Need to skip town—Idea to turn my business over FAST

The Office Business
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Over the last 29 months, I’ve started up this business that’s finally able to hold it’s own in the residential exterior cleaning market of Portland, Oregon.

Quick stats
Last year, with only about $5k spent on labor costs (I did the rest of the labor), I sold $94k worth of cleaning services. Net operating income last year was only $37,600 as I spent quite a bit on purchasing tools, supplies, branding, bookkeeping, etc. Contact me if you’d to look at my Profit and Loss statements for 2018 & 2019.

If you take a look at my online reviews, you can see I’m doing something right—Google ‘MJB Exterior Cleaning Portland’ to find my business.

Videos
Want to see my set-up?

Want to see the main software, platforms, etc. that I use to run and promote MJB?

Purpose of this very long post
A) To get some feedback from the cleaning business owners who have been managing employees for years.

B) To see if someone in our network is either interested or knows someone who might be interested in this business opportunity.

A quick summary of my idea
I’m looking to hire a skilled window cleaner (ideally, also experienced in exterior cleaning and has done some managing of a small cleaning business), with leadership and sales abilities. This person would need to become the lead technician & operations manager in less than a month—sound optimistic or maybe something worse?

Then, if they can successfully run the operations aspect, they could move into a contract to purchase the company from me through successfully running the company, as the President, until the agreed-upon value has is transferred from the LLC to me.

That’s right—there would be no need to buy the company with your own money—unless you want to take it over sooner because you happen to have the capital.

In my mind, this is the perfect opportunity for someone who has the skills and wants to run their own successful exterior cleaning business but does not have the capital to start it. So, instead of scraping yourself bloody for the first couple of years (figuratively speaking), you can take over an existing operation who has the worst phase behind them—and work yourself from the bottom (tech) to the top (owner) all in potentially a few years.

Quick Bio
I grew up in Portland, Oregon, and every summer of high school worked for my dad’s window cleaning business: All Pro Metro Services (still going after 25 years). I tried out plenty of other jobs but finally ended up starting this window and gutter cleaning business in 2017—MJB Exterior Cleaning (officially, ‘NW Exterior Cleaning LLC’). NW stands for Northwest, as Oregon’s located in the ‘great Northwest.’

My Plight
Over the last couple of years, my close friend in Los Angeles (who owns and manages Los Angeles pressure washing) has been helping me get this business going in Oregon. Just recently (within a week) it opened up for me to join him in LA. Being as he is my best friend, and I’m eager to work with him long term, I’m wondering if I might be able to turn MJB’s operations (and later possibly the LLC) over to someone else.

I’m planning to move to LA by the end of February (yes, in just a few weeks). Thankfully I’ve built this business to work on the cloud so I can oversee the books remotely via G-Suite, Customer Factor, QuickBooks Online, ResponsiBid, etc.

For that to happen, I would need to hand the operations side—not necessarily all of sales & admin (as I can still do a lot of that by commuting online) over to someone else this next month.

If that all goes well, and the operations manager and I were to work out a deal, It might work best to sell the business to this new manager (over some time, unless he happened to have the cash to buy it outright.)

If I don’t find someone through this network or locally, I may take this business with me to LA. I don’t want to move this business, but my friend is open to acquiring it, so it will likely work out just fine to move it. One reason I don’t want to move it down to LA is—it is built to serve this market, and things are now running pretty smooth here (comparatively), so I feel like it’s a shame to move it.

A couple of other notes about MJB
Soft Wash—I’ve been moving in the direction of soft washing. I’ve been impressed by Brandon Vaughn’s All Clean! business, nationally recognized because of his recent high profile speaking engagements. In a week, I’m flying to Florida to get the necessary training from Soft Wash Systems, becoming certified and everything.

In the last few months, I’ve been working with my new bookkeeper, whose father is my CPA, so this LLC’s books are in good working order. Trying to do Quickbooks myself, the first 1.5 years, was not sustainable.

My possibly absurd question
Does it sound plausible to hire a tech and entrust him as the operations manager within a few weeks?

Rough Business Plan

Initial Phase⁠—Become the Ops Manager
In this phase, the operations manager would start by completing jobs by himself while learning the ropes.

Hopefully, within a month, he and I would be interviewing another skilled window cleaner who has what it takes to become the lead tech. We hire the 2nd employee and train him to become the lead tech. After the 2nd hire proves himself as a good assistant and capable, we employ the 3rd guy to become his assistant⁠. During this whole time, the Ops Manager is enforcing safety/operations protocol and selling services face-to-face, etc.

My role:
Now I would be doing much of the sales and customer service remotely from Los Angeles during this first phase, plus I’d be in charge of all the admin/payroll/bookkeeping. I’d be actively managing the business. I’m thinking I’d be able to limit myself to only drawing an hourly wage, maybe $20/hour, from the LLC (I use TimeDoctor to track all my business time) plus a sales commission. I’d be making other money working for my friend’s company in LA.

Also, this Ops Manager and I would be working on how to purchase and equip another work vehicle that focuses on soft washing (maybe finance a skid via Soft Wash Systems and find a used pick up). Remember, I’m going to be in Florida next week so that this business can become Soft Wash Systems certified, giving us the best training materials and network at our disposal.

Until the Ops Manager has a lead and assistant tech working for him, for at least a month, we can’t move to phase 2.

2nd Phase⁠—Becoming the Sales Manager, as well
Once the Operations Manager is tried-and-proven, it’s time to see if he can take over sales and customer service. During this phase, we could be looking to promote or hire someone else to become the Operations Manager and hire more techs.

3rd Phase⁠—Becoming the Business Manager
After showing himself successful in managing the sales and operations⁠—quotas achieved, safety being enforced, reviews are still good, and the business is overall in good health⁠—we’re at a point when we would begin to talk about a contract to transfer the company over.

Once we agree on the plan to transfer the business, I step out and get paid per hour as a consultant. Maybe $30-35/hour. However, every month I’d review the reports, so there would be some time I’d be spending without the hourly rate. Otherwise, I’d be drawing from the company until the agreed-upon ‘business value’ is achieved. If the manager doesn’t perform (as the contract we sign requires), then the result may end in termination.

Things that could result in termination

  • Bad reviews
  • Any unethical behavior or dishonesty
  • Not enforcing company policy
  • Jobsite injuries or automobile wrecks
  • Not adhering to the budgets
  • Not meeting sales quotas

Who am I looking to hire?

  • Fits my company’s high values (See long video)

  • Wants to promote the unique company culture (think pre –1950’s ‘hard-working America’)

  • Good camera presence

  • Eager to jump on AC’s SoftWash bandwagon

  • Safety first mentality

  • Compliant to laws and policies

  • Mechanically inclined

  • Someone who leads by example

  • Solid communicator

  • Technologically inclined

  • Strives to have everything organized, systemized, and when possible automated

  • Teamwork oriented

  • Adept window cleaner (or, at least exterior cleaner)

  • Passes a criminal background check

Thoughts?

So, what about the cleaning business employers here, do you have any advice or opinion to share? Do I need a reality check?

I’m hoping that this forum post invites some excellent exchange/advice.

If you feel inspired to apply for this position, please make a 1-5 minute unlisted video of yourself talking about why you might be a good fit and email me the link (I trust you can find my contact info on Google.) If you can’t make a video then you won’t be a good fit, IMO.

Thanks for reading and sharing any thoughts!
-Micah of MJB

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@Chris @ChrisTripleC @Majestic66 @Infinity

Just a few people I thought could give some valued feedback regarding this topic. Obviously there are many more I’m missing…

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Forgot to include this video showing how I often sell bigger jobs. These videos show up at the top of the proposal via ResponsiBid.

See a proposal video I made

  • bid video, too long but the customer loved it, 7 min
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My personal opinion - try to find a cash buyer and walk away. If you would drop your seemingly successful business with five weeks notice so you can chase your best friend to SoCal, you aren’t likely to be a good candidate to manage a business from afar. These types of things often take months, even years to lay the groundwork for.

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Well put.

No way I’d throw away over 2years to live in LA lol

What kind of equipment did you buy? Net profits are pretty low for a one man show for cleaning anyway

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Hello neighbor, I’m also located in Portland, OR. I own Expert Power Wash. Let me know if you ever need anything or want to meet up.

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Have you thought about merging it with you dad’s business?

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Hi Genaro, great question, and I would direct most all my window and gutter jobs to my dad if I do move MJB with me to LA He doesn’t want roof cleaning or soft washing and he’s almost retired anyways.

Please expect a call from me in the next day or so.

Ouch! That sounded like someone who is trying to be realistic… I needed to hear that. Thanks for sharing your real thoughts, Rich. By the way, I hope I am not touting this business as a success, but simply as way better than nothing.

“you aren’t likely to be a good candidate”
This is the major question, am I a good candidate to manage a business from 1,000 miles away? I admit that someone interested would have good reason to be skeptical. Of course, the idea is to manage less and less as the new guy takes over

I forgot to add in my post that before I started MJB I was going to move my family down to LA but it just didn’t work out at the time. My friend has been helping me with this business a lot. These last 29 months have been a very good learning experience.

I’m actually very open to a cash buyer. I could even stay on as sales and support at the right price (as an employee, if the buyer wanted). That way I could help bridge the gap with repeat customers.
What I should do is go over the main assets and come up with an offer and look for the highest bidder. Look for that here in the next few days.

You might watch the 6 minute video I posted above (https://youtu.be/uPypjOG4qPU) going over some of the basic equipment (skip the first half, in the office). As noted above, I plan to post the main tools soon, and my cash price in case anyone is interested.

Very true, it’s nothing to brag about, but that’s all so easy to turn around if you’re the right person. What’s not easy (for most) is to set up all these systems/reviews/etc.

You’re right, and I think LA is disgusting, but good friends with the same religious beliefs are hard to come by.

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Wow!! Your plan sounds great ! For a million dollar a year business, but unfortunately you don’t have that.
You’ve worked hard to build it to where it is. Compliments for that, but your expectation level is quit high.
Unfortunately where your at right now it’s going to be the buyer who has the upper hand. If you can find one !
Is it worth something “Yes” .

I agree with everything @TexasRich says.

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Agree with @TexasRich and @Majestic66. Nice post, obviously you are a planner and detailed person @MJB-Exterior-Cleanin.

It could be different in your market. You may find that “unicorn” buyer who is looking for exactly what you are selling.

Realistically you are going to have to find a larger operation who will just want to purchase your customer list (maybe some equipment for cheap) and maybe do a revenue share type of buyout. Meaning you do nothing and get a small % of each customer ticket that the buyer services over X years.

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Nail on the head. I was thinking the same , because it’s the only way I would buy it , but that’s not to say someone else won’t buy it with different procedures So to speak for lack of a better word.

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I think you hit the nail on the head with that comment. This has been an eye-opener. It really helps to have feedback like this.

Another excellent point. I am grateful for older, wiser men who are willing to tell me the hard truth. Thank you.

I will be looking for this unicorn, as you say, but if he doesn’t pop up soon I’ll likely just merge, or something, with my friend’s business.

Thanks for sharing this, I was just talking to ‘Expert Power Wash’ about that a couple of hours ago, and he was kind enough to inform me that that is what can happen in these situations. My parents have also done some of that stuff so I’m a little familiar with it.

Any idea of what this small percentage could be?

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I’m sure I don’t understand the situation fully, but $94k seems really good for a one man operation and not sufficient to be having employees. Especially with the cost of living in Portland Oregon.

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I’m assuming you’re mostly Residential. If that’s true then I’d say anywhere from 10%-25% of Gross. Some of that depends on the buyer and some on you. Also your market will help truly determine the value.

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These numbers seem fair. I MAY be have seen or heard of it going as high as 30% but I wouldn’t pay that much…

Your goals seem very optimistic @MJB-Exterior-Cleanin
Best of luck to you! I honestly hope it works out well for ya with your move to LA, I just haven’t seen it work out well for most friends that work together. It’s a precarious thing most of the time with a lot of ambiguity, and unspoken expectations that seem to come to a peak after a lot of them haven’t been met on one or the other side. I’ve got a contact in OR I might try reaching out to, to see if they’d be interested.

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Thanks for commenting.

I hear you, it’s where the rubber meets the road, we’ll find out what our friendship is really made of, and by the way I’m interviewing a potential take-over candidate. We’re interviewing and it’s pretty interesting. I hope to give an update soon.

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I haven’t seen a lot of partnerships in this industry work out in California. Typically not enough money to go around. But give it a whirl.

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Oh yeah sorry. Just shut down your Portland business. You’re moving so quick, it’s probably improbable, not impossible, to sell it.

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I’m amazed. So many rich people in LA and the service industry is so cheap. Flooded with under-the-table services, I guess, or simply too much competition. Not sure.

I hear you… you’re right… it will be tough if I can do it. We’ll see, I’m going to try at least, if not just move it to LA (unless there’s a cash buyer around here).

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Maybe I’m not following but how exactly will you “move it to LA”? Is your customer base coming with you?

I’ve bought and sold routes when I’ve moved between states and countries even. Generally, you take your tools, equipment and experience and start over. The customer list stays with the new buyer. As a solo guy, they never wanted my business name - they just amalgamated it with their own route. At most I left them my business number for a period of time. They could keep it if they wanted to pay for it. None have.

Try not to over complicate or over estimate what it is that you are hoping to sell.