As an athlete playing Division I football at North Dakota State University, Darren Kelly had a clearly defined vision for his future.
He wanted to get drafted. Become a millionaire. Buy a house for his mom. Travel the world. Unfortunately, just as his dream was becoming a reality and he was starting to play professionally, his football career was cut short due to a severe leg injury.
Some people would let a setback like this completely derail them, but spend a few minutes talking to him and you’ll quickly realize Kelly isn’t that type of person. He simply picked himself up, dusted himself off and started brainstorming ideas for how to earn a living.
“At that point, I was literally at a place where I didn’t know what to do in life financially,” he recalled. “But I knew that a service-based business could be the answer.”
After doing some extensive research and observing the cleaning operations at a large bank he was working for at the time, Kelly made a decision – he was going to start his own cleaning company. And just like that, Minneapolis-based Divine Shine was born. Now almost four years into his venture, he couldn’t be happier with the path he chose.
“Obviously I’m a little biased, but I think cleaning is the best kind of business that you can start if you’re in an uncertain situation,” Kelly said. “It’s not necessarily hard, there aren’t a lot of barriers to entry and it’s a very lucrative business.”
When he was first starting out, Kelly did the cleaning himself, which is something he admits he wasn’t exactly great at initially. But he was committed to always answering the phone, being responsive to texts and emails and consistently posting about his services online to get his name out there. Gradually, thanks to positive word of mouth, Divine Shine started to really take off, allowing him to contract out the cleaning work so he could focus on growing the business. Why has the company been so successful? Well, Kelly believes it all comes down to being reliable, relational and responsible.
“It shouldn’t be a hassle to find a cleaning company that communicates and delivers on its promises,” said Kelly, who services commercial and residential properties and vacation rentals across the Twin Cities. “The relationship between cleaner and client should be smooth and easygoing and that’s what we bring to the table.”
As Kelly continues to build Divine Shine with plans to hire full-time cleaning teams to work directly for the company, he’s also looking toward the future and constantly asking himself an important question: what can I do to build a business that’s worth buying?
“I think it’s something that a lot of entrepreneurs should think about whenever they’re starting a business or thinking about starting a business,” Kelly said. “What’s the end goal? Do you want to sell it? Do you just want a cash flow machine? What are your exit strategies? It’s kind of counterintuitive I suppose, but now that I’m going on my fourth year of business, it makes a lot more sense now.”
If you’re contemplating how you can create a business that will be attractive to a buyer or an investor someday, here are a few of Kelly’s tips on building a company with value:
- Run your business like a business: Sometimes, especially when people are first starting out, they end up almost treating their business like a hobby. For example, Kelly said, they’ll mingle their personal and business finances. They won’t keep good, accurate records such as P&L statements. And they don’t establish clear organizational structures and workflows. This haphazard way of running a business is far from ideal and while it may work out OK for someone who plans to be a one-person operation forever, it’s not going to make your company very marketable. Simply having a thick book of clients isn’t enough, Kelly said. Buyers are looking for businesses with well defined processes and procedures, a history of steady, sustainable growth and high levels of financial transparency so they know exactly what they’re getting into – and that they won’t have to spend a lot of time and money getting the business into shape. Think of it like buying a house. While some people love the idea of taking on a fixer-upper, many of us just want to purchase a home that’s clean, well maintained and move-in ready. Your business should be the same way!
- Delegate where you can: When you’re running a small business, it can be tempting to try to do everything yourself. After all, hiring additional staff costs money and early on, you may not have a lot of it to spare. However, if you want to grow your business with the goal of selling it someday, it’s important to learn how to delegate. Kelly, for instance, recommends hiring a virtual assistant to pick up administrative tasks such as billing and scheduling. This will free you up and allow you to devote your time to developing growth strategies and improving your service offerings, ultimately making your company more appealing to buyers. That’s always a good thing, right?
- Remember that customer service matters: These days, it’s easier than ever for unhappy customers to go online and make negative posts about their experience with your company before taking their business elsewhere. Not exactly what potential buyers want to see, is it? That being said, businesses like Kelly’s that are committed to going the extra mile for their customers have a unique opportunity to stand out from their competition and show prospective buyers that their company is a good long-term investment. To that end, Kelly encourages business owners to pay attention to detail, communicate consistently with their customers and always do what they say they’ll do no matter what. Because in the end, if you take good care of your customers, they’re going to help you grow by staying with you and referring you to their friends and family. And when you can demonstrate that you have a loyal following with lots of raving fans, it will go a long way toward getting a buyer excited about acquiring your company. That’s definitely something to celebrate!
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