Leigh Farrell
New Contributor
Hi Fastlaners,
Last time i posted, my 6 month old cleaning business was turning over about 90k and we had 1 employee (for 3 months) who's wages were being subsidized by the government for the first 6 months of her employment.
Not long after i made that post i had to let that employee go as she was far too unreliable (ironically the name of my business is ''reliable cleaning'') and i was losing customers because of it.
Over the Christmas break i was able to run numbers on what she had actually been costing me (the law requires me to pay her $24.42 per hour, plus travel time, plus $0.76 per kilometer traveled between clients). When you factor in those costs, gst, cleaning supplies, equipment, etc, I'm left with around $7 profit per customer per service (amazing when you take into account the fact that I'm the most expensive cleaning service in the state).
Anyway, long story short, I'm going to need a small army of cleaning employees and a huge army of customers to hit my 7 figure income goal.
Looking back on my progress, i hit 80k turnover within 3 months with nothing but door knocking and a $5 per day Google ad words spend.
What I'm thinking of doing now, is selling my client list (i could get $50k for it), then building up another and selling that, and continuing to repeat the process over and over. I could use a small amount of the profits (say $1,000) on advertising to build a new list quickly and I'm confident i could build an 80k - 100k list in 1 or 2 months. If i did that, i could sell 6 - 10 client lists per year x 50k = 300k - 500k per year.
Before you all shoot it down and tell me to franchise, let me just say that before i started this business i spent 4 years as a master franchisor for one of the biggest franchise companies in Australia and the biggest thing i learned from that experience is that dealing with franchisees is a F*cking nightmare. They almost never listen, they complain non stop, and are continually late with payments. They are worse than employees because you can't fire them, and they know it.
I'd love to get your feedback on my idea.
Thanks in advance.
Leigh
Last time i posted, my 6 month old cleaning business was turning over about 90k and we had 1 employee (for 3 months) who's wages were being subsidized by the government for the first 6 months of her employment.
Not long after i made that post i had to let that employee go as she was far too unreliable (ironically the name of my business is ''reliable cleaning'') and i was losing customers because of it.
Over the Christmas break i was able to run numbers on what she had actually been costing me (the law requires me to pay her $24.42 per hour, plus travel time, plus $0.76 per kilometer traveled between clients). When you factor in those costs, gst, cleaning supplies, equipment, etc, I'm left with around $7 profit per customer per service (amazing when you take into account the fact that I'm the most expensive cleaning service in the state).
Anyway, long story short, I'm going to need a small army of cleaning employees and a huge army of customers to hit my 7 figure income goal.
Looking back on my progress, i hit 80k turnover within 3 months with nothing but door knocking and a $5 per day Google ad words spend.
What I'm thinking of doing now, is selling my client list (i could get $50k for it), then building up another and selling that, and continuing to repeat the process over and over. I could use a small amount of the profits (say $1,000) on advertising to build a new list quickly and I'm confident i could build an 80k - 100k list in 1 or 2 months. If i did that, i could sell 6 - 10 client lists per year x 50k = 300k - 500k per year.
Before you all shoot it down and tell me to franchise, let me just say that before i started this business i spent 4 years as a master franchisor for one of the biggest franchise companies in Australia and the biggest thing i learned from that experience is that dealing with franchisees is a F*cking nightmare. They almost never listen, they complain non stop, and are continually late with payments. They are worse than employees because you can't fire them, and they know it.
I'd love to get your feedback on my idea.
Thanks in advance.
Leigh
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