Episode 1201 – Three Lies That Kill Your Cleaning Company Profitability
Focus on Profit, Not Just Revenue
In this solo episode, Mike Campion dives into the critical topic of profitability in cleaning companies. He kicks things off by challenging the common misconception that revenue is the most important thing to focus on. While many business owners get caught up in boasting about their top-line growth, Mike emphasizes that it’s the bottom line—your profit—that really matters. More revenue means more risk, and without solid profit margins, even a big company can end up making little to no money. So, Mike’s first piece of advice? Focus on profitability, not just revenue.
The Myth of "Reinvesting" Profit
A big mistake Mike often sees is cleaning business owners claiming they’re reinvesting all their profits into the business. While this may sound noble, it’s often just a cover for not taking any profits at all. Mike explains that many owners believe they need to pour money back into the business to fuel growth, but the real issue may be inefficient systems or marketing strategies. If you’re not tracking ROI or refining your processes, pumping money into your business won’t help. The truth is, if you’re not taking profit out, then there’s no profit to reinvest.
The "Five-Year" Rule is a Lie
Another common myth is that a business isn’t supposed to make money in the first five years. Many entrepreneurs buy into this idea and use it as an excuse to delay profitability. Mike points out that just because it’s common for small businesses to take a while to become profitable doesn’t mean it’s ideal. In fact, a well-run cleaning company can start making profit from day one. The goal should be to avoid the trap of thinking that delayed profits are normal—especially when you can create systems that lead to early success.
The Lie of "I Make More Money When I Clean
The final lie Mike addresses is the belief that business owners make more profit when they’re cleaning themselves. While it may seem like you’re saving money on payroll, Mike stresses that cleaning is a job, not a business. If you’re doing the cleaning, you’re not building systems or growing the business. Instead of cleaning, you should be focusing on growing the company, whether it’s through training, marketing, or hiring. The goal is to build a business that can run without you constantly working in it.
The Bottom Line: Own a Business, Not Just a Job
Mike wraps up by reminding listeners that if you want to own a true business, you need to step away from the cleaning and work on systems, hiring, and other high-value activities that drive growth. Cleaning is a necessary part of the business, but it should never be the core focus of the owner. If your company is still relying on you for cleaning, you’re simply self-employed, not truly running a business. So, take the time to implement systems, hire great people, and focus on building a business that gives you the freedom to step away while still making money.
If you’re ready to take your cleaning company to the next level, Mike invites you to reach out to his team at Grow My Cleaning Company for more personalized guidance.