For cleaning business owners, profitability is one of their primary goals. Without it, the business will not survive in the long run. There are basically three ways to go about improving profitability:
- lower operating costs
- increase efficiency
- increase sales
Most cleaning business owners tend to focus their attention on just one of the three, placing less emphasis on the rest.
The owners that pay more attention to lowering operating costs and increasing efficiency are looking at the numbers. They’re figuring out ways to save on things like payroll, office expenditures, cleaning supplies and the marketing budget. And they’re looking for tools and equipment that will increase efficiency and bring a quick return on their investment.
These days, all cleaning business owners must spend time figuring out ways to lower operating costs and increasing efficiency, because it’s getting harder every day to find enough cleaning technicians to handle increasing sales.
The downside of this is that if they cut back too far, they could end up with overworked, underpaid, ill-equipped and poorly trained employees. The direct result is dissatisfied and lost customers. Unfortunately, the bottom line minded business owner may then attempt to rectify the loss by reducing even more costs, thus creating a destructive cycle that will eventually lead to the company’s demise.
Marketing focused cleaning business owners are more inclined to focus their attention on the customer’s needs.
Their goal is to gain new customers and retain those customers long term through exceptional customer service, first-rate employee training, and quality control checks and measures. Although a company’s costs may be higher under this type of profitability focus, they will also likely have more customers and thus, higher sales. It’s during the downturns in a business cycle, when profits and revenues are low, that the marketing minded cleaning company owner can more easily trim off some of the fatty costs while the accounting focused owner will find it much more difficult to trim back costs on an already lean company with fewer customers and sales.
The bottom line is that business owners who are focused on just one or two of the 3 ways to increase profits, will struggle at some point. By taking a more proactive and balanced approach to all three, you’ll have a better chance at succeeding long term, and maintaining a healthy and wealthy cleaning company.