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Absolutely new to this. Need guidance to get started in the business

Discussion in 'Starting Your Business' started by jorgon1022, Nov 11, 2017.

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  1. jorgon1022

    jorgon1022 New Member

    Nov 7, 2017
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    Yes I'm pretty ambitious. I work a government job so even though I make good salary, there's not much room for growth. I plan on starting a business and scaling it up. I don't plan to be a one man crew forever.

    I was thinking I could start this business with 2k but it sounds like I was wrong?
     
  2. ACP

    ACP Well-Known Member

    Apr 9, 2014
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    ya definitely not. 2k can hardly buy you a used portable, sure its possible anything is possible... but your going to be competing with companies that have much much better equipment and its going to take years and years to build up from that.
     
  3. Total Cleaning Service

    Total Cleaning Service Well-Known Member

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    $20k! goodness! I respect your opinion but I think the best way to go is to ease into it. Keep your full-time job. Educate yourself. Ride along with someone and get some experience if possible. Everybody always focuses on the equipment, the hardest part is getting steady customers in the beginning. It takes a while to build those first reviews at least then you have your job to fall back on. It will be a long hard road. Learn how to market and get customers first before you do anything.

    I know many will disagree but I think starting with a portable is safer. Its less initial investment, I have seen too many truckmounts on craigslist and the interlink parking lot, especially in the winter time and then never get back what they paid for it
     
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  4. jorgon1022

    jorgon1022 New Member

    Nov 7, 2017
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    What's wrong with this marketing strategy?

    If you submit a review, I will give you an additional 5 percent off.

    Or if you refer me to someone, the next time we clean for you, you will get one room free.
     
  5. ACP

    ACP Well-Known Member

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    I agree easing in is better, but honestly 20k is easing in.. thats really not a lot of money to invest in something your serious about, and something that can one day easily bring in 20k/month.

    200k, and dumping thousands into marketing is not easing in.. actually I dont really think you should spend much on marketing until you figure the business out, you dont want to market heavy get a bunch of work and screw those jobs up being inexperienced.
     
  6. Total Cleaning Service

    Total Cleaning Service Well-Known Member

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    Guess I'm the only one that didn't have $20k laying around lol. I got lucky with my start $400 portable+ $200 repairs. Got a big commercial job as my first job that paid for the machine and enough to start building my business and get more jobs. I don't think ii would habe done as well if my back wasn't against the wall.

    I guess if you have $20k to invest then plan wisely
     
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  7. longkenn

    longkenn Well-Known Member

    May 7, 2011
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    Yes, very much more complex. You can do what Todd suggested which is an education. There are two ways to get your education. One is by working with someone who has already made their mistakes. The other way is to use the school of hard knocks and go out and make your own expensive mistakes. The latter is the way many people do it and that is why you can find a lot of used equipment littering Craigslist and eBay.
     
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  8. longkenn

    longkenn Well-Known Member

    May 7, 2011
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    I started my business with about 10K. I did a slow grow. This year it looks like I will gross about $80K. Next year I am shooting for over 100K. It didn't happen overnight. It has been 7 years of hard work.
     
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  9. jorgon1022

    jorgon1022 New Member

    Nov 7, 2017
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    So you gross 80k but out of that how much was profited? I heard that 10-20 percent profit margin is good so if you made 100k then 10-20 of that is actually profit. However, that's not very much on a yearly basis. That is below min wage. Am I missing something here?
     
  10. Kaitlyn

    Kaitlyn New Member

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  11. longkenn

    longkenn Well-Known Member

    May 7, 2011
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    Profit margin is higher than that. On the low end I make a 40% margin and on the high end I make 55% gross margin. I average about 47%. Next year will be on the higher side of that if there are no major breakage of equipment. I will be shooting for 110 to 120K and it could go higher as I just added housekeeping and janitorial services.
     
  12. Todd the Cleaner

    Todd the Cleaner Todd Cottino
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    Sep 4, 2011
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    If you run a legitimate business paying all your taxes and insurance etc. you can expect to profit 40% - 50% if you do the work yourself. Plan on half that if you have employees doing the work for you.

    I started out the hard way, broke with no money. I bought a $1500 broken down used truckmount that I spent the time and money to rebuild. I worked for 17 years in this business both as a cleaner and a truckmount mechanic plus I had worked in business management so I had a bit of an advantage when starting my business.

    The first year was hard. I made barely enough money to survive. To be honest I grossed under $40K and took home less than $20k my first year. The second year was a bit easier but by no means was I making good money. The third & fourth years things really started to take off and I was doing pretty good until I got real sick and spent a whole summer in the hospital and in bed. That was last year, we survived but it was a real eye opener for me.

    I’m now just past my 6 year mark owning my own business. I operate pretty much on repeat and referral business. I’ll be right at 100K for this year and I just hired my first employee. Right now my employee is only working part time and I’m still doing most of the work myself, I’m at the point though that I can’t grow any more without taking on an employee.

    This business is definitely not a get rich quick business. It takes a lot of time, energy, and money to build it up.
     
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  13. jorgon1022

    jorgon1022 New Member

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    Can I get this education from the academy videos that are sold here?
     
  14. jorgon1022

    jorgon1022 New Member

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    Im ok with this not being a get rich quick business. However, I do want to become rich. I have been reading the book 'Emyth' and the concepts that the book mentions are amazing. Its all about scaling up and that is also something that was taught in the 'Millionaire Fast Lane' book. I understand that not everyone wants to get rich but that book lays out the way to scale your business up. And honestly, thats what I am going for and I hope to achieve this in 2-3 years at most. My goal is to make 100k in profit within this time frame.
     
  15. Todd the Cleaner

    Todd the Cleaner Todd Cottino
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    100k in 3 years will be a lot of work but it is possible.
     
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  16. Todd the Cleaner

    Todd the Cleaner Todd Cottino
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    To be honest I’m not sure. I have only seen some previews of what Rob is teaching. I’m sure it will help a lot but there is only so much you can learn from a book. Just as with anything else in life experience is the great teacher. The classes can start you down the right path but it will take time to gain the real world experience.
     
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  17. Scott W

    Scott W Preferred Vendor
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    Feb 14, 2006
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    The difference in "profit margins" comes from how labor is considered. If you have employees, 10 to 20% profit margins is pretty normal. If you are doing the work yourself, count your own salary as an expense and then expect to make 10% profit. If you don't count your own salary, other expenses should only be 30 to 40%. Leaving well over 60% profit margin, except not truly profit because labor was not included.

    During the 1990s through 2004, I grossed over $200,00 per year. Some work I did myself. I also had employees. I made an OK living.

    I personally know a few guys making over $100,000 net per year after all expenses. It can be done, but it is not the norm.

    If you only have $2,000 to put into the business, well that's what you have. Depending upon what segment of the market you want to work in, basic equipment will cost from $5,000 to $40,000. You can't expect to go into a high end home, charge top price and have a weak portable and not all the tools you need. But that might work for doing some businesses after hours. Poor performing equipment will also mean it takes you a lot longer to get the same volume and quality of work done. (Still can be done, just harder and longer work.)

    Consider financing some of your equipment.

    Define your target market. Get the equipment necessary to penetrate that market.
     
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  18. longkenn

    longkenn Well-Known Member

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    In addition, sit down and write a business plan. Most people fail because they have no idea how they will accomplish their goals. If you don't write it down then it is nothing more than a grand idea. If you write it down and it is staring at you daily then you can refer to it to see how you are doing in accomplishing your goals.
     
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  19. Anderson

    Anderson Active Member

    Aug 16, 2006
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    I have worked carpet cleaning off and on fulltime and partime for 20 years....
    As I am a school teacher...parttime....

    I have made 30-50k working partime while teaching....sole owner
    100k when i was fulltime......

    I am tight on debt and never have debt over 1 year......

    Once you have your van and truckmount paid i make 80-90% profit
    As you will have a lot of write offs..very little tax
     
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  20. jorgon1022

    jorgon1022 New Member

    Nov 7, 2017
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    You are exactly what I aspire to be lol. I want to be able to make something like this working part time. How did you do it?
     

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