AN INDUSTRY THAT CONTINUES TO
ENJOY DRAMATIC GROWTH.
When many people think of some running a
house cleaning business, it often conjures an image of individuals who
maybe unable to find a "real job". This may have been true not all that
long ago but not so anymore.
As an example, in an interview in
August of 2012 with the CEO of Molly Maids on CNBC, Craig Donaldson
reported that 30% of it's franchisees generate over $1 million in
annual sales (see
http://video.cnbc.com/gallery/?video=3000105962 for the entire
interview). Their 450 franchise owners employ about 7,000 people in
the United States.
While seven figure annual sales may have
been the domain of
maid service franchises at one time, this is not the
case anymore. Today more and more independent home
cleaning service companies are enjoying sales ranging from $1-$2 million a
year -- and some even more. For a good example, visit
THE TYPE OF PEOPLE
ATTRACTED TO THE BUSINESS IS A CLUE TO ITS POTENTIAL.
The backgrounds of today's home cleaning
entrepreneurs are as wide and varied as the population itself. It
includes professionals from the fields of insurance, real estate, Computer
and technology, engineering, accounting and finance, education, travel and
leisure, marketing and advertising, healthcare and the list goes on.
Amanda Collucci was an
executive with a major technology company before starting
Cleam4Me in Ontario, Canada in 2006. Her husband Chris
subsequently quit his job at the same company to work fulltime
in the business.
You are as likely
to encounter a former executive with a major corporation as you are
someone with little or no prior business or management experience.
And the industry is not gender-specific; cleaning companies are owned as
often by men as by women. In many instances, a business will be
started by one spouse and later joined by that spouse's mate. This,
in fact, is very common today.
Another clue pointing to the viability of the residential cleaning
industry is the circumstances under which the business is generally
started. Many new businesses in virtually every industry are born
out of necessity due to the loss of employment. The same holds true
here. However, in most instances cleaning companies are started by
choice, wherein the entrepreneur quits his or her job to launch their
business and take control of their own destiny.
7 GOOD REASONS WHY THE RESIDENTIAL CLEANING
INDUSTRY IS SO ATTRACTIVE
Investment: Even if you choose to invest in a franchise rather
than going the independent route, the cost of launching your new venture
is likely to be tens of thousands of dollars less than it would cost to
start almost any other type of small business. Of course, you can
save thousands more initially by starting on your own, but there can be
a high price to pay for trial and error, not to mention a much longer
learning curve. The good news is that today there are very low
cost alternatives to experience and mentoring other than investing in a
Expensive Real Estate Required: Depending on the industry, you
might spend months finding an appropriate location for the new business.
In most cases, in addition to
a costly long term lease, you will generally have to renovate or
"build out" the space at your expense. And this is before you
generate one dollar in revenue. While you will eventually need
commercial office space, most new owners start from their home and then
relocate once the business is up an running. Since the public will
not be coming to your place of business, there is no need for leasing an
expensive location when you do relocate.
Investment in Equipment and Supplies: Each team will
need 2 vacuum cleaners and an array of cleaning materials and
miscellaneous tools. Figure on spending about $1,000 - $1,200 to equip
each team. While more and more owners are providing company
days vehicles to their employees, most start out
by reimbursing their workers for using their own transportation.
There are 2 major benefits for buying company cars: (1) It
opens up a much larger pool of potential employees; and, (2) each
well-decked out vehicle serves as a moving billboard in your community
Retail Hours: Most home cleaning service businesses operate
from about 8 AM - 4 PM, Monday through Friday with no nights or weekends
(other than when you -- or someone you appoint -- conduct
the initial visit to a prospective client which may take place in
the evening). However, your cleaning staff will seldom, if ever,
work evenings or weekends and this is an attractive job benefit to many
Payment on the Spot: Unlike the commercial cleaning sector
where you can wait for weeks to receive payment, in the residential
cleaning business it is customary for the client to leave payment for
the team to pick up on each visit. This practice certainly helps
with cash flow and makes it painless to meet your weekly payroll.
In many other types of business owners must draw from a line of bank
credit in order to fund payroll.
Build Clients Not Just Customers: A customer is generally
someone you may serve once or only once-in-a-while. A client is
someone you serve over and over and over again. How many
industries can you think of where you sell to the same person every week
or every other week, month after month and year after year?
Long-time owners have reported they have clients who have been with them
for 10, 15, 20 years and longer. At an average revenue of
$3,000/client/year, you do the math.
Recession-Resistant Business: About the only businesses whose
revenue will remain guaranteed in economic downturns as in good economic
times are those related to seeing people into the world and those
seeing folks exit this world.
No matter how bad things are, we don't pile bodies of the deceased in
the street! Like Molly Maids' CEO Craig Donaldson said in his CNBC
interview, the cleaning industry hiccupped in 2008 concurrent with the
financial crisis, but has seen a double-digit growth every year
since. One owner put it this way, "People don't stop
taking showers during a recession, they still get dirty. And
they don't stop cleaning their house either; the home still gets
dirty." . The industry has proven to be
recession-resistant, if not recession-proof. (For the results of a 2010 survey on this topic, and for feedback from survey participants click
IS THIS THE BUSINESS
Running a house
cleaning business is not brain surgery. However, it takes more than
a mop and a bucket and the distribution of a few business cards to
build a substantial, successful and highly profitable venture in this
industry. It's important to "know what you don't know."
Investing in a franchise is one way to
give you a solid footing and framework upon which to jump-start your new
venture. But it is not the only way. There are other resources
available which don't cost you the price of a new car. However, be
wary of "tips" that are prevalent in various internet forums and $49
e-books. Free or cheap advice is usually worth what you pay for it.
Bad advise can spell disaster for the unwary.
In short, in addition to the know-how, it requires three primary
ingredients to build a highly profitable home cleaning business:
The financial capital to launch
the endeavor and the resources to market to effectively and efficiently
build your client base.
to learn how to recruit the
best employment candidates and the people skills to manage and retain
them long term.
A burning desire to succeed and
the tenacity to overcome challenges sure to arise during your journey.
For the most detailed information on starting and
successfully building your own residential house cleaning company, please
click the image below or click http://www.housecleaningbiz101.com The acclaimed program offered at
this site will give you all the know-how you need in order to achieve your goals in
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