HOME | FEATURE ARCHIVES | NEW BUSINESS START-UPS

NEW BUSINESS START-UPS: TRAPS TO AVOID

(March/April 2006)

By Bob Lawrence

There’s this old religious folk song  - Nobody Knows The Trouble I’ve Seen - a tune from the deep south sung in the plantation fields, in church, and years later, immortalized in film and on record by jazz artists. The title tells it all, and it popped into this writer’s head after interviewing some veteran window cleaners for this article intended to provide some sage advice to new business start-ups and those just thinking about jumping in. It’s not that these vets all traveled a horrendous rocky road in getting started, but rather that they experienced and learned from hard knocks they encountered in building solid, successful businesses. In talking about how they got started and the kind of trouble they’ve seen, these industry stalwarts offer priceless, even inspirational insight into the window cleaning profession and the traps to avoid.

HOW THEY STARTED

Mark Reinhart’s start in window cleaning came after he was an employee of the biggest hotel in Grand Rapids, Michigan, where his first job was on the janitorial side. Within three years, he was a supervisor and then began overseeing the building’s window cleaners. Wanting to learn how they did it before taking the job, he soon found himself 30 stories up hanging from a scaffolding. “Once I got out there and got used to it, I fell in love with high rise,” says Reinhart. Within two years, while cleaning windows for a janitorial service doing high rise in the city, Reinhart began doing residential and small storefronts on the side,  an enterprise that got so busy it led to the launch in 1991 of Award Window Cleaning Services, Inc. Starting with residential, he was soon taking on buildings at the three-story level, then moving up to five, ten and eventually 32 stories.

Sam Terry was just out of college in 1985 and planning to become a banker when he decided to buy an existing window cleaning company in Austin, Texas, where Sparkling Clean Window Company concentrates on the commercial side. Until then, his only experience repelling was in the Boy Scouts, but he quickly learned that going over the side of a tall building is a lot different. After initially branching off into residential work, Terry soon phased that out to focus solely on low and high rise buildings.

In 1987, a police car delivered a near destitute Mark Ahlich to a half-way house in New Orleans, Louisiana, where miracles suddenly began happening. A combination of reading about window cleaning in a library book and finding a magazine on getting into business was the turning point for him and the start of Crystal Clean Vision. After spending $40 to buy supplies, he walked around looking for dirty storefront windows and started cleaning them. Eventually, Ahlich bought five storefront accounts for $10 from another cleaner, then purchased a bicycle to expand his territory. Soon, he  landed eight car dealerships with lots of showroom windows. Before long he had three employees working with him on his commercial and residential accounts.

In Birmingham, Michigan, Geoffrey Shaule was in the residential house cleaning business, doing everything but windows, sub-contracting that out to others. After finding the level of service “poor,” he felt he could do a better job himself.”  And that’s the origin of G&S Window Washing Inc., established eight years ago.

In 1966, Jerry Rigdon was working construction when a window cleaner offered to train his brother, Russell, who jumped at the chance to leave his $2.58 an hour packing plant job in Cedar Rapids, Iowa, and make $10-$15 an hour. Based on that, Jerry lent him the $500 the cleaner wanted for the training. As it turned out, Russell learned all the techniques, but his teacher didn’t work with him as promised, and he didn’t teach him the business end. Not making the money he thought he would, Russell called Jerry, who had retail sales in his background. Jerry was able to script an approach that quickly took Russell from making a few dollars a week to making several hundred. That success led Jerry to quit his $4 an hour job in Waterloo, Iowa  and join his brother in Burlington, which became the headquarters for Brite-Way of Burlington. That was in 1968, and within a short time, they had companies in four Iowa cities.

Jeff Dey was a high rise window washer for a Vancouver, BC, Canada, janitorial service company in 1985 when his boss contracted with him to handle his low and high rise work. Soon, Dey was going after business on his own, thus launching All-Star Holdings Inc., specializing in low and high rise and now employing more than 60 people. He’s also a leading advocate for window cleaning safety and certification in Vancouver.

As a service manager for an auto dealership in Kent, Ohio, David McKeen knew the value of good service performance and wanted to parlay his experience into a business of his own. He wasn’t looking at being a franchisee, but after seeing a franchise broker’s ad and considering various opportunities, McKeen zeroed in on window cleaning. ”With the training and support provided, it looked like a good fit above all of the different options.” Thus, in 1999, he joined Fish Window Cleaning and began specializing in commercial work.

IF YOU COULD START OVER?

It’s a good question. What if any of us had the chance to start anew from scratch? Would we do anything differently? Reinhart is like many in the industry who would love to have had a bundle of cash at the get-go, about $30,000 for equipment. “But if you’re like me and don’t have it, keep your full time job and do windows on the side. That’ll help you decide if you want to do it for a living.” He also suggests concentrating on the business end of it, something he started learning at an IWCA convention where business training guru Michael Gerber was the keynoter. “He slapped me in the face by saying that just because you clean windows, you think you can run a business. After that, I developed procedures so that we were more consistent in what we did, and that made the company more proficient, more competitive and more profitable. Prior to that, I was a window cleaner trying to be a businessman,” says Reinhart, “now, I’m a businessman who doesn’t clean windows anymore.” Read Gerber’s book “E-Myth,” he advises.

Rigdon, who read “E-Myth” ten years after starting his company, wishes he had done it sooner and applied its principles, which led him to champion the philosophy that "the business of window cleaning is business." Rigdon believes that every facet of business can be learned and applied in the enterprise of window cleaning, from hiring and motivating employees to gaining and retaining customers. “Developing an expertise in basic business skills, along with a commitment to continued learning, will assist the new window cleaner on the road to success,” says Rigdon, who shares his expertise in a book he wrote for the IWCA - “Starting a Window Cleaning Business: Route and Residential.”

If Shaule was starting over there’s “lots” he would do differently. “I would have tried to work with a veteran window cleaner to learn the ropes for a while. I was out there learning as I went along and made mistakes that could have been avoided if I had some window cleaning experience.” As for McKeen, “I would do it the same way again. Franchising was a perfect fit for me.”

AVOIDING THE PITFALLS

For those early to the game, the pitfalls are numerous, one of the biggest being in hiring, according to Terry, who developed a process of elimination that improves his chances of finding the right people. “We go through a long screening process but still end up with some dogs, but not as often as we used to,” Terry says, adding that having them respond to classified ads helps narrow the list, resulting in his tossing out 80% of respondents. As to when to hire, Rigdon says “don’t do it when you’re busy, but when you’re not. That way you have time to train them and you’ll avoid turning them lose on a job when they’re not ready.”

Crucial too, is never under-price your work. Terry notes that “it’s common to be so anxious to get the business that you under-price and subsequently lose money.” Shaule agrees, saying that “not charging enough for your work is the biggest mistake you can make. I see lots of guys go out of business quick because they didn’t know their true costs and realized too late that they were  not charging enough for their work.” Ahlich’s rule of thumb - “never work for less than you feel you’re worth. Don’t charge rock bottom because you feel threatened by your competitors, worrying that they might take your business,” he advises. “And don’t be so tight with your money that you start duck taping your equipment to keep it together. Spend money on your tools, but don’t overspend.”

Don’t try to be your own CPA, cautions Reinhart, who always paid withholding taxes for his employees, but not for himself. After paying a hefty penalty and interest, he hired a certified accountant.

“Keep your word about your time frame to do the job,” says Dey. “Try to stick to your schedule, but let your client know if there’s going to be a delay. Also, try to create work from the job you already have. If you’re cleaning the windows on the outside, there are also windows to clean on the inside.”

“Never put all of your eggs in one basket,” an old adage McKeen subscribes to after making that mistake himself, “Don’t get one huge account and stop growing your business, because, if they go out of business, you’re in trouble.” When that happened to him early on after starting out, he lost 20% of his business. “That’s a big hit,” says McKeen, adding that “if you have more than 10% of your business coming from one customer, you’d better go out and diversify.”

MORE SAGE ADVICE

“If starting out with zero experience, they need to know how to clean windows,” advises Reinhart. “Work for a window cleaning service, but not one located where you intend to start your business because that would be unethical. If someone teaches you the business, never try to snag his customers.”

“Always be honest and ethical and do a good job,” says Terry. “If you don’t, it’ll come back and bite you. Also, join the IWCA right away and attend the next possible convention for the invaluable networking and one-on-one with window cleaners who’ve already experienced what you’ll go through.”

Rigdon seconds that notion, pointing out that he once returned from a convention where the impact had been so great that “it changed everything and I became more professional.” He also believes you have to look and act like a professional as well as prepare, persevere, market and advertise, and get to work on time. “Woody Allen said ‘90% of success is showing up,’ and I agree with that,” says Rigdon, adding that “it’s also important to be trustworthy and dependable, have a good attitude and know and care about your customers and employees.” Dey agrees, adding that “If you treat clients well, like friends they’ll look past the bottom line. Be polite and remember the client is always right,” he stresses, adding that you should spend more time with 15% of your clients, keeping them happy, because that 15% will keep you busy.” He also advises not to put a lot of effort into dealing with major players whose bottom line is the price. “I’d rather get the best price for the job and do less work than have all the work and not get the best price,” Dey says, adding that “a lot of guys bid the job to cover their cost, thinking volume is the best thing, but that’s not for me.” With image being crucial, he urges clean trucks and staff. “And if you buy an existing company, be selective as to the employees you keep on staff.“

“Be goal oriented in the beginning,” Shaule advises. “Set not only revenue goals, but profit goals as well. If possible, benchmark against another business in your area. It’s too easy when you are starting out to get all exited because you made $100 profit in a day. What you don’t realize is that the guy down the street made $300 profit the same day.”

 “If you have employees, especially at the beginning, always be looking for more because you never know when you’re going to run short,” says McKeen.

A CLEANER BEFORE OWNERSHIP?

This industry is loaded with success stories about owners who had never washed windows before they started in the business. Even some who moved up the ladder to ownership believe it’s not absolutely necessary to have had a window cleaning background. Ahlich learned how to use a squeegee from a library book, then went to work. His tip: “establish a relationship with a supplier and buy some of their books. You can study and practice and you can become quite good at it,” he says.

“It’s not necessary to have been a cleaner,” says Rigdon, adding that apprenticing yourself to someone is OK. That’s how hundreds of young men from his church learned, spending a month on the job before heading out on their own. While his brother taught them how to clean windows, he schooled them on the business aspects. From that, those Brite-Way kids started their own companies throughout the nation.

Reinhart, who had a half dozen years under his belt before starting his own operation, says one route is to “buy an existing service and learn from the employees.”

When Terry bought his company, the owners taught him both the cleaning and the business side, and they financed the deal. “If you buy one, don’t pay all the cash up front,” Terry suggests, “because you want the seller to still be invested and to help make you a success. If you fail, you can’t pay them off.” He knows some who bought outright and lost everything. The previous owners also worked with Terry on keeping the existing accounts, knowing that a change in ownership can cause long-time customers to look elsewhere because so much of the business revolves around the customers and the owners.
.
“Starting as a window washer is the best path, but it may not be necessary for everyone,” says Dey, cautioning, however, that “if you start doing high rise or any technical window cleaning without experience, you’re going to get into trouble. “

Shaule, who was not a window cleaner but managed to make it work, agrees that being one might be helpful, but still not crucial. McKeen agrees, especially if you buy a franchise like he did, “because the franchiser trains you and works with you. If you’re not buying into a system that teaches you everything, you have to work for somebody and learn the business,” he says, adding that it’ll help you avoid a lot of expensive mistakes.

CAN THIS BE DONE?

It does happen - guys starting out with just a squeegee, some purchased, some ripped off at the gas pump, but is that the path to success?

“The right people can do it,” says Terry, who says he’s seen some almost homeless people with a squeegee and a bucket who end up stealing a lot of route business. “They can survive,” he says, “but I don’t see them strive.” Knowing what he knows now, Terry believes he could build a business from such a meager beginning.

Getting started at such a bottom rung “happens all the time,” says McKeen, “but you can also fail. You have to decide whether you want to work alone out of your pickup or the trunk of your car, or do you want to develop a million dollar operation? Either way, you’ve got to do your homework and figure out what you want to do and don’t bite off more than you can chew. There are a lot of window cleaners who like the idea of owning their own company but they don’t realize how much work there is. You can’t clock out at the end of the day and leave it at the office because it’s always with you. Some cleaners who are thinking about going out on their own might be better off working as an operations manager for a larger company. That way they can have some of the responsibility but not have all of the headaches of being an owner.”

Remember Ahlich’s humble beginning on the streets of New Orleans? “Just go around looking for dirty windows like I did,” he says.

Rigdon too, believes it can happen. “As a resource, the IWCA website has videos and equipment information to help you get started.”

“A squeegee and a couple of squirts of dish soap in a five gallon pail is all some guys need,” says Dey.

“Just being a good squeegee man is not enough to be really successful,” according to
Shaule. “It’s not realistic because any successful business is going to have a pretty detailed business plan, a good accountant, some solid goals, and a good vision of what you want your new business to be in 2 – 5- or 10 years.”

STARTUP CAPITAL

While some have succeeded with just a squeegee or a small outlay of cash, just how much is required for a startup? Depends on a lot of factors.

Ahlich reminds us that he started with just $40, and that his level of income is based on the amount of money he actually needs to be comfortable.

“If you’re doing store fronts, you can start with less than $50, but residential will cost a few hundred more because you need ladders, poles and other equipment,” says Terry, adding that the initial investment for some high rise work can be as low as $1,000. And the costs can go way up from there, depending on what type of cleaning you plan to do, which will dictate the equipment and vehicles required. As McKeen sums it up, “everything depends on how much you  want to grow, meaning it could run the whole spectrum, from $100 to $100,000 to get started.”

FRANCHISE OR NOT?

Is becoming a franchisee a good avenue to entering the business? It certainly was for McKeen, who is quick to say that “it’s not right for everyone, but it was for me because I had no experience in this industry and Fish taught me. If you want to be a self-employed window cleaner working alone or if you like doing everything your own way and not conform to preexisting standards, it’s probably not the way to go,” he say.

Reinhart notes that one value of the franchise route is that “the volume is what makes your dollar and you do the work the same way every time, and you become more proficient and faster.” But, he suggests that if you have the startup money, buy an existing business.

“I wouldn’t recommend the franchise route, but I wouldn’t discourage anyone from looking at it,” says Ahlich. “It could be a fit for some.”

“Because you can learn the business, it’s not necessary,” Rigdon says. “I do know some really good franchisees who really know their stuff and can back up what they promise, but there are some who don’t know what they’re doing. They may be good at cleaning windows, but they can’t be very profitable because they spend way too much time on the job and they’re under priced.”

Rather than go the franchise route, Dey suggests buying out an “old timer’s business, one that does quality work.”

“I would not recommend being a franchisee to anyone with a reasonable amount of business experience,” says Shaule, adding that while “a franchise gives the person with little or no business experience the advantage of a proven system, an established business name with credibility, it does come at a considerable cost.”

RESIDENTIAL VS COMMERCIAL

While some have a mixture of residential and commercial work, others specialize in one or the other, and for some very sound reasons.

Reinhart recommends a little bit of both. “On residential you really learn how to deal with customers because they are fussy. They take a good look at the glass in detail after you’re done and they’ll point out the smallest flaw. From those complaints, you learn how to do it better. On the commercial end, you deal with customers who tend to look through the glass instead of at it. If it’s clean there are no issues.” He cautions that newcomers to the profession will find that after several years of residential work, the lady of the house will always expect you on the job, not one of your employees, because of trust and relationship factors. While Reinhart personally likes residential, he reserves that for his VIP customers.

“If you have good personality, enjoy detail work and working with the housewife, then residential may be the way to go,” says Terry, stressing that “residential takes a different type of person, one who is more detail oriented and more of a people person. High rise guys don’t like to get bogged down with the details of cleaning a house and dealing with the housewives always looking over their shoulder.”

Ahlich advises that “if you want to make a lot of money, go residential, and the dollars will come in a lot faster. If I was just starting out, I would begin with residential and get good at that, then decide whether to expand.” Preferring a mix of residential, store front and some commercial, Ahlich says that “if one part of the business goes down, I can make some calls.”

“When you’re starting out, you have time on your hand, so I would suggest that you clean every window you can, and after doing that, you’ll decide what direction you want to go in,”  Rigdon says. While he agrees that there is more money to be made in residential, Rigdon never had the desire to do it, although he’s done it as a favor for some of his commercial clients.

Calling residential the “school of hard knocks,” Dey agrees that it’s a good place to learn the craft. While homeowners are “difficult, finicky and picky,” he’s found those he deals with on the commercial and institutional side “much more reasonable.”

To Shaule, the issue is “apples and oranges. I would refer back to having a business plan and goals as to what you what to do. There are many pitfalls and advantages to both.”

AVOIDING BURNOUT

Like an overloaded electrical circuit, most of us suffer from burnout. Here’s how the vets we talked to get over it. “For me, the annual IWCA Convention is the biggest pickup,” says Reinhart, “because you get to be around other window cleaners and just talk and learn. At the company level, we have monthly safety meetings that we’ve made into fun events - grilling salmon or making venison chili, and having interactive safety quizzes. It’s comradery and fun, and we all look forward to it.”

Terry agrees that the convention is “a great place to not only get jazzed up about your business again, but to beat the winter doldrums.” He also suggests that you “don’t let the business be your life, don’t work seven days a week. Have good friends. Take a vacation.” Dey seconds that, saying he takes a lot of holidays, goes fishing and plays golf.

Ahlich says the friendships and relationships he’s established with his customers motivates and inspires him. “They have become more important to me than just them giving me money for cleaning their glass. Focus on trusting, developing trust, being generous and doing good service and the money will always follow,” he advises.

For Rigdon, avoiding burnout is achieved by lots of reading, teaching art, and community involvement. The former city council member and mayor of Burlington, also recommends joining the local Chamber of Commerce. Additionally, he always found peace in the routineness of window cleaning, “which allows you to think about anything and everything. It’s almost meditative,” says Rigdon.

Shaule’s prescription: “I am always trying to look ahead and keep growing my business, and setting goals that seem impossible to achieve. That’s what keeps me driven. Also, surround yourself with a good team of people, and stay away from the cancer of negativity. Being around people with positive attitudes and good character is invaluable.”

“Like any job, you have to enjoy what you are doing. If you do that, you’ll avoid burnout,” McKeen says.

OVERCOMING MENTAL CHALLENGES

For most, the mental challenges of running a business are far greater than the physical strains and pains. “When I first started, if I had money in my pocket from being busy, I wouldn’t work on sales. Then things would go dead,” says Reinhart. So, you’ve got to be disciplined and plan ahead on sales and scheduling.”

“A positive attitude is extremely helpful,” according to Terry, adding that “it takes a lot of perseverance and willingness to stick with it through tough times.”

 Ahlich believes that “doubt is the killer of dreams and vision. But I had no doubt that I would succeed.” He also learned that it’s far better to look forward rather than dwell on mistakes of the past.

McKeen believes ownership requires mental toughness. “You have to make hard decisions and you have to be personally accountable. And always share your successes with your employees, not your failures.”

“If you are inquisitive and curious, window cleaning might not be your thing,” Rigdon says, “but it is a good business to be in and it does give you freedom to do other things.”

“There are a lot of worries in this business - your staff, safety, liability, etc.,” says Dey. “To overcome those challenges, you have to be a positive thinker and focus on what needs to be done.”

EVER EVOLVING

Newcomers to this profession will eventually learn that you never get to the point where you know it all – it’s an ever evolving process. As Reinhart puts it, “if you don’t keep learning, there’s something wrong. You will not get better if you stop the learning process. You can learn a lot from networking - how others solve problems, what software they use, etc. Learning is on-going.”

Even after all these years, Ahlich says, “I’m still learning stuff,” and he gets a lot of tips and advice from the Window Cleaning Network and the conventions. One thing he’s wanted to do for a long time is hang off a building just like his employees.  “That’s still one of my goals,” he says.

“After over 20 years in the business, I’m not at the point where I know it all,” Terry says. “Most of us who grow our businesses are always looking at other opportunities to expand our base, such as building restoration.”

Rigdon believes it would be “dangerous” to think you know it all and stop learning. “You’ll always come away with something when you go to a convention, attend a seminar or read a book.”

“On the high rise cleaning side, there’s always a new building design to contend with, so you have figure out how to deal with that,” according to Dey, who wishes architects would learn how to clean windows so they’d design more cleaner-friendly buildings.

McKeen says that in this profession, the new owner quickly learns that “every employee is different, every customers is different.”

Shaule sums it up this way: “I think if you stop learning, it stops being fun.”

POSTSCRIPT:

Mark Ahlich got out of New Orleans before Katrina hit last August and returned two months later to find his place uninhabitable. After camping out there for a while, he bought a house 20 miles west of the city...and yes, he’s still making all the money he needs cleaning windows in the Big Easy.

After 37 years in the business, Jerry Rigdon sold Brite-Way of Burlington last year. And his formula appears to be a good one to follow whenever you decide to move on. He took on a partner who bought into the business and they arranged a timed buyout which occurred last July. In doing so, Rigdon was there to teach him the ropes during what was a smooth transition. Even though, he’s out of it, Rigdon continues to see his former partner each week and he’s always a phone call away. This does not mean he’s completely left the window cleaning industry. His Companion Tools Co. continues to crank out tools for the profession.

READ MORE FROM OUR FEATURE ARCHIVES