How to Determine the Best Marketing Budget for Your Cleaning Company

  • November 16, 2017
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When to Invest in Growth for Your Cleaning Business

Today we’re chatting with return guest Peter Weiss!

Last time he had some questions on growing his business and was looking to hire some salespeople. I told Peter to look to hire someone outside of the sales business. Peter did just that and is a few months into having a full time salesperson, so far it’s working good but only time will tell!

This time around, Peter is asking a very important question.

That question is… when do you know to reinvest a large portion of your profits back into your business or if you should start saving those profits for a rainy day.

Resource Alert: Reaching the Six Figure Revenue Mark https://www.growmycleaningcompany.com/6-figure-revenue/

Now, cleaning businesses require nominal equipment. There is just not that stuff you need to purchase. Most of your purchases are going to last for years to come as well without any significant need for replacement.

That means cleaning businesses can become a heavy cashflow positive business as you start lining up and closing accounts one on top of another. When I was running my business, I always kept between 15-30 days worth of backup cash on hand and put the rest into either growing the business or into my pocket personally.

My advice is that you should be spending 5-10% of your monthly revenue, whether you’re doing good or bad, into business growth activities. Now, Peter had already hired a salesperson for his company but I think hiring for sales can actually be a pretty risky proposition.

You will always be investing your money into a salesperson and you won’t see any return (if any) on that hire for potentially months. Even if you hire on a commission only basis, you’re still spending time on them, and time is money since you could’ve been spending that time on other activities.

I prefer using this 5-10% business growth spend on marketing. There are two types of marketing you are going to be doing:

  • Tested: This kind of marketing is stuff you’ve already tracked and KNOWs works. You want to scale this as much as reasonably possible.
  • Untested: You should be experimenting at least 10 times per year on new marketing channels. These are channels that likely won’t work for you at first until you really figure them out. You’ll need to tweak them. Out of that 10, around 2 will be winners and maybe 1 will just knock it out of the park for your business.

Resource Alert: How to Get Cleaning Clients https://www.growmycleaningcompany.com/how-to-get-clients-for-a-cleaning-business/

If you already have the 15-30 days worth of cash sitting around, then any profits you earn through your marketing endeavor should be 100% reinvested back into aggressively growing those marketing channels. Marketing can change at any time, every channel is suspect. That is why I always recommend diversifying. If you are relying on just one marketing channel, then you are risking your entire client attraction system blowing up one day.

Don’t do that. Diversify. Test new markets. Track the results and then scale those results.

Okay, let’s dive into the Lightning Round!

Lightning Round

Best advice you’ve received either personally or professionally?
Don’t stop. If you stop you’re going to be going backwards. Always be moving forward. Grow your business every single year. There’s no sitting back on your laurels.
What’s the biggest mistake you’ve made in the cleaning business we can all learn from?.
I’ve done every mistake in the book. Took clients at the wrong price, destroyed the client’s place, team members stealing from the clients etc. All my mistakes has helped me learn what to do and more importantly what NOT to do.
What’s one idea cleaning nation can put into practice to improve their business or their lives immediately?
Focus on your business. Go after one account at a time and take care of your current customers. Customer service is the most important part of keeping your business profitable.

Have any questions? Leave a comment below!

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