Is It A Smart Business Move To Bring A Partial Owner Into Your Business?
How to decide if a partial owner will benefit your business.
Today we are speaking with Susana Brito of Elite Cleaning Services. Elite Cleaning has been serving the Spring Texas area with residential cleaning for the last two years. www.cleaningelite.com
Susana was around the cleaning business growing up as her mother used to clean homes. Ever since Susana was eleven years old she can remember going with her mom to homes and helping to clean, take out the trash and do whatever else her mother may need help with. When Susana got into her college years there were times where she found herself in need of cash fast and she would seek side jobs of cleaning others apartments or houses. The cleaning business took off after the economic crash in 2008 and her husband found himself without a job for sometime. This led to Susana seeking a career path that was flexible with her time and that she could arrange her time around because by that period in her life she had two daughters at home so she began to ask friends and family if they knew anyone who needed house cleaning.
RESOURCE ALERT: Is it a smart business move to give up partial ownership of your businesshttps://www.growmycleaningcompany.com/cleaning-company-structure/
Mike speaks about his past experiences in dealing with others who have or had partnerships as he has been buying, selling, and building businesses for the past 20 plus years. Mike was apart of a group called YEO (young entrepreneur’s organization) where entrepreneurs got together to share information and help each other! Within this organization there was a forum which consisted of 8-12 people one of which was Mike for many years, getting together multiple times per year. Of those meetings at least ⅓ of them consisted of a discussion about how to get out of a partnership and complaints about partners. Even from coaching Mike has heard complaints about partnerships and all of the hardships that come about even when the partner is family. From those experiences Mike does not suggest taking on a partner in speaking on the terms of someone owning 50 percent of your business and yourself owning 50 percent.
RESOURCE ALERT: Options to consider other than giving up partial ownershiphttps://www.youtube.com/watch?v=3dlO06dk3Xg
Rather than giving up a portion of your business you can have a partnership or partner without giving up ownership! What you can do is employ the person or persons looking to come into business with you, pay a percentage of the profits to them, or work up a deal with how much they would get for each client they obtain without making them an owner. As long as everyone in agreeance you can come up with any kind of payment program that works for all involved. Having someone take partnership rather than ownership alleviates any problems in the future if the onboarding partner decides they no longer want to be in the business any more or if you decide they are of no significant value to the company. If and when the partner or yourself decides that the agreement and shared ownership is no longer working all parties involved can simply move on. When someone is a partial owner you many circumstances can arise such as having to buy them out, they could make decisions about the company, or in the unfortunate event they could potentially take money out of the company and bankrupt the business if they want. Find a payment method that works for you, hire them as an employee, pay for performance or for the success they bring!
Best advice you’ve received either personally or professionally:
Get your rest, keep yourself physically and emotionally healthy in order to perform well.
What’s the biggest mistake you’ve made in the cleaning business we can all learn from?
Underbidding, as far as what they pay you and what they are requiring of you to do do not lower your standards. Don’t be so desperate to obtain a contract.
What’s one idea cleaning nation can put into practice to improve their business or their lives immediately?
Even if you are having a bad day leave everything behind and come in and approach everything and your business with a smile and expect good things because if you come in with a negative attitude it’s not the customer nor anyone else’s fault. Leave whatever is going on in the outside world outside and go in and be focus on what your duties are
Thanks again, Cleaning Nation for sharing your support and love for all we do! If you have questions or comments about today’s episode post them below! We answer all posts.