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Success Recipe
"The problem with most failing businesses is not that their owners don’t know enough about finance, marketing, management, and operations -- they don’t, but those things are easy enough to learn -- but that they spend their time and energy defending what they think they know. My experience has shown me that the people who are exceptionally good in business aren’t so because of what they know but because of their insatiable need to know more." Michael Gerber
   

YOU CAN'T DO ANYTHING ABOUT WALL STREET

YOU CAN'T DO ANYTHING ABOUT MAIN STREET

BUT....

YOU CAN DO SOMETHING ABOUT YOUR STREET!

by Gary Goranson

 

Since the turn of the last century, there have been a total of 21 periods referred to as recessions in America. It’s as plain as the nose on your face that we are currently experiencing number 22 now. Wall Street has burned off trillions of dollars of investors’ money. Main Street is in a panic. The Chicken Little analogy is running rampant.

You and I can’t do anything about the missteps created by corporate greed and inept politicians leading up to the mortgage crisis and subsequent turmoil in the banking industry and stock market. But it is within our power to control what happens on YOUR STREET. Never mind trying to survive – now is the time to make your residential cleaning business thrive!

As history shows us time and time again, the American spirit of entrepreneurship has survived every economic downturn. In many ways, recessions have proven to be an opportunity to thrive for forward-thinking entrepreneurs and businesses. There’s an old adage that says, “Tough times don’t last. Tough people do.”

I am not suggesting we become ostriches and put our heads in the sand. The economy is in for a rough ride for some time to come. But how we weather this storm has a great deal to do with how we respond, either negatively or positively. Dwelling on the daily pounding by the media and economic pundits isn’t going to resolve YOUR challenges or address YOUR opportunities.

And in case you’re wondering, yes, I have weathered a few recessions in my time in business. In fact, I founded WorkEnders, Inc. during the 1990 - 1991 recession and went through the more recent 2001 downturn, which lasted from March to November of that year and was caused by the dot com bust. In my prior company, the Tidy Car franchise network, we and our franchisees grew and thrived during both the 6-month slump in 1980 and the 16-month recession which followed in 1981 – 1982. Where others see problems, I always look for opportunities. Heck, Warren Buffet is no fool and he just invested $10 billion of his own money in the market. He, too obviously subscribes to the same theory of optimism and opportunity which can arise in tough economic times.

Here’s why you have reason for optimism for YOUR STREET.

REASON # 1: According to the most recent demographics from InfoUSA, there are 16,157,374 households in the USA comprised of people between 35 and 65 years of age who own their own home and earn between $100,000 and $250,000 annually. Those are all households who are potential clients for a house cleaning service. While they say that about 11% of American home owners are currently facing foreclosure, I think it’s pretty safe to assume that most of that number does not fall into the $100,000 to $250,000/year income category. That being said, let’s assume for argument’s sake that as many as 20% of those 16 million households are being impacted negatively by the current economic problems (a figure that is, in my opinion, a very overstated negative number). THAT STILL LEAVES NEARLY 13 MILLION HOUSEHOLDS IN THIS COUNTRY WHO ARE CLIENTS OF OR POTENTIAL CUSTOMERS FOR A RESIDENTIAL CLEANING SERVICE!!!!

REASON # 2:
Also according to InfoUSA, there are currently 11,072 house cleaning companies listed in the Yellow Page directories across America. Well, with 13 million (and likely many more) households who are customers or potential clients for a professional cleaning company, that works out to an average of 1,174 potential qualified clients per company. Assuming the average client is worth $250 per month in revenues, which would equate to $3.5 million in potential annual sales for each of those 11 thousand cleaning services!!! Now, of course, not everyone is going to hire a professional cleaning service, but I think you get my point. And most cleaning companies could not handle that kind of volume anyway. But for those companies who do the right things and do those things right, in both good time and bad, there is enormous cause for optimism in this industry. In fact, while many of your competitors are pulling in their horns and running for cover, you have even more reason to press on because while they’re doing that, you can be capturing their market share as well.

REASON # 3: Which is the rougher challenge? Finding and keeping good clients or finding and keeping good employees? Well, if you’ve been in the business awhile, you know the answer. The client side is the easier part of the equation. When things are booming and unemployment is low, it’s more difficult to recruit good people. You experience higher turnover than when jobs are more scarce and companies are laying people off. Now is a great time to be recruiting and all the more reason to use our 5-step selection system because you can afford to be even fussier about who you bring aboard. It’s also a great time to replace anyone on your staff who you may have been “putting up with” because you were afraid you couldn’t replace them.

REASON # 4: While some of your neighbors may be fretting about losing their jobs due to cutbacks, you don’t have to worry about being given a pink slip. Yow own your own business; you call the shots. You don’t have to rely on someone else to decide your career’s fate. It’s all up to you. As challenging as that may seem sometimes, it’s also comforting to know that your economic future is in your own hands. As the captain of your own sailing ship, the tiller is in your hands. Using your skills and the business practices expounded in House Cleaning Biz 101, you will weather both calm winds and economic storms that can sink a lesser seaman.

WHAT RECESSION?

I only lost one client due to the recession. The wife called to say that her husband is the only one who works and he suggested that they clean their own home for a while. My other clients have not missed a beat. There truly is a recession but the cleaning business is solidly recession proof.”

― Kelly McMullen, Maryland

“I have a residential cleaning business here in Dallas TX and we have not stopped advertising or stopped thinking that we can't continue to grow our business. I advertise and the people come. I don't see a recession, only opportunity. What we do is make cleaning affordable and still make a huge profit at the same time. Wow!!! Perception is in the eye of the beholder.”

― Marie Barbee, Texas

 

"We are experiencing a 13% gross profit increase from this time last year. Even in light of a down economy we have sent out price increase letters and have not found much resistance due to financial reasons."

─ Scott Kindberg, Wisconsin

 

My phone has been ringing consistently and I am signing on new business every week. I keep asking myself "what recession?". I truly believe a lot has to do with the talking heads in the news everyday, and this recession probably only affects 20% percent of the population.”

― Karen Bickford, Massachusetts

 

"Recession has very little impact on our business. We actually grew 40% compare to the same period of time last year. When you think about it, even unemployment grown to 10%, there are still 90% of the people are employed.

─ Amanda Collucci,

Ontario, Canada

 

"Our business is growing month over month as well into the double digits. July was our best month ever in terms of sales revenue. I believe it's critical to spend money on advertising, and promotion in a down economy. In addition, it's a perfect time to put some time into training. I truly believe those companies trying to save money on advertising, screaming at employees to clean faster, and holding on to every penny will lose customers and fail. We have been there to pick up the pieces."

Shawn Day, Ohio

 

"There is lots of silver lining to this recession. Much more choice in job applicants has been pleasant for sure. The recession has forced all of us to keep a closer eye on the waste and profit leaks, streamlining many things will make us so much stronger. We made it through the worst of the recession and still grew the company! Should be nothing but UP from here, leaner, stronger, and smarter. In summary... maybe it was a good thing after all for all of us."

Rhonda Shuker

Ontario, Canada
 

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