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Side Hustler – I’m a Cleaning Geek

When I started my first blog (Finance Fox) , I used it as an online journal to keep my self liable for getting out of debt. I knew the journey out of debt was going to be a long one, so I started with the basics of trimming my budget, putting more money towards my debt and even went cold turkey on shopping which you can read in my post called; It’s been 127 Days Since I Last Shopped.

Eventually the excitement towards debt freedom became tiring. And after months of sticking every last available penny towards my debt, I became exhausted and the road seemed longer than initially planned.

Something needed to be done. I wanted to eliminate my credit-card debt at a faster pace. And after weeks of pondering it, I picked up a part-time cleaning job at the local pharmacy. Fives days a week, two hours every night after working 9 hours in my full-time job. And it was worth it. The long hours and the extra money gave me the opportunity to dump more cash towards my debt, and 347 days later I became credit-card debt free.

This eventually motivated me and I started my own cleaning company called Father & Son Cleaning Services.

One of the biggest reasons for turning my part-time cleaning gig into a part-time cleaning business was due to;

  • Low start up costs
  • I already had one customer
  • I ran it out of my home (invoicing and storage of supplies)
  • Made easily an extra $500/month to start

The above four reasons were enough for me to start my own cleaning company, so without much hesitation I started it.

Low Start Up Costs

When I first started cleaning for the local pharmacy the agreement was that they’d supply all the supplies. All I had to do was show up each evening for 1-2 hours of cleaning.

After a few months of cleaning, they asked for some carpet cleaning to be done and windows washed on regular basis. We worked out a fair price and I did both on top of my regular cleaning.

I got a few extra cleaning supplies for the window cleaning and they cost me less than $40. The carpet cleaning machine I rented from my local Home Depot, and purchased the carpet cleaning solution to do the clean. The total for the supplies for carpet cleaning ran me $150.

Eventually I got around and got my logo designed for $80 and printed 1000 business cards for $75 (shipping included).

I went ahead and got liability insurance and a bond.  This was kinda optional but not only does it protect me and my clients, it also helps me stand out from the crowd.  Insurance and the bond cost me $65/month or $780 for the year.

My total start-up cost for my newly formed cleaning business was less than $1,000. And I didn’t have an issue forking the money out because I’d make it back in less than three months.

One of the best parts of doing cleaning part-time or owning a small cleaning business is flexibility. I control how much work I want to take on. I do the carpet cleaning, window cleaning and general cleaning around my schedule.

I don’t need to work a part-time sales commissioned job, which consists of standing around and if I don’t sell anything, I don’t get paid, but I still stood around for hours and had to be there.

Anytime I’m working, I’m actually making money. Not having a physical place of business also leads me to my next needed quality, running my business out of my home.

Home Business Space

Another amazing part of starting a small cleaning business is that you don’t need any fancy office space. I run my cleaning business out of my home. The second bedroom was converted into an office, which is where I do all my invoicing and customer contact. I’m also fortunate enough to have a large storage in my condo unit, which also happens to be the place where I store all my cleaning supplies and tools. Having a home office helps me keep the costs to a minimum, and therefore profits to a maximum.

My ultimate goal for this business is to eventually turn it into a 5+ employee business that brings in over $100K annually in sales.  I realize that it will take time. If I charge $25 an hour and have costs of $15 an hour (payroll and overhead), then I would have $10 an hour profit.  Which means I would have to work 10,000 hours per year.   This works out to 192 hours per week, or 5 full time employees.  Of course, these are very rough numbers, but it’s something definitely worth striving towards.

Eddie

Lost My First Customer, And It Kinda Sucks

I’ve been fortunate enough that I never had to go through the process of losing a customer with my cleaning business- that was until this weekend. Yup, I lost my first customer. A customer I had a cleaning contract with for the last eleven months. I was fortunate enough to gain repeat business with this client, and got the opportunity to do cleaning at another location owned by the same customer. Prior to gaining this location, I worked my butt off to gain repeat business because I knew the owner had multiple locations. It was a no brain-er, doing repeat business with a source I felt comfortable with and more importantly a reliable source that paid on time.

For the past eleven months I worked hard at maintaining the facility which I was given the opportunity to clean, maintain and upkeep eleven months earlier. Sadly, despite my loyalties, showing up on time and going beyond the call of duty at times, this was not enough to keep me as a supplier.

So, just how loyal are customers?

Loyalty is never a one-way street. Customers are also cynical when they see expensive advertising campaigns with enticing offers to attract new customers, but feel they-the existing customers-are often ignored and taken for granted by the supplier.

Not me though. Not my cleaning business. I worked hard at maintaining this relationship. Sadly though higher powers prevailed.

Beginning to the End

This beginning to the end started about three weeks ago. I got approached by the manager and she expressed that certain parts of the cleaning process could be improved.

Talk about being caught off guard.

Eventually after  a short discussion, we went through the cleaning process, reviewed the cleaning after all the offices were cleaned and agreed mutually how we’d move forward. Everyone seemed to be on the same page and the manager/receptions from the doctor’s office expressed their desire to have me on board and continue working together. And by the way if you haven’t figured it out now, the facility that I was cleaning consisted of a doctor’s office and a pharmacy.

A few weeks passed by and it was business as usual. Everyone was in a happy state and compliments were flying in on the cleaning. I was happy my self and glad that I was able to steer the ship in the right direction, or at least I thought I did.

I Always Hated Surprises….

Few weeks had passed by since the mini pow-wow with the manager. I thought things were back to normal and moving in the right direction. I suppose I was the lone one who thought that. During the same pow-wow weeks earlier, I had expressed to the manger the need for new supplies. Garbage bags, mops and other cleaning supplies were of the essence. She promised to get new supplies within a week. This was part of our arrangement in the initial contract, they supply the supplies and we do the cleaning.

On this very Saturday I had arrived in a joyful mood and ready to work as always. During my brief chat with her upon arrival, I inquired about the supplies, which by the way were two weeks overdue, and the response I got was as follows;

“Eddie, I haven’t gotten the supplies yet for a reason. The doctor has asked me to find a new cleaner, and I’ve yet to do so. I wanted to be honest with you on this matter, but the doctor wants a new cleaner.”

Damn. Talk about being caught off guard again. How did it get to this? I thought we worked through the problems. I was loyal, on time, and always there for whatever. I offered a fair and competitive price. They were happy or at least I thought that they were.

Moral Of It All

Never assume you’re doing fine just because nobody says anything. I held this contract for eleven months without a single hiccup. It all fell apart in three weeks. Remember how I said that loyalty is a two way street. The owner who contracted me could have been loyal and spoke up to the doctor, arranged a meeting of some sort amongst all the parties and worked through this. It could have been done differently, but in the end it wasn’t.

In order to create loyalty, it’s important to tell staff or contractors how well they are doing and not just give them a boot in the butt when things go wrong.

Likewise it’s also important to regularly let your regular customers know-often-how much you appreciate their business rather than wait until they’ve left or are about to do so. It’s too late then to try and win back their loyalty once things go sour.

Someone once said:

‘It takes years to win a customer and only seconds to lose one.’

Eddie

Valentines Day Special – Couples in Business Together

 

Every entrepreneur will tell you that running a business is in it’ self a labour of love. You live and breathe your business. So, what happens when couples become business partners. Can this be a good thing for the business? What are the upsides of running a business with your spouse? How about the downsides of a business partnership with your spouse?

It’s a tough call, and certainly there is no one right answer whether to enter a business together with your spouse or stay the hell away from the whole idea.

I’ll share some upsides and downsides of coupling together as business partners with your loved one. I figured a post like this would be perfect, and just in time for Valentines Day 2012 in five days.

Let’s start with the positives first.

Upsides of Couples in Business Together

Stronger Bond – Working together towards one common goal is always a good thing, and it’s even more attractive when you’re working towards this goal with your life partner.

Two heads are always better than one they say, so who better to be your business partner than your significant other.

My old neighbors were a perfect example of a couple in business together. They owned a cleaning business. She cleaned homes, and he focused on commercial cleaning. During the day he was home with the kids while his wife worked, and at night he’d head off to work, while the wife would stay behind with the kids. Worked for them for many years, until they eventually sold the business.

Learning Opportunity – It gives you the opportunity to see your spouse from a different angle. I assure you, that you’ll discover things about your spouse that you never knew before.

You may discover that your wife has the gift of conversation, no matter what the situation. While the wife may discover that her husband is an excellent problem-solver, with a “no project” too big attitude.

Team Work – Sharing duties at home is one thing, and sharing business duties is another. We’ve all got our own strengths and weaknesses, so why not maximize them? If one part of the couple is good with the numbers, get them to take the lead on it, while the second part of the couple focuses in an area that they’re strong in. For area’s that are a weakness for both partners, duties can be shared.

Downsides of Couples in Business Together

Lack of Breathing Room – You’re with your spouse virtually 24/7. You go to bed together, wake up together, eat together, and now you have to work together? Think about it first or else coupling in business together can become stale pretty quickly.

Business is Business – Sometimes separating business and personal life can be a difficult obstacle for some couples to overcome.  It’s tough sometimes to leave work at work, while focusing on empowering the family life at home.

I think there are many more upsides to partnering with your significant other, than the downsides that come with the same idea. Most importantly you will have a trusting partner, right from the get go, who will have your back equally as much as you have their back.

Finally, there is a great sense of security. We all have our tough days, but you’ll always have someone there to pick you up when you fall. Let’s hope that you don’t fall too hard.

Readers, would you ever start a business with your significant other?

Eddie