Episode 1 – Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?
Lightning Round:
Best advice you’ve received either personally or professionally?
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Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi.
What’s the biggest mistake you’ve made in the cleaning business we can all learn from?
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt.
Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum fugiat quo voluptas nulla pariatur?
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi.
What is your favorite book?
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“sed quia consequuntur magni dolores eos qui ratione voluptatem”
“Ut enim ad minima veniam, quis nostrum exercitationem”
Episode 143 – Selling Your Cleaning Business
Is Selling Your Cleaning Business a Good Idea?
If so, how much should you be selling your cleaning business for?
Episode 143 Ricky Cortez Fremont Janitorial
Today Mike takes Ricky Cortez owner of Fremont Janitorial through the in’s and out’s of selling your cleaning business. Ricky wants to know how to set his business up so in the future he can sell it and retire.
First, you have to figure out what number would make it worthwhile to sell. So many cleaning company owners pick a random number like a million dollars. As nice as round numbers are, you want to know what you are trying to achieve by selling your cleaning business and what number will meet that need.
Once you know how much you need when you sell your cleaning business, build a business that people will line up to pay that amount for. Numbers like profit and gross sales are important. But buyers also look at a lot of other factors which we will cover in this post.
KEY POINT: When Selling Your Cleaning Business- Numbers are an Important piece- They are NOT the ONLY Piece
To get top dollar when you Before you sell your cleaning business, you want to prepare. It can take a year or two if you are committed to getting full value for your cleaning company.
NOTE: The worst time to sell a business is when you’re desperate
The best time to sell is when it’s going great, you’re making money, you love it, the employees love it.. that’s when you get top dollar for your business.
Now that you have an outline:
Figure how much you need
Know what your company will have to look like to get that amount
Start preparing
How do you prepare your cleaning company for sale? First and foremost, you need a clean set of books. Every penny accounted for. ZERO money taken “under the table”. The farther back you can go, the better- five years is ideal.
KEY POINT: Buyers Pay for PROVABLE Profit- What YOU Say the Company Made is Worth NOTHING
Want to scare off a buyer, frustrate your business broker and get pennies on the dollar when selling your cleaning company? Start saying things like this…
“I get another X dollars under the table”
or
“I know that says ‘cleaning supplies’, but it is really my car payment
Understandable tax deductions are fine. If you pay your cell phone bill that you use for business that is easy to explain to a prospective buyer how he won’t have to pay that when he takes over the company. Same with company vehicles and meals and entertainment. It gets tricky when you start explaining how you are paying people off the books or labeling personal expenses as business expenses.
Just by doing this one simple thing (that you should be doing anyway) will put you in the top 1% of small businesses for sale. Remember prospective buyers are comparing you with every other business they can buy and having good books is the easiest and best way to make your cleaning company stand out.
KEY POINT: When every other business has a shoe box of receipts and you have a clean set of books, it’s a game changer!
The next thing you can do to get the most out of selling your cleaning business is to find a strategic buyer. A strategic buyer is someone who sells a different product or service to your customers.
Commercial Cleaning Example: Business Accountant- all of his customers are going to be owners of businesses. Once he buys your business, he can sell all of his business owner accounting customers cleaning services and all of his newly acquired cleaning customers accounting services.
BONUS LOVIN: Connecting with these types of strategic connections is a great strategy to grow even when you aren’t selling your cleaning business
The next way to get all the money when selling your cleaning business is and a solid culture. You know you are doing it right when people are coming from all around just to see how you do what you do. When the community wants to be a part of what you are doing you are on the right track. You will know when they want to buy from you. Sell to you. And work for you.Buyers will also be attracted to what you have going on.
MORE BONUS LOVIN: For a complete discussion on company culture and how to make your cleaning company an amazing place CLICK HERE
Last but certainly not least when selling your cleaning company are systems. I sold my last company for seven figures. And it was extremely appealing to the buyer that I was working very little. And that the business ran without me. The reason I was able to do that was strong culture based on Core Values backed by good systems.
KEY POINT: People want to invest in a business NOT buy a job
Sum it Up:
Decide how much you need to sell the business for to make it be worthwhile
Create a business worth that amount by:
Having clean books
Finding a strategic buyer
Create an amazing culture
Have systems in place so the business runs with out you
If you are considering selling your cleaning company or just want to have the profits and time freedom discussed here, you can reach out to Mike HERE.
Of course in every episode, Mike gives his guest the opportunity to share their cleaning company ownership wisdom and experience in the…