But just because sales may be down, doesn't mean profits must follow suit. Here are some things you can do to increase profits in your cleaning business.
- Figure out which services you offer are most profitable and increase sales in those areas.
- If you have unprofitable accounts; a) figure out ways you can re-work the specifications to increase profit; b) raise the price; or c) replace the client with a more profitable one.
- Increase productivity. The more productive your employees are, the bigger the bottom line. Now is the time to observe and adjust (observe employees at work and make adjustments if there are more productive ways of doing things).
- Make sure you are pricing your services profitably from the start. You aren't doing yourself any favors by going in so low that you can't make a profit.
- Manage supplies more effectively. Make sure all employees are trained on how to properly dilute chemicals so they don't waste them. DON'T "stock up" on supplies and chemicals if it's going to affect your cash flow. DO stock up if the vendor is offering discounted prices or free shipping.
- Cut back on unnecessary expenses. Take a closer look at your profit and loss statements to see if there are areas that are being wasteful. For example; wasting money by upgrading seldom used software; not combining errands into one trip; exessive use of utilities like air conditioning or heating.
There are many ways to increase profitability in your cleaning business, but this is a good place to start. If your business is not profitable, you won't be able to stay in business. And if you are struggling with profitability, start taking the steps necessary to save your business today!
What are YOU doing to increase profitability? Share your thoughts by clicking on the Comments link below.