Today Mike coaches Angie Emerson, owner of Angie My Cleaner on how to set up her cleaning company structure for management positions.
So many people start at the end when they realize “I am doing a bunch of work I don’t want to anymore, maybe if I throw a bunch of money at someone, they will do it for me.” You will have better luck starting at the beginning and planning out your cleaning company structure.
Mike explains an org chart and how to start breaking down jobs within your cleaning company.
When you first start out, your name is likely going to be in every box. As you grow, you will fill other people’s names in those boxes and promote yourself out of those boxes.
Listen in as Mike breaks down the 3 main categories of any business. Follow along and fill in your boxes!
KEY POINT: When you hire for all these positions you want to keep them separate
Usually someone who is good at accounting isn’t good at sales and marketing or managing people. Just like a good sales manager might not be the best with managing finances or day to day operations. It’s best to hire slow and fire fast. Don’t make the mistake of letting someone manage one or more of these positions poorly because you just don’t feel like doing it. They can do much more harm than good and cause you way more work in the long run.
Avoiding turnover and burnout
Have you ever hired someone who is amazing but then a few months or years down the road they are your worst employee?
The mistake that many owners make is they just hire someone, give them money and tell them it’s a huge mess that you don’t want to deal with anymore and to figure it out. That employees gets overwhelmed because they have no idea how to untangle a mess that you as the owner couldn’t even do and run away.
Find out how to use an org chart to properly plan your cleaning company structure.
RESOURCE ALERT: Canva offers a free Org chart builder, check it out! https://www.canva.com/graphs/organization-charts/
To recap the steps:
1 – Create an org chart
2- Decide which piece of the pie you want to sub out
Step 3 – Make sure you have a profitable model
Within your business there are a couple different types of expenses. Costs of Goods Sold (COGS) and Overhead.
COGS are the things you need to spend money on to do the job. Cleaning Supplies and labor are COGS. You charge $100 to clean and it costs you $50 in materials and labor. But if you don’t do any jobs, these expenses go away.
Overhead -Recurring expenses you must pay regardless of your workload. These may be low when you start out since you probably have no office, no office manager, no cars, maybe a cell phone and some insurance. But these expenses stay the same whether or not you have a huge month or a slow month.
When you hire a manager that overhead goes up. The COGS never hurts you because it’s proportionate to the income you are getting as long as you are bidding the job right. That margin between your income and your COGS is your profit. When you hire an office manager, that cost comes out of your profit margin.
Make sure there’s enough margin in your business to pay for an office manger to take some of that headache off your plate.
Finally, be careful when you hire. Often times owners will want to promote a cleaner to a manger because they know them, they’re already there and it’s easy. But the skillset it takes to manage a group of cleaners, hire, train and encourage them is very different than the skillset it takes to clean. That doesn’t mean they don’t exist but it’s something to keep in mind.
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