Hi Cleaning Nation, today we have Mike talking to Kristen Dvorak of Three G’s Cleaning. She started her business in 2016 in Eldridge, Iowa.Today she’s on the show to get coaching about whether or not it would be a good business move to have an investor come and invest in her business. Listen in as Mike coaches her on the pros and cons of taking on an investor and how she can best make that decision for herself and her business.
The first question you need to ask yourself before you make a decision like taking on an investor (which is essentially a founder) is what are your long term goals for your business. If you don’t have a road map, you don’t have a way to track if you are where you need to be. So step on is really getting clear on what you are trying to accomplish in the first place. Once you know that, you will be in a better place to make these big decisions for your business.
Once you are more clear on what you want in terms of general goals for your business, quantify that by a dollar amount. But before you do that, you need to make sure that you have set yourself up for success in terms of your business model. In Kristen’s case, she is currently cleaning both residential and commercial. That can be a disadvantage fast because if your competition is putting all of their efforts into being the best at one of the two, they are going to be hard to beat if you are spread thin across both. Once that is sorted out, make a monetary goal for yourself. For our purposes today, Mike used the example he hears a lot which is $10,000 in profit a month which is about $50,000 in revenue per month.
One big thing to consider when thinking about taking on an investor is the fact that Cleaning Companies aren’t capital intensive. Which means that they don’t require a large investment to be successful. The success comes from putting in good systems and processes, hiring the right people, training properly, marketing, finding those clients and building that clientele. It’s not expensive equipment or software engineering or anything like that. So, the big question is, if someone gives you some money, is it going to help you get closer to your goal keeping in mind that this person is going to want a return on their investment. And the answer for you might be yes, but just be really clear on what you want, where you’re headed and what you need to get there.
Before making your decision, be really clear on what you want, where you’re headed and what you need to get there.