There are generally
two ways people start and operate a house cleaning business:
-
They decide they want
to work for themselves and choose to do so by cleaning houses to earn a
living.
-
The other way people
approach the venture is as a real “business”.
In the first instance, what these folks are doing is “buying a job.” And
there’s nothing wrong with that provided this is the aim. But if the intent is
to make a real business out of the venture and earn more than a modest living,
it means a long and often painful endeavor. They spend all their time working
IN the business – so much so that they have no time to work ON their business.
I call this “backing INTO the business.”
The second approach is
the one that will result in the most return on your time and investment. If
you invest in a cleaning franchise, the new owner’s training consists
primarily of the “business” end of the business; not the physical cleaning
aspect. In fact, at least one of the major franchises requires the owner to
hire and bring another person to the company’s training center to learn and
eventually teach others the technical issues – the owner receives NO training
during this period on the actual cleaning. Personally, I don’t condone this
because what if that person quits? It’s a darn good idea for the owner to know
enough to be able to train his or her workers to do the job.
Having said this, how do you approach your venture as a real business?
Determine what you want to get out of the business. Don’t ask yourself, “How
much money do I want to make?” – ask yourself, “How much money am I willing to
earn?” I suggest you think about this last statement because there is a HUGE
difference. And it’s important to be specific. It’s not enough to generalize,
like, “I want to earn a lot of money.” If you want to earn $200,000 a year (or
whatever your objective is), put this number in writing and stick it on the
mirror in your bathroom at home so you’ll see it each and every morning. This
will give you a specific target to shoot for and to plan around.
Once you’ve determined your specific objective, now you need to form a plan on
what you will have to do to earn it. This, too, must be in writing and you
need to spend a fair amount of time putting your business plan together. Some
people think you only need a business plan if you intend to borrow money, but
this is not at all true. This will serve as your guide to reaching your
objective and force you to think through all the issues such as how much
capital you’ll need, what your operating costs will be, how many people you’ll
need to hire and manage to reach your goal, what kind of marketing activities
you will engage in, and so forth. And you need to establish time frames during
which specific goals will be achieved. There’s an old proverb that says, “Few
people plan to fail; most people fail to plan.”
No business plan remains static. It needs to be constantly revisited and
revised in accordance with your progress. If you find that some of your
assumptions were wrong, change them. If your projected labor costs are out of
line, analyze the reasons why. If your marketing isn’t working the way you had
planned, determine what needs to occur to improve your results. If operating
costs are higher than expected, find out if you had neglected to plan for
certain expenses or whether your pricing structure is too low . . . and so on.
If you don’t start out with a written business plan, you’re likely to find
yourself making knee-jerk reactions in a blind frenzy.
Never stop learning. Knowledge is power. Get and review all the information
you can relative to managing your business successfully. Learn from your best
competitors; network with other owners in the business; make good use of your
ARCSI Membership and participate in conference calls, seminars and conventions
sponsored by ARCSI.
Decide how you want to position your company in your market. Do you want to be
known as the cheapest cleaning service in town or the most reliable and
professional one? If you want to be the latter, you can’t afford to be if you
position yourself as the price leader. But if you don’t deliver more than just
a clean home, you won’t be able to justify charging the same as those
companies that do.