Episode 258 – Transitioning from a Cleaner to a Business Owner
Should You Franchise Your Cleaning Company?
Today, we’re speaking with Alejandro Greer.
Alejandro is in an interesting position. People are wanting him to franchise his company. Now, there are often three kinds of people related to franchising:
People that want to buy the company from you
People that want to to buy a franchise from you
People that sell franchising services that want to sell you on the idea
Obviously, we want to be wary of the third one. I’m not saying that these people aren’t offering good services. Rather, it is good to keep in mind their perspective. If they sold on you their services, they make money regardless if your franchise-opportunity succeeded or failed. They’re biased. So don’t exclude them, just keep that in mind when you’re considering franchising the business.
Ultimately, ask yourself what you want.
Resource Alert: Setting Up a Cleaning Business Franchise https://oldsite.growmycleaningcompany.comcleaning-business-franchise/
There is an old adage, just because you’re a good cleaner doesn’t mean you should start a cleaning business. You will be wearing A LOT more hats than just a cleaner when you own the business. Likewise, just because you’re a great operator doesn’t mean you should be starting a franchising opportunity.
Instead, look at people who have started franchises. Ask yourself, is this the kind of life you really want? Start with the end in mind… what do successful franchise-starters life actually look like?
Do you like what you see? If so, then maybe you should start a franchise.
Resource Alert: Expand Your Cleaning Business with a Franchise https://oldsite.growmycleaningcompany.comexpand-your-business-with-a-franchise/
Remember, your main goal as the owner is to find clients for the people buying the franchises from you. You need to become ultra focused on systems. A good franchise is obsessed with systems. Those franchises can be dropped in any geography, any town big or small, and by leveraging their systems they can create a thriving business. Everything needs to be repeatable, dependable and scalable for every market.
Keep in mind that owning a network of franchise owners is not as lucrative as you might believe. It is often difficult to make a lot of money until you have at least 100 franchise owners underneath you. Typically, you will get just 10% of their profits and 5% of those profits will go into a shared advertising pool. The other 5% will be your net profit after you minus all the other expenses of running your franchised cleaning business system.
If you are super interested in this idea, I would suggest opening up 3 different office locations for your current cleaning company. All 3 of them need to be running without you. If you can manage this, then you got a shot at scaling a franchising system.
Remember, with franchises you are building a community of people that are not paid to be there. In fact, they’re paying YOU for being there. That means you HAVE to deliver them a good value exchange for that money and right to carry your franchise name!
Alright, let’s dive into the Lightning Round!