3 Reasons Cleaning Companies Fail

  • November 11, 2019
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Many Cleaning Company owners don’t know how to distinguish the BIG things from the day-to-day things. They don’t know what they don’t know! Not knowing wastes hundreds of thousands of dollars and decades of time.  Potentially successful owners lose their dreams, and their family’s dreams! So today we discuss the three main reasons why Cleaning Companies fail. 

Reason #1 Why Cleaning Companies Fail – Not understanding profit & cash flow

  • FALSE- It’s ok to bid a job low to get it
  • TRUE- Those who pay, pay attention!!
  • TRUE- Overhead is REAL
  • TRUE- You have MORE overhead as you grow, NOT less
  • TRUE- You NEED Overhead to GROW and have the company you WANT
  • FALSE- it’s ok to get paid a week from never to get a “good job”
  • TRUE- Not only can it make you focus on the WRONG thing (being a bank/ collections agent that doesn’t get paid interest), it can put you out of BUSINESS!! YOU take all the risk and get very little benefit (The worst is LOW margin AND late pay!!)
  •  TRUE- the ONLY way to GUARANTEE payment is payment in advance!

Reason #2 Cleaning Companies Fail- Can’t get the RIGHT customers

  • FALSE- I’m amazing because I’ve grown my entire business from referrals
  • TRUE- You can’t scale and your are murdering the market value of your most valuable asset by employing Hope & Dream advertising
  • FALSE- I can just buy advertising and get all the customers I want
  • TRUE- That is a FANTASTIC way to waste a BUNCH of money!
  • FALSE- I can “sub out” growing my company to a “sales manager”
  • TRUE- If they are great at marketing, they will take all the profit (Franchises), if they suck at marketing, you will be able to afford them 🙂 

Reason #3 Cleaning Companies Fail- Cleaning/ can’t get the RIGHT employees

  • FALSE- It’s ok that I clean all the time
  • FALSE- It’s ok that I fill in sometimes
  • FALSE- It’s ok that the employees tell ME WHEN and HOW they will work 
  • FALSE- I don’t need a system, I’ll just put out an ad when I need people
  • TRUE- The best way to hire an employee today is build your employee attraction system 3 weeks ago

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