[Pureclean Essex Services]

Been in the windy cleaning business for quite a few years, recently bought some commercial ground maintenance work, thought I'd try something different to add to my business, was on site today, guy comes out from accounts, and to cut the story short he asked if I'd be interested in quoting for all 20 of their sites across the UK, not just windy & ground maintenance, but to overlook all their contracts as a management company, WoW, right place, right time .
Now I'm seriously interested in selling up and giving it a go, because if I don't, going to lose contract anyway, but just wondering if anyone else has done this from scratch, and how they coped with the money side of things, like paying all the contractors before getting paid by the company yourself, what percentage you add on as a management fee, could be talking about paying out a few K per month to various contractors over 20 sites, the ground maintenance alone across 20 sites is around 10k minimum per month.

Thanks to all for any input you can give me,

Brian.

[mark dew]

It sounds very exciting. But selling up and moving into it from scratch?
The management company I clean for get paid in advance from residents before I do the job.
You're going to need a large overdraft facility for starters.
Some serious advice on getting a contract that couldn't leave you high and dry at a moments notice owing 000's to your people.
It's a huge gamble to walk away from established decent long term income into something where another, cheaper management company could come along in a years time.

Fortune favours the brave though. But walking away from all you have built up needs to looked at from a 5 year perspective rather than the potential big bucks you could initially earn.
Best of luck.

[Gav Camm lammy 283]

Why not speak to john Nolan at approved
Window cleaning Bristol
He's honest and deals with this daily
Or chris at archer ?

[Moderator David@stives]

Hi pureclean

Give us a call if you like

[Rob_Mac]

The only way to survive with rapid growth is to factor your invoices.

I have had all of this over the last seven years, very big highs but equally very deep lows.

There is nothing worse than getting to a day when you need to make payments and there is nothing in the pot. Through personal circumstances we always scraped through but this causes friction in your personal life.

In the process of setting up factoring at the moment, they have had all of my books, bank account statements, etc etc.

I have secured factoring at 2.75%, they do all the chasing of monies owed, I get 80% straight away, with the other 17.5% paid when the invoice gets paid. You would be surprised how many companies have a need for factoring. I have waited 120 days to be paid, all the time paying out.

People will say why give someone 2.75% of your money, it isn't your money that is paying the percentage if you add it onto the price before you start.

If you are looking down the route of taking the works on then email me and I will pass you on some details.

Rob

[andyM]

Sounds tempting.
But if I was in that position I would first speak to other people who have been there and done it.
Then next on the list would be meetings with an accountant and a solicitor.
There could be a lot to gain, but maybe also a lot to lose.

[Moderator David@stives]

Hi Rob

We have never factored, borrowed or used an overdraft, I have always been a tight wad when it comes to money, so not very good at spending it.

[Dean Taberner]

I have found that if you have a quietish dec, jan and feb and a manic march and april, then things can start getting very distressing around may time due to cash flow and you're hanging on waiting for june for all of the manic months payments.

Well, its June now and still manic, and I'm out working again in Chesterfield this morning with an horrific case of food poisoning type of symptoms due to squirting quite a bit of ,what appears to have been, gone off garlic mayo over my tea last night.

Roll on next week for some paydays hopefully.

Dean.

[tlwcs]

 I get 80% straight away, with the other 17.5% paid when the invoice gets paid.
2.75%fee, can see why you need help 
Tony

[Seers]

Hi Rob,

Don't factor mate.

It was the biggest mistake we ever made. Sounds great when it's sold to you, but you quickly end up spending money far quicker than normal. And should a customer go bust you've already spent 80% of the invoice.

Plus interest on the money lent shoots up if it's not paid to the factoring company on time. We at one time ended up paying close to £1,000 a month on factoring costs.

They will be expecting a director's guarantee no doubt to, so the risk is ultimately still left with you.
Give me a bell if you want.

Cheers,

Huw

[Seers]

Hi Rob,

Also ask yourself the question, How hard do you think the factoring company will be trying to chase your debts? The longer the debt remains unpaid the more money they make.

Cheers,

Huw

[Seers]

Hi Brian,

I'd just run with it.

We were offered a pretty large grounds maintenance contract on some national supermarkets two years ago, we now look after approx 65 sites in our region.

We weren't set up for it at the time but it's now our most profitable service.

Cheers,

Huw

[Rob_Mac]

Tony Lee Window Cleaning
After. Not my customer but a mingling flat below. Thought I'd give it a quick flick over.

Tony - just taken off your website - Mingling flat below?? - get your own house in order before you try to make me look like a d*ck. just saying like

Huw

Will give you a ring tomorrow mate.

Rob

[tlwcs]

Tony Lee Window Cleaning
After. Not my customer but a mingling flat below. Thought I'd give it a quick flick over.

Tony - just taken off your website - Mingling flat below?? - get your own house in order before you try to make me look like a d*ck. just saying like

Huw

Will give you a ring tomorrow mate.

Rob

Ha ha, seems we are both as thick as each other then.

[Pureclean Essex Services]

Hi Brian,

I'd just run with it.

We were offered a pretty large grounds maintenance contract on some national supermarkets two years ago, we now look after approx 65 sites in our region.

We weren't set up for it at the time but it's now our most profitable service.

Cheers,

Huw

Hi Huw,

I would like to give it a go, as I don't want to turn it down, and think what could have been after it's gone, it's not just the ground maintenance though, it's everything they have on the contract side of things, and I really don't want to sell all my work off to take the plunge, as my son's could take this on, I cant see any real problems once contractors are in place for each site, other than the financial side of things, I was just concerned about paying contractors before getting paid myself, I would not be able to pay out until I was paid myself, which would be around the 8 week mark, over time this could change once cash flow is established, not sure if an overdraft would cut it though on the paying out side of things, or even if you could get one to cover expenditure to start off, it's not just contractors invoice's but replacement parts could see the invoices go through the roof, as they want everything under one management company, this is the most daunting part for me, also what percentage do you add on for the management fee?, end result is if I don't take it on I'm going to lose the contract anyway.

Thanks Brian.