Since the turn of the last century,
there have been a total of 21 periods referred to as recessions in America.
It’s as plain as the nose on your face that we are currently experiencing
number 22 now. Wall Street has burned off trillions of dollars of investors’
money. Main Street is in a panic. The Chicken Little analogy is running
rampant.
You and I can’t do anything about the missteps created by corporate greed and
inept politicians leading up to the mortgage crisis and subsequent turmoil in
the banking industry and stock market. But it is within our power to control
what happens on YOUR STREET. Never mind trying to survive – now is the time to
make your residential cleaning business thrive!
As history shows us time and time again, the American spirit of
entrepreneurship has survived every economic downturn. In many ways,
recessions have proven to be an opportunity to thrive for forward-thinking
entrepreneurs and businesses. There’s an old adage that says, “Tough times
don’t last. Tough people do.”
I am not suggesting we become ostriches and put our heads in the sand. The
economy is in for a rough ride for some time to come. But how we weather this
storm has a great deal to do with how we respond, either negatively or
positively. Dwelling on the daily pounding by the media and economic pundits
isn’t going to resolve YOUR challenges or address YOUR opportunities.
And in case you’re wondering, yes, I have weathered a few recessions in my
time in business. In fact, I founded WorkEnders, Inc. during the 1990 - 1991
recession and went through the more recent 2001 downturn, which lasted from
March to November of that year and was caused by the dot com bust. In my prior
company, the Tidy Car franchise network, we and our franchisees grew and
thrived during both the 6-month slump in 1980 and the 16-month recession which
followed in 1981 – 1982. Where others see problems, I always look for
opportunities. Heck, Warren Buffet is no fool and he just invested $10 billion
of his own money in the market. He, too obviously subscribes to the same
theory of optimism and opportunity which can arise in tough economic times.
Here’s why you have reason for optimism for YOUR STREET.
REASON # 1: According to the most recent demographics from InfoUSA,
there are 16,157,374 households in the USA comprised of people between 35 and
65 years of age who own their own home and earn between $100,000 and $250,000
annually. Those are all households who are potential clients for a house
cleaning service. While they say that about 11% of American home owners are
currently facing foreclosure, I think it’s pretty safe to assume that most of
that number does not fall into the $100,000 to $250,000/year income category.
That being said, let’s assume for argument’s sake that as many as 20% of those
16 million households are being impacted negatively by the current economic
problems (a figure that is, in my opinion, a very overstated negative number).
THAT STILL LEAVES NEARLY 13 MILLION HOUSEHOLDS IN THIS COUNTRY WHO ARE CLIENTS
OF OR POTENTIAL CUSTOMERS FOR A RESIDENTIAL CLEANING SERVICE!!!!
REASON # 2: Also according to InfoUSA, there are currently 11,072 house
cleaning companies listed in the Yellow Page directories across America. Well,
with 13 million (and likely many more) households who are customers or
potential clients for a professional cleaning company, that works out to an
average of 1,174 potential qualified clients per company. Assuming the average
client is worth $250 per month in revenues, which would equate to $3.5 million
in potential annual sales for each of those 11 thousand cleaning services!!!
Now, of course, not everyone is going to hire a professional cleaning service,
but I think you get my point. And most cleaning companies could not handle
that kind of volume anyway. But for those companies who do the right things
and do those things right, in both good time and bad, there is enormous cause
for optimism in this industry. In fact, while many of your competitors are
pulling in their horns and running for cover, you have even more reason to
press on because while they’re doing that, you can be capturing their market
share as well.
REASON # 3: Which is the rougher challenge? Finding and keeping good
clients or finding and keeping good employees? Well, if you’ve been in the
business awhile, you know the answer. The client side is the easier part of
the equation. When things are booming and unemployment is low, it’s more
difficult to recruit good people. You experience higher turnover than when
jobs are more scarce and companies are laying people off. Now is a great time
to be recruiting and all the more reason to use our 5-step selection system
because you can afford to be even fussier about who you bring aboard. It’s
also a great time to replace anyone on your staff who you may have been
“putting up with” because you were afraid you couldn’t replace them.
REASON # 4: While some of your neighbors may be fretting about losing
their jobs due to cutbacks, you don’t have to worry about being given a pink
slip. Yow own your own business; you call the shots. You don’t have to rely on
someone else to decide your career’s fate. It’s all up to you. As challenging
as that may seem sometimes, it’s also comforting to know that your economic
future is in your own hands. As the captain of your own sailing ship, the
tiller is in your hands. Using your skills and the business practices
expounded in House Cleaning Biz 101, you will weather both calm winds and
economic storms that can sink a lesser seaman.
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WHAT RECESSION?
I only lost one client
due to the recession. The wife called to say that her husband is the only one
who works and he suggested that they clean their own home for a while. My other
clients have not missed a beat. There truly is a recession but the cleaning
business is solidly recession proof.”
― Kelly McMullen,
Maryland
“I have
a residential cleaning business here in Dallas TX and we have not stopped
advertising or stopped thinking that we can't continue to grow our business. I
advertise and the people come. I don't see a recession, only opportunity. What
we do is make cleaning affordable and still make a huge profit at the same time.
Wow!!! Perception is in the eye of the beholder.”
―
Marie Barbee, Texas
"We are
experiencing a 13% gross profit increase from this time last year. Even in light
of a down economy we have sent out price increase letters and have not found
much resistance due to financial reasons."
─
Scott Kindberg, Wisconsin
My
phone has been ringing consistently and I am signing on new business every week.
I keep asking myself "what recession?". I truly believe a lot has to do with the
talking heads in the news everyday, and this recession probably only affects 20%
percent of the population.”
―
Karen Bickford, Massachusetts
"Recession has very little impact on our business. We actually grew 40% compare
to the same period of time last year. When you think about it, even unemployment
grown to 10%, there are still 90% of the people are employed.
─
Amanda Collucci,
Ontario, Canada
"Our
business is growing month over month as well into the double digits. July was
our best month ever in terms of sales revenue. I believe it's critical to spend
money on advertising, and promotion in a down economy. In addition, it's a
perfect time to put some time into training. I truly believe those companies
trying to save money on advertising, screaming at employees to clean faster, and
holding on to every penny will lose customers and fail. We have been there to
pick up the pieces."
Shawn
Day, Ohio
"There
is lots of silver lining to this recession. Much more choice in job applicants
has been pleasant for sure. The recession has forced all of us to keep a closer
eye on the waste and profit leaks, streamlining many things will make us so much
stronger. We made it through the worst of the recession and still grew the
company! Should be nothing but UP from here, leaner, stronger, and smarter. In
summary... maybe it was a good thing after all for all of us."
Rhonda
Shuker
Ontario, Canada
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