Episode 665 – How to Ensure the Best Profit for Your Cleaning Business
Hello Cleaning Nation! Welcome to the Grow My Cleaning Company podcast. I am excited to be here with the lovely Krystal Cummins who started KC Kleans in Atlanta, Georgia. She serves both residential and commercial clients and has since expanded her business to New York City.
How Krystal Found Us
Krystal never really planned on having a cleaning company. She just began doing some cleaning on the side and before she knew it people were giving her referrals and her business started to grow. Krystal began following us on Instagram and started learning about the cleaning business through our posts and podcasts. After conversing with us over Instagram DM’s she became a huge fan!
How did Krystal Expand to New York
Even though Krystal lives in Atlanta, she had a lot of contacts in New York because that is where she grew up. As she began to turn those contacts into clients she decided to hire a manager based in NY. Today she handles finding the clients in New York but is hands off in every other way.
Krystal’s Current Challenge
Running a business in two different states can be a challenging job and Krystal wants to know how to make sure she is making the best profit for her business. When it comes to starting a business, a lot of people believe that their profitability should be a lot higher than it is. When you are working just as a cleaner, your profit is generally going to be higher because you are the only one working but that changes when you begin to hire a staff. What we coach here is 20% net profit. The reason your profit changes is because you are going from a job to a business. Krystal feels like she is paying too much to employees and sometimes even finds herself not paying herself for the work she does. A good rule to follow when it comes to paying your employees and charging your clients is to make sure that your COGS is not more than 50%. If you factor in overhead such as your website and you are still making enough, it then comes down to what you are charging your clients. This means it is time to raise your prices.
Should you be Doing Commercial and Residential?
One of my top tips I give to cleaning company owners is to focus on one side of the cleaning business. Splitting your business into both commercial and residential can seem like a good idea at first. What’s the problem with doing both? The answer is that you can end up spreading yourself too thin and end up finding that your business is stalling. Focusing on one niche allows you to not only grow your business faster but grow your business with more profit.
If you loved this podcast and want more FREE information on how to run your cleaning business head to www.growmycleaningcompany.com for the FREE webinar or www.growmycleaningcompany.com/talk to speak with one of our coaches! Don’t forget to rate and subscribe to get notifications for our upcoming podcasts!