Episode 368 – Selling Your Cleaning Company
Today we’re talking with return guest Matteo Berlofa-Spadafora, owner of ‘Maids Santa Monica’.
Matteo asks a great question, ‘How on Earth do you sell your cleaning company?’ In this blog, we’re going to go over 3 tips that not only will help with the selling of your cleaning company, but that are also just great business practices as well.
Before we even start, you have to be sure that selling your business is a good idea. If you would like some tools to help you determine if now is the right time- check out:
There are two different pieces to selling your company. The preparation for the sale, as well as completing the sale. Today we’re going to be focusing mostly on the preparation for the sale, which, believe it or not, actually plays a much more important role in getting a sale that is beneficial for both parties.
Once you start to follow the tips in this blog, and have an asset that everybody wants, you can easily sell it online, through a business broker, through word of mouth, etc. Lets focus on the more important part: How to prepare your business for a quick sale that leaves both you and the buyer happy.
The first thing you’ll need is a clean set of books. This sounds like a given, but you would be surprised with how many people ignore this crucial step. For one, you can get in trouble with the government and it’s just not a good way to run your business. Second, it can show employees that what you’re doing is okay, as well as start to attract the more dishonest employees that you don’t want around your business. For three, it can be detrimental for when you’re ready to sell your business, and try to explain and backtrack around all of your expenses.
The second piece of the puzzle is the amazing culture. Let’s face it: Cleaning business aren’t the most sexy investment. However, there are ways to navigate around that. No matter what business you’re in, people buy for the same reason. They buy on emotion, and back it up with logic. So in this scenario, the clean books is going to be the logic, whereas the culture is going to be the emotion.
This works on a few different levels. If you build an environment that makes employees feel special and that they want to be a part of, the customers take note and will want in as well, which ties right back to your ultimately final customer, the buyer.
The third and final tip appeals to both logic and emotion, and that is making sure that you have great systems in place. The more systems you have in place, the more appeal your business will have. Let’s say you make $100,000 a year. If you are spending 40+ hours of your week cleaning yourself, than you’re basically selling a high paying job. If you can get systems in place to automate a lot of the smaller picture items, then you can spend more time focusing on growing your company, which in turn will appeal to your potential buyer who would be taking over your spot in the company.
Some systems include: Client Attraction System, Employee Attraction System, Cleaning Processes and Core Values, etc.
With all this great new knowledge, let’s head into the:
Best advice you’ve received either personally or professionally?
Asking the right questions, and if possible, pre-qualify customers over the phone.
What’s the biggest mistake you’ve made in the cleaning business we can all learn from?
Making sure that you get credit card information. This can be nice in the short term, but can burn you in the long run.