In part 1 of this 2-hour interview, "Conspiracies in the Cleaning Industry with Ed Selkow", Ed shared an incredible 50-year career in our industry. He shares so many great stories and lessons that will help you in your business. Ed also shared some incredible criminal stories that I called "conspiracies" that are a must listen! In this episode, we dive into the second half our interview.
0 Comments
I sat down with cleaning industry legend Ed Selkow for a 2-hour interview. We covered so much ground that I had to break it into 2 parts. In this first part, you'll learn about Ed's 50 years in the cleaning industry which includes owning 4 janitorial companies and working as an employee for a few of the largest janitorial firms in the country. He weaves in great stories and lessons that make this episode well worth the listen.
Before you listen to this article, please check out my Carfagno Cleaning article, "Home Trends that Intersect with Cleaning". I credit my friend Mary Ann Alig of Fox & Roach Berkshire Hathaway Realtors for the content that drove this article and this podcast episode. Mary Ann shared 8 home trends that realtors are seeing for this new decade. Trends like these tend to change every decade and currently include barn vs pocket doors, white interiors, shiplap, matching furniture, accent walls, rose gold, open concept, and multigenerational homes. In my article, I showed how these trends affect cleaning professionals. I also hint to all business owners how important it is to know your industry trends so you can stay ahead of them
I was in Dallas with my son for a podcasting conference in August. It was a blast, especially hanging out with my son. We stayed at the downtown Sheraton, which afforded us the ability to walk the city a bit. I also had the opportunity to connect in person with two former guests of the Smart Cleaning School. I went to lunch with Greg Shepard from "Sail Around the World". We had a blast walking around the city and enjoying a quality Mexican meal. Greg is a friend and definitely a mentor. He stretches me big time. The day after lunch with Greg, I had a personal tour and breakfast with Debbie Sardone from "A Buffalo Charges the Storm". Debbie is highly regarded coach in the residential cleaning industry as well as a friend and mentor. Back to my son and walking Dallas. I really, really wanted to visit Dealey Plaza. As a kid, I was enamored with the movie "JFK" starring Kevin Costner. The movie makes a compelling case for a second gunman on the grassy knoll. I have seen the Zapruder film so many times, that I already felt like I've been there. I was wrong. Being there was different. Kenny and I walked into Dealey Plaza. I was in awe. He knew more about the Lincoln assassination than Kennedy, so I described it as best I could. That's when I noticed a guy with a bike helmet and bike showing the Zapruder film and explaining the details of the assassination. Kenny and I walked over to listen. We stood on Elm Street in front of the old Texas State Book Depository as he pointed to the 6th floor corner window. The window is half open with boxes arranged exactly as they were in crime scene photographs. He paused the video on his phone and pointed to the first large "X" on Elm Street. This is where JFK was struck the first time in the neck. He played the Zapruder film. We could see Kennedy grab his neck. It was too surreal. He kept the film running as JFK was struck with the kill shot. He pointed to the second "X" on Elm Street. "On November 22nd, 1963, that's where an American President was assassinated." Chilling. We thanked him for his history lesson and walked the plaza. We stood on the "X" and took a picture. We stood on the grassy knoll and took a picture. We stood where Abraham Zapruder took the movie and yep, we took a picture. It was much, much different in real life. Dealey Plaza is virtually unchanged in 59 years. History is powerful, especially when we can be there in person.
I discussed the Presidential Election in the last episode and how important it is for us as cleaning service providers to focus on building trust with our clients right now. There is turmoil. There is fear. There is change happening. Let’s not add to it by changing our service, our schedule, or our prices.
This podcast episode was released just 4 weeks prior to the 2024 Presidential Election. You might be asking. “Why does that matter Ken?” I hope you do. I have been around this industry for nearly 20 years and have talked to many industry leaders. We need to be wise and discerning of the mindsets and emotional meters of our clientele. We need to recognize trends and historical data. Here is a simple truth. Each election cycle is getting more and more volatile. Each election cycle is more divisive, more fear-based, with more unknowns. This causes Americans to hold on to what they’ve got. This causes home owners and businesses to postpone making the that cleaning service hire. People are scared. People are less trusting.
I had an opportunity to coach a young man last week. He is operating as a solo commercial cleaner and doing quite well. He's got a great attitude. He's growing. However, he is getting close to a full schedule. That is scary for most solo cleaners. Do you know why?
It’s imperative to know your numbers and coordinates, so you always know where your business is on the map of your dreams. In a recent Solo Elite Membership Call, I explained a few vital signs that solo business owners need to track to ensure their business remains healthy and vibrant. Afterward, I dive into a topic which is infrequently discussed in our industry. What is your cancellation rate? How do you limit damage and lost income throughout your clientele?
There is a prevailing mindset in the cleaning industry that the only way to be successful is to scale with a team. This is simply not true. Have you ever heard of the Optimized Solo Cleaner? I am the voice in the industry shouting out that scaling is amazing, but there is another way.
I have noticed a lot of interest recently by residential cleaning companies to seek more commercial opportunities. I have been in the industry for nearly 2 decades and have cleaned both the entire time. I know residential and I know commercial. I also stay connected with the top influencers in both residential and commercial cleaning. This gives me a unique voice to speak about what I see as the best opportunity that house cleaners have in commercial cleaning.
Colette is my personal accountant and she closes out a 3-part interview series we did on the Smart Cleaning Tribe. Colette gets into the nitty gritty of what a valuable accountant can do for you. First of all, she dives into business budgeting and how the business owner and accountant partner to help the business grow and plan for the unexpected. I took Colette's advice from the last episode "Hire Professionals on Day One" I hired an accountant in my second year when we had no money. I purchased insurance on day one. I found an attorney to work with in year two. However, I never had an accountant that does as much as Colette does for us. Beyond business budgeting, Colette explained what tax planning looks like. This is a huge value add your accountant can add for you. She shared some 2022 tax updates and how they may impact each of us at a high level to demonstrate how vital it is for us to have the right tax professional. Make sure to listen to Colette's checklist of what questions we should be asking our accountant when tax planning. Lastly, Colette gives us a checklist to us, the cleaners, on what we need to do on our end to help our accountant help us.
In part two of this 3-part interview with my accountant Colette on the Smart Cleaning Tribe, she dives deeper into the role of the accountant. In one question, she explains the benefits of hiring an all-in-one bookkeeper and accountant to help the business with tax planning and prep way before tax day. In another question, Colette surprised us all. "When should we hire an accountant?" Colette said that she is a big believer in hiring insurance, tax, and legal professionals in your business on Day One. Yes, it will cost you in the beginning. But the cost of fixing bad books or hiring a legal team after the fact or not having insurance coverage and an event happens is WAY more expensive. She is an advocate therefore of hiring these 3 professionals on Day One. Colette answers an interesting question about state versus federal tax laws. Plus, I share how Colette personally bills me for services. I think it's brilliant as I can budget accounting all year at the same price. It's a win for the cleaning business owner. From her side, she has reliable recurring income. That's a big win for her. I highly recommend an accountant that bills on a monthly retainer.
As mentioned in episode 1, feel free to reach out to Colette with questions or to hire her for accounting services. You can find her at CMBA Solutions.
I asked my personal accountant Colette Melott (CMA, EA) to join the Smart Cleaning Tribe for an Expert Call to help cleaning company owners understand their numbers and who to hire in their specific case. Colette starts this interview with the accounting basics.
I thought the previous episode “Audit to Optimize” was the final installment in the Numbers Matter Series until I wrapped up a Solo Elite Membership Call on July 2nd, 2024. On this call, I had the opportunity to teach Sunny how to apply everything in the Numbers Matter Series to complete her ISO Model Scorecard.
I hope you’ve been paying attention and taking lots of notes during this series on “Why Numbers Matter”. In my experience, I have observed that most people do not know their numbers. These same people spend too much money to run their business. This means they are not profitable.
I have a few stories to tell you and I won't take much of your time because your time is worth a lot! The first one is about a little boy who desperately wanted time with his Daddy. The second is about a Daddy who desperately wanted time with his little boy. This second story lead to the creation of a metric I've used in my business for a decade. It's called the Work Day Value (WDV). What are you earning for a day away from your family? Or what are you earning per hour working away from your family nights and weekends as a side hustle. It's okay to make $25 - $30 per hour as a beginner with a plan to grow. But if your still there after a year, you're losing time that you'll never get back. What is your work day value? What is your time worth because you are trading it for time with your little boy. Some of you will feel that question more than others.
J. Paul Getty was the wealthiest person in the world for 3 decades from the 1950's to the 1970's! His list of accomplishments are mind-blowing. At the end of his life, it's estimated that his net worth would be worth $27 billion is today's dollars. He was very wealthy. I heard this quote when I was a new business owner in the Amway business in 2002 and it has stuck with me for 20 years.
“I'd rather have 1% of the effort of 100 men than 100% of my own effort.” - J. Paul Getty
I recently revealed the "The 4 ISO Model Fundamentals " as Financial, Strategic, Mindset, and People. It doesn't matter whether you own a solo cleaning business or a catering company. If you want to grow your company to create the life you've dreamed of, you'll need to master these fundamentals. I am not a caterer... obviously. I can't coach caterers. I can't coach photographers or digital agencies or doctors. I'm a 16-year solo cleaner that has optimized 2 solo cleaning companies to over $50,000 profit per year on 2 cleaning days per week without employees, subs, or drama. I've successfully sold one solo cleaning business for $80,000 and I've successfully scaled another solo cleaning business to allow my family to go to Florida for the month of February the past two years. I have mastered these 4 fundamentals for winning with a solo cleaning business and therefore, I am highly qualified to be your coach if you're looking to master your solo cleaning company.
I was having a pre-driving talk with my 15-year-old son and shared my example when I was 16. I wanted to drive a car, but my mom couldn't put me on her policy. I bought my car for $1,300. Then my monthly expenses of car insurance, maintenance, and gas cost a ton. I needed this car to get to my job at the mall, but really I wanted the car to look cool driving to high school. I felt like I was treading water and not going anywhere. Why? I was going to school all day and then working at night. My weekly paycheck after taxes was just enough to pay my car expenses. I was in an ironic situation where I was working just to drive and driving just to go to work. I could have quit the job and hitched a ride to school from my neighbor and spent my time doing something I wanted to do. It took me a few years until I learned how to earn more income with the jobs I took. I was no longer working to drive as I had extra. Thank goodness or I would not have been able to afford taking my girlfriend Teresa anywhere. I could and won her over. I told Kenny. "And now she's your mom."
You MUST know your numbers to survive and thrive in your solo cleaning company. Numbers Matter. I was asked WHY in a recent Solo Elite Membership Call. After answering the question, I realized that I needed to start a new MEGA-series on all-things-numbers.
In a recent Solo Elite Membership Call, the conversation focused on commercial cleaning. I made one statement about the price per hour decreasing with increasing building size. This does not compute to the Solo Optimizer’s mindset. Why would you charge less as it gets bigger? You would lose a lot of profit.
This episode is a follow up to "The Messy Middle" There was a place in between your initial goal to start your cleaning business and the place that you defined as success where things got messy. It got really hard to stay motivated. You weren't sure if you made the right decision. Your doubts and fears and condemnation crept in to try to steal your dream. This is the messy middle. I shared this truth about setting big goals and starting something new. "It always gets messier after you start!" I want to turn your attention to another destructive habit that can steal your dream. It's called anger. This will not apply to many of you, but for the ones that it does, please listen. I have personally listened to a lot of podcasts and many on cleaning and entrepreneurship. I have never heard one on anger
In my "January 2022 Freedom Update with Coach Josh", I inferred that we qualified for the trip to Florida that we booked after "A New Freedom Vision". I had just onboarded my fifth and final cleaner to cover our tenth and final building. The other 4 C3 Team Members were all doing well and Florida was inevitable. We had fought hard for several months and especially over the past 60 days to make this dream a reality. However, there was still 10 days to go...
I was listening to the Tim Ferriss Podcast recently as he interviewed the one and only Seth Godin. Between comments, Tim uttered the metaphor of the duck does all of its work under the surface. I literally had to pause the episode and write out this one! In my last episode, Mission 20/20 Accomplished, I painted a picture of team cleaning companies growing through insurmountable odds and I shared my success in 2020. I don't want anyone to think that we had it easy or growing our cleaning businesses come easy to us. Let's learn from the duck and then come back with the goal of encouraging you and giving you truth
When I was 13, I got a job with the Movie Exchange. It was the company owned bye buy step-grandparents Monty and Shelly Tibbitts, whom I've talked about in prior episodes. They were the only entrepreneurs in my teen years, but I never had the courage to ask them real questions on business mindset. I wish that I had! However, I did learn a ton from them by watching the way the they lived and the way others treated them. First of all, they had money! There were always two Jags in the driveway. They owned a private plane, a boat, a beach house, wave runners. Secondly, they had beautiful decor and they entertained first rate. Check out "Eat with your Eyes First". The Tibbitts' were all about serving and mingling family with business. They made their business deals and built relationships with employees and their families at the dinner table in their home. Their imprint is definitely on me as an adult entrepreneur. I just didn't recognize it until Pop-Pop Monty passed away a few years ago.
|
Podcast"Helping cleaning professionals make the impact they were meant to make." Categories
All
Archives
November 2024
|