The Silent Killer of Cleaning Companies: Episode 674

Episode 674

The Silent Killer of Cleaning Companies: Episode 674

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Episode 674 – The Silent Killer of Cleaning Companies

Hey Cleaning Nation! Lindsay Bjorklund here, your Client Happiness Manager here at Grow My Cleaning Company with special guest Tracy Thompson our Head Mindset Guru. Today we are going to talk about something a little bit different than we normally do: numbers in your business. We’re actually going to talk about the “silent killer of cleaning companies”. It may surprise you to find out what we believe it is and how it’s related to numbers.

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

We often find that this process is an eye opener for our clients. Once you break through the fear of the unknown, and tell yourself the new story, that is the first step. For example, maybe the numbers feel scary to you. But knowing is power. If you’re willing to really hunker down and look at your numbers, there’s so much potential, even with the numbers you have right now. Let’s say you’re under profit and you only have 10% profitability, your cost of goods sold is 10% too high, or whatever the case may be…. you can fix that. You may not even have to acquire a brand new client in order to become profitable. And we’ve had so many members come in and do that alone. But trust us, this is a mindset and emotional thing for first.

Tracey’s Closing Advice

The encouragement today is just to take that step, emotionally tell yourself the new story, that knowing is better than flying blind. And that once you have that knowledge, you are going to be in a place of empowerment. And now you can take charge of your profit for once. And that’s a life change. Knowing is always better than flying blind. Even if the first numbers are not what you want, that’s okay. You can have the control to change it. You can all show what you’re not measuring.

What is the Silent Killer of Cleaning Companies?

The silent killer of cleaning companies is ignorance is the unwillingness to look at and track your numbers. Be the boss, be in charge and be the master of your numbers!

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.

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Episode 674