How to start a cleaning business: 12 – Time hacking week 2 data

If you can measure it, you can manage it – Peter Drucker

I’m currently tracking my time in a bid to increase profits. The idea is to see how long each job takes and how much time a spend travelling from job to job. I can then calculate my real hourly rate and identify strategies to optimise the business.

Now that the second week of the experiment has come to a close, let’s take a closer look at the numbers below:

Day Type Travel time Work time Amount charged ($) Actual hourly rate ($)
Sunday
1 Commercial 28m 1h 16m 40 17.26
2 Commercial 16m 1h 17m 60 32.98
3 Commercial 34m 1h 47m 90 32.57
Monday
4 Commercial 13m 1h 46m 53 20.90
5 Commercial 27m 45m 60 44.27
6 Commercial 10m 1h 32m 90 47.21
7 Commercial 29m 1h 59m 120 43.05
Wednesday
8 Commercial 14m 1h 10m 27 13.56
9 Domestic 29m 2h 19m 90 26.41
10 Domestic 34m 2h 50m 130 32.51
Thursday
11 Commercial 31m 37m 30 20.59
12 Domestic 25m 1h 20m 60 28.56
13 Domestic 48m 1h 57m 110 34.27
Friday
14 Commercial 17m 1h 23m 70 36.44
15 Domestic 9m 2h 27m 90 28.88
16 Commercial 54m 1h 40m 120 40.96
Totals 6h 58m 26h 5m 1240
Averages 26m 1h 37m 77.50 31.28

As with week 1, lets explore some of the highlights (and lowlights) of the above data:

  • Average hourly rate (Commercial) – $34.65
  • Average hourly rate (Domestic) – $32.98
  • Best hourly rate – $47.21
  • Worst hourly rate – $13.56
  • Total weekly travel time – 6h 58m
  • Total weekly income – $1240

Right away I can spot that there are serious issues with some of my commercial rates. They are currently on par with my domestic rates, when realistically they should charged at around 1.5x higher. There’s also some room to take on additional clients as I’m only working around twenty six hours total over the five days.

I’m disappointed with a lot of this data, particularly the commercial hourly rate, however, I’m excited for what we can achieve. I think it will be easy to increase our earnings with a little effort.

In next week’s post we’ll create a baseline to get an overview of our current business model. This will also give us a reference point to track the effects of changes as we begin to implement strategies to increase revenue, further decrease costs and improve our bottom line.

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