Interested In Advertising? | Contact Us Here
Warning!

 

Welcome to Clean It Up; the UK`s largest cleaning forum with over 34,000 members

 

Please login or register to post and reply to topics.      

 

Forgot your password? Click here

Steve Weatherley

  • Posts: 699
Expanding your business
« on: October 24, 2005, 12:10:25 am »
I have been cleaning carpets etc now for a while and am considering expanding the business. I have given this some thought over the last week or so and have considered different options ......

1. Take on somebody to work with me on my books full time paying a weekly wage.
2. Same as the above but get him out on his own in an extra van. This would mean I could also be doing jobs myself increasing my turnover.
3. Take on somebody giving him work, paying him 50% and taking 50% of the fee for myself. This person would be self employed so not on my books.

Which of the above makes most sense or can anybody suggest any more ideas?

Thanks

Steve

Kinver_Clean

  • Posts: 1120
Re: Expanding your business
« Reply #1 on: October 24, 2005, 08:42:22 am »
I have some one help me on some days not all.
I find that quite often it appears that we are more than twice as quick on a job (perhaps it is just easier)
Option two could be dangerous as you have to have someone who is completely trustworthy and reliable. They may be giving their own leaflets out and then disappear next year with your customers.
 Option three is likely to run up against the Revenue as he would not be able to produce proof that he is selfemployed working for a lot of customers. You would then be liable to back tax and NI.
The whole thing is a minefield, which is why many CC's are sole operators.

The lad and I are now going into WFP window cleaning (he has done it before) so we are starting a partnership to do that. This will get the WFP bit away from the VAT.

You takes your pick!!

Trevor

God must love stupid people---He made so many.

garyj

Re: Expanding your business
« Reply #2 on: October 24, 2005, 10:42:29 am »
Option 3 would work but you'd need 2 cheques split 50/50, not really a viable option.

I would go for option 2, and do the follow up calls to make sure customer was happy, and of course find someone trustworthy. If you've got that much work, it makes the most sense to me, if he does 'do the dirty' next year  or whenever, you've still got your customers and you won't lose all of the ones he's got.

ianharper

Re: Expanding your business
« Reply #3 on: October 24, 2005, 04:22:58 pm »
Hi Guys

Pay on a per job basis and use selfemployed females. this way when work drops off you dont have to pay wages and females are less likly to nick your customers. ( get contracts signed)

As long as they sign contact to say they will pay their own NI and Tax and that they will not work for any of your customers for up to one year after leaving your services you'll be fine.

Respect

Ian Harper

garyj

Re: Expanding your business
« Reply #4 on: October 24, 2005, 04:27:28 pm »
Ian, only employing females on that basis would get the european courts wringing there hands with glee, I think it is  capital punishment for even suggesting it. Secondly a contract stating they cannot work for those customers for a year wouldn't stand up in court.

Ian Gourlay

  • Posts: 5746
Re: Expanding your business
« Reply #5 on: October 25, 2005, 08:24:07 am »
I think if you are going to worry about potential staff knicking customers or standard of work not up to yours, it never is/ could be better.

You will never expand

However you will need a good lead generating system so if this person does the dirty fine         you have got more customers on tap.


domestic bliss

  • Posts: 161
Re: Expanding your business
« Reply #6 on: October 25, 2005, 01:38:53 pm »
Sorry unable to help with question as i am facing the same dilema.
But i totally disagree with one persons comments on this thread about females being more trustworthy.  I am a female and i took on another female, she took all the jobs i gave her and kept them for herself undercutting my prices and worse still went round half the village taking more of what would have been my customers.  She doesn't pay tax and is not insured and customers don't care about that as long as the price is right. Haven't took on anyone scince although i do need too but find i can't trust anyone.

ianharper

Re: Expanding your business
« Reply #7 on: October 25, 2005, 03:53:51 pm »
Hi Guys

Garyj, you are right but, what about my experance with both men and females can I not use that to make my choose? And yes the contact would not stand up in court but it works realy well. I would never take it that far as there has never been reason too, It might be that it puts people off doing it? BTW it was written by a professional person that had experance in this area.

Domestic bliss, You must look at what value you give your customers over and above the cleaning, if they dont see any then you whats the point of going though you? You must be strong and use contact for both customers and staff, it works really well and does put customers off. we evan have a foiur week notice and if they dont want to do this they pay us four week money, and they do. so contacts do work.

When your first quote its important to show how you work for your money, with thing like taking responsibility, quility control, cover, insurance,

some customers do only care about costs, its your job to show them though what you do how going for a cleaner based on this has risks.

Dont let this person take your deam of owning a cleaning business. You must learn from it and make changes and move on. I was lucky as I work for many contract firms from cleaning schools to car cleaning so I have had experance in lots of diffant areas. Trust should be earnt, what I would be saying to your old customer is is she has nicked all you work do they think that if honest?

What I would be doing is dropping leaflets that pointed out the risk of cheap cleaners. we have just finished one about the risks of using low cost carpet cleaners, and are about to start testing it. dont get personal just point out the risks and problems, you know them as you have to deal with them every day running your business. Customer might think that cost is important but how about cover? what happens when they are ill or their kids are. just think is a family of four get the flu it might mean her taking off about four week to look after the kids and herself.

You will find out that its not money at the end of the day it a clean house every week that really matters. Keep sending sales letters each month to your old customer, Joe polish does a great " We miss you " letter. people must be aloud to make mistakes let them know indirectly that they are welcome back at any time.

One other area that you should keep in mind is that most cheap cleaners will have to loads of work to make up their money to a good wage so as you know this does not go with good workmanship. you can be sure that within time this will be the case and then the customers will be saying to her that "I might as well do it myself" just be ready and as I have said leave the back door open. Good Luck.

Ian, If you have a guarantee and pay on a job basis then you will always have control over workmanship as the staff member will have to go back and reclean free of charge to you or your customer. All you need to do is do some calls at the end of the day to make sure everyone id happy. we do many of these each week to ours with our maid service. customers do find it hard to pick up the phone and tell you, and would just not use you again. so you never find out that the work was bad and thing carry on the same way.

The number one way for customers to save money and staff that would like to have their own business is nicking your work. its an important thing to get sorted as its one thing that will let you take the step from doing the work to running a cleaning business. its not easy and yes some time unfair to some people but, its your business not the european courts. for me its about living in the real world and being street wise.

Respect

Ian Harper

Shaun_Ashmore

  • Posts: 11382
Re: Expanding your business
« Reply #8 on: October 25, 2005, 10:24:28 pm »
you need to increase productivity, more jobs.
Get a TM and that will buy you some extra time it'll be cheaper than paying a wage by 75%, then if you are still that full stick your prices up, you'll get rid of a couple of 'bad uns' and turn a better profit, so more work at better money then think about employing.

Wish I'd have done that when I employed 1st.

Shaun

david_claxton

  • Posts: 93
Re: Expanding your business
« Reply #9 on: October 26, 2005, 05:32:09 pm »
Steve,

I too have been thinking along the same lines. Remember there's money to be made where there's dirt. Think about branching out into other areas of cleaning eg cleaning of offices, general cleaning of properties for example after a tenency ends, fumigation (fleas, bed bugs), flood recovery, builders cleans, cleaning of show homes for new properties, this list is potentially endless. I've started doing more and more of these things and agents or owners of properties like a one stop shop.

Cheers,

Dave

ianharper

Re: Expanding your business
« Reply #10 on: October 27, 2005, 03:47:21 pm »
Hi Guys

Your right there is money in cleaning the times per year you clean for a client the cheaper they will want the service. thats why we get paid top money with carpets because is not that often.

These other areas are great for giving you the money to invest in your carpet cleaning business with the high cost of marketing and the time that it takes to build up a client base that will serve you later on with little marketing costs.

Respect

Ian Harper

Fox

  • Posts: 824
Re: Expanding your business
« Reply #11 on: October 29, 2005, 07:31:34 am »
You will need to employ to expand.  I suggest working with someone to start and as trust is built give them their own round.

It is perfectly reasonable to put a clause in the contract stating that an employee can not work for your clients directly for a certain amount of time after leaving employemt and this will stand up in court as it is a direct threat to damage your business, however this clause has to reasonable so the time limit should be no more than 6months and include that they can not work directly for the client in the capacity of carpet cleaner (or whatever) as it would unreasonable to say they couldn't work the for client full stop as it may be a warehouse job or something and that wouldn't affect your business.

Alot of people think running a business (especially in this industry) is easy, you just get the work, do it and take the money.  Every now and again let drop to whoever you take on that PAYE is a pain and that the insurance 'has gone up again', little things like this will make someone realise that there is more to it and think twice about the work involved in setting up on their own.

Hope this helps somewhat.

Fox

ianharper

Re: Expanding your business
« Reply #12 on: October 29, 2005, 09:03:49 am »
Hi Guys

How many of you are happy being selfemployed? When you started did you want to run a business or just work for yourself?

Respect

Ian Harper

ianharper

Re: Expanding your business
« Reply #13 on: October 30, 2005, 12:35:07 pm »
Hi Guys

Do you think that it is posable to GROSS £100,000 a year like in Roberts FT plan?

Respect

ian Harper