Deciding Between Big Commissions or Building a Business: My Dilemma in the Window Cleaning Industry
Running a small window cleaning business as a sole trader has been quite the ride. Operating solo, I manage to rake in an average of £350 to £400 a day during my 9 AM to 3 PM shifts. However, I’ve come to the realization that my true talents lie in sales and marketing rather than the physical task of cleaning windows.
To take advantage of this strength, I partnered with a larger local company to boost their client base, earning a 3x commission for my efforts. Essentially, for every £50 spent by a customer on a bi-monthly cleaning, I pocket £150.
Now, I’m at a crossroads with two possible paths ahead:
1. Embrace the Freelance Sales Role:
Venturing into sales has opened up an exciting gig where I act as a freelance sales representative for a window cleaning company. By canvassing residential areas and securing new clients, I earn a 3x commission for each lead I generate. Although earnings are delayed until the initial cleaning service is completed, the potential to make up to £2,000 daily is tantalizing. This opportunity allows me the freedom to work independently without the stress of managing a team or dealing directly with clients.
2. Scale My Window Cleaning Business:
Alternatively, I could channel my efforts into expanding my existing window cleaning venture. This would involve hiring employees and investing in additional resources such as vans and cleaning supplies. While this approach entails considerable overhead and management duties, it also offers the prospects of building a business that could eventually be sold for profit. However, to achieve the same £2,000 daily target, I’d need to operate with at least four cleaners and an equivalent number of vans, significantly reducing my profit margins.
What’s the Right Choice?
I’m grappling with the decision between the independence and lucrative potential of freelancing and the long-term rewards and stability that come with scaling my own enterprise. I’m eager to hear from others who have faced similar choices. What path did you take, and what insights can you share about the advantages and drawbacks of each route? Your feedback and experiences would be invaluable as I navigate this pivotal decision.
2 Comments
bdadmin
From your detailed description, it sounds like you’re at a pivotal crossroads, and both paths offer distinct advantages and challenges. I haven’t been in your exact situation, but I can offer some practical advice based on business principles that might help guide your decision.
Freelance Sales Representative Model
Pros:
High Earnings Potential: The 3x commission structure offers the potential to earn substantial income quickly, especially if you excel in sales and can close deals efficiently.
Flexibility: Working as a freelance sales rep allows you to set your own schedule and work according to your strengths in sales and marketing. This can also mean less stress around operational logistics and employee management.
Low Overhead: Without the need for employees or equipment, your costs are minimal, allowing most of your earnings to translate into pure profit.
No Direct Customer Service: You avoid the complexities of customer service, as you’re not directly responsible for the cleaning service delivery.
Cons:
Delayed Payments: Commission payments are contingent on the completion of initial services, which can delay your earnings. This requires you to have a financial buffer while payments process.
Dependency on Another Company: Your income is tied to the performance and reputation of the company you’re representing, which can be a risk if they face operational challenges.
Limited Control: You’re not building your own brand or business; instead, contributing to another’s success.
Expanding Your Own Business
Pros:
Business Growth: Expanding your own business allows you to create and grow a sustainable asset that could increase in value over time.
Control and Legacy: Owning your client list and brand gives you more control over customer experience, business decisions, and strategic direction.
Long-Term Stability: Building a team and a customer base could lead to more consistent, albeit possibly lower, earnings, with potential for resale value.
Future Diversification: Once established, you can diversify services or even geographical coverage, further increasing revenue potential.
Cons:
Initial Outlay and Running Costs: Purchasing new equipment and hiring staff involves significant upfront investment and ongoing operational expenses, which could impact short-term profitability.
Management Challenges: Operating a larger business requires skills in HR, finance, and logistics, which could be daunting if you’re not experienced in these areas.
Slower Initial Return on Investment: Amplifying your business
bdadmin
This is a fascinating dilemma you’re facing, and it’s great to see you leaning into your strengths in sales and marketing! One important consideration that often gets overlooked in the decision to choose between freelancing and scaling a business is the potential for building a brand.
By continuing down the freelance path, you can create a strong personal brand as a sales expert in the window cleaning industry. This not only enhances your reputation within your local market but can open doors for additional opportunities, such as coaching other sales reps or consulting for businesses in similar sectors.
On the other hand, scaling your own window cleaning business provides the chance to create a legacy—an entity that can thrive independently of you. This path may require more resources and management, but ultimately, it could lead to even greater financial freedom if you build a loyal customer base and a team that shares your vision and values.
A hybrid approach could also be worth considering. You could continue earning commissions while gradually building your business infrastructure on the side. This way, you can test the waters of scaling without diving in entirely, allowing you to make informed choices as you gather insights on what works best in your market.
Ultimately, emphasizing your unique skills while staying open to new opportunities can lead you to a fulfilling and successful path. Good luck with whichever direction you choose; it’s clear you have the drive and vision to succeed!