WHAT ABOUT THE BANKER?

In our last session we discussed where we fit in the BSC industry. You may recall that if you have a 100 employees or so you are in the upper 2% of the industry in volume. 

That makes one feel really good but the group of BSCs that have around 100 employees or less, is also the group that usually has the most difficulty growing to the next stage and the major reason is a shortage of cash and credit. 

What about you? Do you have a relationship with a bank that would allow you to add 50% or 75% to your volume. Here are some helpful hints that just might allow you to grow without cash restrictions. Space is somewhat limited but we will highlight here the main points.

1. Establish a relationship before you need to borrow--When you choose you bank, borrow a small amount, for say 90 days, and then pay it back in 60 days. Then borrow more and pay it back before the maturity date. In this way when you go to ask for some serious money, you have a track record they can look at. Since the issues of the 2008 and 09 recession, banks are under stricter guidelines than in the past so start that relationship as soon as possible.

2. Meet with your bank regularly--Let me suggest you treat you banker just as you would a key client. It can be argued that the bank is just as critical to continued success as additional clients. You may just need the bank to get additional clients. I met monthly with my banker and that relationship led to him loaning me money when I wouldn't have loaned me money, but we had established an open relationship and we did what we said we would do.

3. Provide the bank with professionally prepared current financial statements. They like to have some background on your performance when you go to get that serious money. I recommend at least quarterly, I did it monthly. Please note, I said professionally prepared, not a bunch of number scribbled on a napkin.

4. Keep the banker informed---Chances are that at sometime during the life of your business, cash flow is not going to go as planned (how about right now?). When that occurs, meet with the banker and tell him or her the situation before it becomes painfully apparent. Believe me, I had that opportunity on several occasions during the nearly 35 years I owned and managed my own company. 
Present a payment plan, in writing, that makes sense. They are more prone to work with you when they see you are working diligently to "get back on track". Remember, always PRESENT THEM WITH FACTS, NOT THINKS. If you aren't being realistic they will find it out soon enough. 

Now before we put the bank on too high of a throne, it is important to remember that they make their profit by loaning us money. They need our business just as we need their help. They rent their money and we want to rent some from time to time. 

How about it? Do you have a relationship with your banker that if you secured that big account you are chasing, you could call and have the money deposited in your account? If not, might want to consider starting now. 

Just a reminder, we are here to help you in growing the sales, infrastructure and profits in your business as well as discussing a plan for your banking relationship. Check us out at www.consultantsincleaning.com.

 Till next time.

WHERE DO YOU FIT?

I recently was given a 2014 report from the US economic census that provided some really interesting statistics on the BSC industry. While I was aware of much of the information, I was again taken back by some of the numbers. For instance, DID YOU KNOW? 

---There are 54,663 cleaning companies in the United States.

---Over 75% of the companies have under 10 employees, 60% have less than 5 employees.

---Only 1,297 firms have over 100 employees.

---46% of the entire industry is controlled by 294 firms.

---Our industry employs right at 1 million employees.

Think about those numbers. Where do you fall? If you employ 100 0r more people you are in the upper 2% of the companies in size in the United States. 

In most areas the largest accounts are generally serviced by a large regional or national BSCs. They like to focus on those large accounts to make it "cost effective" to operate. Think of all the business that leaves for the rest of us. The reality of business is that there are thousands of more smaller prospects than larger ones in the marketplace. 

I had firsthand experience dealing with this issue. In one of the large metropolitan areas where I operated (Phoenix), I had two well known national competitors. Well, let me clarify that. I saw them as competitors, they saw me as just a guy to be nice too. One of the companies had a policy not to service any account under $20,000 per month and the other one had a lower threshold of $10,000 per month. 

 Do you know how many $8,000 and $9,000 a month potential customers there were (are) in the Phoenix market? I didn't know either because there were so many I didn't get to all of them. I enjoyed advertising that we were the company that could service them because the well known name brand companies didn't take anything that "small". We were able to secure several very nice, profitable $8,000 per month accounts. My competitors did me a huge favor. 

So, where do you fit? Let me suggest you find your slot, develop a sales strategy and "go for it". As usual, Consultants In Cleaning, LLC stands ready to help in any way we can. We offer a personal service as well as a myriad of training materials on a variety of subjects. The clients that work with us on a personal weekly or every other week basis are enjoying nice double digit sales increases AND profit increases. Just click www.consultantsincleaning.com, then click the "ask a question" icon and we'll get back with you promptly. Also, while you are on the site, check out all of the training material available. By the way, VERY SOON we will be announcing a new training package that will be a great addition to your training library. Watch this space as well as our weekly Kleancast at www.kleancast.com.

More details to follow soon.  HAPPY NEW YEAR. Till next time.

THE CHINESE BAMBOO TREE

By now probably everyone has heard of the Chinese bamboo tree and how you take a small seed, plant it, water it, and fertilize it for a whole year and nothing happens.

The second year you water it and fertilize it and nothing happens.

The third and fourth year you water and fertilize it and still nothing happens. Discouraged yet?

The fifth year you continue to water and fertilize the seed and then----sometime during the fifth year, the Chinese bamboo tree sprouts and GROWS 90 FEET IN SIX WEEKS. 

So it is with our businesses. We need to continue to water and fertilize our efforts and yes, become discouraged, but if we are consistent in our efforts and do not let up, we do reap the rewards.

In our business of Building Service Contracting it is a fact that many times a suspect will not even talk face to face with us until the sixth or seventh contact of some sort. If you have a system of making some sort of contact with them every 3 months, it can be a year and a half to two years until the fruits of your labor gets you the opportunity to extol the virtues of your company. That can be discouraging, but remember the story of the Chinese bamboo tree.

Maybe we can help get you in the door faster. Through our training materials, webinars, books and personal guidance we can assist you in getting in front of that suspect (prospect) quicker than you might otherwise be able to. 

Check our our Selling Contract Cleaning Services book as well as our numerous sales training DVDs at www.consultantsincleaning.com, or give us a call at 573.374.1111 and talk with us about personal assistance. Our clients enjoy outstanding sales and profit growth when working with us on a personal level. 

Here's to a successful 2017 and continuation of watering and fertilizing your business for future rewards. Call us, we'd love to help.