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Volume 24
April 2010
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Greetings!
Welcome to the Clean Team Pro! As an entrepreneur and small business owner, I know
what it's like to try to operate on a shoestring budget. To maximize profits,
you've got to minimize expenses -- which means constantly looking for new ways
to scrimp and save. If you get to feeling completely tapped out of new ideas,
check out our feature article with 13 ways to cut your costs and boost your
bottom line. Also be sure to check out our Reader Mailbag section. I love hearing from you, whether you have questions about using a particular product, dealing with a client issue, or offering suggestions for our readers! If you have a question or comment, please email me at jeff@thecleanteam.com. |
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13 Ways to Save Cash
on Your Cleaning Company
 There is a basic equation when it comes to boosting your
business' bottom line: The more you spend, the less you earn. Sounds simple enough, but finding ways to cut your costs is often anything but easy. If you are
looking for ways to maximize your profits, start by taking a fine-tooth comb to
your expenses. Think you can't cut back any further? Here are a thirteen painless ways to reduce your out-of-profit costs.
1. Offer Incentives for Spreading the Word
Your business won't get anywhere without some good
marketing, but traditional advertising can cost a pretty penny and it's not even all that effective, in many cases. Word of mouth, on the other hand, is not only free,
it's also the single best way for small service businesses to grow their client
base. Do a good job and do it consistently and your clients will sing your
praises. But why leave your best advertising strategy to chance? Encourage
word-of-mouth recommendations with incentives like discounts and free cleaning.
2. (Re)Evaluate Your Routes
When you first set up your cleaning schedule, you no doubt carefully evaluated the daily route to minimize driving time. As you know, inefficient driving routes not only waste time, but they also burn money (in terms of gas, and in terms of the non-cleaning minutes
you cleaners waste in the car). As time goes on, however, schedules
sometimes change organically -- a new client here, a missed appointment there.
Before you know it, you are leaking efficiency with every added mile. To avoid
route inefficiency, commit to reviewing your scheduling once a quarter. If
things need tweaking, do it before it gets too late.
3. Take Advantage of Free Media
Run an ad in the newspaper can cost you a few
hundred dollars -- if not more. You can get much more bang for much less buck with
"free media". What's free media? It's when news outlets report about you and your business. How do you get them to do this? Send press releases or pitch stories to your local news station. Popular angles might include ways to clean green or favorite spring cleaning rituals. You can earn all sorts of free exposure from your extensive (and brilliant) quotes.
4. Wear Your Expertise on Your Sleeve
You *are* an expert -- in cleaning, in
decluttering, in running a small business. Look for ways to share your
expertise -- and by extension, your business -- with potential clients. Write an oped (more free media), teach a
class at your local community center, or speak at a town meeting. People will click on your website or call your phone number because they like what they learned from your presentation. Presto: Invaluable marketing that doesn't cost a cent.
5. Get Online
One of the best ways to get your name out there is
through online communities. Find message boards dedicated to your town or city,
or that otherwise cater to your target audience. Post frequently when you have something valuable to add to the conversation. Be sure to include your company name and phone number and/or URL in your
signature. Never hard sell
your business -- not only might it get you banned from the online community, it will definitely get you
labeled as a 'spammer'. Offering valuable advice is much more likely to induce
people to click on your URL!
6. Communicate Freely
If you are
ready to get super frugal, take a look at free online telecommunications tools.
Instead of paying $30 or more a month for your phone bill, consider a service
such as Skypeor MagicJack.
For free faxing anywhere in the U.S. or Canada, try an application like faxzero.
You can even do your scheduling for free with an easy-to-use program like Google calendar.
7. Join the Mobile Workforce
Skip the high cost of maintaining an office as long
as you can by keeping your operation lean and mean... and mobile. With a laptop
that has WiFi (or a wireless modem), a good cell phone network, and a sturdy
filing system, you can run your business out of your home, your car or even the
local Starbucks! Upfront investments for office space typically run several
hundred dollars and up -- money that could be better spent padding your profit
margin.
8. Buy Second-Hand Equipment & Supplies
Sometimes it pays to lease equipment -- from fax
machines to washing machines to a fleet of cars -- or to buy it new. But for much
of your company's operational needs, you can do just as well on the second-hand
market. Check your local Craigslist or even Freecycle, visit
thrift stores and take a few expeditions to the summer garage sales. From office
furniture to cleaning rags to washers and dryers and even company cars, buying
'like-new' second hand items avoids depreciation and maximizes value.
9. Shop Your Insurance
As a small business owner, you probably have a lot
of different insurance policies: disability, property, car, health and more. All these policies can really add up -- especially if you're not getting the best
deal possible. Many agencies will offer multi-policy discounts, but never assume you are
getting the best price possible without shopping it around yourself.
10. Increase Your Deductible
A simple way to decrease your insurance premiums is
to increase your deductible
from $250 or $500 to $1,000. Just make sure you set aside the minimum
out-of-pocket expenses for each deductible in a "retained earnings"
fund. Think of it as an Emergency Fund for your company!
11. Maximize Your Deductions
We just covered the topic of taxes in last month's
newsletter, so refer back to that article for more information on Tax Write-Offs & Business Deductions. In short, you may qualify for a lot more
than you realized, so check the IRS Website or seek professional advice. Also be sure to ask an accountant about the new
health care law and how credits for health insurance premiums might benefit
you.
12. Save Money at the Bank
Many banks offer free checking, savings and
e-banking for business accounts, so if you are currently paying a monthly fee,
shop around. You can also earn a few pennies by making sure you deposit checks early in the day to start earning
interest as soon as possible.
13. Beg, Borrow or Barter
Before you pay for a new piece of equipment or to
outsource the copywriting for your company, flip through your Rolodex. Who do
you know who could help you out -- for cheap or even free? Ask your friends and
family; try before you buy (AKA borrow); and offer a free house cleaning (or
two) in exchange for valued goods and services.
What great money-saving
ideas have you implemented in your business? Whether it's a simple way to pinch
pennies or a grand plan to save thousands, we want to hear! Send your ideas to
me at jeff@thecleanteam.com.
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Reader Mailbag
 Last month, we talked about business deductions and asked you if you have any favorite write-offs that we missed. Here's one we got from Jody of Bee Clean Services in Morgan, Minnesota (Thanks, Jody!) Laundry soap, water softener rental (or purchase) softener salt and electric bills (drying the rags). Just spoke with my tax preparer today! Do you have a comment or question to share with our readers? Send me an email at jeff@thecleanteam.com. |
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Thanks for reading us this month! Come visit us on the web at www.thecleanteampro.com.
Sincerely,
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Jeff Campbell
The Clean Team Catalog |
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