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THE POTENTIAL COST OF NOT FOLLOWING THE PROGRAM!
By Gary Goranson

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A Reader’s Feedback
In response to our February 16th newsletter captioned “An Important Employee Management Tool Most Employers Neglect to Use!” I received a phone call from one of our House Cleaning Biz 101 customers earlier this week. She had purchased our program to help her start her California cleaning business three years ago. Following the recommended operating procedures in the course, she had managed to build her business to more than 300 cleanings per month in just over 2 years, representing over $30,000/month in revenues (for the purpose of this article, we’ll call her Alice).


Alice is a bright, young and vibrant individual who had never been in her own business before. She faithfully adhered to the guidelines set forth for our recommended 5-step employee selection process ….. until about 6 months ago. With the rapid growth of her client base and a sudden need to quickly find new employees, Alice decided to “skip” these all-important steps. She did what so many harried owners do under these circumstances and took what seemed like the easiest solution: Simply hire anyone willing to pick up a mop and go to work. BAD DECISION!

A Costly Mistake
Her decision to skip the selection process and hire “bodies” quickly manifested the folly of deviating from this important step. Poor hires turned into serious problems which even corrupted her good employees. How costly was this decision? In short order it created so much client dissatisfaction that her monthly cleanings dropped from 300 to 100 – a loss of at least $20,000 per month in sales!

When I spoke to her about a year or so ago, she said that she was uncomfortable disciplining employees. She wanted to behave more like a friend than a boss. This is a common mistake made over and over again by small business owners – and one that can have dire consequences. Alice felt uncomfortable about using Verbal Warnings, Deficiency Notices and Performance Reviews and, like so many managers, neglected to steadfastly use these valuable tools. Unfortunately, she had to learn the hard way; the way most business owners do and from which many never recover.

A Timely Recovery
Thankfully, Alice recognized the error of her ways. She reverted to a rigid employee selection process and has replaced her bad seeds with the best crop of employees she has ever had. She also said she has learned to be friendly with her employees but draws the line at “friendship.” She faithfully administers verbal warnings and written deficiency notices as and when warranted. Frequent performance reviews are regularly conducted in the positive way they’re intended. Alice no longer procrastinates when it’s clear that an employee isn’t a good fit; she disciplines them and, when needed, replaces them and moves on. And her client base is rebounding to its previous level. She learned an expensive but valuable lesson and was fortunate enough to survive it. DON’T MAKE THE SAME MISTAKE IN YOUR BUSINESS.



Sometimes Difficult but Always Necessary
Yes, disciplining employees or firing them when appropriate can be difficult. I know. I’ve been through it all, too. When I was in my early 20’s I built a sales organization of over 300 people. Disciplining and firing people were something I tended to try to avoid. One day a mentor told me, “Gary, the reason you feel that way is because you’re putting yourself in their shoes. But think of it this way. If positions were reversed, and the other person was sitting where you are, what should that person do with you if he was doing his job?” That analogy made it crystal clear to me. I still don’t find it comfortable, but I know that if the person isn’t performing well or isn’t a good fit, I am doing both of us a favor in the long run.

The Value Equation
Over the last few years, many of you have told me that we should be charging $5,000 or more for our program. Yet, there are people who avoid making the small investment we charge because they feel they can’t afford it or that it’s too much to pay. I think Alice’s example is clear evidence that the House Cleaning Biz 101 program is indeed a bargain. The issue discussed here is only a small segment of the advice we have learned over many decades. Not implementing it – or ceasing to do so after doing so, can clearly cost 10, 50 even 100 times more than its cost. But then, buying the program and taking the time to study and absorb it is one thing; proper implementation is something else again. Just because everyone who goes to law school or medical college gets the same training doesn’t in itself insure they’ll all rise to the very top of their field.

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PERSONAL ONE ON ONE MENTORING/CONSULTING/COACHING & ADVICE FROM GARY GORANSON AVAILABLE TO HOUSECLEANING BIZ 101 CUSTOMERS.

 

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