Name: Housekeep
Based: London
Website: www.housekeep.com
When we started Housekeep, it was fully funded from our own pocket. This means we didn’t have any choice but to think carefully about our cash – after all, every penny spent was coming out of our life savings.
The home cleaning industry has historically been all about cash payments. We’ve used technology to make the business simpler while also improving our cashflow.
First, we bill the customer’s credit card on the day of the clean, which means we’re never chasing overdue invoices. One person is specifically responsible for the daily billing and we’ve got cover for holidays too.
Second, our systems work out what each cleaner is owed and can automate those payments too. We tie this together in our cloud-based accounting systems so we can see our cash position in real time.
We’re obsessed with getting the basics of cash management right. For example, we make sure we’re collecting interest on bank balances. They’re small numbers but they’re meaningful to us.
We’re also not afraid to keep asking. For example, we’ve found that suppliers will be empathetic to us being a small business and will often allow us an extra 30 days on payment terms. This careful cash management was rewarded earlier this year, when we raised $1m investment from some of the UK’s leading VC and angel investors.
While we may have more money in the bank, the discipline certainly won’t change!
Avin Rabheru is the chief executive of Housekeep.
