Hi Guys,
Apologese for the lengthy post in advance.. have to vomit it out because its been on my mind for a few months now. Want to know what the fastlaners, in particular the ones that have made it, believe should be done in order for me to join their circle...
You can see my intro for the background info on what I do..
Background
As a service provider (commercial cleaning) I want to increase my Net Profit. I am in the process of getting my website developed & ordering marketing materials to approach prospective clients with. I am currently reading selling books & slowly learning to develop a script to sell to my clients and close them.
In the past 4 years I have built my business up through acquiring other businesses - I found this to be the quickest way to increase revenue in the business. However, there can also be a downfall - clients move on to other providers because they offer a cheaper alternative. So I figured work backwards, work on bringing on board new clients by myself rather than the costly road of acquiring them.
The Dilemma
A few months ago I came across a carpet cleaning franchise that offers its clients a choice of steam or dry carpet cleaning. They also offer their clients with water damage restoration, tile & grout cleaning, mattress cleaning, anti-allergen treatments and a few others.
I visited their office and spoke with the owner about the figures which is what interested me the most. It would cost me around $60k(AUD) to get started which includes the franchise fee, equipment, van lease, training etc.
The revenue for the particular territory that I was looking at for the last 12 months was $200k+ & netting about $125k+. If I eventually put someone else in to work & pay them $50k to work that would bring the net down to $75k. They take 25% (of gross revenue) in royalty fees as all the jobs are booked in through them. Plus marketing costs for advertising online with google, yahoo and other local search engines. There is possibility to increase the revenue by up-selling products and also doing emergency work which none of his present franchisees want to do for some reason!
This would make a significant increase on my net profit for the company. It would mean that my wife would not have to work unless she really wanted to. It would also mean that I would have to work in the business myself in order to get the $125k. It would be working 6 days a week. Currently I work about 10 hours a week in the business operations. Visiting clients, invoicing, site inspections etc are covered in a few hours a month.
Im not afraid or scared of hard work. I did 16 hour days, 7 days for about 1.5 years before I started stepping back.
Would working in the carpet cleaning business affect my other business??
Is it worth paying $60k to get $125k net return??
Should I just purchase the equipment and get trained up myself? But the remainder funds into marketing and lead generation? Would it not take me longer to reach my goal(to build a solid business with a good net profit to make it sellable)?
Or should I just focus my efforts on developing my current commercial cleaning business?
Thanking you guys for your time in reading this & thanks in advance for any help.
Regards
G
Apologese for the lengthy post in advance.. have to vomit it out because its been on my mind for a few months now. Want to know what the fastlaners, in particular the ones that have made it, believe should be done in order for me to join their circle...
You can see my intro for the background info on what I do..
Background
As a service provider (commercial cleaning) I want to increase my Net Profit. I am in the process of getting my website developed & ordering marketing materials to approach prospective clients with. I am currently reading selling books & slowly learning to develop a script to sell to my clients and close them.
In the past 4 years I have built my business up through acquiring other businesses - I found this to be the quickest way to increase revenue in the business. However, there can also be a downfall - clients move on to other providers because they offer a cheaper alternative. So I figured work backwards, work on bringing on board new clients by myself rather than the costly road of acquiring them.
The Dilemma
A few months ago I came across a carpet cleaning franchise that offers its clients a choice of steam or dry carpet cleaning. They also offer their clients with water damage restoration, tile & grout cleaning, mattress cleaning, anti-allergen treatments and a few others.
I visited their office and spoke with the owner about the figures which is what interested me the most. It would cost me around $60k(AUD) to get started which includes the franchise fee, equipment, van lease, training etc.
The revenue for the particular territory that I was looking at for the last 12 months was $200k+ & netting about $125k+. If I eventually put someone else in to work & pay them $50k to work that would bring the net down to $75k. They take 25% (of gross revenue) in royalty fees as all the jobs are booked in through them. Plus marketing costs for advertising online with google, yahoo and other local search engines. There is possibility to increase the revenue by up-selling products and also doing emergency work which none of his present franchisees want to do for some reason!
This would make a significant increase on my net profit for the company. It would mean that my wife would not have to work unless she really wanted to. It would also mean that I would have to work in the business myself in order to get the $125k. It would be working 6 days a week. Currently I work about 10 hours a week in the business operations. Visiting clients, invoicing, site inspections etc are covered in a few hours a month.
Im not afraid or scared of hard work. I did 16 hour days, 7 days for about 1.5 years before I started stepping back.
Would working in the carpet cleaning business affect my other business??
Is it worth paying $60k to get $125k net return??
Should I just purchase the equipment and get trained up myself? But the remainder funds into marketing and lead generation? Would it not take me longer to reach my goal(to build a solid business with a good net profit to make it sellable)?
Or should I just focus my efforts on developing my current commercial cleaning business?
Thanking you guys for your time in reading this & thanks in advance for any help.
Regards
G
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