Breaking Down How To Achieve A 20% Profit Margin

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.

Join the FREE Home Cleaning Courses. Click Here 1. Introduction to the 75 Hard Challenge 0:00   The speaker introduces the concept of the 'real 75 hard' as showing up consistently for 75 weeks on a free Zoom call. Emphasizes the importance of sharing financial data and being transparent.   2. Intensity vs. Consistency 0:53   Discusses the difference between intense short-term challenges (like 75 hard) and long-term consistency. Highlights that true growth comes from consistent effort over many years, not just short bursts of intensity.   3. The Importance of Planning Beyond Short-Term Goals 4:06   Questions what happens after the 75 days of a challenge. Stresses the need for a long-term plan to avoid reverting to old habits.   4. The Role of Data in Sustaining Growth 5:15   Emphasizes the importance of tracking data in business and fitness. Suggests that understanding numbers can lead to better decision-making and sustainability.   5. Understanding Seasons in Business 6:14   Introduces the concept of different seasons in business (sprint vs. maintenance). Encourages focusing on maintenance after intense periods to ensure long-term success.   6. Discipline Over Motivation 6:39   Discusses the need for discipline to maintain habits when motivation wanes. Identifies key behaviors in fitness and business that contribute to success.   7. Setting Standards and Expectations 7:40   Highlights the importance of setting high standards for oneself and one's team. Discusses how the quality of a team reflects the standards set by the leader.   8. Maximizing Cleaner Efficiency 9:23   Shares insights on how to optimize cleaner schedules for better efficiency. Discusses the importance of understanding the constraints of the business.   9. Strategies for Cleaner Scheduling 22:04   Discusses the importance of not splitting cleaning jobs between multiple cleaners unless necessary. Emphasizes filling schedules from top-performing cleaners down.   10. Minimum Cleaning Hours 24:56   Introduces a new minimum cleaning hour policy to ensure cleaners have sufficient work hours. Discusses how this change positively impacts cleaner retention.   11. Time Blocking for Cleaner Schedules 25:03   Explains the importance of time blocking for cleaner schedules to maximize efficiency. Discusses how to manage morning and afternoon cleaning slots effectively.   12. Internal Marketing Strategies 46:22   Discusses the importance of internal marketing to fill cleaner schedules. Shares insights on how to effectively communicate with existing clients.   13. Conclusion and Call to Action 57:03   Encourages viewers to apply the discussed strategies in their own businesses. Invites interested individuals to apply for the coaching program to learn more.  

Join the FREE Home Cleaning Courses. Click Here   1. Introduction and Welcome 0:00   Greeting participants: Sir Mitchell, Kayla, Steph, Jen, Danny. Mention of the 'Road to a Millie' theme. Introduction of the Phoenix market and its size.   2. Background on Business Journey 0:14   Personal story of moving to Arizona and starting a second location. Comparison of market sizes: Bozeman, Montana vs. Mesa, Arizona. Discussion of client acquisition and market dynamics.   3. Business Growth Overview 1:00   Achieving a million-dollar run rate in 16 months. Importance of consistency in business performance. Overview of strategies used to achieve growth.   4. Key Business Strategies 3:00   Focus on acquiring clients and cleaners as the core business function. Hiring a salesperson for one month to boost sales.   5. Current Business Performance 5:01   Revenue details: $19,000 last week, aiming for consistency. Comparison with Montana location's performance.   6. Importance of Belief and Mindset 7:11   Emphasis on belief in possibilities for business growth. Personal story of overcoming initial business struggles.   7. Investment in Skills and Mentorship 8:15   Importance of investing in personal development and mentorship. Example of mentorship with Alex Hermosey.   8. Financial Literacy and Business Metrics 15:29   Discussion on personal financial statements vs. report cards. Importance of understanding assets and liabilities.   9. Marketing and Client Acquisition 25:10   Overview of marketing strategies and their effectiveness. Importance of internal marketing and client retention.   10. Sales and Revenue Generation 42:21   Details on sales commission structure for new hires. Importance of converting leads into recurring clients.   11. Conclusion and Next Steps 56:44   Recap of key takeaways from the call. Invitation to join the coaching program for further support.  

Join the FREE Home Cleaning Courses. Click Here   1. Introduction to the Concept of Good Days 3:32   The speaker introduces the idea that every day can be a good day. Emphasizes the importance of reframing our perception of days (e.g., Mondays can be as exciting as Fridays or birthdays).   2. The Power of Reframing 4:29   Discusses how the feelings associated with specific days are subjective and can be experienced any day. Encourages the audience to create joy and excitement in their daily lives by changing their mindset.   3. The Movie Example: 'Alexander's No Good, Terrible, Horrible, Absolutely Bad Day' 5:11   Shares a family movie night experience that aligns with the theme of good and bad days. The movie illustrates that everyone has bad days, but it’s our perspective that defines them.   4. Understanding Problems in Business 7:21   Discusses how problems in business can be viewed as opportunities rather than setbacks. Encourages a mindset shift to see challenges as part of the entrepreneurial journey.   5. Teaching Children to Embrace Learning 10:08   Shares a personal story about teaching a child to enjoy learning and embrace challenges. Highlights the importance of fostering a love for learning over rote education.   6. The Importance of Commitment in Business 19:14   Discusses the necessity of commitment to learning and growing in business. Emphasizes that true understanding comes from hands-on experience.   7. The Framework for Teaching Skills 23:33   Introduces a three-step framework for teaching skills: do it for them, do it with them, and let them do it on their own. This method ensures that learners gain independence and confidence.   8. Real-Life Success Stories 25:03   Shares success stories of individuals who have implemented the discussed frameworks and achieved significant revenue growth. Highlights the importance of accountability and systems in achieving business success.   9. The Role of Data in Business Growth 36:06   Discusses the importance of tracking data and understanding business metrics to drive growth. Emphasizes that knowing your numbers is crucial for making informed decisions.   10. Conclusion and Call to Action 58:39   Encourages the audience to take action, embrace challenges, and seek help when needed. Reiterates the importance of community support and learning from others.

Join the FREE Home Cleaning Courses. Click Here   1. Introduction 0:01   Greeting participants and introducing the call. Mention of the significance of week 69 in their journey.   2. Recap of Previous Weeks 0:24   Reflection on the first week of the journey. Mention of the first caddy packing and excitement.   3. Access to Previous Episodes 1:07   Information on where to find previous episodes in both paid and free groups.   4. Success Stories from the Community 2:03   Highlighting success stories of community members who achieved significant revenue growth. Mention of Jessica Lucas and Kayla Irby as examples.   5. Importance of Long-Term Commitment 3:15   Emphasis on the time and effort required to grow a cleaning business. Acknowledgment of the challenges faced by new members.   6. Learning Through Experience 4:20   Discussion on the best ways to learn about business: through doing, not just consuming content. Importance of spending money on marketing and operations.   7. The Concept of Tuition in Business 6:59   Explanation of the idea that losing money is part of the learning process in business.   8. The Goal of Building a Million-Dollar Business 8:30   Discussion on the freedom that comes with a successful business.   9. The Pursuit of Happiness and Freedom 9:43   Reference to the movie 'The Pursuit of Happiness' and its relevance to business.   10. Sharing Revenue Growth Data 13:04   Sharing of revenue data from community members to illustrate progress.   11. Importance of Progress Over Numbers 11:30   Emphasis on the importance of continuous progress rather than just hitting revenue milestones.   12. Marketing Strategies and Consistency 27:00   Discussion on the importance of consistent marketing efforts over time.   13. Client Fulfillment and Team Management 31:00   Overview of client fulfillment metrics and team performance.   14. The Role of Google Reviews 32:27   Importance of Google reviews in building a positive business reputation.   15. Hiring and Training Challenges 39:34   Discussion on the costs and challenges of hiring and training new cleaners.   16. Conclusion and Call to Action 54:35   Encouragement for participants to continue their journey and join the coaching program.