Why Getting Your Profits Right Prevents Overworking: Episode 801

Episode 801

Why Getting Your Profits Right Prevents Overworking: Episode 801

WITH

Play Video

Episode 801 – Why Getting Your Profits Right Prevents Overworking

Welcome to the podcast Cleaning Nation! Today on the podcast, we have Mike chatting with Nicole. Nicole started ‘Beyond the Dust’ in 2018 in Anna, Texas. She is a growing company who is interested in increasing her profit margins. Listen in as she and Mike talk about the importance of asking the right questions to get you the right answers, and how to really hone in on profit in a way that bests serves both you and your clients.

Getting Clear on What Profit is and Isn’t

It’s easy to think the profit is anything you make above what you are paying your employees or after supplies. But there is so much more to the cost of goods than that. There is gas money, insurance, uniforms, software/website costs, marketing/hiring costs, etc. You profit comes after ALL that has been taken out. Not only that, but if you aren’t profitable unless you are physically cleaning, your profit should be looked at differently as well. Because not only do you have to take into account your time bidding the client, driving to their house, and doing the work, you have to take into account the fact that you are no longer able to work ON your business because you are working in it which will always lower the overall profit you could make if you were focused solely on your growth.

What to Do When Revenue is Low

More than working harder or getting more clients, you have to get really clear on what the issue is at hand. If you already clear a profit of 20% but don’t have enough money to pay the bills (or do what you want or get out of cleaning) you need to get more clients. If your profit is less than 20%, you need to raise your prices to get to that metric. So often people think if they just keep getting more low paying clients, that will raise their revenue but if they don’t take into account the increase in cost of goods with each new clients, they can have hundreds of clients and still not be making enough money to pay the bills.

Knowledge Doesn’t Matter if it Doesn’t Inspire Action

One thing that is really important to understand about the podcasts we do here is that even if we lay out exactly what you should be doing form a tactical perspective, but you don’t take any actual action, it does no good to understand this information. That is where the magic of coaching and community comes in. It is so crucial that you have a support system behind you that can really push you towards that action that will really make the changes you need to make in your business.

Final Takeaway: Get your profit higher than 20%. If it already is and you still aren’t making enough money, get more clients, if it’s lower, raise your prices.

Love the idea, but find it overwhelming? Want to learn the next steps like, what to actually say on the call? Jump on a call with one of our coaches and learn strategies on how to grow your cleaning company and start loving your job every day! Book here

Episode 801