Too Much Sub Work Means Renting Revenue
What You’ll Learn
- Set a 20–25% limit for subcontract cleaning work
- Spot if you can be dismissed from that subcontract job
- Track if subcontract work is most of your weekly jobs
Short Summary
Too much sub work is risky because you do not own the owner contract. The prime contractor owns the deal and can change the terms. That leaves you with no price control and no contract control. With subcontract cleaning, you can be dismissed with little notice. You may lose work even if you clean well. You also cannot build stable contracts in your own name. Use a 20–25% limit for subcontract cleaning work to lower the risk. Track your weekly job mix so sub work stays a smaller share. If subcontract work is most of your weekly jobs, you are renting revenue. Push for more owner contract work so you control price and terms.
Frequently Asked Questions
Is subcontract cleaning always bad?
No. It can fill gaps. It is risky when it becomes too much sub work.
Why is it called renting revenue?
You earn money, but you do not own the owner contract. The prime contractor owns it.
What does no price control mean for me?
You cannot set your rate with the customer. The prime contractor sets the pay.
How do I know if I can be dismissed?
Read the sub agreement. Look for ending terms and how much notice you get.
What is a simple way to track weekly job mix?
Use a list each week. Mark each job as subcontract cleaning or owner contract work.
Transcript
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Hi there. Welcome back. Dan again from CleanGuru.
Subcontracting: I need to talk about it again. It’s not that I’m against subcontracting completely. We’ve talked about this. If you’re looking to gain some experience in cleaning, you’ve never been in it, and it really could help. If you’re looking to do some cleaning and maybe get some recommendations or referrals because you do a nice job, I can understand having some subcontracting if you need to.
But if you’re doing subcontract cleaning for some other company’s contracts that they hold with a building owner, then you’re really renting a business. You’re renting revenue. You’re not building your business. You’re not building equity. You’re renting revenue because you don’t hold the contract. You don’t have that contractual relationship with the building owner. You can’t control the price. You can’t control the terms. You could be let go; you could be dismissed from your position of being a subcontractor. You don’t control an awful lot.
Is it the worst thing ever? No. But like so many things, it’s important how you use it and how much you use it. Again, we’ve talked about maybe 20–25%. My business partner Tony and I, I don’t remember if we ever did any subcontracting where we took someone else’s work and did the subcontract cleaning for them. That doesn’t mean it was right or wrong.
You may want to do some, but if it becomes most of what you’re doing—the foundation of your work is doing cleaning for some other cleaning business, some prime contractor, with contracts that they have with the customer—then you’re really not building equity. You’re really renting revenue. It’s something to think about.
Till next time, remember: you can do this. You can.
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