Breaking Down How To Achieve A 20% Profit Margin

Join the FREE Home Cleaning Courses. Click Here   1. Understanding the Importance of Mistakes 12:49   Avoiding mistakes keeps you broke and uninformed. Action Steps: Embrace mistakes as learning opportunities. Take action even if it feels uncomfortable. Reflect on mistakes to identify areas for improvement.   2. The Role of Cleaners in Business Growth 28:02   No cleaners, no growth. Action Steps: Always recruit new cleaners to scale your business. Understand the math: More cleaners lead to more revenue. Prioritize hiring and training to ensure quality service.   3. Consistency is Key 37:07 Do what you say you're going to do, every time. Action Steps: Establish clear standards for service delivery. Ensure all team members understand and adhere to these standards. Conduct regular training and meetings to reinforce expectations.   4. Prioritizing Cleaners Over Clients 46:29   Your cleaners make you more money than your clients. Action Steps: Focus on retaining and supporting your cleaners. Understand that happy cleaners lead to satisfied clients. Allocate resources to cleaner retention strategies.   5. Skills Over Money 50:08   You don't need money or experience to succeed. Action Steps: Invest in skill acquisition rather than monetary resources. Encourage team members to learn and grow through experience. Foster a culture of continuous improvement and learning. Cautionary Notes Be prepared for challenges: Expect mistakes and setbacks as part of the learning process. Avoid complacency: Regularly review and update your practices to ensure they remain effective. Tips for Efficiency Document processes: Keep detailed records of cleaning procedures and client interactions. Use checklists: Implement checklists for cleaners to ensure consistency and thoroughness. Regular feedback: Encourage open communication and feedback among team members to identify areas for improvement.

Join the FREE Home Cleaning Courses. Click Here Introduction to Profit Margins 5:03   Understand the importance of achieving a 20% profit margin for business sustainability. Recognize that profit margins are targets for businesses generating over $60,000 a month.   Step 1: Establish Revenue Goals 6:05   Focus on reaching a minimum revenue of $60,000 per month. Prioritize growth and reinvest profits until reaching this threshold.   Step 2: Understand Cost of Goods Sold (COGS) 14:40   Allocate 55% of revenue to COGS, which includes: Cleaner wages Payroll taxes Supplies and uniforms Recognize that COGS is a necessary expense that directly correlates with revenue generation.   Step 3: Manage Office Staff Expenses 26:07   Limit office staff wages to 12% of revenue. Invest in coaching and training before hiring additional staff to ensure efficiency.   Step 4: Allocate Marketing Expenses 34:05   Set aside 6% of revenue for marketing efforts aimed at acquiring new clients and cleaners. Adjust marketing spend based on business needs and revenue growth.   Step 5: Control Other Office Expenses 39:59   Keep other office expenses, including utilities and software, to 7% of revenue. Be flexible in reallocating funds based on operational needs.   Final Calculation of Profit Margin 40:04   After accounting for all expenses, ensure that the remaining revenue equals 20% profit margin. Regularly review profit margins quarterly to account for variations in expenses. Cautionary Notes Ensure that all financial records are accurately maintained using accounting software like QuickBooks. Avoid common pitfalls such as misclassifying expenses that cannot be deducted, including: Federal and state income taxes Self-employment taxes Tax penalties and interest Credit card payments Down payments for real estate Distributions from the business. Tips for Efficiency Regularly review and adjust your budget to reflect changes in revenue and expenses. Invest in training and coaching to improve operational efficiency before hiring additional staff. Monitor your profit margins quarterly to identify trends and make necessary adjustments.

Join the FREE Home Cleaning Courses. Click Here   Introduction to Business Growth Levels 1:12   Understand the importance of changing as a business owner to facilitate business growth. Recognize that achieving $100,000/month requires specific skills and sacrifices.   Level 1: Zero to $10,000 15:16   You are the sole operator: cleaner, trainer, HR, marketer, and salesperson. Focus on learning essential skills: cleaning, marketing, sales, bookkeeping, and using technology. Aim to hire cleaners to duplicate your efforts in the field.   Level 2: $10,000 to $20,000 21:00   You are still cleaning and managing the team. Build systems for hiring and onboarding cleaners. Hire a Virtual Assistant (VA) to handle day-to-day tasks.   Level 3: $20,000 to $40,000 38:05   Focus on creating a reliable system for acquiring new leads and converting them into clients. Hire intentionally to build a culture of empowered cleaners. Track data and ensure consistent client experiences.   Level 4: $40,000 to $60,000 49:12   You are busy managing the team and booking new clients. Reinforce team standards and provide feedback regularly. Start optimizing schedules and potentially increase prices.   Level 5: $60,000 to $80,000 52:25   Teach your team to replicate your successful processes. Ensure that your team can produce results independently. Focus on leadership and coaching.   Level 6: $80,000 to $100,000 54:10   Transition from doer to coach, empowering your team. Manage office staff and a larger team of cleaners. Focus on duplicating successful systems for continued growth. Cautionary Notes Understand that growth requires time and effort; do not expect immediate results. Be prepared for challenges and setbacks at each level; they are part of the learning process. Tips for Efficiency Regularly review and refine your systems to ensure they are effective. Invest in training and development for yourself and your team to enhance skills. Maintain open communication with your team to foster a positive work environment.

Join the FREE Home Cleaning Courses. Click Here   1. Introduction to the Concept of Mondays 0:01   Discussion on the perception of Mondays as a negative day. Common phrases people use to fill the silence about Mondays. The irony of dreading Mondays after enjoying weekends.   2. Shifting Mindset About Weekends and Work 1:32   The idea of maintaining a routine over the weekend to avoid Monday anxiety. Importance of keeping momentum in business by working on weekends.   3. The Origin of Decadent Days 3:34   Explanation of decadent days as one-day consulting events. Structure of decadent days: dinner, problem-solving sessions, and follow-up.   4. Transition from Decadent Days to Community Building 5:17   Realization that clients needed more than one-day consulting. Development of a community with modules and group coaching.   5. Introduction to Group Decadent Days 5:44   Shift from one-on-one to group decadent days. Focus on community and teaching frameworks.   6. The Purpose of Group Decadent Days 6:26   Addressing the problem of managing money after making it. Importance of understanding how to keep and grow money.   7. Recap of Previous Calls and Learning 7:30   Reference to last week's call about measuring business success. Encouragement to watch the replay for those who missed it.   8. Highlighting Success Stories in the Community 9:25   Introduction of Julia as a successful member of the community. Discussion of her rapid success in building a cleaning business.   9. The Importance of Following Proven Strategies 11:02   Julia's success attributed to following guidance and overcoming resistance.   10. Skills vs. Natural Talent 12:04   Emphasis on the importance of developing skills rather than relying on perceived natural talent.   11. The Difference Between 93% and 7% of Businesses 12:55   Discussion on the mindset differences between those who succeed and those who don't.   12. The Role of Sacrifice in Success 49:01   Importance of prioritizing business over comfort and temporary pleasures.   13. Conclusion and Call to Action 53:09   Encouragement to create impactful stories through business success. Reminder to watch the replay for further insights.

Join the FREE Home Cleaning Courses. Click Here Introduction to Business Growth 0:34   Welcome to the business growth journey. This SOP is based on over 80 weeks of experience in building a successful cleaning business.   Understanding the Business Journey 1:00   Document the journey of starting and growing the business. Recognize the importance of learning and adapting from initial failures.   Setting Clear Goals 2:13   Establish clear revenue goals (e.g., $40,000 to $100,000 monthly). Understand that growth requires continuous learning and adaptation.   Hiring and Delegation 4:08   Hire office staff to manage operations effectively. Transition responsibilities to trained staff to allow owners to focus on growth.   Measuring Business Success 5:04   Identify key metrics for measuring success (e.g., monthly revenue, client acquisition). Set milestones for growth (e.g., $70,000 to $80,000 monthly revenue).   Understanding Your Avatar 8:08   Define your target audience (home cleaning business owners). Ensure that your strategies align with the needs of your target market.   Desire for Growth 9:21   Assess the desire to build a scalable business. Focus on acquiring skills rather than just earning money.   Engagement and Interaction 11:08 Encourage team members to ask questions and engage in discussions. Use feedback to improve processes and strategies.   Utilizing Resources 12:10   Access available resources (PDFs, videos) for further learning. Implement strategies discussed in training sessions.   Continuous Improvement 14:20   Recognize that success requires ongoing learning and adaptation. Set new goals as milestones are achieved.   Financial Planning 15:31   Develop a financial plan to manage profits effectively. Aim for financial freedom through strategic investments.   Measuring Revenue and Profit 20:51   Track lifetime revenue and set benchmarks for growth. Aim for specific daily, weekly, and monthly revenue targets.   Speed of Execution 25:43   Emphasize the importance of quick decision-making. Encourage team members to act swiftly on opportunities.   Final Thoughts and Accountability 56:27   Foster a culture of accountability and speed. Celebrate milestones and encourage continuous improvement. Cautionary Notes Ensure that all team members understand the importance of each step in the process. Avoid overcomplicating systems; focus on simplicity and clarity. Tips for Efficiency Regularly review and update the SOP based on team feedback and business performance. Utilize available resources and training materials to enhance understanding and execution of strategies.

Join the FREE Home Cleaning Courses. Click Here Introduction to Profit Margins 5:03   Understand the importance of achieving a 20% profit margin for business sustainability. Recognize that profit margins are targets for businesses generating over $60,000 a month.   Step 1: Establish Revenue Goals 6:05   Focus on reaching a minimum revenue of $60,000 per month. Prioritize growth and reinvest profits until reaching this threshold.   Step 2: Understand Cost of Goods Sold (COGS) 14:40   Allocate 55% of revenue to COGS, which includes: Cleaner wages Payroll taxes Supplies and uniforms Recognize that COGS is a necessary expense that directly correlates with revenue generation.   Step 3: Manage Office Staff Expenses 26:07   Limit office staff wages to 12% of revenue. Invest in coaching and training before hiring additional staff to ensure efficiency.   Step 4: Allocate Marketing Expenses 34:05   Set aside 6% of revenue for marketing efforts aimed at acquiring new clients and cleaners. Adjust marketing spend based on business needs and revenue growth.   Step 5: Control Other Office Expenses 39:59   Keep other office expenses, including utilities and software, to 7% of revenue. Be flexible in reallocating funds based on operational needs.   Final Calculation of Profit Margin 40:04   After accounting for all expenses, ensure that the remaining revenue equals 20% profit margin. Regularly review profit margins quarterly to account for variations in expenses. Cautionary Notes Ensure that all financial records are accurately maintained using accounting software like QuickBooks. Avoid common pitfalls such as misclassifying expenses that cannot be deducted, including: Federal and state income taxes Self-employment taxes Tax penalties and interest Credit card payments Down payments for real estate Distributions from the business. Tips for Efficiency Regularly review and adjust your budget to reflect changes in revenue and expenses. Invest in training and coaching to improve operational efficiency before hiring additional staff. Monitor your profit margins quarterly to identify trends and make necessary adjustments.

Join the FREE Home Cleaning Courses. Click Here   1. Courage 16:29   Courage is essential for taking action before having a proven track record. It involves acting out of fear and uncertainty, believing in potential outcomes. Develop courage by: Taking small risks regularly. Acknowledging fears and pushing through them.   2. Consistency 24:05   Consistency means showing up and doing what is required daily. It often requires more effort than you think you can give. Improve consistency by: Setting small, achievable goals. Tracking your daily activities and progress.   3. Persistence 29:12   Persistence is about continuing to show up despite setbacks. It helps maintain business operations through challenges. Enhance persistence by: Viewing mistakes as learning opportunities. Committing to long-term goals.   4. Learning 39:12   Learning is crucial for acquiring new skills that lead to business growth. Shift focus from making money to gaining valuable skills. Foster a learning mindset by: Seeking knowledge from various sources (books, courses, mentors). Embracing curiosity and asking questions.   5. Self-Control 45:35   Self-control involves aligning actions with long-term goals despite immediate temptations. It requires resisting distractions and focusing on what truly matters. Strengthen self-control by: Setting clear priorities. Delaying gratification for bigger rewards. Cautionary Notes Avoid overwhelming yourself by trying to develop all skills at once; focus on one skill at a time. Recognize that setbacks are part of the learning process and should not deter you from your goals. Tips for Efficiency Schedule regular check-ins to assess your progress in developing these skills. Use accountability partners or mentors to stay motivated and on track. Celebrate small wins to maintain motivation and reinforce positive behavior.

Join the FREE Home Cleaning Courses. Click Here   1. Understanding the Business Model 0:00   Recognize the importance of documenting the journey of your business. Start with zero clients and zero revenue, and build from there.   2. Initial Setup and Operations 1:01   Begin operations with a clear vision of growth. Identify key roles: one person should focus on sales while another handles operations.   3. Hiring and Training Staff 2:32   Hire cleaners and train them effectively. Ensure that training is a priority from the start to build a reliable team.   4. Revenue Goals and Metrics 5:26   Set a weekly revenue goal of $19,000 to achieve a million-dollar business. Understand that each cleaner can generate $1,500 to $2,000 weekly.   5. Scaling the Business 6:08   Aim to hire approximately 14 cleaners to meet revenue goals. Focus on filling schedules and maintaining a steady workflow.   6. Learning and Delegating Skills 10:10   Learn essential skills such as sales and marketing before delegating. Understand that mastering these skills is crucial for business growth.   7. Identifying and Overcoming Personal Barriers 14:19   Recognize personal traits that may hinder business growth (e.g., pride, fear, perfectionism). Work on self-awareness and seek help when needed.   8. Continuous Improvement and Feedback 48:10   Regularly seek feedback from clients and staff to improve services. Adapt and evolve based on the feedback received. Cautionary Notes Avoid pride and fear that can hinder decision-making and growth. Be cautious of perfectionism that may prevent you from taking necessary actions. Tips for Efficiency Set clear, measurable goals for each phase of the business. Regularly review progress and adjust strategies as needed. Foster a culture of open communication and feedback within the team.

Join the FREE Home Cleaning Courses. Click Here   1. Introduction to Office Staff Importance 1:12   Discuss the significance of having office staff in a business. Mention the new hires: Sabdina (office person) and a new recruiter. Outline the purpose of the meeting: to discuss hiring and training office staff.   2. Types of Office Staff 1:25   Differentiate between virtual assistants and in-office assistants. Explain when to hire a virtual assistant as the first office person.   3. Hiring Process and Timing 2:11   Discuss the importance of timing in hiring an office person. Emphasize the need for skill sets and financial readiness before hiring.   4. Training Office Staff 2:34   Outline how to train office staff effectively. Discuss the highest and best use of their time.   5. Prioritizing Tasks for Office Staff 2:45   Identify the four main avatars for office staff to focus on: Applicants Prospects Clients Cleaners Explain the priority order for these tasks.   6. Compensation for Office Staff 3:06   Discuss how to determine pay for office staff. Explain the importance of aligning pay with responsibilities and performance.   7. Growing Office Staff Skills 3:36   Discuss how to develop office staff into independent contributors. Emphasize the importance of empowering them to make decisions.   8. Learning from Mistakes 4:57   Highlight the importance of making mistakes as part of the learning process. Encourage a mindset of continuous improvement.   9. Financial Responsibility Before Hiring 12:01   Discuss the financial prerequisites for hiring an office person: Business checking account reserves Personal checking account reserves Zero balance on high-interest debt Personal savings for six months of living expenses.   10. Conclusion and Next Steps 52:08   Recap the importance of hiring and training office staff for business growth. Encourage taking action and implementing the discussed strategies.

Join the FREE Home Cleaning Courses. Click Here   1. Introduction to the Call 3:20   Welcome back to the weekly call. Purpose: Document the journey from zero clients to $83,000/month in revenue. Emphasize that everyone faces challenges in the industry.   2. Acknowledging Challenges in Business 4:00   Success often follows a period of failure. Successful people face problems, but they don't dwell on them. Importance of moving on and finding solutions.   3. Sharing Real Business Experiences 5:00   Discuss a recent issue with a recruiter being unavailable due to unexpected circumstances. Highlight that problems are part of business and need to be addressed.   4. Importance of Setting Expectations 8:00   Set proper expectations for new business owners. Understand that client and cleaner problems are common.   5. Skills Required for Business Growth 11:00   Identify two categories of skills needed: business skills and personal skills. Emphasize the importance of acquiring skills through action, not just learning.   6. Learning Through Execution 13:00   Learning requires applying concepts in real situations. Feedback from execution helps refine skills.   7. The Cost of Freedom in Business 15:00   Discuss the balance between freedom and the sacrifices required to achieve it.   8. Understanding the Reality of Business 16:00   Business is not easy; it requires hard work and dedication. Successful individuals often share their struggles.   9. Identifying Constraints in Business 19:00   Recognize that one skilled deficit can hinder growth. Importance of understanding what is not working in your business.   10. The Role of Systems in Business Growth 22:00   Good systems can help predictably grow a business. Share success stories from others using the same systems.   11. The Importance of the Operator 25:00   The person operating the system is crucial for success. Personal skills such as persistence and the ability to learn are essential.   12. Confronting Personal Drama 32:00   Successful individuals confront personal issues to maintain focus on business.   13. Building a Strong Company Culture 56:00   Establish company values and standards to retain cleaners. Use a clear framework for accountability and performance.   14. Conclusion and Call to Action 01:01:00   Encourage participation in future calls for continued learning and growth.