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.
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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.
I used to get nasty poison ivy as a kid. It would bubble up and itch like crazy. The worst case I ever got was on my face. My eyes were puffed nearly shut in the heat and humidity of July. It was torture. Thankfully, the doctor gave me a steroid to help heal it. You get the point. Now my son gets it bad. Last summer, he attended a survival action camp for Royal Rangers and in that camp learned something amazing. Jewelweed is a natural remedy for the poison ivy infection. The best part is that God placed the Jewelweed next to the Poison Ivy! The cure was with the poison. This is amazing and frustrating at the same time, as I never knew this and had to endure harsh Poison Ivy every summer.
I've been in the cleaning business for 17 years. I was a solo cleaner for 15 of those 17 years. As I was first exploring the cleaning groups in 2016, I got the impression that solo was viewed as "so low". We are just trunk slammers that buy our cleaning supplies at Walmart and advertise our services on the laundry mat tack board. We are amateurs without any real knowledge of how to run a business. In fact, we aren't real businesses at all. We have cleaning jobs and yet we say that we own a company. A solo cleaner is thus a lowly title to many. If this is you, you're not alone. There are over 50,000 new cleaning companies entering the industry each year right now. In all likelihood, probably 40,000 or 80% are new solos. There are definitely companies that start with the intention to build teams from the onset as well. My point is that we are an army and for the most part feel like we're alone and the minority. We really feel like we're below the other companies. We are SO LOW cleaners. Do you relate? I know you do because I surveyed over 100 solo cleaners in 2019. I found the top struggles then to be #1 lack of money & time, #2 lonliness, and #3 feeling so low.
Throughout my life and career, I have often wondered what causes some to emerge victorious no matter the scenario. It's easy to win when the conditions for winning are easy. In contrast, it's easy to quit when the conditions to quit are easy. What is the ingredient in the human character that causes someone to win when the conditions to quit are easy? What causes someone to persevere when it makes no sense? What causes a man or woman to strive a little longer when every adversity is against them? The answer is a key to success that few possess. It's called grit.
There are thousands of solo cleaners in the free cleaning groups. They all want to grow. Yet, many are not succeeding. Why is that? I believe it comes down to one word: Mindset. Too many are looking for the easy way or the short-term fix. But that's not how the successful, succeed. What does it take? I'm glad I asked!
In this part 5 episode, I sum up the cost and value concepts with an excerpt from the Solo Elite Membership. It's a clip from a membership call that allows you understand the mindset needed to price effectively.
I want to invite you to join the Solo Elite Membership. What is it? It's the only system for solo cleaners to optimize your solo cleaning business to earn six figures without the drama of employees! Or if you want to earn full time income through part time cleaning without employees. Get access to this game-changing training for only $97 per month or $997 per year in the Solo Elite Membership at smartcleaningschool.com. Members get access to the full ISO Model Course to optimize your solo business, live Q&A community calls, access to the Solo Elite Community, bonus podcast content, access to private coaching and more!
The first lesson of Blueberry Pie covers the 3 types of Buyers:
I was talking with Robert Pierce from my Solo Cleaning School Elite Membership. He's doing amazing. Robert works as a manager at Target and it's been in retail for 25 years. He found me on the Side Hustle Nation Podcast and decided to start a solo cleaning business. Robert understood the value of investing into his new business as he wanted to shortcut years of trying to figure it out himself. He joined the Elite Membership and has subsequently built his solo cleaning business in 6 months to a lean, professional, and profitable company. I was so impressed talking to him as he shared how close he is to achieving his goal and dream of getting out of retail! I was so excited to hear this. We talked about his plan and how many clients and profit he needs to hit this goal.
There are thousands of questions asked every day across the cleaning communities worldwide. I can say experientially that the two most frequently asked questions deal with how to clean and pricing. This is no surprise as both of these questions are asked by newer people and the answers come with actual experience in cleaning and making pricing mistakes over time. I didn't have social media communities to ask. I had to learn the hard way through trial and error. It's my firm belief that social media handicaps newer cleaning owners into relying on other people too much. I would prefer if the groups functioned this way.
I shared this exact post in a free Facebook cleaning group and thought it valuable enough to include on the podcast. Here's the post.
I'm new to this group but not to cleaning. I love this industry and helping newbies. I see pricing posts all the time and wanted to share some insights that I just shared with another member on her private question. The question goes something like this... "Is this price too high, too low? "People are so cheap. How do I get them to value what I do as a professional cleaner?" Here's my response that will help you overcome these pricing objections. It's not your price. It's your process. When people ask for price first and quibble over price first, one of two things is happening psychologically.
In early 2020, I was a brand new podcaster and member of my local chamber of commerce. My solo cleaning business was not making us much money and the pandemic was mere weeks away. That all changed with one breakfast with Ken Byler when he taught me the mindset to "Get a Name for Doing". I highly recommend listening to this original 2020 podcast to get a sense of where I was mentally at this point.
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