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Entrepreneurship:  Anyone in business for themselves? How to start...  |
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KYgurlsrbest
True Blue Farmgirl
4853 Posts
Jonni
Elsmere
Kentucky
USA
4853 Posts |
 Posted - Oct 02 2007 : 1:41:05 PM
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I told my mom I would propose this question to the "forum", so I hope someone can help me (help her)....any advice is appreciated.
I was talking with my mother a few days ago, about her desire to quit retail and start a cleaning business with her friend--she cleans for people on her day off and is WAY too reasonable, charging $25.00 for 2-3 hours worth of cleaning--deep, crazy cleaning that most agencies DON'T do. She has the "cleaning" type of OCD and can't leave well enough alone :)
For 20 years, my mom worked for a surgeon, who had to retire due to illness and she picked up a retail job as a "make-do" and has now been stuck there full time for 11 years. While it's pretty good money (she's a supervisor and is paid the highest tier), and the benefits are good, the hours are crappy (i.e retail) and she is dreading another holiday season of hateful people. Actually, she said the thought of it makes her physically ill.
I have concerns for her, mainly from a business perspective. How does one get clientelle? She wouldn't even have enough employees to qualify for a small business healthy insurance policy, individual policies are outrageous (especially at 59). What type of money is she going to need to start this business? What about liability insurance?
She simply wants to quit retail and clean businesses, houses and condos for a living, and make good money doing it. I know that she can and there is definitely a market for it around here (we live in the fastet growing county in the state, as well as a suburb of Cincinnati, Ohio), but isnt' there a lot of other "stuff" that goes into it, or am I just being super overly cautious?????
I guess I must have scared her with my questions, because she hasn't mentioned it much, and when she does, she says she's "afraid"...
"She was built like a watch, a study in balance ... with a neck and head so refined, like a drawing by DaVinci"...
NY Newsday sportswriter Bill Nack describing filly, Ruffian. |
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paradiseplantation
True Blue Farmgirl
1277 Posts
julie
social springs community
Louisiana
USA
1277 Posts |
Posted - Oct 02 2007 : 2:37:49 PM
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I can't be of much help, but I do know that if she goes into a full-fledge business, she'll need to check with her insurance agent about being bonded. And, I'm not sure about those rates, but I do know that here the going rate is $50 for approximately an hour's worth of work, which includes dusting, vacuuming, cleaning bathrooms, making beds (stripping & changing sheets but not washing, drying and folding them), basic kitchen cleaning. In other words, just your basic housecleaning. DEEP cleaning can run anywhere from $150+. She'll have to figure out how much she wants to do and how many houses she wants to do in a day / week. I wish her luck. Let us know what she decides!
from the hearts of paradise... |
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kitchensqueen
True Blue Farmgirl
521 Posts
521 Posts |
Posted - Oct 02 2007 : 7:01:24 PM
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Most cities and counties have small business organizations, and women-owned organizations (I'm sure you have one in nearby Cincinnati). The best thing she can probably do is get in touch with them. She could attend some seminars and get one-on-one mentoring on how to realize her ambitions. Check out the library too-- there are some basic how-to-start-business guides out there that she could check out to get an idea of how to draw up a basic plan for what she wants to do.
http://apartmentfarm.wordpress.com
http://shadetreestudios.etsy.com
New Rt 66 blog: http://historyinthemaking.wordpress.com |
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KYgurlsrbest
True Blue Farmgirl
4853 Posts
Jonni
Elsmere
Kentucky
USA
4853 Posts |
Posted - Oct 03 2007 : 08:54:53 AM
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Good ideas. I know that she could be successful, but she just needs to figure out to start up. I work for an attorney who can take care of the business issues, but it's the bonding, etc...that I'll have to look into for her. I do worry about her healthcare...
I think she could ideally charge $35.00 per hour, to include her mileage and her products. I mean, I pay my petsitter $25.00 + a stipend for gas mileage which equals about $27.00 an hour, so why shouldn't she charge for products/mileage, etc.., if she's up front about it in the contract. Which brings me to another thing--I think she should have a contract--that way, what she DOES and what she DOESN'T do is spelled out, and her pricing as well.
Ugh. Sounds like a lot of work to me, I hope she's up for it!
Thanks for your help and suggestions.
J
"She was built like a watch, a study in balance ... with a neck and head so refined, like a drawing by DaVinci"...
NY Newsday sportswriter Bill Nack describing filly, Ruffian. |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Oct 05 2007 : 09:58:53 AM
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We have a hard time with clientelle sometimes as well. We run an ad in the paper from time to time. If there are businesses that have shift work where people are working crazy hours, she might put advertisements on a bulletin board in the break room, offering referral coupons is a great idea too. Like "for every 3 people you refer that become a client, you get $10 off your bill"(or whatever)
Liability insurance is a great idea. Although it can be expensive. We have a million dollar policy and it's about $150 a month.
Although our Painting business does not compare to cleaning, we have found one thing that works for making top dollar. Stick to your guns. If she knows she's "OCD cleaning" and doing a fantastic job, then she should charge top dollar. If that's $17 dollars an hour, then that's the price, and when someone knows they are worth something and hold their head high, customers are less likely to try to bargain. She has to keep in mind her expenses as well. At $17/hr... If she spends $12 in gas/vehicle expense(includes oil/tires to get to the job, and is there for 3 hours, then she's only making $41 dollars, then out of the $39 comes $6.15 for taxes, so now she;s down to $32.85 profit for 3 hours. If insurance/bond is taken into consideration then that's just a bit more off the top. When customers see that you charge top dollar for being a legitimate buisness they are more likely to accept your price. <<<that was just an extimate for the hourly rate
In this area some people clean by full and half days. She could do a half day for $75 for 4 hours, take an hour lunch and do another half day for $75. $150 a day is good then subtract the figures above, and she'd come out with more profit. Then she could also offer a full day at one residence for $140, and it's only 10 dollars less, with one less trip.
I like the idea of a contract too. We always use contracts!!!
Cristine |
Edited by - MsCwick on Oct 05 2007 10:05:15 AM |
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DaisyFarm
True Blue Farmgirl
1646 Posts
Diane
Victoria
BC
Canada
1646 Posts |
Posted - Oct 05 2007 : 10:55:43 AM
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The laws in the US and Canada differ in many ways, but I would certainly look into bonding and liability insurance before proceeding further. I would think they would be her highest starting-out expenses.
Here, it seems the way to get ahead is to find someone to sue. I carry $2M liability insurance here for my farm. The things people can sue for nowadays is just crazy.
With many two parent working families, housecleaners have more work than they can handle here. I sure wish I could afford one somedays..haha.
Diane
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goneriding
True Blue Farmgirl
1599 Posts
Winona
Central Oregon
USA
1599 Posts |
Posted - Oct 06 2007 : 12:39:53 PM
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I think she should charge the higher fees. I just heard on the radio yesterday that people are getting tired of cheap everything and now are coming back to wanting service AND are willing to pay for it. So that should help your mom quite a bit.
Winona ;-)
Don't sweat the small stuff...
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LeslieAnne
True Blue Farmgirl
71 Posts
LeslieAnne
Shallowater
Texas
USA
71 Posts |
Posted - Oct 13 2007 : 12:28:07 PM
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Make sure she wants to go into business with a friend. Just because somebody is a good friend doesn't always mean they'd be a good business partner.
LeslieAnne...westTexas |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Oct 15 2007 : 4:33:46 PM
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| Never mix business and friendship. Unless it's all written up by a lawyer. Money can be very evil. |
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KYgurlsrbest
True Blue Farmgirl
4853 Posts
Jonni
Elsmere
Kentucky
USA
4853 Posts |
Posted - Oct 16 2007 : 10:20:46 AM
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I tend to agree with you all about the friendship/business thing. Especially in light of what my mom has mentioned lately--this gal, who also works with her, just wants to up and quit her job and take out her 401K as investment in the cleaning business. She's 55, and in somewhat questionable health (what if she dies and there is question about the business ownership?) She apparently has her own "angel and devil" on her shoulders to listen to--the devil recently told her that they clean for 3 large clients a week, and don't report any of their income, because they work part time at a regular business...that sounds like a good idea, to me  I mean, seriously, you're making $1500 a month, and you don't report it? Also, they don't worry about any insurance or liability coverage--they're also not bonded, and they still get the work, so everything I'm talking with my mother about is "overboard" as this little devil called it. She said I was a stick in the mud!
My mom is a widow, with no income to waste or gamble. Like I said, I don't want her to stifle a dream of independent business, but I would like to see her go about it the right way.
I just feel like this friend of hers is thinking about herself, and not having a business or a business partner. Her adult children are always in debt, and she pays all their bills to avoid disconnection--what would stop her from dipping into $$$$ that was supposed to go back into the business to help them out? She appears impulsive (like being $280K in loan/credit card debt, buying a brand new house and replacing the kitchen cabinets with custom cabinets 3 months after moving in). I just think my mom should do it on her own, if she's going to!
"She was built like a watch, a study in balance ... with a neck and head so refined, like a drawing by DaVinci"...
NY Newsday sportswriter Bill Nack describing filly, Ruffian. |
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Forrester Farm
True Blue Farmgirl
703 Posts
Ann
Belmont
MI
USA
703 Posts |
Posted - Oct 16 2007 : 10:35:22 AM
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It sounds as though your mom already has a customer base to begin with if she is already cleaning for people. Really, to ask herself if going into business with a friend will enhance what she offers or just add additional concerns. I recently spoke with a talented friend about combining our floral experience. Though I think that we will do something together in the future, my current activity level (though very busy) doesn't warrant a partner to share the income with!
When I first began my Forrester Farm business, I went thru an organization called G.R.O.W. (www.growbusiness.org). Perhaps there is something similar local to you which would help your mom make some solid decisions.
What a great daughter you are to help her out like this too!!! Aren't families great?
Ann Forrester
http://annforrester.tohe.com
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KATHY ROZEN
Farmgirl at Heart
3 Posts
Kathy
Denver
Colorado
USA
3 Posts |
Posted - Oct 22 2007 : 08:35:49 AM
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Hello,
I wanted to repond to your Mom's issue of starting a business. When I started having the entrepreneur desire, I went to the library and read every book I could find on small business. It really gave me clarity. There is also the SBA - SMall Business Association - in your state. They will answer your questions for free.
It is never good to underprice your items or service. Stay with industry standard prices. Call around and inquire the priceing of the businesses in the area you are going to seek business. Staying within the industry prices (not lowering your prices to get business) supports the industry that your chooseing to be in. Of course you want to have fees that the market can bare. Of course your service needs to be very good as well.
I have been a certified massage therapist for 16 years. The year after 9/11 business was horrible. AS it was for everyone. I have cleaned houses for some of my massage clients for extra money. I put and add in a small local paper at that time after 9/11. I recieved 4 or 5 calls a day for house cleaning.
ONe thing I have realized over the years of being self employed, especially in a service business, the best clientelle are those with money. I have said this before on this forum, my clients are very affluant and I am so grateful for them. They can afford my services.
Let's face it, it probably won't be those of us wanting or striving to live off the grid or on meager means that will spend the money for our product or service. Look out side the "box".
Best of luck,
Kathy |
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Giraffe4223
Farmgirl in Training
24 Posts
Dani
Esko
MN
USA
24 Posts |
Posted - Oct 22 2007 : 08:41:58 AM
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At the place where I work, we are a small business with 5 employess including the owner, we pay our cleaning lady $37.00 for about a hour of work. She comes and cleans once a week and does the floors, bathroom, and office area. Sometimes that it all she does, other times she will do the windows and gets more "deep" cleaning done. She only lives about 10 miles from our office as well.
Hope this helps!
Dani |
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KATHY ROZEN
Farmgirl at Heart
3 Posts
Kathy
Denver
Colorado
USA
3 Posts |
Posted - Oct 22 2007 : 08:45:24 AM
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| I only want to seek services or companies that work legally and within the law. Not having all the apporpriate licensing and bonding is a very unprofessional action. Cleaning does not require any real type of overhead. If your going to be in business or of service to others do it with the greatest of professionalism and you'll get the greatest clientelle. Being shady about your business will bring you a shady clientelle. |
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bohemiangel
True Blue Farmgirl
2087 Posts
Bridget
Ligonier
pa
USA
2087 Posts |
Posted - Dec 05 2007 : 08:40:30 AM
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I've been thinking of the same thing....I picked up a lil side job for a small house. But I'm slightly OCD when it comes to cleaning (you wouldn't know in my house cause of clutter) but like I catch everything and clean it. One question I try to use natural or less harsh cleaning agents. I was concerned for her. Our cleaning lady (yes we have one) would clean the toilet and I yelled (not really) and said open the window geez. But the chemicals freak me out!
**~~Farmgirl Sister #60~~**
"... to thine ownself be true." |
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Entrepreneurship: Anyone in business for themselves? How to start... |
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Anyone in business for themselves? How to start...
