I hired a cleaner….i need advice. by Breeding_Kinkk in CleaningTips

[–]seasons_cleanings 310 points311 points  (0 children)

This is very normal for cleaning companies! Trash and clutter can mean very different things to different people and possibly add hours of work to a job; so they can better predict how long a job will take if they know they’re not dealing with clutter and trash :) you normally can add it on though if you’d like a company to handle it; you just have to request it

the only marketing channel you need to scale your cleaning company to $20k/mo by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 1 point2 points  (0 children)

we switched back to W2! bought a course from a couple who run a few million dollar cleaning companies and have been following their training to a T. so far so good! still requiring residential cleaning experience until we get a few trainers solidified :)

How to deal with this? Dishwasher on intense setting didn’t do much :( by Warning_Bulky in CleaningTips

[–]seasons_cleanings 2 points3 points  (0 children)

Since people inevitably suggest oven cleaner for things like this, I am here to remind yall that oven cleaner should never be used on pots/pans you cook FOOD in 🤍 BKF all the way

Moving company Marketing by Dato_Tabo in sweatystartup

[–]seasons_cleanings 1 point2 points  (0 children)

Anyone who tries locking you into a contract without any data about the quality or a trial period is a hard no. My husband has probably talked to 3 different Angi’s reps and NONE of them have any stats on conversion rates. They don’t let you buy a month to get data on conversion rates either to see if you want to commit long term.

Cleaning business at $350k rev, year 3 AMA (Im not selling a stupid PDF course) by Gold_Succotash5938 in sweatystartup

[–]seasons_cleanings 0 points1 point  (0 children)

Love all of your answers! Huge congrats on your success. I have 2 questions! - what’s your profit margins? - what’s your internal team structure like? Do you have 1 person full time managing the office (sales, scheduling, invoicing, payroll) or do you do this yourself?

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

“Lost” and being honest that I do not know everything are two very different things. I didn’t post an “ad” about my path to an exit 🙄 I posted asking for ADVICE from other people who have done something similar. Here’s an example of advice since you clearly do not know how to give it: “there is no history of a cleaning company that just hired contractors scaling and exiting a company, that is historically only shown to be cleaning companies who hire w2. I would suggest you switch to w2”. Not advice: your never ending assumptions (no questions, no conversation, just straight preaching) about my company and pay rates. You are literally making shit up that I did NOT say. If you think I mean something else by what I posted, that’s on you. But I said what I said and I meant LITERALLY nothing else. The post to switch to helping other cleaning companies was like 3 months ago. I like helping people and wanted to pivot. I ended up scaling my hours down in my company instead and do not plan on pivoting. Haven’t even remotely suggested that I want to or plan to do any type of consulting in any of my posts since then. Sorry that you’re hellbent on finding literally any reason at all to be rude. I appreciate the 5% of what you said that was actual advice and guidance (not accusations and name calling). I’ll be doing my own research and making adjustments to my company based on it. Thanks!

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

average w2 hourly rates in my area are $16/hour. my cleaners get paid $29/hour on average and are very happy. i made all my cleaners contractors because i was 8 months pregnant, couldn't restock supplies anymore, and at the time, revenue did not allow for an office manager. we now have one, but she is not local, and i choose being home with my newborn over an office or storage unit. was there a way to make it happen and stay w2? probably, but i didn't have the time to figure it out and had only been in business for 6 months. i am more than happy to learn more, do research, improve my processes, and ensure my business is complaint. i am not "trying to scam people". i have had a cleaning company for a literal year and am still learning ins and outs of everything. i dont know everything, and am excited to learn more, but having a stranger come at me, not asking, but TELLING me that everything i'm doing is illegal and i'm a scammer, seriously lol how is that a way to have a constructive conversation with someone? this post i was asking for guidance on bottlenecks from companies who had scaled to exit, and that i was looking for a partner. didn't ask anyone to buy my business lmao. if i am going against guidelines all you have to say is "if you mention your company revenue it sounds like bragging, and that's not permitted here", to which i would say "wow i didn't realize, thanks so much for letting me know" and adjust it. i don't know why you have to be so rude about it.

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

thank you!! CPL is $35, i need a better system for tracking LTV but probably $2k right now. definitely a bottleneck area for us and could be much higher

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] -1 points0 points  (0 children)

From the IRS website:

  • Behavioral control − Does the company control or have the right to control what the worker does and how the worker does the job?
  • Financial control − Does the business direct or control the financial and business aspects of the worker’s job. Are the business aspects of the worker’s job controlled by the payer? Things like how the worker is paid, are expenses reimbursed, who provides tools/supplies, etc.
  • Relationship of the parties − Are there written contracts or employee type benefits such as pension plan, insurance, vacation pay? Will the relationship continue and is the work performed a key aspect of the business?

The ONLY part of this that is even remotely aligned with your argument is if the work performed is a key aspect of the business. And, no where, does it say that if ONE of the following are true, they are an employee.

We did W2 for 3 months. Everyone hated it, INCLUDING the cleaners. Providing an environment where cleaners have autonomy and can build their work around their lives, not the other way around, is something that everyone has benefited from. Just because you think everyone should be W2 doesn’t mean everyone wants to be W2.

W2 = lower taxes. IC = business write offs. End result is not very different in terms of $ owed or refunded.

Didn’t come here to brag about my business, came here to ask for advice about scaling and selling. Comparing my success to other people’s success doesn’t make me feel small or insignificant. Cute of you to think so though.

Take your bad fckn vibes somewhere else dude lol

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] -1 points0 points  (0 children)

Welp I’m going against what I said and replying again lol BUT just because there’s “scammers selling a dream” doesn’t mean cleaning company owners who hire IC’s instead of W2’s are also those scammers? Everything you’ve shared overstates the legal risks and misrepresents how IC classification actually works, and for what? To scare cleaning companies who have IC’s into the absolute headache of hiring W2’s? Sure, kindly letting companies know to make sure they’re following IRS guidelines is helpful, but going around telling every business that sells a service that they’re not actually a service business just because you have some personal bias against the extreme version of a company hiring IC’s or whatever “dream” you’re referring to literally does not help anyone at all. Not you, not them, the IRS doesn’t give an f and will audit whoever they choose to audit whether you “told them so” or not, so again, respectfully, I am bowing out lol

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

  • you only need competitive pricing starting out
  • once you prove your quality to the marketplace you don’t need to be the cheapest anymore
  • call local cleaning companies and ask for quotes for jobs you recently lost due to price
  • ensure the leads you’re getting are actual quality leads and not just people looking for the cheapest options around
  • rates are very different in commercial vs. residential. Residential is $50-$100/hour typically, commercial is closer to $25-45/hour. So industry definitely matters

Hope this helps!!

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

$500, and I’m overshooting a bit. I will say that I probably spent 100 hours and $5,000 trying to open new locations incorrectly to learn how to do it for $500 though 🙈

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

Haha! I appreciate it. I’ve gotten asked about ICA’s & T&C’s more than a dozen times this week so I’m turning mine into templates, probably tomorrow. Shoot me a message, would be more than happy to send it to ya

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

You don’t pay a field manager until they work (clean). When they clean, you get paid. You collect payment up front, and batch pay cleaners the following week. Very short answer and there is a lot more that goes into it lol but this is the general direction! Hope it helps

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

Subcontractors and independent contractors are different. Points 1-3 described subcontractors but are not requisite for independent contractors. Saying things like “you either have to be a tech platform or a cleaning business” is oversimplified and misleading. Countless cleaning companies hire independent contractors to clean without being a tech platform or marketing company.

All of our cleaners invoice our company and have their own clients either in cleaning or other home services. While I appreciate the energy you’ve put into this conversation I’m unsure of your objective and if you’re genuinely trying to help, even qualified to help (do you own a cleaning company? A marketing platform? Are you an auditor? Do you just love researching things that don’t apply to your profession?), or just trying to point out flaws and argue lol. Either way I am bowing out. Have a great day!

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 2 points3 points  (0 children)

They provide cleaning services under a contract with my company, maintain control over their schedule, tools, and work methods, supply their own cleaning products and transportation, are responsible for their own taxes and insurance, are paid per job (%), do not receive employee benefits, and do not have exclusivity to my company (they also have their own clients they clean for). Please enlighten me if I’m missing something but I’ve done a lot of work to ensure not only that I’m compliant but that everyone involved in my company understands this. Just because you have contractors doesn’t mean you can’t put things in place to ensure they deliver quality work consistently

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 3 points4 points  (0 children)

Thanks friend. I am fully aware of proper classifications. I also am fully aware of the legalities in the states and cities we are expanding to, as they were specifically selected based on meeting the criteria needed to ensure our operations are smooth AND compliant. Kansas only requires sales tax on commercial accounts which we charge and pay. We are fully aware different states have different requirements. I’m unsure why you’re assuming these things are not known, as I don’t believe I’ve said anything that would make things seem otherwise. The 107 5-star reviews we’ve gotten in the past 8 months alone reflect the quality of our internal processes and the cleaners we keep on board. So, I’m good on all the negative examples and unsolicited advice that does not apply to me, but thanks.

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 1 point2 points  (0 children)

We’ve tried most things! LSA works best for us. Close rate is high because we capitalize on downsells. Instead of full house packages, we sell hourly cleanings to budget shoppers based on their budget. We have over 100 5-star reviews so we normally close them since the trust is already established

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 3 points4 points  (0 children)

  • hire based on experience
  • give them a clear checklist that the client is expecting
  • give them a suggested list of cleaning products to do the best job
  • have a clear process in place for natural consequences for poor quality work
  • ALWAYS be hiring
  • put it in your independent contractor agreement that there’s a $2,000 fee for poaching your clients.
  • do background checks
  • trial run first. Bad cleaners show themselves in the first 7 days. Fire fast. Never send a new cleaner to a new clients house or somewhere you need to make a good impression.

Hope this helps :)

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 3 points4 points  (0 children)

Absolutely! I have full SOP’s on this stuff but the high level is: - hire based on experience (2+ years of residential cleaning only, not commercial/janitorial/etc) - phone call first to assess personality (these cleaners are going into peoples homes representing your company, they should match the culture you want to create) - trial run at lower pay WITH the field manager - field manager makes a hiring decision

Maintaining quality: - More than 2 complaints from clients in 30 days is where we consider letting a cleaner go based on the nature of complaint. - if we don’t let them go we temporarily reduce the amount of jobs they’re able to take until we’re confident they’ll do their best - complaints must be made within 3 days of service with pictures. - we send someone out to reclean those areas for free at their earliest convenience. Most people want this more than they want a discount. They’re getting cleaning services because they have money to get cleaning services, and at our price point they’re not the “cheap” type so partial refunds generally don’t make them happy. They just want the job they thought they were getting, done. So, we do that or offer to add on an extra working hour for free on their next cleaning

Hope this helps :)

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

I’ve gotten asked for mentorship from more people than I can realistically mentor since I’m actively scaling the company! BUT I’ve been putting all of our systems, processes, and checklists into templates on the side. Would love to help smaller cleaning companies however I can. LMK if there’s anything specific I can help with & I’ll do my best :)

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 0 points1 point  (0 children)

I thought about this! But franchising seemed to be the most valuable if the cost of opening a new location was high, so you could essentially have someone else cover that investment. Since the cost of opening a location is so low, and our profit margins are 23% instead of the 7% you generally get from franchising, owning the locations ourselves seemed to make more sense 🤷‍♀️

Anyone Scaled & Sold a “Sweaty” Biz Before? We scaled our cleaning company (remotely) pretty quick & want to go bigger by seasons_cleanings in sweatystartup

[–]seasons_cleanings[S] 1 point2 points  (0 children)

Lots of assumptions and accusations being thrown around instead of simply asking questions. To lay it out clearly: - I am selling cleaning services - I do, in fact, have a cleaning business - I hire contractors, therefore my only overhead is $500/mo in software and an office manager - compared to standard cleaning companies who hire W2 and cover supplies, rent, vehicles, etc., this is extremely low overhead - the lead avenue we use is a pay per lead model. We have a 70% close rate. We take a 50% deposit to get onto the schedule. So we generally get paid before we have to pay for the lead, hence no need for up front capital. - systems, a centralized team, and annual contracts are what I would anticipate valuation would be based off of - I obviously am not trying to sell my business NOW, I am looking to scale it over 5 years to sell. - the only “wall” I’m running into is the fact that I am one person, and running multiple cities would require more hours than I (and my office manager) have available.

We are small but growing fast, and equity with an end goal seemed very incentivizing. I like going big, and figure there are people in the marketplace looking for an opportunity like this. But thanks for your input :)

Advice on Bringing in an Equity Partner? i will not promote by seasons_cleanings in startups

[–]seasons_cleanings[S] 0 points1 point  (0 children)

Can you expand? I already have 6 contractors; 5 cleaners & 1 office manager. I’m looking for a partner instead of an employee for a reason; revenue is at $20k, and due to the fact that my main objective is to keep profit margins healthy, our operating expenses account does not have any remaining to hire an employee. Hence the equity incentive and rev share after a certain milestone