 Hi, good afternoon everybody. Tom Stewart here. I'm with Liz Trotter. Hey Liz Hey Tom. Hey Bridget. Hey Carolina. It is Friday afternoon fifth day of What month is this Jim? June already Good grief Today is a day somebody's birthday or uh-oh. I love it. What did I miss? I hope it's not my anniversary It's not it's not my anniversary. I was like, oh, oh, I know I feel like it's an important day I just can't think of what it is Somebody's I bet guess a better fit up Facebook. Yes. I'm with you with it Yay, thinking this is Friday after Friday everybody Oh looks like we have a question here. I don't know if it's Carolina or Carolina Tom do you want to speak to why she's not able to sign our system up right now? Yeah, that is we're Silent at the moment the the the whole platform. We're transferring over from the old one to the new one And we sent an email out actually a couple of them today. We kind of goofed one up a little bit and heading but anyway, we got all that straight and um If you go to the website, it tells you too that we're gonna be silent until Um Let me let me do this. I'll just bring this up here We're moving everything to the new platform. So if you go to school of modern cleaning calm It's got to tell you that we're going to be down until monday morning at 10 o'clock we're And we sent an email out today basically explaining why we pushed all the data over and we kind of got Most of everything together that we need to get together on the new platform But it struck us that it's completely different in the old one and it's really Um, it's got more functionality, which is good But in order for you know, the people who are managing this platform for their company Is they're going to need training that we haven't offered them yet because You're going to be able to log in to this platform and sign your own people up for the class And it's going to give you more control over tracking their progress. It's going to be good Um, but if we just turn this on without any guidance or support over the weekend It would be it wouldn't be fun for either one of us So we're getting ourselves together and we're going to go to turn all this on monday morning at 10 o'clock There'll be an email going out to everybody who Has an account with more detailed information as to what they need to know and what they need to do And uh, we'll we'll be off and running then I think Steph is over here clapping. She gets it She's like me. Yes. More more support is better hate launching something new on a friday. I'm so glad That um, everybody agreed to do this. It was so much better, I think On friday the first friday of every month the uh, department of labor releases the unemployment statistics for for for the prior month And if you remember we've been talking about all the insurance claims unemployment claims that that come in we report those every thursday And I don't know that number is over 30 million now something like that but a lot of you know, you showed none of those Those claims some of them are for just a loss of work, but they're still working But maybe part-time as opposed to full-time that can still result in a claim and some of those claims people have gone back to work There were a lot of people predicting that the unemployment uh number today would be a lot worse than Uh, what it actually was because uh, there were some people that were thinking that we may have lost up to another 8 million jobs over the month of may but they were wrong by a fair amount we gained about I think it was 2.4 million So we gained jobs The unemployment rate went down today to still 13 point something percent, so that is You know 30 percent higher than what it was at the worst point of the recession So it's still really bad but people were shocked that uh The unemployment rate and yes Stephanie's talking about the uh stock market You know, I meant to check that I didn't see where it closed, but I bet it was seemingly high um anyhow a lot of The jobs that were gains Were basically people who were furloughed that went back to work the way they track these numbers. They can they can can Give you a pretty good idea as to What industries what sectors and most of those jobs were people that were furloughed that went back to work thinking a lot of that was PPP money that was was at play um Getting a rest and you see what this looks like moving forward. There's a lot of people thinking that Getting that unemployment rate down from 13 percent some numbers lower. It's going to be You know, they're going to hang fruit right now But as time goes on that number is going to be high for a long time and it's going to be hard to drive it Down in the months ahead. So we're just going to have to watch that but um It was crazy and a really big surprise not many people were expecting it to go that high Or don't to go that long Yeah, did you see it was the biggest increase in jobs in one period since the 30s Yeah, so I like that completely opposite spin and what we've been seeing is like I guess the only way we could have this really big increase in jobs is because the the loss was so devastating It was what was it time? unprecedented I think it was unprecedented I'm not we I'm not leaving it to you anymore Um And now this is also unprecedented the biggest increase in jobs in one period since the 30s So that's crazy. I know when I saw that I was like, wow Who is expecting that? I sure as heck wasn't expecting that. So That's some great news. Yep. Find the good. I like it yeah, and We don't know what's going to happen, but do you have a prediction Tom? Are you thinking that Things are going to kind of stay at the 13 level. You think they're going to drop off just a little maybe 12 11 and stick there or what are you thinking? Because not everything's open yet. I'm I'm thinking that Things are going to be rocking along and looking good and people are going to be feeling good through the summer as long as There aren't any significant spikes in in you know, covid where people start Getting fearful for their health again because right now it just kind of seems like you know It wasn't that long ago, but it seems like it was just a long time ago that we were worried about actually you know spreading the disease or catching disease or You know people lining up in the hallways of the hospitals because there were no beds and you know, we're out of ventilators and a whole You know Armageddon thing that was coming just uh is a distant distant memory Numbers are better than last year the automobile. Yeah, Stephanie They the automobile and they're selling especially like larger vehicles trucks. I mean they got deals though I mean like 84 financing with no interest Yeah, now tim was saying i'm getting a new car. Hopefully next month and or this month in june So I was like yay. Okay. That sounds exciting but It stands to figure that You know the mark stock market is going to keep keep clunking along and in an upward direction because you know The federal government keeps you know, they can't fight the fed is what they say and they keep dumping More money the more money they print, you know, that's just gonna gonna keep that rolling for a while. Um But same flip side of it structurally You know, there's some jobs that just I don't see them coming back You know the whole cruise industry You know the the airlines some of the hospitality travel leisure Restaurants even if they come back It's going to be hard for them to come back looking the way they did before as long as we're worried about social distancing and In those things so You know, maybe coming back is we've been talking about this the other day Maybe it looks like 90 but the 90 is not going to be spread across all industries It's going to be impacting some more than others and the ones that are more technology related and aren't really Driven by you know, face-to-face interaction. They're gonna they're going to do the best So tom I have a cruise and I think it's november Are you thinking i'm going or not going are they going to be up and running or Well, there's you got a couple a couple of headwinds there one probably cruise industry is is In the deeper hole of anybody in terms of figuring out what social distancing looks like on a cruise ship And there's concerns that you know, the virus is going to come back into fall the way the flu does and other You know Like that. So you're all two of those together I would would Probably say no Have they What's their story? I mean, what are they? I mean, I'm assuming you've already paid. So what is their story now? There's people who had cruises scheduled last week. I'm assuming they get their money back, right? Yeah Um, I'm not sure so my sister-in-law who's set up this cruise for all of us. There's a huge group of people going she is a not a cruise director a uh travel director and so She's her thing is hey guys. We're just on hold. We're just on we're just on hold. Okay Steph is betting that i'm going Thanks Steph Okay, let's hope you're right and tom's wrong. You guys want to take bets here On on whether or not this is going to happen So she's saying hold. We don't know what's going to happen the people Different airlines are happening handling it in different ways the same as the airlines are handling it different ways, right? Some are giving me back some are saying you have a year I also have a disney trip that is Like I had to miss and they're giving us a year disney is doing us a for more than a year through 2021 to do it So we're planning on going there too and I think eight in the march So right actually right after foundation stop. So i'm going to come back from foundations I'll be normal week and then i'm going to disney aren't some of the parts are opening now like universal They're open, but they are not not everything is open They're opening like some of the attractions not all of them Some things don't aren't conducive to social distancing. So they don't have that open But I've heard that they're having some pretty good turnout Okay, so Stephanie has one coming up too. That's why she's like all about all about it for me, right? Fingers crossed that Her amusement park opens on Monday Yeah, so they're all opening up I don't know. I guess we're we're gonna see how how things are going I don't know. It's I I'm confused by the way it it works with the heat because things were growing like crazy In areas where it was really really hot Yes, right and it didn't seem to be slowing it down. So I don't Not see how seeing how the heat is connected as much Like maybe that's what's making me think. Well, maybe this is real this because it's Not necessarily connected So I don't know. Is it better than you think? Either we're not going to get the downturn and it gets damp and cold or I don't know. I'm with stuff my fingers crossed Yeah, we we have a A team member that basically runs the office and in greenville her name's hillarane and her Husband works at the local hospital Local hospitals in greenville, South Carolina, and they're seeing an uptick in cases. They're Starting to take People who have like elective surgeries scheduled and sending them home and making more beds there They're they're gearing up like Like right now like they think they're going to be getting more People admitted with with with with covid here over the next couple of weeks. They've already seen it and they're attributing it to They've opened up, you know restaurants and more outside activities and people are getting more relaxed and they believe they haven't yet started to see any potential Spread that could be attributed to, you know, some of the protests and those activities, but You know, they're they're at least planning for that. So it'll be interesting to see over the next week or so where their numbers go But like we talked about yesterday, we talked a little bit about that being outside. It seems, uh, you know better Better than a lot of the inside activities, but you're right. They are opening up a lot of stuff Beauty parlors are opened up, you know, yeah Some social distancing stuff in place, but they're open but some things never really shut down like where we are, uh Fred Meyer, I don't know if you guys have that grocery store that we have They never shut down and there was never a social distancing in place there except at the check stand so We didn't have to wait to get into the store like at Walmart. You have to stand on those little those big blue dots Right before you can even get into the store and they only let blend if people left But the Fred Meyer they never did any of that and A lot of our stores were like that target nothing, you know, they're just Again, we don't have that many stores small city We don't have that many restaurants. So small city So I don't know if that's the difference, but you know I don't know because I just There are a number of articles that we've posted on the resource page that you know speak to, you know, it's it's a matter of Being exposed to the virus for for a more prolonged period of time and Typically that has to be indoors in a more confined setting Yeah Being a going to a retail, you know, a establishment grocery store just walking, you know around your you're you're you're fairly safe now No, if I'm working there and if I'm at the cash register for eight hours a day I guess it just depends how many people are coming through that that that might be contagious And and how much face time you have with them And some are there's no way that that nobody is that's just I can't imagine that that's possible that none of the people that are contagious are going to Fred Meyer That makes zero sense No, Matt Matt joined us yesterday. He was sharing. There was a I guess a Hair stylist a great clips I think it was and in Missouri that they had two stylists that were that tested positive They've been working the whole time, but they weren't able to trace any Cases from that That he was expecting I think he said, you know The typical haircut at a great clips last about 10 minutes. So maybe that wasn't long enough Yeah, what was it sustained enough exposure? And not and he also said they only have like three stations or four stations are great clips Does it better work than his does? They actually wash your hair and everything there then again Maybe Matt, I don't know does Matt go there to get his hair that maybe it only takes him 10 minutes He said he's been doing haircuts at home the big buzz, right? Tom, we should share Our agenda for next week. I was I forgot to Mention this earlier. My thought was on fridays. It would probably make good sense for us to share that in the beginning of God The show Of the facebook live The really big On that shoe, right? Really big shoe Who was that? As that's all of them Ah, yeah Yeah All right. So for those of you that were not on yesterday We are making a little bit of a format change You how we're going to manage these calls When we were in the midst of covet 19 problems We really Everybody just needed to have more information about safety and how to be safe in a covet 19 world And there was a lot of financial stuff going on concerns And and everybody just needed more information. So we were doing our best to Fill that need Now that a lot of that has dropped off. We thought hey Maybe we should stop moving these facebook lives or maybe go every other day or maybe Have them back to a half hour and we have a lot of pushback on that. No Give them going every single day for an hour and just figure out a different format So that's what we're doing now. I'm gonna let i'll tell you a little bit more about that. Go ahead Tom Sure. Well, you know starting on monday the uh eighth of of june We're gonna have more of a structured structured approach to this we're going to cover a broader range of topics than just covet 19 um No concerns. We're still going to be keeping an eye on ppp and the small business administration and um We're going to have a lot to talk about that over the next couple of weeks waiting for the sba to come out with more Guidance so it's not like that. We aren't going to be keeping up with that and sharing the latest information We will but we're going to be adding to that. We're going to Be scheduling more daily guests and we want to give you heads up in advance as to what we're going to be doing So You can plan and use your time better if we're covering a topic that doesn't have a particular You know add value to you at this point that you know, maybe you want to skip And if we're doing something next week that is really important to you You would want to mark your calendar and make sure that that you're here because I mean He can go back and watch it later But we try to answer all the questions that come in and being here and being able to answer you get your questions Asked and answered would uh would you know, we believe would create more value. So, um for next week Starting on monday sconday is going to be joining us and he's going to be Sharing some some of the best practices that they've learned for recruiting Sean works with with the company blue sky services. I'm sure some of you You guys know that and uh, they do recruiting for service businesses they recruit for cleaning companies. They you know A lot of different industries. I don't I don't even know all of those and He's gonna and they've learned some tricks and he's gonna gonna share that some of that information with us. So If any of us are Struggling getting our headcount where we need it to be and I know that that we are in our business I'm looking forward to hearing what he's able to to share Tuesday we're gonna black out more for just uh current events and you know If anything happens over the weekend that's related to ppp. We're gonna get you that information monday, but Tuesday is going to be a lot more to get caught up on what's happened over you know over the prior week Wednesday, we're going to be lucky to have martha woodward come in She's with quality driven software. She's also a cleaning business owner been in industry for a long time has a lot of Good knowledge on a lot of topics, but she's going to be sharing with us About culture building specifically at a time when we're reopening our businesses and trying to To ramp up. It's a unique opportunity for us and she's got some some insights. I think they're going to be uh useful Thursday, we have a gentleman paul. We were this is an acquaintance of of of liz's does he uh live out there in in in olympia He does he lives, uh, i'm not sure if he's here in olympia, but he's fairly local He might be into coma or somewhere So he is he is local to me in washington state Yep and he's going to be giving us information as business owners that we can use to share with with our team members our employees on financial planning and um, I really believe that that's going to be a value add that as as employers, you know the We have an obligation to help help all of our employees be successful and in and in every dimension that we can and There's an opportunity for us to help help our work for better understand what money is and and and how they can use it and how they can build wealth and Create a better present and a better future as well and um, I'm really excited about that I'm I'm hoping that uh, we're able to walk away without this really useful information And friday is going to be on the spot and On the spot is a kind of a q&a drill fast Pace exercise that we do in our foundations class and we have an on the spot timer that basically counts down 60 seconds and You you know our audience will ask the question and Liz gets a minute to answer the question. I get a minute to answer the question and our surprise last to If I told you who it was it wouldn't be a surprise So you're going to have to come in friday, but our surprise guest also gets a minute to answer that question So we got to be real fast and once that minute is up basically the the the timer expires You get a buzzer and they have to be quiet and goes to the next person to answer the question and You know We've we've done this a lot many times and it's it's it's really really a cool thing This will be the first time that I guess that we've ever done it virtually like us, but I think it's going to be fun and informative So what this means to you on friday for on the spot? You need to have your questions ready and the kind of questions that you're looking for are any questions that You would consider a smart business mode and let me give you an example So I had somebody asked today in our success mastermind group there they got kicked out of their office and she wanted to know right now Like and she has to leave really really quickly So should she get her office an office that is only eight minutes away from her home? that doesn't have laundry facilities And is not as close to her employee base as she would like But it's only eight minutes. She'll be able to her kid will be able to stay in the same school and It's convenient very very convenient for her on a personal level and um, yeah And that and then her other option is almost 40 minutes away 15 miles almost 40 minutes And her child would probably have to change schools because she wouldn't be able to Drive three minutes and drive back and to pick him up and then bring him back And then she'd also probably end up working less Um, but they have washer dryer. It's a nice location. Oh, it's recommend in the reds And the rent at one location is close to the 800 and the rent at the other place is 1400 so her on the spot question was to The nine people that have been on this call today, which one should I do? number one or number two and just a quick answer and so that that's an example of what you might want to know for On the spot a question that is unique to your company That you just don't know what should you do or what do what does somebody else's company did you? Oh to do that was an interesting turn of phrase in the head right there Some Some questions Over the years we've gotten Wow So many questions and the questions that I remember because I like them Uh You are Your top 10 favorite books Right or your top two favorite books or tell us all your favorite books for a minute Um, we've gotten Your best culture building activities. You know, what are how many can you give us in in a minute? Um, Tom, you like the ones on insurance and stuff, right? It's all over the board, you know, what? You know questions about insurance questions about, you know pay plans questions about Buying a car, you know you know Hiring hiring of anybody in your office just kind of fill in the blank and when do I do it? How much do I pay them and I mean? Some of the questions Are I mean we'll give you our best answer. It might not give you the exact Okay, well now I know what I'm going to do but you'll have Uh much better Information to work with as your your your your sorting things sometimes we can give it the answers. Yeah, this is crystal clear This is what you need to do, but um It's it's it's it's a good exercise and once you get into it. Um, usually there's there's Always an ample number of questions There's more questions than we will have time to answer Foundations we do it after dinner and it's kind of late in the day and You know, we get up early and we work hard throughout the entire day and Usually starts getting late and it's like come on guys. We've got to we've got to shut it down, you know one more one more and Yeah, that that is one thing Probably the hardest part about foundation is Believe me, you know We have to travel after we leave the class we have to travel a half hour to get back to tom's house And then we're going to have to travel again in the morning So if you're there at what times we usually get there tom About seven thirty seven eight five We're going to be out of there by seven thirty eight o'clock at night, but they're like one more question No Yeah, so that there will be plenty of questions so start thinking about your questions earlier in the week versus later And usually what the questions are also is um, they're more like what would you do in this situation and we'll tell you our perspective because Our our surprise guest as well runs their company differently than tom or i run our separate companies so Yeah, it's it's a good exercise. You get lots of different ways of thinking All right, so that's the agenda i'm glad it sounds like a lot of you guys like the agenda dine in Bridget People that I know yay Sarah foundations is the best. Yeah I've gotta finally I did a I um in the mastermind group today we did uh train the trainer And so it was a long Uh call and my window just popped up said my recording has finally finished schooling and that call It was long are you coming to foundations again this year or I guess next year in March Uh, I know we've got a lot of alumni coming I don't know if I told you I love to do my numbers when we send every found out. Oh We should get that for you sarah Yes, we should get her those numbers She wants to see where the numbers were when she signed up for foundations a few years ago We should get everybody those numbers. That's awesome. Really? Okay. Yeah like the the initial like assessment where we get all the kpis Yeah, oh, that's a great idea Yeah, that's a great idea Yeah, you can do that We um sarah, I don't know if you are coming or not this year. I thought I heard I'm sorry next year. Um Is because this year the alumni were getting one hotel for everybody to stay in so that you have your own kind of version of Of the man and maybe I was being in separate rooms, but it's not that much different, right? So after you go back At 10 o'clock at night Then you guys can still work because we know how you are crazy unless you're in um Whose group was it that played cards against humanity? Remember they played all night long Yeah It was a couple of years ago Paul maybe Oh, maybe it was paul. Yeah Paul free I knew I wish I was there when they were playing. Oh, it's so funny Uh, okay. Well, we will find yours sarah. Well, we'll dig that out. That sounds cool Uh, anything else today? What else is going on? Anybody have any questions? Anything going on We did have I did have an article that I sent over to tom That was like I just thought we might pop up for people to look at as we're opening So one of the things I like to do I'm not sure if you guys like to do this But hopefully you do is I like to look at things that are outside of our specific industry Like what are other companies doing? What are other industries doing? How are they? Maneuvering through You know this this pandemic. What are they doing that might be different or the same because One of the things that's really awesome about our industry Is that we're all really connected and and we talk about everything with each other But that's also a little bit of a Whole fact for our industry because we talk so much with each other and we share and we we Network so much Within our industry. I will last time the same ideas just go around and around and around So I like to see what other industries are doing. How are they? Moving forward. Anyway, I um, I found this You can remember was this HR HR network, maybe or oracle oracle. Yeah, I found a son oracle and Yeah, uh, yeah next week and so just seven actions that businesses need to take now And and over here on the right hand side It talks about what you know other other businesses are doing the first thing it says is business model assessment Which to me makes great sense. You need to you need to assess your business model right now What do you have to change? Because of the pandemic. Do you have to change anything? Does it make sense to change anything? I know a lot of companies in our industry are having to change something How they're doing things. I know a few companies that went from teams down to solos They're now operating as solos. I know some companies that were Operating independent contractors They found out that just did not work out the way they had hoped when things went a little wonky And so now they're looking at trying to switch over to an employee model, but um Lots of different business model Things that you might want to look at You know, that's one of the things we do one of the very first things we do in foundations. Tom remember the Wow, let's say I do you don't happen to know where that is. You know, I promise somebody and um In the success group that I would find that and send that over to him Anyway, I'll It's on share point. Oh, that makes sense. Okay um The next thing is A financial check. I think that's kind of a given right Yep Do you want me to go down and yeah, maybe So, oh, yeah, I like this. Here's the checklist now that the checklist doesn't say anything that was specific to us Tom, I don't remember. I like that there's checklists on all of these review KPIs Established or modified baseline metrics that you use to measure change examine year over year numbers Thurman determine what your customer's settings are buying and engaging We love all our customers, but some more say the letters um sales channels Uh customer segments business models, um Talk to customers and prospects. Hmm I think You guys notice that all of that stuff is stuff that we're doing right that we've all been doing in our industry as well So it's just stuff that makes sense. It's good business moves regardless of the industry This is the financial checklist What what's this say tom anything good? Yeah, um talking about calculating And I answer two fundamental questions. What is your operating expense run rate? so I guess we we spin a lot of time on this in foundations actually breaking down your your your your P and L in terms of separating cost of good sold from your operating expenses and Showing how we use that to calculate, you know, your break-even revenue and break-even jobs and stuff like that So basically what they're talking about is After you cover all your your cost to good sold How much money do you need on a monthly basis to cover your normal operating expenses? If you remember we had to go through those calculations Or we're supposed to go through those calculations to apply for your idle loan Yeah If you're a profitable, what is your cash burn rate? And that's the situation where you want to your break-even revenue I mean that's that that's important stuff to know And really a cash flow is a big deal in our industry because of The the cash the way it comes in we can feel like we have money when we don't I've worked with companies like that, right? We've worked with a lot of companies like that Tom that didn't even know they were going big price And you know with all these SBA loans and programs floating around out there You know, this is even in my mind. This is even more important because You might be burning Cash you may be burning a lot of cash and you just don't see it because it's it's lost in all this extra money that the SBA has has loaned you So Yeah, if we're spending more money, then we're we're generating in normal operating activities every month You really want to figure that out before it becomes obvious Is that Yeah, I mean there's a lot there's a lot of uh, you know, they all saying how did you go broke? And it's like well slowly at first and then very fast at the end By the time you figure out that you're you're spending more money than you're making if you aren't managing it by the numbers It's uh, sometimes it's kind of a moot point. It's too late Cash flow projections and uh working capital needs. How long can you survive with current cash and credit? Yep, at all. These are all kind of in the same area code in terms of being related to each other Explorer ways to defer payments at least towards suppliers. Basically just helping with cash flow People owe you money. You want it as soon as you can get it and money you owe other people You want to wait as long as you can before before you pay them exam examined Reexamine customer acquisition costs and total customer value Yeah, that's important. We um, we do a lot of that in main central actually That's one of the things that that we do particularly well, but we we talk about this in foundations where On a job by job customer by customer basis, we look at the revenue we generate and then we look at the labor content Or other costs to actually figure out. What is your gross profit for a customer if you do that You're going to find typically That you have a few customers that you would actually wind up with more money to bank it into the month if they just weren't even a customer that It doesn't mean you fire them But it means that you may need to go back and renegotiate your your your terms with them Maybe a different scope of work. Maybe you know increase your rate Change, you know, there's schedule Ways that you can take a customer make them profitable But if you aren't looking at this on a on a house by house basis, you're probably You're probably cleaning more homes and have less to show for it than than than than what you should be the other thing I really like about this too that I'm using main central as an example is it doesn't mean that every single customer has to be profitable either But you need to know which ones are and which ones aren't you need to know that you need to be making that decision Intentionally, you need to be like, yeah This customer is not profitable for me and it actually cost me two dollars every time I clean her But you know what? She has referred 12 people this year And all of those people turned into customers and I make bank over that two bucks that I spend every time I clean So that would be a time when you might want to keep that that Unprofitable Or you know, we You know donate cleanings for various reasons as well. So I mean, it's all over the board in terms of of What your what your gross gross profit is on a job basis? And you're right. There are times when you might for either benevolent reasons or Strategic marketing reasons make a decision to to do a job with it with a negative gross profit, but You need to be doing that Purposefully and in knowing Yeah, absolutely actions towards Expediting receivables. Yeah, I mean a lot of house cleaning companies don't get into receivables that much if you do commercial you do Typically have to deal with that people owe you money. You need to be keeping up with that especially If the economy starts to go down and right now everybody's feeling really good They've got money in the bank Let's see where we are six months from now If you have receivables get them now Get your money right now from everybody put that as job one Because right now people have the money to pay We don't know where we're going to be in six months, right? So get paid now get caught up so I actually deal with a lot of companies tom that They do have receivables even in residential because they'll now It made central you don't have this because made central kind of controlled that they're like no can't clean there They didn't pay but a lot of companies have receivables, you know, uh, she hasn't paid like three times I know she's good for it. We've been cleaning for a long time A lot of you know what i'm talking about you've heard this and you don't really understand how much those receivables are costing you It's not just that that amount of money the whole the way cash flows Really really um takes a tool so anyway I'm much larger conversation, but receivables Don't have them if you don't have to have them and if you do have some right now Get them all paid job one And you know depending on what tools you have in place and what systems you have in place I mean we've worked with with companies before where We're like digging into to their quick books trying to help them figure out why they're not not getting the return that they would hope to get and Point out it's like gee it looks like yet, you know, you've cleaned this home a half a dozen times and they haven't paid you And it's like what I didn't know that it's like wow. Okay. Well I know about your company was watching that yeah Uh, they're talking about keep looking for funding avenues draw a line of credit to extend your runway It's for vendor financing. We've talked about this a lot during you know early on in the coveted, you know Crisis you want to make sure that you have plenty of working capital and If you've got your idle monies and your ppp monies and you know, some of us were going out to banks to get more lines of credit and Two schools of thought all this and there's a lot of people that like the idea of I'm not having debt And I'm I'm down with that too. Just Make sure that you've got you know enough cash available to carry you through any any unexpected downturn. It's kind of hard to imagine that right now with the Adding 2.4 million jobs over the month of May. Everybody's feeling really good. Um Yeah, I don't know Well, I I can't remember if it was Leslie or Steph Leslie turned her Idle monies back one. Yeah, she put her money back So, you know, it's not that you have to be keeping that but looking at it is what they're saying, right? Yeah Make sure that you're paying attention to what different funding avenues are out there for your specific company There's a lot companies Didn't do that weren't ready and there are companies now that couldn't make it until we reopened So you don't want to be caught in that situation but We're um Kind of tight on time. So we're going to kind of Michael clear the rest of these quickly health safety legal examine And examine and work within city all our local, you know laws basically a facility plan for your warehouse plan We've talked about these before PPE health safety And really training falls into this as well, right? Your safety Yeah, COVID-19 training Well, we're I think we're more up on this than most other industries. I think this is one that we do really well in scenario planning Sensitivity analysis sales and profit forecast that's a fancy word for what if analysis just a simple spreadsheet where You change the revenue to see how it impacts the bottom line gross profit and net profit Adjust the amount I actually have our what if spreadsheet right on my desktop tom. You want to share? Yeah, because I pulled it up. Let's see if I where is it? Here it is Yep Let's see On my screen. I remember it's hard to share. I gotta do the application window Share What did I just do? I'm trying to pull it up Um, okay. I gotta stop sharing mine. I guess now I'm gonna share yours Did did it flash for a second all yellow and peach? No, it's just all white and white Hmm. Do you see it now? No What do they call it a polar bear in a snowstorm? Yeah, let's see. I wonder I know what I'm doing wrong here But you're sharing something that you're trying to maybe you've just got the wrong screen selected I only have one screen. So stream yard is sharing a window. Stop sharing or hide Let me pull up Again, I bet I picked the wrong option We're sharing. It gives you a lot of options for sharing here. I'll try one more time Application window Let's try this nothing. Yes No Um, there you go finger Yeah, so this is the what if this is model And you want to explain it time you're going to be much clearer talking about numbers than I am Oh so Which the peach the convention that that that we use with with, you know, all the material that that liz and I do with Spreadsheets is the peach colored cells are the variables that you can change. So um, and you've got like a base A baseline and I guess three different scenarios So you can assume your your customer loss rate per month Baseline is is is five percent. But if you want to see What happens if you change that to say four percent scenario two you can do that Switch it over to percent so they can see how the numbers shift Yeah So depending upon what you plug in those peach colored cells for, you know, customer loss rate um Percent leads that book in the first clean percent This is new by the way. I haven't seen this. How long have you had this? Oh, this is old tom. Look at the copyright on it 2010 Really? Yeah Really? We got so much stuff. It's so old. You don't even remember it So yeah number number of leads per year So for so depending on how you change those peach colored cells determines what happens in all the white colored cells Which is what you're really interested in number of customers Um in revenue You see how you can just grow these numbers by changing one thing So these are cool little spreadsheets that you can Create and work with that have a lot of great information Look at the like this, you know, I didn't create this look at the spelling on regular number of regular customers This is the protected sheet it says All right. Well, I know we have other stuff we're looking at I'll get rid of this and I'll stop sharing I just thought it would be interesting to see what we're talking about and then they're actually talking about this in this article is you know run run some of these and and find out What what what opportunities you have in your business and and what talent is you might have and where you're going and You know just sort of running different scenarios. Well if things do get bad in september what might that look like? Yeah, right if they don't what might that look like and this all ties in together back to the financial sheet you know, what is your You know operating expenses on a on an average month you need to know that because you need to know And and you need to to be able to do sensitivity analysis to figure out how many homes you need to clean in order to cover that And if you're only at say 80 to revenue, are you making money? Are you losing money? What do you need to change in order to get yourself to the level of profitability that that you need to be? Or you know, if you can't hire enough people, you mean the questions go on and on and on but you You know You know your ability to pay the bills and and and make money and accomplish The things that you set out to accomplish the whole reason you're in business to begin with Yeah Yeah, all right. Well, we've only got about five minutes here. Tom. Did you was well, can we get hit that? That thing one more time. Just go through the rest of the questions. I think what were we on number five? Yeah, our customer retention and acquisition I think is number six Maybe we can jump on this Tuesday since it's going to be kind of an open You know catch it for the week. We can back this because this is awesome. I like this. Yes, good stuff pricing You know, is this a good time to be looking at all your customers and what your? Bill rate per hour and gross profit is on a per home basis. And is this a good time to consider price increases? And really just thinking about it in terms of strategy not in terms of Tom, are you raising your prices? Liz? Are you raising your prices? You know, Sarah, are you raising your prices? What's your strategy for your company? How are you thinking about what you're going to do? Whatever your strategy is you'll be able to justify It's gonna be really hard for you to justify my strategy Right if if you're like, well, I know this other cleaning business and they raise their prices five percent When your customer calls to complain It's not gonna fly Then I don't really care how much I raise in my customers Organizational line is the last one which kind of makes sense because I mean some of us Had shut down completely for a while and you know, I think all of us had seen some loss of income that You know made us take a look at our organization and make some adjustments on the indirect labor side When we're piecing it back together and ramping up again, what's the most it's an opportunity You know, how do how do we get our organization put together in a way to perform at a higher level? We're Into this here for the last few minutes. So what was being back to this? Well, we'll play with this some more next week um Want to share again our schedule for next week since this is gonna be um be new for us You're also not sharing your screen time if you think you are Yeah, you're right. I knew that because I was and then I wasn't yeah, then I was So I was like showing that I'm glad we didn't spend more time looking at the uh, I would have called you out on that That's sweet I can see it I could tell because you were looking over there Sean's going to be be with us monday and we're going to be Learning some tips to help with recruiting. You know, I think a lot of us We're in a situation now where where that would be useful. So i'm excited about that Yeah, me too He's a great guy too. So for those of you that don't know Sean and not only are you going to really love this information? He's actually a really great guy. He's really interesting And I I think everybody's going to really enjoy having him on On the case with live next week. He's uh full of energy dynamic Yeah cleaning business owner he um out of out of cleveland Cleveland, Ohio and he's done a lot of stuff too. He hasn't just you know, he's not like a one-trip pony Yeah, you're right. You're right. He's uh So, um We're we're about out of time here. Does anybody um have any any questions? I just want to hit on real quick Tom about um, just a reminder that you can't sign anybody up for for classes, but create your Your schedule you guys next week you'll be able to and you're going to be able to organize it You're going to be able to manage that really well. So get your list of people figure out who's taking what classes How are they going to do it? And you know, how are you going to how are you going to implement that make make your plan now? Get that done, but don't do much more than that because it's Friday Right enjoy the weekend. Yeah, and uh Monday morning and 10 o'clock you can jump into um School dot modern cleaning dot com and go crazy with your training It's gonna be awesome Get some rest enjoy your weekend Uh join us back here Monday five o'clock eastern We'll hear from shawn day and jump into our new format for smart business moves. Thanks guys I'll be taking a poll on monday. I want to know how many people got haircuts over the weekend. I'm just curious Bye y'all