Episode 175 – Building a Wildly Successful Cleaning Business
Want a Successful Cleaning Business? Episode 174 Stephen Coade AMC Commercial Cleaning Join us for this weeks conversation on how to create a successful cleaning business. This is part two of a blog/ podcast with Stephen Coade owner of AMC Commercial Cleaning – a successful cleaning business with over 700 franchisees in Australia and New Zealand. RESOURCE ALERT: You can check out Part 1- Cleaning Franchise Systems That Make Millions HERE. Stephen explains that margins are actually thinner in Australia because wages are so high. It costs them $29/hr ($19 in US dolalrs) for a part time cleaner! This requires them to be even more efficient to make a profit. Stephen and AMC use the latest in technology to create an efficient, successful cleaning business. Mike comments competition on price is high in the United States as well. His coaching clients complain that it’s all about price with their customers. This makes it hard to compete and build a successful cleaning company. Smaller cleaning companies feel they can’t compete with the “big guys” and those same “big guys” often feel the pressure to be able to compete with the little guys who have less overhead. Stephen deals with those same pressures in Australia. He has issues with “cowboy operators” coming in with a mop and a bucket offering to do the work for virtually nothing. His advice- “Don’t sell on price, sell on what you can do for that client” Mike pushes the point and asks- how do you do that? What specifically should successful cleaning businesses be doing for their clients? Stephen and AMC manage the cleaning function of their clients buildings. They are a facilities management company that manages the whole process for their customers. Anyone can hire a cleaner but that’s not what they do. They have also invested in process’s, accreditation’s which establish themselves as an authority. They aren’t a cleaner, they solve their customers pain. KEY POINT: Successful cleaning business’s don’t clean. They solve pain Another key to growth in a successful cleaning business is to know what you do. Stephen and his company receive requests for weekly cleaning, but that is not what they do. They work very hard at knowing who their client is and only working with them. They don’t compete against the small guy with a bucket, because the clients they go after are larger clients that the small guys can’t handle. KEY POINT: Part of good margins and a successful cleaning business is picking the right customer and knowing that customer better than anyone RESOURCE ALERT: Check out this free Podcast on Niche Cleaning HERE Stephen is looking for the customers that understand the value that he brings. NOT the prospect that he has to convince. Stephen’s marketing efforts are focused on finding the right prospect and communicating a clear value proposition. NOT convincing the wrong prospect. Mike encourages owners of smaller cleaning businesses that the point is NOT that you have to be big to compete, but that you have to be crystal clear on who your customer is and spend your time and dollars on them and them alone. Stephen started with smaller jobs and has worked his way up to the larger retail chains. So how did Stephen start? How does he get all of these amazing clientele? There is no ONE answer. To get to the magic million dollar mark – they’ve tried everything from direct mail, google search, Adwords, SEO, SEM, telemarketing and LinkedIn. RESOURCE ALERT: Check out this FREE Podcast on Niche Marketing Strategies for an in depth resource on getting clients Stephen used to do all the work himself. Before LinkedIn he would drive around, find the names on the buildings and call them or knock on their doors! Now he uses telemarketing and LinkedIn. He knows that for every 100 calls, they will get 20 appointments and for every 20 appointments they will get 5-6 new customers. How are those numbers so good? Stephen says you have to do your research and know your prospects. They spend a lot of time targeting specific industries with campaigns and then their telemarketers will follow up with those people. Even though Stephen’s company serves covers many niches, they market to each niche differently. Stephen also shares that knowing who IS NOT your customer is just as important as knowing who IS your customer. They don’t do universities, bars, airports etc.. Stephen’s parting advice. Start with the end in mind. Don’t just sell and sell and sell and wonder why you aren’t getting anywhere. Looking back through his journey, it hasn’t been all beer and roses, it’s been tough. Any business that is successful is going to have roadblocks along the way. Be persistent, don’t give up. Have that goal and don’t let anything get in the way. RESOURCE ALERT: If you want a copy of Stephen’s autobiography, just email him HERE and he will send you a free copy. As always, get the best results by joining the conversation and leaving a comment below!