Podcast Summary: The Side Hustle Show, Episode 645: The $60k/mo Remote Cleaning Side Hustle

Released on December 12, 2024

Introduction to Skylar Sullivan and Nebraska Elite Cleaning

In Episode 645 of The Side Hustle Show, host Nick Loper welcomes Skylar Sullivan, the founder of NebraskaEliteCleaning.com, a remote cleaning business that skyrocketed from zero to $60,000 a month in revenue within two years. Skylar shares his entrepreneurial journey, offering valuable insights into building a successful side hustle while managing a day job.

The Early Days: Launching the Cleaning Side Hustle

Skylar recounts the tumultuous start of his business, highlighting the steep learning curve and initial setbacks.

• First Booking Fiasco ([01:04] - [02:26]):

  • Skylar describes his first clean via Angie’s List (now Angie's), where miscommunication led to unmet customer expectations. The cleaner he dispatched encountered unexpected issues, resulting in an unhappy customer seeking a refund and a disgruntled cleaner.
  • Quote:

    "It was like a complete train wreck for the first clean." ([01:55])

• Learning from Mistakes:

  • Recognizing the need for better vetting, Skylar and his team began requesting photos of spaces before bidding, allowing them to set realistic expectations and identify potential red flags early on.

Recruiting and Managing Cleaners

A pivotal aspect of Skylar's business model is effectively recruiting and managing a reliable team of cleaners.

• Recruitment Strategy ([07:09] - [08:46]):

  • Skylar emphasizes that "anyone can clean", focusing on finding individuals who are detailed, diligent, and of high character. He utilizes platforms like Indeed, Facebook, and Craigslist, supplemented by referrals from existing cleaners.
  • Pitch to Cleaners:

    "We're building this elite culture. We'd love for you to be a part of it if that's a fit." ([08:19])

• Compensation Structure ([09:21] - [20:43]):

  • Cleaners are paid approximately $25 an hour, with the potential for tips. Skylar adopts a flat-rate pricing model for simplicity and consistency, ensuring that both customers and cleaners have clear expectations.
  • He maintains margins between 40% to 60%, adjusting as the business scales and the brand reputation strengthens.

Customer Acquisition and Securing Major Deals

Skylar details the strategies that fueled his business growth, including leveraging local networks and securing substantial commercial contracts.

• Initial Marketing Efforts ([01:16] - [02:06]):

  • Starting with Angie’s List, Skylar invested in lead generation tools, though initial attempts were rocky.

• Growth through Commercial Contracts ([09:56] - [12:35]):

  • A significant breakthrough came when a Catholic private school and church reached out, leading to a $10,000/month contract. This not only provided substantial revenue but also boosted Skylar’s business credibility.
  • Quote:

    "I protected that account with my life." ([12:35])

• Networking and Referrals ([15:38] - [17:17]):

  • Joining a BNI (Business Network International) chapter allowed Skylar to tap into a network of local professionals, exchanging referrals and building mutually beneficial relationships.
  • Quote:

    "We're the exclusive cleaner of the group." ([16:31])

Managing Finances and Ensuring Sustainable Margins

Skylar delves into the financial intricacies of running a cleaning business, focusing on maintaining healthy margins while scaling.

• Pricing Strategies ([18:53] - [20:43]):

  • Adopting a flat-rate system based on square footage and job complexity simplifies billing and ensures consistent revenue.
  • Quote:

    "If you can find Sheila down The street, you can do it." ([16:31])

• Handling Churn and Customer Retention ([24:00] - [26:09]):

  • Skylar tracks net recurring revenue, balancing new customer acquisitions against customer losses. Strategies to minimize churn include proactive communication and personalized follow-ups.

• Financial Tools and Automation ([39:32] - [40:05]):

  • Utilizing Booking Koala integrated with Stripe automates payment processing, ensuring timely transactions and reducing manual workload.
  • Quote:

    "It's a little seamless." ([39:50])

Leveraging Technology and Tools

Efficient operations are supported by a suite of technologies that streamline scheduling, communication, and customer management.

• Scheduling and Communication:

  • Booking Koala serves as the primary CRM tool for scheduling and managing appointments.
  • Open Phone is used for handling calls and texts, providing transparency on communications.
  • Slack facilitates internal communication among Skylar’s team of assistants.

• Review Collection and Reputation Management ([30:07] - [32:34]):

  • Skylar employs NiceJob, a software that automates review requests post-cleaning, enhancing his online reputation with minimal effort.
  • Quote:

    "They always respond the right questions." ([25:34])

Balancing the Side Hustle with a Day Job

Skylar candidly discusses the challenges of juggling a growing business alongside a full-time job.

• Time Management and Sacrifices ([37:01] - [40:32]):

  • Initially, Skylar worked late nights (e.g., 9 PM to 3 AM) to accommodate business growth without sacrificing his day job.
  • Quote:

    "I'm a professional firefighter like every day." ([37:01])

• Personal Well-being:

  • Despite the demanding schedule, Skylar emphasizes the importance of self-care, such as maintaining a healthy lifestyle and finding moments to invest in himself.

Future Plans and Entrepreneurial Insights

Skylar reflects on his journey and shares his vision for the future, offering advice to aspiring entrepreneurs.

• Scaling and Exit Strategies ([43:08] - [45:16]):

  • While Skylar contemplates potential expansion and eventual sale of his business, his focus remains on sustainable growth and quality over rapid scaling.
  • Quote:

    "If you're willing to get your teeth kicked in long enough, you'll succeed." ([47:27])

• Entrepreneurial Mindset:

  • Persistence, adaptability, and a willingness to sacrifice are key themes in Skylar’s advice.
  • Quote:

    "Stick with it and give something a good shot." ([47:27])

Key Takeaways and Final Thoughts

Skylar Sullivan’s journey with Nebraska Elite Cleaning epitomizes the resilience and strategic thinking required to transform a side hustle into a significant income stream. His experience underscores the importance of:

• Effective Recruitment: Building a reliable and dedicated team is foundational.
• Customer-Centric Approach: Ensuring satisfaction through clear communication and quality service reduces churn.
• Leveraging Technology: Automating repetitive tasks frees up time for strategic growth.
• Networking: Local connections can open doors to substantial opportunities.
• Persistence: Overcoming early setbacks through determination leads to long-term success.

Skylar’s story serves as an inspiring blueprint for entrepreneurs aiming to cultivate a thriving side hustle while maintaining other commitments.

For more insights and actionable tips, visit Side Hustle Nation and explore the full episode here.