Subcontracting vs Selling leads: which works best for you

Subcontracting is a well-known method for expanding your business capacity without directly hiring employees. Essentially, you partner with another window cleaner or company that takes on some of your overflow work for a set fee. This allows you to increase your service offerings without needing to manage additional staff yourself. However, while subcontracting has its advantages, it also comes with a few risks.

Benefits of Subcontracting:

1. Increased Capacity Without Hiring Full-Time Employees

   • Subcontracting allows you to take on more jobs without committing to hiring full-time employees, which can save you time and resources on recruitment, training, and payroll. You can scale up when demand increases and scale down when business slows, making this a flexible option for growing your business.

2. Access to Specialists or Additional Skills

   • By subcontracting, you can access specialist skills that you might not have yourself. For instance, if a job requires high-rise cleaning or specialist equipment, you can subcontract it to someone who has the right qualifications or experience, thus enabling you to offer more diverse services to your customers.

3. Less Responsibility for Day-to-Day Management

   • Unlike employees, subcontractors work for themselves and usually have the necessary insurance and equipment. This means you won’t need to oversee their day-to-day activities, and you won’t be responsible for the usual employer obligations, such as holiday pay or sick leave.

Drawbacks of Subcontracting:

1. Less Control Over the Quality of Work

   • One of the main drawbacks of subcontracting is that you’re relinquishing control over the quality of work. Since the subcontractor is not directly employed by you, you may not be able to ensure that they maintain the same standards you’ve set for your business. Poor quality or missed deadlines can damage your reputation.

2. Potential for Communication Breakdowns

   • Subcontractors may not always be as responsive or communicative as you’d like, which can lead to misunderstandings or delays. Effective communication is crucial, especially when dealing with clients who expect the same level of service each time.

3. Profit Margins May Be Reduced

   • While subcontracting allows you to increase your capacity, you’ll still need to pay the subcontractor for their services, which can reduce your profit margins. You’ll need to ensure you’re charging enough to cover both your costs and still make a profit.

4. Dependency on Third Parties

   • Relying on subcontractors to fulfil work may leave you vulnerable if they’re unavailable, unreliable, or decide to stop working with you. This can disrupt your workflow and, in turn, affect your business’s reputation.

Selling Leads: An Alternative Option for Growing Your Business

An alternative to subcontracting is to capture leads and sell them to trusted window cleaning firms. This option involves gathering customer inquiries, quotes, and contact information and then selling these to another company that is better positioned to fulfil the job. It’s a strategy that requires less involvement in the physical work and doesn’t require you to manage employees or subcontractors. But is it a viable business model?

Benefits of Selling Leads:

1. Passive Income Stream

   • Selling leads can create a passive income stream for your business. Instead of physically going out to do the work, you’re monetising the information you’ve gathered from potential clients. You’ll still be involved in the sales process, but without needing to do the actual job.

2. Reduced Risk and Responsibility

   • Since you’re not doing the work, you don’t carry the same liability or risk associated with completing jobs. You’re simply providing potential customers with a connection to trusted firms. This significantly reduces the workload and the operational stress of managing a full-service business.

3. Less Need for Equipment and Staff

   • Selling leads requires very little overhead. You don’t need equipment, vehicles, or staff to fulfil jobs, so your costs are significantly lower. If you have a well-established network of reliable, trusted businesses to pass leads onto, this could be a great way to earn income without committing to the complexities of subcontracting.

4. Focus on Marketing and Networking

   • If you’re strong at marketing and generating leads but don’t want the hassle of physical labour, selling leads allows you to focus purely on attracting potential customers. You can work on building your network of trusted companies to sell leads to, while focusing your efforts on marketing and customer outreach.

Which Option Is Right for Your Business?

Both subcontracting and selling leads can be viable options for growing your window cleaning business without the hassle of taking on more physical work yourself. The best choice depends on your goals, resources, and preferences:

• Subcontracting may be the right choice if you want to increase your capacity and offer more diverse services without expanding your team, but it requires careful management and quality control.

• Selling leads could be ideal if you want to generate passive income and avoid the complexities of managing workers or the physical aspects of window cleaning. However, it requires building a solid network and may offer less long-term profit.

Ultimately, the right option for you will depend on the direction you want your business to take. Consider your business’s current size, your local market, and how much time you want to invest in managing either leads or subcontractors. By carefully considering both options, you can find the right balance that works for you and your lifestyle, ensuring your business runs smoothly and profitably.