Tom Adams Posted October 5, 2006 Share Posted October 5, 2006 What's the deal Chris?? Thought you guys were pretty happy with the area and things?? Maybe you need to get off of Hilton Head proper. Anyhow - just curious 'cause this talk of yours is surprising to me. Tom Tom, the reason we're thinking this over is because YOU HAVEN'T COME TO SEE US [] Seriously, this has been such a tough year on many fronts. I haven't dragged you through it because of all the issues you're coping with. We like HHI a lot but we've really been a bit bummed by the cranky nature of the island people here. There are a lot of retired people who require special consideration and handling; just a fact of life. They're also a lot of our customer base. There is a significant percentage who just require lots of special accommodation. This year we started our Molly Maid business on January 3rd. Since then, we've had 21 employees, with an average staffing of about 6 employees. That's 3-1/2 turns of employees during the first nine months. We've been growing very fast but then had a bunch of bad employees this summer. Some wouldn't show up regularly for work, a few were trying to steal customers for weekend side business, some were just plain lazy and some just showed a lot of attitude with customers. Our cancellation rate with customers got pretty bad this summer, right when the summer doldrums set in, so we got whacked doubly and the net being flat sales from June through September. We're trying to get the business to a breakeven. We may hit it between now and Christmas if we can control quality and keep getting market penetration. However, it's been over a year since a paycheck from anywhere and we've pumped about $130K in the business, including franchise and territory fees. Most of the investments are behind us and we just want to get the business to start generating some cash. The emotional and physical toll have been high. Carrie and I just look at ourselves some nights and say, "Man, this is waaaaaaaaay too hard ..." It's kind of "heartbreak hill" during the Boston Marathon. The first year in a new biz is always huge and exhausting. We're just thinking about Plan B, should we need to implement it. We've always, through our marriage, kept a Plan B in place because "life happens" every day. Chris I know, I know.....it's my fault Chris for not making an effort to visit you guys. But for the record, I think about you guys at least once a week wondering how you're doing. Sheesh.....where has the time gone this year. Seems like only yesterday we were talking about you guys coming for a visit or me (us??) coming back to see you guys again. Hang in there Chris. I think you guys just have a lot of balls in the air right now and the pressures of it all are making you guys second guess things. I say screw all the commentary (with all due respect) here and keep your eye focused on the ball. Only you and Carrie know what YOUR goal is and what will make YOU happy. As for places to live - I'm very happy being in Richmond Hill, GA (founded, for the most part, by Henry Ford). Excellent quality of life and very "homey". And Savannah is just a short drive away. I can boat, ride my mo'sickle, and play tennis almost 10 months out of the year. In 4 hours or less of driving I can be in Atlanta or Daytona Beach or Charleston (need to plan a visit to see ya WIlly) or Myrtle Beach or Orlando or......well, you get the point. It's a great jumping off place to live. And regardless of what the future holds with respect to my wife coming back or not, I'll stay here. Tom Quote Link to comment Share on other sites More sharing options...
PhilMays Posted October 5, 2006 Share Posted October 5, 2006 I hope you do not take me being negative on you Chris based on the last post. People make it in that and most businesses, at least those who want to and try hard. Hang in there brother! You got my moral support!!! Quote Link to comment Share on other sites More sharing options...
Wrench722 Posted October 5, 2006 Share Posted October 5, 2006 SPRING TEXAS Quote Link to comment Share on other sites More sharing options...
mark1101 Posted October 5, 2006 Share Posted October 5, 2006 Not to hijack.......But There seems to be many more forum members than I thought located in a reasonably central area to one another in the south, also in Texas. To me, if you can drive 5 hours and "be there", that's reasonable. (we've done that a couple of times....not bad). Speaking for the south: Would anyone like to vote to put our heads together and organize a Klispch music fest? Something that could gain wide attendance? Anyone keen on starting a thread to get feedback on such an event? Go ahead...Let's discuss. OK....now back to best places to live. Sorry. Quote Link to comment Share on other sites More sharing options...
Chris Robinson Posted October 5, 2006 Author Share Posted October 5, 2006 I would suspect that in his franchise he may have signed a "no compete" clause in his gegraphic teritory and that he may have some liquidated damages for breaking the agreement. However if their is a performance clause as to what the franchise is susposed to do then I think that would be the road to go down, of course with all the legal i's dotted and t's crossed in regards to "notice". I would tend to agree that when dealing with this that word of mouth can make you sink or swim. Sure, there are no-compete clauses, etc. Beyond labor, however, having a 27 year-old global brand is helpful. We're also tied (just about) for being #1 in this market segment with Merry Maids. Five years ago, Merry Maids was twice our size so we must be doing something right. Labor aside, there is a lot of process and IP behind the scenes. The software that runs our scheduling and 100's of reports is home-grown and was given multiple awards by Bill Gates personally. It saves me a TON of hours scheduling customers, teams and complying with all the laws ... Beyond that, it is a simple business based on employees and customers. It is HARD the first year, harder than I thought it would be. But now it isn't as hard as it was six months ago, and six months from now it should be easier. If I had to do it again, I'm not sure I would do it but I'm pretty committed for the moment (or at least the next six months). Chris PS: Phil, no negativity taken. Thanks for the input. Quote Link to comment Share on other sites More sharing options...
Chris Robinson Posted October 5, 2006 Author Share Posted October 5, 2006 [ I know, I know.....it's my fault Chris for not making an effort to visit you guys. But for the record, I think about you guys at least once a week wondering how you're doing. Sheesh.....where has the time gone this year. Seems like only yesterday we were talking about you guys coming for a visit or me (us??) coming back to see you guys again. Tom Tom, I was busting on you. Your life is harder than mine right now. It's our turn to visit YOU, not the other way around. Chris Quote Link to comment Share on other sites More sharing options...
Jeff Matthews Posted October 5, 2006 Share Posted October 5, 2006 Chris, same goes for me. My observations are not meant to make you do anything different, except to keep in mind that you did what you did as far as decding to go the franchise route. I think it is additional overhead that probably does not pay off, but apparently you think the service offered by the franchisor makes up for it. The important part is that you are in a better position to evaluate the value received for the price you pay. So, if you are satisfied with the franchise aspect of it, then, you are in good shape, and the rest depends on you. I am a firm believer in low overhead and high quality. That means, to me, not grabbing up contracts at bottom pricing just to increase cash flow. The better strategy is to provide better quality for a good return (not the cheapest price). That way, you get folks that don't mind paying an extra 15-20% for a good job. Leave the rest of the overly price-conscious customers for the competition. That way, they can be the competition's problem and not yours. There is nothing worse than having a customer you regret taking on. Take care of yourself first by demanding a price that is high enough to give you an incentive to stay in the business. Then, deliver quality. The rest takes care of itself. If you go the other route and grab as hard as you can and quick as you can with any eye on cash flow, you will find yourself increasingly dependent on cash flow to stay alive and make overhead. I'd rather make 20% on $400,000 than 5% on $2 million because you have so much more to keep up with when volume increases dramatically. As far as risk goes, contrary to popular belief, there is alot less risk by being self-employed. When you work for someone else, it only takes one boss to put you out of a paycheck. When you are in business and have 50 or more clients, the likelihood that all 50 fire you at once is far, far less. You are much better off being self-employed. But it is up to you to price your product accordingly and make sure quality is good. Otherwise, you can find yourself living on credit lines for payroll and having large payables. Good luck. I will add that your comment is right in that it always gets easier as long as you continue to price right and serve the public well. Happy customers and referrals are the name of the game. Quote Link to comment Share on other sites More sharing options...
Duke Spinner Posted October 5, 2006 Share Posted October 5, 2006 Wow .... Jeffy ..... yer pretty Damn Smart ....[] i've been self-employed for 30 years .... You ... understand ... you can't " Buy " a business. I can see you get the picture ...Clear .... now ... if you could only tell the difference between a Jolida JD-100, and a wal mart CD player ..... well, we'd be great Bud's .....[] [] [] [] Quote Link to comment Share on other sites More sharing options...
garymd Posted October 5, 2006 Share Posted October 5, 2006 Chris, I haven't read this entire thread, actually just your initial post. After spending over a week in HH this summer, my wife and I thought it would be a great place to live. I don't think we would ever consider living there until we retire though. My wife is a Federal Gov't Attorney and I'm a banker. Probably couldn't find the type of employment that would allow us to continue our current lifestyle unless the SSA had a branch office to which my wife could transfer. Lots of banks down there but probably not many main offices. I'm not the teller type.[] Actually, I'd be happy to work part-time at a golf course but the money I'd save playing probably wouldn't cover the loss in income.[] What I noticed most about the workers in the area is that the majority seemed to be immigrants. What percentage legal vs illegal I won't even begin to speculate. It's primarily a vacation/resort area so I can understand why you'd have a difficult time finding good help and I assume most of the work force commutes from the mainland where housing is more affordable. Still, you are extremely lucky to live in such an amazingly beautiful area and I'm very jealous!! Good luck with your business and I hope to visit you and your wife next summer.[ip] Quote Link to comment Share on other sites More sharing options...
Jeff Matthews Posted October 5, 2006 Share Posted October 5, 2006 Wow .... Jeffy ..... yer pretty Damn Smart ....[] i've been self-employed for 30 years .... You ... understand ... you can't " Buy " a business. I can see you get the picture ...Clear .... now ... if you could only tell the difference between a Jolida JD-100, and a wal mart CD player ..... well, we'd be great Bud's .....[] [] [] [] Duke, Ole Buddy! You making fun of my Wal-Mart "special?" [] You're quite a character, but I can see from your earlier posts you have your head on kind of right when it comes to bidness! [Y] Quote Link to comment Share on other sites More sharing options...
Chris Robinson Posted October 5, 2006 Author Share Posted October 5, 2006 I am a firm believer in low overhead and high quality. That means, to me, not grabbing up contracts at bottom pricing just to increase cash flow. The better strategy is to provide better quality for a good return (not the cheapest price). That way, you get folks that don't mind paying an extra 15-20% for a good job. Leave the rest of the overly price-conscious customers for the competition. That way, they can be the competition's problem and not yours. There is nothing worse than having a customer you regret taking on. As far as risk goes, contrary to popular belief, there is alot less risk by being self-employed. When you work for someone else, it only takes one boss to put you out of a paycheck. When you are in business and have 50 or more clients, the likelihood that all 50 fire you at once is far, far less. You are much better off being self-employed. Jeff, You and I are on exactly the same page. We're the most expensive service in the area by far but we have over 200 clients now, of which 120 or so we see every week or so. We turn down about 1/3 of the estimates we do for various reasons; not everyone is a customer we want to take on. The main reason I tried this franchise (after working with a consultant for two years who filtered out about 85% of the crummy ones) is that the breakeven point is relatively low, it is very scalable for little incremental investment, and the backlog or orderbook is visible 24 weeks out. Within 5% or so, I can tell you what next quarter's revenues will be. But then, we clean homes, and all the caveats that go with it. Gary, We chose up front to bond and insure all our employees, as all MM owners do. We also go the extra mile beyond what the gov't requires and we make sure that we have bondable employees. We need to know where they've been. I'm very open to the Hispanic market, but if I can't trace their history, that will be a problem. Chris Quote Link to comment Share on other sites More sharing options...
Marvel Posted October 5, 2006 Share Posted October 5, 2006 Hi Marvel, Are you in North West Georgia? I've not been there but I have been in the NC side as well as Chattanooga area. Those areas are beautiful. Phil, Yup, I live about 20 miles south of Chattanooga. Barbara's family was all from Chattanooga. I love this area of the country. We lived in South Central Wisconsin for a number of years (around Madison), and it is beautiful there as well, but the winters get a bit cold. I hope my last email made a bit more sense... I hadn't heard any comments from you. Bruce Quote Link to comment Share on other sites More sharing options...
PhilMays Posted October 5, 2006 Share Posted October 5, 2006 Hi Marvel, That is a great area. I have done a bit of camping in remote areas of the Smokies as well. I did get your email and have had a flood at home, and some issues with a restaurant at one of our hotels. I started to reply but relized I wanted to put more thought into it than I had time for at the moment. Very nice comments though, and thanks! Phil Quote Link to comment Share on other sites More sharing options...
Daddy Dee Posted October 5, 2006 Share Posted October 5, 2006 Chris, Hope you find a new place that is pleasing to you both. In 1987, Paul Harvey said Fayetteville, Arkansas was the best place in the nation to live. I thought that was interesting and couldn't disagree. I have in general thought central Arkansas was one of the best kept secrets in the nation. Quote Link to comment Share on other sites More sharing options...
oldbuckster Posted October 6, 2006 Share Posted October 6, 2006 What is this......a Southern Love Fest ????? Where is all the rugged North Eastern Men?? Am I the only one that likes the NorthEast........probably.......this section of the country is not for everyone............Think Cold, think Snow, think Ice, think high heating bills, Gee maybe I am NUTZ......................... Quote Link to comment Share on other sites More sharing options...
PhilMays Posted October 6, 2006 Share Posted October 6, 2006 What is this......a Southern Love Fest ????? Where is all the rugged North Eastern Men?? Am I the only one that likes the NorthEast........probably.......this section of the country is not for everyone............Think Cold, think Snow, think Ice, think high heating bills, Gee maybe I am NUTZ......................... OB, All of us combined do not have enough money to live up there[] Quote Link to comment Share on other sites More sharing options...
oldbuckster Posted October 6, 2006 Share Posted October 6, 2006 What is this......a Southern Love Fest ????? Where is all the rugged North Eastern Men?? Am I the only one that likes the NorthEast........probably.......this section of the country is not for everyone............Think Cold, think Snow, think Ice, think high heating bills, Gee maybe I am NUTZ......................... OB, All of us combined do not have enough money to live up there[] I pick bottles along side the road to help out.........it's tough in the snow......[] Quote Link to comment Share on other sites More sharing options...
garymd Posted October 6, 2006 Share Posted October 6, 2006 What is this......a Southern Love Fest ????? Where is all the rugged North Eastern Men?? Am I the only one that likes the NorthEast........probably.......this section of the country is not for everyone............Think Cold, think Snow, think Ice, think high heating bills, Gee maybe I am NUTZ......................... I'm a northeast guy myself (well, MD anyway) and although I'm not crazy about cold weather, I love having 4 seasons. I think MD is a great place to live. We have the beach, the mountains, skiing, surfing, the Chesapeake Bay (some of the best seafood in the world - can you say Maryland blue crabs???), Washington, D.C. with all of the associated history, museums, etc., Baltimore's Inner Harbor, The Redskins, The Orioles, The Ravens, The Nationals, the Wizards......all within spitting distance. I've been here almost my entire life and its been a great place to grow up and raise a family. I think we'll retire to a warmer climate but MD will always be home. Quote Link to comment Share on other sites More sharing options...
Daddy Dee Posted October 6, 2006 Share Posted October 6, 2006 What is this......a Southern Love Fest ????? Where is all the rugged North Eastern Men?? Am I the only one that likes the NorthEast........probably.......this section of the country is not for everyone............Think Cold, think Snow, think Ice, think high heating bills, Gee maybe I am NUTZ......................... Old Buckster, "Maybe?" Quote Link to comment Share on other sites More sharing options...
PhilMays Posted October 6, 2006 Share Posted October 6, 2006 What is this......a Southern Love Fest ????? Where is all the rugged North Eastern Men?? Am I the only one that likes the NorthEast........probably.......this section of the country is not for everyone............Think Cold, think Snow, think Ice, think high heating bills, Gee maybe I am NUTZ......................... I'm a northeast guy myself (well, MD anyway) and although I'm not crazy about cold weather, I love having 4 seasons. I think MD is a great place to live. We have the beach, the mountains, skiing, surfing, the Chesapeake Bay (some of the best seafood in the world - can you say Maryland blue crabs???), Washington, D.C. with all of the associated history, museums, etc., Baltimore's Inner Harbor, The Redskins, The Orioles, The Ravens, The Nationals, the Wizards......all within spitting distance. I've been here almost my entire life and its been a great place to grow up and raise a family. I think we'll retire to a warmer climate but MD will always be home. Gary, Now ya done and done it! Youse guys stole the Redskins from us in Virginia.....That's it. I'm drawing a line in the sand[] Northeast my foot....your Mid-Atlantic and you'll love it!!!! Quote Link to comment Share on other sites More sharing options...
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