Key Takeaways Copied to clipboard!
- Starting a service business like parking lot cleaning can be a lean startup with low overhead, allowing for a quick return on investment by validating the idea with real dollars before significant reinvestment like building a website.
- Persistence in sales, including following up multiple times and presenting oneself as a helpful service provider rather than a salesperson, is crucial for closing deals, especially since one manager can lead to multiple locations.
- The business model thrives on predictable, recurring revenue, which is easily expanded through upselling additional maintenance services once initial trust and good work have been established with a client.
Segments
Inspiration and Initial Contact
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(00:01:37)
- Key Takeaway: Inspiration for the parking lot cleaning side hustle came directly from reading about Brian Winch’s proven business model in an existing Side Hustle Show article.
- Summary: Blademir Hernandez was inspired by Episode 266 featuring Brian Winch’s litter pickup service, leading him to reach out to Brian for validation. After reading Brian’s book, he gained confidence and proceeded to contact property managers directly to pitch his service.
First Steps and Client Acquisition
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(00:03:55)
- Key Takeaway: Initial setup involved establishing a sole proprietorship and a business checking account before proactively visiting plazas to speak with tenants for manager contact information.
- Summary: The first steps included formalizing the business as a sole proprietorship and opening a dedicated checking account. Blademir secured his first client by physically visiting a plaza, asking tenants for the manager’s contact, and then following up with a professional pitch.
Pricing Strategy and Initial Job
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(00:07:10)
- Key Takeaway: Pricing was determined by timing the physical walk-through of the property to estimate time commitment, aiming for an initial target hourly rate of $35.
- Summary: Blademir estimated the time required for the daily service by timing a walk-through, calculating that the first job would take about 20 minutes daily, Monday through Friday. He proposed a monthly rate that equated to roughly $35 per hour, which the client immediately accepted without negotiation.
Startup Equipment and Logistics
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(00:09:30)
- Key Takeaway: Essential startup equipment included a blower, a specialized litter scoop from Litter Liquor (recommended by Brian Winch), and utilizing existing on-site dumpsters for waste disposal.
- Summary: Startup costs involved setting up the business legally and purchasing key tools like a blower and a large litter scoop to speed up cleanup efficiency. Since the service is daily maintenance, the collected small trash items are dumped directly into the property’s on-site dumpster.
Timing and Scaling with Contractors
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(00:12:04)
- Key Takeaway: Service must be performed when vehicles are absent, typically early morning or late at night, and scaling involved bringing on independent contractors using a 75/25 revenue split.
- Summary: The work must be scheduled when parking lots are empty, often requiring early morning service, especially if businesses like 7-Eleven operate 24 hours. As work increased, Blademir began hiring contractors, retaining 25% of the revenue for overhead and profit while paying the contractor 75%.
Marketing Beyond Cold Calling
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(00:17:49)
- Key Takeaway: While initial growth relied on proactive cold calling property managers, establishing a website later in the business lifecycle began generating organic leads via Google searches.
- Summary: After three years, Blademir finally set up a website, which quickly resulted in new leads finding him through Google searches. Proactive outreach involved sending a brief email with an attached flyer and persistently following up with property managers.
Handling Objections and Additional Services
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(00:21:47)
- Key Takeaway: Common objections involve service frequency (pushing for daily over twice-weekly service) and weather conditions, while established clients frequently request add-on services like window cleaning or retail cleanouts.
- Summary: Managers often question the need for daily service versus less frequent visits, but Blademir emphasizes daily maintenance prevents litter accumulation. Once on-site, managers often request extra work like cleaning common areas or handling tenant turnovers, expanding the service menu.
Managing Illegal Dumping
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(00:24:35)
- Key Takeaway: Illegal dumping removal is handled by charging an extra fee to the manager, documented with photos, and outsourced to specialized contractors who own appropriate hauling vehicles.
- Summary: When large items like mattresses are dumped, Blademir photographs the debris, gets authorization from the manager to remove it for an extra charge, and then calls specialized junk removal contractors. He maintains a list of these contractors to ensure timely removal without needing to own a large truck himself.
Technology and Future Plans
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(00:26:52)
- Key Takeaway: Business management relies on QuickBooks for accounting and WhatsApp for team communication and photo proof of completed work, with future plans focusing on drop servicing.
- Summary: QuickBooks is used for accounting, while WhatsApp facilitates communication, scheduling, and sending photo evidence of completed jobs to managers. The next evolution involves creating a website platform for drop servicing, allowing customers to order recurring or one-time services that are then matched with local providers.
Final Advice and Conclusion
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(00:38:41)
- Key Takeaway: The most critical step to success is overcoming self-doubt and the negative inner voice to simply start the process of setting up the business or making the first contact.
- Summary: Vladimir’s number one tip is to push past the internal doubt that suggests one cannot accomplish the task. Once past that initial hurdle and taking concrete steps like setting up the business structure, momentum will build. This mirrors the concept of starving the doubts to keep moving forward.