Welcome Melissa and Good Luck.
This community, Steve Strauss, myself and many others can and will help you
"turn this company around"
It would help if we knew more about you and your background,
I am also interested in why you bought this company from the previous owners??
Do you have an accountant?? C P A??
Again Good Luck, LUCKIEST
Welcome to our community!
Luckiest has given you some good advice, Melissa. Our community has some wonderful experts who are happy to share their advice with others so never hesitate to ask questions. If you will look at the red task bar on top.......then go to: Running Your Business > Business Startups, you will find some excellent articles that may be helpful to you.
I agree with Luckiest - if you don't have an accountant, seriously consider getting one on your team. The advice an accountant will share will be most helpful as you move forward.
Best wishes as you move forward in your endeavors.
I ran a middle size business at one time with a small division that had good sales but low profits where the profits should have been very good. We took the business apart to look at it closely. We had sales people that called on each store...(we were a distributor) We found out that 25% of the customers our sales people were calling on were not as profitable buying only minimums. We then issued a catalog for them to call in their orders so that the sales people could spend more time developing their larger buyers and calling on New Businesses. Meanwhile we started a program of giving special discounts when arriving at certain volume purchases encouraging smaller accounts to buy more from us than others. The discounts were given quarterly in credits to their account. When that period came, their orders sometimes showed on an invoice N/C or a large deduction for that order. Something they could see rather than a number on a page. Also we started Coop Advertising at 50/50. The large customers could use this program but smaller customers usually couldn't buy enough to qualify. So we ran Quarterly ads around Holidays and listed the dealers that reached a minimum in purchases on a large newspaper ad. Our sales increased but our profits also increased. A Win Win program for everyone.
Wow! Thanks for sharing your story with us, chinadave! You've brought up some great tips on how Melissa can turn around the business that your brother previously owned. I would concur that she should take a good look at all facets of the cleaning business and see where it failed. I love your idea of offering volume discounts to your customers. Some may only look at the short term and see where they are losing potential profit, but as you found out, by rewarding loyal customers your company actually increased it's profits by offering incentives for customers to increase their volume of orders with you. Additionally, you've developed a core of loyal customers now who are invaluable to any business and it's success.
Congratulations on the turnaround, chinadave! We look forward to hearing more about what has worked for you and your business.
I am in the process of starting an industrial and commercial cleaning company. I am in the starting process..
Bank (of course)
So business has been in effect for 1 month. I am wanting to strategize and organize this company to be structured and regimented.
I have just read the articles from Steve Strauss on writing a business plan. (Work for next week)
My brother and sister in law owned the company previously. They suffered major losses from 2012-2014. So they dissolved the old company and I bought the contracts from them.
So logically, I want to turn this company around. I can see myself knee deep in cost vs profitability vs budget.
Any words of encouragement, suggestions, or comments would be greatly appreciated.
Rockin D Cleaning Services LLC