What's the number one reason Owner/Operator Cleaning Businesses Fail?

This concept makes me want to buy a Porty and clean with to prove this a false percept. The only reason why PM groups demand a TM is cause we run around trying to find work going on about of state of the art TM. It's the clean man! It's the Cleaning!

All good points, and to some degree both points of view are right.
The customer wants to know "can you do a good job and clean my...?"
Scenario 1- customer opens the door and sees a CC in nice clean work attire, with a clipboard in hand, sees him drop a door mat down and put on his little shoe covers. If she in not impressed and her CONFIDENCE in this person goes waaaaay up. She is saying to herself " I think I got the RIGHT GUY". Then she is asked to do a walk thru of the areas to be cleaned, and point out HER areas of concern. While doing this the CC kneels down a few times to look and touch some of the dirty spots...to get an idea of how bad it is. Then he provides her an estimate/invoice of all the areas and list the spots of concern. Notes of some buckling of the carpet or pet damage(clawing), or a minor repair that should be done, some lite bleach spot, sun fading...
Then during the set up and nice shiny wand is broung in,mcorner guards are set up, runner rug down the hallway with wood flooring....
DO YOU THINK at this point, she is confident in this CC, that the $350 he ask for; that she is going to get her moneys worth?? Yes

Scenario 2...she opens the door to a CC in shorts and a T-shirt(plz don't be offended if this is your type of attire). The CC say show me the areas. While walking thru he is going 1-2-3-4-5 rooms. and then says you got 5 rooms and a hall + stairs written on an invoice; for $350. No details, no items that could use some attention. Just the rooms and price.
She is thinking "I wonder how good of a job he can do?" Or "he wants how much"? Or " am I about to be taken for a ride?"
Her confidence is whacky at this point.
Can both of these CC do a great job...let's say YES. But in the 2nd scenario, she is left hanging UNTILL the job is done.

I've been both of these scenarios. And its not about the van/equipment(unless they really are a rust bucket...so to speak).
IT IS ABOUT THE END RESULTS. Now how you get there...that is the rest of the story.

Wow, I think that's the longest post I've ever made.

Great conversation here gang and even better participation by so many.

I started out with the Steamin Demon and an orbot in the back of an old van. I felt that I could always clean as well as any guy in my area and I had good reviews to back it up, so it is not about the appearence of the van nor the equipment.

It IS about the cleaner, however. It is the look and personality of the cleaner that matters...even more than the results, although you still have to be close on the latter.

You are selling yourself far more than the wands or machines. It is YOU that makes your service unique from you competition and it is YOU that your customer will support if you do it right.

Think of it like fishing. I can stand next to brother and use the same bait and same rig and never get a bite while he is pulling fish all day long. It was that way my entire life, it wasn't the equipment that did that, it was the unique aspects of that person.

Emphasize the YOU in your work, don't worry so much about the tools and trappings of the industry...until you are working enough that you need to improve efficiency to keep up with demand. Then look for the tools that accomplish that.

That's why it's great to have a couple dozen 5 star reviews online (the reason the 1st time customer called me in the first place). So then there's not a question of wither I'm going to do a great job or not, while wearing my Co. Logo'ed "T-shirt" (untucked lol) and pants.   

Good conversation guys. I can speak on both ends from first hand experience... 13 years ago I left corporate america to buy into a large well known cc franchise. I had pondered the decision for about three years prior to pulling the trigger. Looked at it from every angle. Bought in - financed half through the franchisor, borrowed $20g from mom. Went all in and financed two new vans, drank the franchise (sales) cool aide, became their fastest growing franchisee (seven - all on credit because I had great credit then), president's club, trip to Hawaii, took on a silent partner, financed four more vans, WENT BANKRUPT AND LOST EVERYTHING in a matter of two years.
Major problems [REASONS I FAILED]: 1 - did everything on credit, 2 - grew too fast, 3 - drank the cool aide and lost focus of the original plan to try to earn a good living and have a life with my family, 4 - took on a partner & way too much overhead (4000sq/ft shop and receptionist), 5 - did not react quick enough to bite the bullet and reorganize (just kept throwing money and credit at it.
Wife kept the house and kids, and I lived in a broken down leaky RV three hours from my kids while working off my non-compete agreement for about three years for an x-buddy of mine who was in the the same franchise system. When that relationship went south I started this business on a shoestring.
Seven years later, I work out of my house, own four out of my five vans, own all of my equipment - RX 20's attached to portables - I buy used equipment cheaply for cash and restore and maintain them. My receptionist who works for me full-time costs me $1000 a month [but allows me to be on a van and net an additional $5 - $6k per month and allows me time to work on equipment and spend time with the family]. Only two of my vans have logos because keeping my vans and equipment running and keeping my employees paid has been more important.
Guess what: my pricing is competitive but a little on the low side, my referrals and repeats are through the roof. I have an A rating on Angie's List - and have been awarded the Super Service Award two years in a row. Regardless of what vehicle my guys or I show up in, we are professional, provide exceptional service and are rewarded with loyal customers who provide great referrals. I have enough repeat and referral business that if I were to resize down to me and one other person, we could thrive with little to no advertising.

Sorry that was so long winded but I wanted to address the original question of why O/O's fail. And also the subsequent comments of professionalism vs. the latest and greatest and type of equipment vs. customer perception vs. success or failure.

Milspec said,
"It IS about the cleaner, however. It is the look and personality of the cleaner that matters...even more than the results, although you still have to be close on the latter.

You are selling yourself far more than the wands or machines. It is YOU that makes your service unique from you competition and it is YOU that your customer will support if you do it right."
Oh, that is so true!
Years ago while cleaning for a long time customer I mentioned that they could get a local(I'm 35 min away) cleaner and probably cheaper. She say " ya, we know. But we like YOU". So much to learn about that.
To top it off, I would rate myself as far as how good I could get these country/farm carpets...B+
SO the relationship you develops with the customer goes along way. You need to interact with them, on a some what personal basis.

Very good discussion, I feel everyone is right on the spot, except for a few things, like the short and t-shirt, lol.
An old veteran cleaner talked to me at a supplier store in my first year working as a carpet cleaner, he told me with his portable machine, he can get any carpets as clean as I can get them with my Everest, I have to admit I looked at him in disbelief but I kept listening, he then said, the difference is the time it takes me and drying time, what you can do in an hour with your TM is going to take me 2+ hours to achieve the same result and my drying time would easily double yours.
At that time I scoffed but now I could not agree more to that statement, I have a portable machine ( no heater ) and I can challenge any of you with an Everest 650 or a Vortec in cleaning a nasty polyester carpets and I can get them as clean as y'all.
My pet peeve is cleanliness, I feel that since we are in CLEANING business, we should be CLEAN, we should have clean uniform, clean equipments and clean VAN ! Every customer is different, in their expectations, in their judgement, it's always good to set ourselves in as high standard as possible, I just can't see myself wearing long pants and tucked in shirt in a 100 degrees hot summer day, not going to happen, but as long as I have a logo on my CLEAN collared t-shirt and CLEAN short, most of my customers are OK with it, I know this how ? by the way they look at me, as long as I shake their hands, introduce myself and give them a professional business card, that should take care of the first impression.

I'm not saying that cleaning with portable is a good thing but it's ok if that's how you're starting out, instead of spending $ 20k+ on a fancy shmancy TM and have to be in a bad interest loan that cost 20% apr.

Now although I agree with all comments above about the reasons why business owners fails, I seriously think the number 1 reason why business owner fails is by advertising in the wrong place. Think about it, you're new, nobody knows you, you have to advertise right ? where do you advertise ? Yellow pages ? Magazine ? Newspapers ? Google ? Internet yellow pages ? Internet some websites ? so many options and yet you won't know what gives you the best ROI in your market, if you have a veteran cleaner as a friend that can give you advice, great, if you don't, you have no choice but try and error, if you try yellow pages, they lock you in a year contract, imagine paying $ 3,000 per month on a full page ad that only brings you $ 5,000 income, can hardly break even at that rate. That's why it's always good to network with your local cleaners, make friends and ask for advice, I know I do, I'm blessed to have sold one of my older prochem equipment to a veteran local cleaner that became very close to me, I ask advice all the time and I also help him when he needs my help.

We really have bunch smart dudes on this forum and I really believe that reading and participating in these forums minimizes your risk of failure.

I think the number one reason carpet cleaning businesses fail in the first year is the lack of planning and implementation. That's 2 reasons  but the do go hand in hand.

As I read these posts I can reflect, first and most important Great support from my wife who also has a secure job!
Carrying no debt, and enjoying providing a needed service. Like many have said if you lack the passion then it really will take you down fast. Failing to invest in your marketing, pricing based on what you perceive to be your competition only to realize your competitor has you pricing yourself Out of Business. Lack of working capitol, don't give up the day job if you count on a paycheck every Friday.
The lack of a trusting support group, forum members,veteran cleaner or a successful business owner to tell you what you will never learn on your own. Balancing job duties and wearing different hat's. Owner,accountant,salesman,marketer,purchasing etc. Setting up a real customer management system and keeping your message fresh and consistent. For me, the obvious things like looking professional and walking the walk along with determination will get you through the first year and into next.
If you are reading these post as a newbie, there are people here very willing to help with guidance. Don't go out and buy every Chem on the shelf at the supply house. Pick your tools carefully or you will end up with a collection of trophies cluttering your shop. Year seven for me, I got in while the economy was sliding down so the going was tough, everyday is a challenge and some are rewarding. Good stuff here!

I think the main reasons are

- no organization,   no prior business skills and just going with the flow writing down stuff on napkins

- not realizing that small things are killing having repeat customers,  like edging,   furniture tabs,  vacuuming,  etc

- spending way too much too fast on advertising,  equipment loans,  etc

- paying for every customer and not marketing exisiting

- being kinda dirty looking in general...  van,  breath,  clothes,  b.o.,  shoes,  socks...   going to clean while looking dirty just doesnt work in residential

-charging too little and worrying about the craigslist/ groupon pricing,   thinking they are even competition is the first mistake.  

- not taking it one job at a time and treating each and every customer as the only customer

- getting spread too thin because of cheap pricing(everyone calling) and still trying to do a good job,  eventually quality drops,  equipment needs work,  and then the poo hits the fan and its time to close down shop

- worrying too much about what other cleaners think of your service aka trying to impress other carpet cleaners and not just worrying about customers  

- Taking a dump first thing when showing up to a customers house,   you think they dont know ur not up there pre spraying??   jk

They don't understand how to get the phone to ring and they aren't willing to get out of their comfort zone.
Yes and dumping to much capital into 1 or 2 advertising schemes with out testing them first.
Sitting on their but waiting for the people to call because that's what every advertiser and local supplier has told them would happen if they spend the big bucks.
Not listening to others who have already done what they want to accomplish and thinking they are going to be able to take the easier route to success and skip over the actual sales part.
Not keeping up with trends.
Good thread!

"not taking it one job at a time and treating each and every customer as the only customer" (AC Power1)

Boy, is that ever a big one!

I must say that in 25 years of business, 95% of my customers have never seen my truck or the equipment inside. The majority of my customers are referrals and repeats and "trust" is the number one factor in their decision making
I have established myself with carpet retailers, interior designers, I have attend BNI meetings for years and network extensively, in other words, I talk to people and establish myself as the local authority.
The bright and shiny equipment is nice, and I can say I like it, I have a new boxer xl and an Everest, 2 cimexes, 3 chemstractors, 2 crb machines, a Masterblend Truckforce portable with 1200 psi auto-fill auto-dump, electric hose reels, hydroforce sprayers and a bunch of other toys, but that is not why I get the job. These "toys" are tools of the trade that make my life easier, but I could do a remarkable job with a lot less. When I started in 1986, most companies did not have truckmounts, neither did I. I did a great job that could still rival a truckmout with a 175 and a portable that only had 100 psi.

We really are in the people business aren't we. If you read your own reviews they describe how professional, knowledgeable, attentive, cordial etc. you were. So you know if the customer thinks you were an ass he wouldn't call you back no matter how good of a job you did cuz lets face it cleaning isn't rocket science.

Exactly right gang, you are the business, so market that part.

We do this in our personal lives all the time. We select our dentist, doctor, mechanic, barber, dry cleaner, etc. in the same manner...why would we think that our customers are any different with us?

Charm can be your best tool on the truck, so take the time to interact with those customers instead of just racing from job to job.

And if you plan on keeping them as a long-term customer, make certain that you learn something about them and the family and write it down in your records for the next time. You don't want to act like a stranger on the return visit or else it will be your last one.

You MUST have OCD to be good in the cleaning industry.

Honestly...my past success was because my wife worked for me...in my area not one other company actually answered a phone...many "leave a message type deals". When Mrs customer gets to talk to another woman it on!

Devon07 wrote:You MUST have OCD to be good in the cleaning industry.

Honestly...my past success was because my wife worked for me...in my area not one other company actually answered a phone...many "leave a message type deals". When Mrs customer gets to talk to another woman it on!

Boy is that the truth. Nobody answers the phones around this town, but they will call your right back in 2 minutes after leaving the message. I hate getting the guy who screens his calls from prospective customers...I'm sure my customers would feel the same way.

I do know how to spell...I get a little lazy about getting my glasses. Im not adjusting to my eyes going bad. Bad eyes equal clean carpet everytime!

I called a guy one time to have a sign made for my shop....when he answerd the phone I asked how he was doing...he said...Well, Im trying to eat my lunch right now. I told him to eat it and hung up. made me feel as if I was interupting him with his all...Im in business phone number yellow page advertising lazy but. lol It was then I knew I would do well.

Devon07 wrote:I do know how to spell...I get a little lazy about getting my glasses. Im not adjusting to my eyes going bad. Bad eyes equal clean carpet everytime!

Right there with you....eyes went bad a year ago and I often leave them in the other room.

We are a cleaning forum, we let the grammar / spelling forums deal with the other stuff.

Honestly I have 16 pairs of reading glasses and they all end up on the dash of my truck.....my wife brings them in and within a couple of days they are all back on the dash. The older I get the more crap I gotta do.

I started with just reading glasses, then glaucoma, then full glasses all in about a year.

You don't get old...you just wake and boom...you're old.

LOL very true.