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Setting Up Your Cleaning Company from the Beginning

Today we’re chatting with Matt Reese!

He’s actually friends Joseph Suldawn with Pro Clean that was on our show not too long ago. And today, he’s asking a good question, a two-parter.

The first part is how to get through some of the somewhat overwhelming details that coincides with starting a business, things like EINs, licensing, insurance etc. Well, I actually have a Get Started Guide you guys can use in the Profit Cleaning Method but honestly… don’t let this worry you too much.

While the details are important, they’re not make it or break it for you. Just handle each step one at a time and hire someone that knows how to navigate this stuff and you’ll be fine.

The second part to Matt’s question is all about growing his business. Initially, he was interested in raising prices and normally I would say this is almost always a good idea. Alas, for Matt, it is NOT a good idea for one very specific reason:

This client accounts for WAY too much of his overall revenue.

When you raise prices you want to be able to do so without the need to ask for permission. The mindset should be you have so many clients that you’ll be happy if a few tell you no and stop using you, because you have enough clients that will say yes that it won’t matter. If you only have one or two big clients and that’s it, then you are putting yourself at a huge risk if they say no that could tank your entire business.

One client should never represent more than 15% of your total monthly revenue.

Knowing this, I told Matt there were THREE major steps he could take to revolutionize his business.

Step 1 – Hire More Cleaners.

This will free up his time to grow the business, and get him out of the actual cleaning portion of the business. Remember, your first goal is to always remove yourself from the actual labor aspect of your business.
Resource Alert: Best Practices for Hiring Cleaners for Your Company http://www.growmycleaningcompany.com/hiring-cleaning-company-employees/

Step 2 – Dilute High Earning Clients with More Clients

Now that you have some leverage, it is time to start designing your client attraction systems to bring on more clients. Remember, we don’t want ANY one client making up more than 15% of our revenue. That can create just too many swings in our business and too much stress.

Instead, focus on getting many smaller clients that you can send your news cleaners out to.

Now that you’ve diluted the client pool it’s finally time to…

Step 3 – Raise Prices

Once you have the ability to raise prices without worry if someone says no, that is when it is time to do it. By doing this you’ll either thin the herd of how many clients you have which will leave you more time to focus on getting new clients while getting paid the same, or all your clients will say yes and you’ll make WAY more money for the same exact work.

Resource Alert: Raising Your Cleaning Prices http://www.growmycleaningcompany.com/pricing-cleaning-jobs/

Either way, it is a win/win at this point.

Alright, now that I’ve revealed the 3 main steps, let’s dive into the Lightning Round.

Lightning Round

Best advice you’ve received either personally or professionally?

Don’t confuse with being a perfectionist with just being afraid.

What’s the biggest mistake you’ve made in the cleaning business we can all learn from?.

Not charting and plotting out your course before hand. Not taking the time to break down your actions into goals and timelines.

What’s one idea cleaning nation can put into practice to improve their business or their lives immediately?

Always make sure you got back ups. Things like extra mops, rags, cleaning chemicals etc.

Have any questions? Leave a comment below!

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