Get Rich Quick Schemes Don’t Work

Con artists like to rehash old schemes and update them. Here’s a business plan that was published in a trade magazine in September, 1984 by a man who was selling consulting services. He claimed his new carpet cleaning business using his plan would demonstrate his value and he even gave a time table for his phenomenal strategy for success.

Following are excerpts from that article:

• "I will spend no more than 10 hours per week guiding the new business."
• "Everything will be computerized, and I’ll know the value of each worker."
• "By the end of 90 days we will have 75 employees working full time."
• "Our total advertising budget will be only 10% of our volume."
• "We will be best known and enjoy the best reputation in our community."
• "Our group will be doing $50,000.00 per month by the end of the first year."
• "We will establish a concept where bigger is not necessarily better."
• "We will accomplish all of this on a $5,000.00 initial cash investment."
• "Our average price per square foot will be 30 cents or over."
• "Upholstery cleaning charges will be over $150.00 per item "

Braggadocio took the place of business planning and hyperbole capitulated to the reality of the marketplace. Predictably, this new venture failed in a short time. But, keep a keen eye out for similar cock and bull stories that are making the rounds today. Marketing programs are rife with examples of sales puffery and just plain lying.

In the ‘90s, there were several bold announcements claiming the take-over of the cleaning industry. One franchise even took a multi million dollar investment from the president of a carpet mill and folded in one year. Does any one remember the floor covering operation with an elephant on the truck? They predicted that the fragmented cleaning industry would be consolidated under their banner in less than five years. They filed for bankruptcy in three.

A vice president of a lawn service came to Indianapolis to look at Bane-Clene equipment and predicted that their 200 offices would drive all of the “Mom & Pops” out of business within 5 years. In less than two years, they had built their own equipment, were fined $50,000 in Connecticut for illegally dumping dirty water and were out of the business.

A fiber producer and a carpet maker got into the cleaning business with a highly publicized operation but floundered, too. There are very few exceptions that seem to have found the formula for success and have multi-unit franchisees (Stanley Steemer® is one).

Of Bane-Clene’s many thousands of owner operators around the world, only 19% have more than 1 service unit, 8% have more than 5 and only 2% have 10 units or more. Our industry is dominated by small business operators. Most operate from home and it is impossible to compete against them when they stiffen their backs against large competitors. That is, unless they get fooled by get rich quick schemes that only work for the seller. Be careful!

Fall 2009
Cleaning Digest
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