Episode 674 – The Silent Killer of Cleaning Companies
Numbers in the Cleaning Business
The numbers are all correlated with the health and wellness of the business, (ie money), and it’s all connected back to our personal relationship with money. When people come on to a mindset call, and start talking about their numbers in the business, they pull up their P&L and look at what they’ve been tracking.
We have people that come into our program that are already generating profit, but how about a big business and lots of clients? This doesn’t just apply to people that feel like they don’t have enough, there’s the other end of the spectrum too.
It doesn’t matter whether the client feels like they’re booming and have lots and lots of revenue coming in, or they feel like they’re just starting or they’re struggling with their relationship with the number. That’s what’s at the core. So the fear and all the insecurities and trepidations come up regardless. So if you’re thinking to yourself, “Well, you know, I’m doing pretty well or I’m just starting, or I’m somewhere in the middle, so this doesn’t apply to me”…. trust us, once we dive in, you’re going to see how this applies to everyone.
The biggest fear we see people have is that they haven’t been doing their numbers “right”. The “monkey mind” as we like to call it at GMCC, starts to come up with all sorts of thoughts and stories. That’s usually what happens when we first start talking about numbers.
Key Point Indicators
As the saying goes, “you can’t change what you’re not measuring”. So let’s look at what you should be measuring as a cleaning company, also known as key point indicators, or KPI’s for short. At Grow My Cleaning Company, here’s what we recommend:
- 50% of your revenue should go to the cost of goods sold.
- 30% or less is your overhead expenses
- 20% profit margin
In our program, we have a P&L – profit and loss sheet, that our clients need to pull up monthly to be able to see exactly those indicators like each month. We always evaluate whether their accounts are profitable.
An Eye-opener for Business Owners
Tracey’s Closing Advice
What is the Silent Killer of Cleaning Companies?
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!