly go a long way in helping you build a
cleaning service you can be proud of. Make up your mind that what you’ve
invested in is a business and not a job.