I started residential and switched to commercial and my business all but died. Net30 payments, late payments, cash flow is a huge issue in commercial. Residential was same day. Currently switching back over to residential.
Thank you for sharing your story-I completely agree. Cash flow issues can cripple any commercial business. I faced similar challenges but found that negotiating shorter payment terms with customers by offering small incentives, like a credit back, can work surprisingly well. I also became very mindful of my cash spending. On top of that, I negotiated net 30 terms with vendors and leveraged credit cards. For instance, if a vendor accepts credit cards without processing fees, I’d pay them on day 30 and use the card’s grace period, effectively turning it into net 60. Disclaimer: Not financial advice, just sharing my experience. To manage cash flow early on, I balanced residential and commercial jobs until the full transition. Once I went fully commercial, I scaled faster with predictable income. There are pros and cons to both, but the challenges are workable. Let me know how your journey is going-I appreciate you sharing your experience here!
I've worked both ways. But now I've chosen to stick with commercial cleaning, more specifically of STR properties. Anyone looking to move into the same area can achieve relatively quick results with apps like Turno, for example!
Thanks for chiming in! What led you to choose commercial, and what have been the pros and cons? On a related note, I've observed that various online platforms can now help streamline the process of connecting with clients. What exactly did you like with Turno?
@@ANSimpact Residential cleaning doesn't require a lot of equipment maintenance and travel costs (in terms of different locations), but it is very time-consuming. Commercial cleaning (at least for Airbnbs), on the other hand, has a more broken routine, which allows you to be more distracted and to learn different techniques and increase your expertise. Not to mention that it gives you more freedom! Regarding Turno, it's an online platform, and that already reduces a lot of the prejudice that many minorities (like foreigners, for example) suffer when looking for jobs offline. In addition, it's a very well thought-out app that meets the needs of both hosts and cleaners. It has photo checklists, automated scheduling, secure payment, and it's easy to use. It's also an easy place to get clients without paying anything, just getting paid.
👏 amazing. Thank you for sharing your knowledge. I would love to see a video on which ways is best to charge my customers per hour or per square feet. Thanks!
I want to get into commercial cleaning but the payment options scare me off I don’t really understand the net 10 and 15 and all that stuff, do you have a video explaining that please?
Great question! I don’t have a specific video on payment terms yet, but I do touch on the payment terms and legal terminology/jargon in this video: th-cam.com/video/FpGlb09xl3Q/w-d-xo.htmlsi=Uc0nfqPdbNtv0JKj. Payment terms like Net 10, 15, 30, 45, or even 60 mean you get paid that many days after invoicing. Net 30 is standard, so you’ll need enough cash flow to cover operations while waiting for payment. Also, be cautious of “Pay When Paid” clauses, especially with construction companies. This term means you only get paid when they do, which can lead to indefinite delays, especially if the project has a punch list tied to other trades. Definitely something to watch out for! Overall, commercial cleaning is great, providing steady work that can really ramp up your business, but it's important to be aware of these terms and be prepared for them-which you seem to be doing. Kudos to you!
Why are you doing the cleaning? If you take yourself out of the equation, then commercial makes more sense. You can make more profits with fewer clients doing commercial cleaning, and no fussy home owners to deal with who are way too emotional about their living space.
Thanks for chiming in! You're absolutely right. There's a lot to gain by transitioning from doing the cleaning to managing and expanding the business. The ultimate aim should be to stop trading time for money. I began my cleaning venture in 2009, offering residential cleaning, and was very much involved in the actual cleaning then. It's been a while since I personally cleaned, and we are mainly a commercial cleaning company. You've pointed out some strong benefits of the commercial cleaning industry. However, as is often the case, there are challenges as well. These include longer times to close accounts, dealing with payment terms that range from net 30 to 90 days, the risk of losing a large client affecting a significant part of the business, larger overhead, the requirement for more upfront capital for high-end equipment/vans, etc. There are always pros and cons. The key is in how we navigate these challenges and find strategies that work best. Thanks again for your valuable insights, and I hope you'll continue to join our discussions for more enlightening exchanges!
From the surface we think we know it all but you pointed out real facts that I didn't even think about!
Thanks for sharing your feedback and the words of encouragement!
Great content
Thrilled to hear you liked i! Stay tuned, there’s plenty more exciting content on the way!
I started residential and switched to commercial and my business all but died. Net30 payments, late payments, cash flow is a huge issue in commercial. Residential was same day.
Currently switching back over to residential.
Thank you for sharing your story-I completely agree. Cash flow issues can cripple any commercial business. I faced similar challenges but found that negotiating shorter payment terms with customers by offering small incentives, like a credit back, can work surprisingly well.
I also became very mindful of my cash spending. On top of that, I negotiated net 30 terms with vendors and leveraged credit cards. For instance, if a vendor accepts credit cards without processing fees, I’d pay them on day 30 and use the card’s grace period, effectively turning it into net 60. Disclaimer: Not financial advice, just sharing my experience.
To manage cash flow early on, I balanced residential and commercial jobs until the full transition. Once I went fully commercial, I scaled faster with predictable income. There are pros and cons to both, but the challenges are workable. Let me know how your journey is going-I appreciate you sharing your experience here!
Great advise and personal insight
Wonderful! (:
I've worked both ways. But now I've chosen to stick with commercial cleaning, more specifically of STR properties. Anyone looking to move into the same area can achieve relatively quick results with apps like Turno, for example!
Thanks for chiming in! What led you to choose commercial, and what have been the pros and cons?
On a related note, I've observed that various online platforms can now help streamline the process of connecting with clients. What exactly did you like with Turno?
@@ANSimpact Residential cleaning doesn't require a lot of equipment maintenance and travel costs (in terms of different locations), but it is very time-consuming. Commercial cleaning (at least for Airbnbs), on the other hand, has a more broken routine, which allows you to be more distracted and to learn different techniques and increase your expertise. Not to mention that it gives you more freedom!
Regarding Turno, it's an online platform, and that already reduces a lot of the prejudice that many minorities (like foreigners, for example) suffer when looking for jobs offline. In addition, it's a very well thought-out app that meets the needs of both hosts and cleaners. It has photo checklists, automated scheduling, secure payment, and it's easy to use. It's also an easy place to get clients without paying anything, just getting paid.
👏 amazing. Thank you for sharing your knowledge.
I would love to see a video on which ways is best to charge my customers per hour or per square feet.
Thanks!
You are in luck! The video breaking down how to price cleaning jobs will go live next Monday!
I want to get into commercial cleaning but the payment options scare me off I don’t really understand the net 10 and 15 and all that stuff, do you have a video explaining that please?
Great question! I don’t have a specific video on payment terms yet, but I do touch on the payment terms and legal terminology/jargon in this video: th-cam.com/video/FpGlb09xl3Q/w-d-xo.htmlsi=Uc0nfqPdbNtv0JKj.
Payment terms like Net 10, 15, 30, 45, or even 60 mean you get paid that many days after invoicing. Net 30 is standard, so you’ll need enough cash flow to cover operations while waiting for payment.
Also, be cautious of “Pay When Paid” clauses, especially with construction companies. This term means you only get paid when they do, which can lead to indefinite delays, especially if the project has a punch list tied to other trades. Definitely something to watch out for!
Overall, commercial cleaning is great, providing steady work that can really ramp up your business, but it's important to be aware of these terms and be prepared for them-which you seem to be doing. Kudos to you!
@@ANSimpact thank you so much! I’ll watch that video and keep learning, good to know some of the industry MO
Why are you doing the cleaning? If you take yourself out of the equation, then commercial makes more sense. You can make more profits with fewer clients doing commercial cleaning, and no fussy home owners to deal with who are way too emotional about their living space.
Thanks for chiming in! You're absolutely right. There's a lot to gain by transitioning from doing the cleaning to managing and expanding the business. The ultimate aim should be to stop trading time for money. I began my cleaning venture in 2009, offering residential cleaning, and was very much involved in the actual cleaning then. It's been a while since I personally cleaned, and we are mainly a commercial cleaning company.
You've pointed out some strong benefits of the commercial cleaning industry. However, as is often the case, there are challenges as well. These include longer times to close accounts, dealing with payment terms that range from net 30 to 90 days, the risk of losing a large client affecting a significant part of the business, larger overhead, the requirement for more upfront capital for high-end equipment/vans, etc.
There are always pros and cons. The key is in how we navigate these challenges and find strategies that work best. Thanks again for your valuable insights, and I hope you'll continue to join our discussions for more enlightening exchanges!