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.
Check out the last show http://www.growmycleaningcompany.com/how-to-sell-a-cleaning-business/
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Today we are chatting with Marlon Clemons from A Cut Above.
Marlon is wondering if Mike has any tips to help with how to present a better and more professional bidding proposal to his clients. This is quite a common question among cleaning nation, and we’ve got a lot of knowledge to share, so let’s jump right into it!
It’s important to do the right steps in the right order. Before you even think about giving out a bidding proposal, you should always make sure that the potential client is a good fit. You will want to determine what kind of customer you’re looking for, and then make sure that you only take on clients that fit your criteria. No matter what criteria you have, there should always be pain involved. If your client’s only pain is wanting whoever has the lowest prices, they may not be the best fit.
Resource Alert: https://www.growmycleaningcompany.com/bidding-cleaning-jobs/
Another item that you should know before you give out your bidding proposal, is the budget. If you aren’t able to get a budget, it means you haven’t gotten pain. It is your job as a consultant to help them identify their pain, and if they don’t have any than it may be time to move on. If the budget is off by a small amount, it’s not the end of the world, but if their budget is nowhere near where you need it to be, it’s a lot easier to have that conversation sooner rather than later.
After that, you’ll want to want to identify where you’ll head next. Up to this point you’ll want to have figured out the prospects pain, made sure that they’re a good fit, and that they can fit your services into their budget. Once you’ve got all that down, make sure that you and the client are clear on what they expect moving forward.
A great tactic to use if the client’s budget is close but not quite where it needs to be to solve all of their pains and problems, is give them two bid proposals. For example, you may have to explain that in order to fix all of their pain, you will need $1300, but for $1000 you can provide x services.
Once you have all the foundation set up, making the actual bid will be a lot easier, and you’ll find yourself closing a lot more bids with the people that fit within your criteria. Once you understand their pain, you’ll want to custom make a unique bid to show that you can solve their problems.
Resource Alert: https://www.growmycleaningcompany.com/how-to-create-killer-cleaning-bids-that-close-more-sales/
And with that, on to the…
What is the best piece of advice you’ve received either personally or professionally?
Keep your word, and don’t take on anything too big too early.
What is the biggest mistake you’ve made that we can all learn from?
Giving up too much power joining a franchise, and losing control of my business.
What is the best book you’ve read recently?
The Total Money Makeover by Dave Ramsey.
Today Mike is here to talk about a subject that gets brought up a lot; How do you stop cleaning and start actually owning your cleaning company?
So many of us get into the business with tons of passion, but after weeks or months, or even years the passion will start to die out and make being a cleaning company owner much more difficult and much less fun. Don’t let your dream of becoming an entrepreneur get ruined by having to spend every day cleaning yourself.
As always, we are going to start with some beliefs that you will need to overcome before we can move on. The first idea that you have to get over is that you can make real money while cleaning, and that you cleaning will mean more clients which in turn will mean more money, when in reality if you spend your time wisely by delegating that work, and working on more big picture ideas for your company, there is a lot more profit to be had. Cleaning will never be that profitable, however, the client and employee attraction is where you can really start to make money in this field. Building systems and culture will always be more profitable than actual cleaning.
The second idea that can take your company down is ‘hiring is too expensive’. The truth is that if you can’t afford to hire employees, then you’ve got separate things to deal with. For instance, if your pricing isn’t correct, or your clients aren’t the type of clients that you want. If you are not making up all of the hiring costs with your customers than something has gone wrong.
Resource Alert: https://www.growmycleaningcompany.com/acquiring-new-customers-while-hiring-employees/
Another fallacy that may be holding you back is; ‘I’ve tried hiring before and it always backfires and there isn’t any good applicants.’ What that typically actually means is that you don’t have the right system in place to get good employees. Generally speaking, you get the results that your system has set up for you. Sometimes there is just plain bad luck involved, but a majority of the time you only get the results that your system has set out for you. Using bad systems and not getting the results you want has often lead to people giving up, however it’s important to look for the real problem and solution, rather than start to give up as soon as something doesn’t go exactly how you plan it.
Resource Alert: https://www.growmycleaningcompany.com/stop-cleaning-start…
This can seem to be like a ton of information that is difficult to implement, however lucky for Mike does hour-long complementary breakthrough sessions that can help you figure out and implement your own systems to help you get out of the cleaning business, and into being the owner of a cleaning business. If you would like to schedule an appointment with Mike one on one, head over to: www.GrowMyCleaningComapny.com/talk and schedule an appointment today!