Episode 1139 – Cleaning Post Construction? Short-Term Rentals? Mike’s Guide to Staying Sane and Profitable
Hey, Cleaning Nation! We’re with another valuable episode taken straight from some coaching calls with our amazing clients. Get ready for some insights that will help your cleaning business thrive. Let’s jump in!
Celebration Time: No More Cleaning!
Our first client kicks things off with a fantastic celebration. She’s been free from cleaning duties for a whole month! That’s a huge milestone in the cleaning business world. But that’s not all—she’s also landed a big deal with Glen Coco, a company that helps find leads for big projects like post-construction cleans. This deal involves a massive $30,000 post-construction job for thirty units.
The Truth About Post-Construction Cleans
Mike dives into his thoughts on post-construction cleans, and it’s clear he’s not a fan. He’s seen too many cleaning business owners pour their hearts into these jobs only to break even or worse. The biggest problem? Contractors often mess things up after you’ve cleaned, making it a risky and unpredictable venture. Mike shares a cautionary tale about a client who aimed for a quick $50,000 profit but ended up losing money and time. Post-construction cleans might bring in cash, but they rarely bring freedom and long-term success.
The STR Hustle: Managing Payments
Next up, we have Esther, who’s deep into the world of short-term rentals (STRs). Her big challenge? Cash flow. She’s paying her employees weekly but getting paid slower from her clients, leaving her financially stretched. Mike’s advice? Switch to paying employees twice a month to smooth out cash flow and reduce drama. He emphasizes the importance of having a solid payment system where clients’ credit cards are charged promptly after service to keep the cash flowing smoothly.
Balancing STRs with Regular Jobs
Mike doesn’t completely knock STRs but suggests they should only be a part of the business, not the whole shebang. STRs can be great, but they come with their own set of challenges, like seasonality and the pressure of tight turnarounds. Instead, aim to make STRs about 20-30% of your business, balancing them with regular recurring jobs. This approach provides stability and reduces the financial roller coaster that comes with relying too heavily on STRs.
Building a Drama-Free Team
Lastly, Mike touches on the importance of hiring the right people. Don’t mold your business to fit the needs of your cleaners. Instead, find cleaners who fit the needs of your business. Focus on creating a strong company culture where employees feel valued and are aligned with your business goals. This way, you’ll attract and retain a team that’s dedicated and drama-free.