Why I started a Commercial Cleaning Company after failing at two?

[Ksalazar]

I have always been an entrepreneur deep inside it really all started for me with Rich Dad Poor Dad when I was 19 Im 23 now and have had ups and downs in investing and business as Im sure most of you have had. I created two business that both failed and than moved into a serviced based cleaning business specifically commercial cleaning. Here is a link to my story. I am still at the beginning of my entrepreneurial path and this only one of many businesses I will help grow as I go along this journey. Don't get discouraged keep going if your resilient enough you will succeed.

Why I started a Commercial Cleaning Company after failing at two?

 

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[minivanman]

4 workers or 400 workers is great but the bottom line is.... are you making profit? Is the company making profit? Are you and your partners able to live from the money yet? Are you doing any of the physical work or are workers doing it all?

Here is what brings up this question. When I was in the residential cleaning business, I had 139 customers at one of the locations. As time went on, I learned more and even though the customer count went down to 114, the company was making more profit from 114 customers than it was with 139. once I learned a few things, I built up the customer base again and made more profit than ever.

 

[Ksalazar]

4 workers or 400 workers is great but the bottom line is.... are you making profit? Is the company making profit? Are you and your partners able to live from the money yet? Are you doing any of the physical work or are workers doing it all?

Here is what brings up this question. When I was in the residential cleaning business, I had 139 customers at one of the locations. As time went on, I learned more and even though the customer count went down to 114, the company was making more profit from 114 customers than it was with 139. once I learned a few things, I built up the customer base again and made more profit than ever.

Thanks for commenting Im happy I found someone that was in the cleaning business. We still are building it up and are working on making systems to help train people to ensure quality and consistency. We all perform cleanings throughout the week along with employees. We still havent found a person we can make a supervisor but we will. It has been profitable but I personally havent hit my mark yet for me to leave my job. The residential sector has been confusing for us. We do a lot of commercial cleanings but with the pricing and marketing aspect of finding residential contracts, we still have a lot to learn. We have been successful with commercial but it is very competitive. Any tips or input for on how to find new clients? Also, why do you think you made more money when you decreased your client base?

 

[minivanman]

For my company, it made more profit when I downsized for a short time. And then once I learned a few things, I ramped back up and the profit went up as we added new customers.

As for getting commercial customers..... What type are you looking for? Doctor offices, daycares, under 10,000sf offices, over 40,000sf offices? 2-10 story buildings?

 

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[Ksalazar]

For my company, it made more profit when I downsized for a short time. And then once I learned a few things, I ramped back up and the profit went up as we added new customers.

As for getting commercial customers..... What type are you looking for? Doctor offices, daycares, under 10,000sf offices, over 40,000sf offices? 2-10 story buildings?

This is why I like talking to people with a lot of experience. To be honest these are all areas we are still working on. We plan on focusing on getting commercial but I want us to focus on less 10,000 sf until we produce better systems to ensure that we can keep up with the quality. Maintaining the contracts we get is my priority and I don't want us to get overwhelmed and start diminishing our quality. What was the most important lesson you learned also if you dont me asking when you were in the cleaning business?

 

[minivanman]

Actually, I misread your question above. Why did I make more money when we downsized? Several reasons. A few bad customers, I learned how to do & clean things a little different so I had to retrain the girls and me learning how to manage people. I actually took an anger management class at the YWCA ($140 per week for 26 weeks). That anger management class changed my life. 95% of the people were ordered to go because of getting in trouble but the people in my class were people who wanted to be a better person and most were either business owners or people who were not just your average worker. The other classes were F ups who had been in trouble and probably are still in trouble today. Anyway, life changing. All of those together made the business stronger and more profitable and happened all about the same time.

As for getting more commercial customers for office buildings, I'm not really sure. Do you do floor work? Commercial work never made enough profit for me so that's why I never had many buildings. That's not to say I didn't ever have commercial work but they paid MY price and not a commercial price.

Do you know what scares me most about your original post? If not, take a guess.

 

[Ksalazar]

Actually, I misread your question above. Why did I make more money when we downsized? Several reasons. A few bad customers, I learned how to do & clean things a little different so I had to retrain the girls and me learning how to manage people. I actually took an anger management class at the YWCA ($140 per week for 26 weeks). That anger management class changed my life. 95% of the people were ordered to go because of getting in trouble but the people in my class were people who wanted to be a better person and most were either business owners or people who were not just your average worker. The other classes were F ups who had been in trouble and probably are still in trouble today. Anyway, life changing. All of those together made the business stronger and more profitable and happened all about the same time.

As for getting more commercial customers for office buildings, I'm not really sure. Do you do floor work? Commercial work never made enough profit for me so that's why I never had many buildings. That's not to say I didn't ever have commercial work but they paid MY price and not a commercial price.

Do you know what scares me most about your original post? If not, take a guess.

I could relate to it difficult dealing with people at times you do have to have alot of patiences. Congrats on completing the session and its great that it helped you with your life and business. Do you feel residential is the most profitable and what is our opinion on commercial vs residential. As to what scared you from my post Im really curious to know I can't figure it out.

 

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[minivanman]

In residential, I set my own prices. I always went to bid a house and never gave bids over the phone. I walked in, took control of the bid and gave 2 different prices to choose from. Usually, only a few dollars difference. For example, Silver Plan $120 Gold Plan $135. Most chose the Gold Plan but it gave them a choice. The problem is that nowadays people want a price from your website but still, if it was me, I'd give them 2 or 3 prices to choose from. That way, the customer THINKS they are in control.

In commercial, someone like you that is IN the business, kind of has to go by industry standards unless you are a hell of a salesperson. I told my commercial accounts before I ever did a walk through..... I'm giving you a price for a clean office..... not a wipe & go. Most people that didn't know me, didn't hire me, which was fine. We had the residential customers that we cleaned their buildings if they had a business. They knew they might end up paying $85 an hour instead of $22.

This is all for my business. There are several successful commercial cleaning businesses out there.

I bet a lot of others know what scares me.....

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