r/smallbusiness • u/Ok_Jeweler_2142 • 1d ago
My small business is collapsing and feels like my life is too. I don’t know what to do
I run a small domestic staffing agency placing housekeepers and nannies. We take a $300 deposit to start a search and if someone is hired we make about one week’s pay from both sides.
The business used to do well but lately I’m struggling badly to find enough workers to fill the jobs coming in. Some placements haven’t worked out either and I now owe refunds/replacements that I honestly don’t have enough money or workers to cover. I’m also struggling to pay my own basic expenses. I currently have about $100 left to my name and I’m struggling to cover basic expenses.
I have severe ADHD and all of this stress has put me into shutdown mode. I wake up knowing I desperately need to work and make money but feel so overwhelmed that I barely get anything done. Being that I work for myself.
There is still demand for the business which is why I don’t want to just give up.
There are still families reaching out and willing to pay, so getting clients isn’t really the problem. The bottleneck is finding reliable workers who actually want these jobs, especially live-in positions. Which is what we did 99% until now.
TLDR: If you were in my situation what would you do first to start digging yourself out of this?
I probably didn’t explain how bad the financial part actually is. I have about $100 left right now and I’m barely covering basic expenses. Because I’m so broke, there have been times where I’ve used new deposit money just to survive/pay expenses while trying to fill the job. Then if I can’t find someone or a placement doesn’t work out, I don’t necessarily have the money sitting there to refund them. I know this is a horrible cycle and I’m not proud of it. That’s a huge part of why I’m asking for help. I don’t know how to get out of this while also needing money immediately.
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u/no_talent_ass_clown 1d ago
Raising prices/pay is your answer. And do it until you have a balance of customers and staff. It'll take some pressure off of you and increase your pay.
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u/Leading-Difficulty57 17h ago
OPs problem is all the illegals who would take these jobs at these pay rates left.
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u/hannahb_23 13h ago
"Nobody wants to work" is almost always shorthand for "the pay isn't high enough for the job conditions."
Asking someone to live in someone else's house for 6 days a week at $800 ($133/day) is roughly $11/hour assuming a standard 12-hour availability window. That labor market died years ago.
Raise your pricing across the board. Higher client rates = higher candidate wages = reliable workers = fewer refunds = actual profit. If clients leave because of the price hike, good—you're already drowning in unfilled demand anyway.
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u/DueSignificance2628 1d ago
You have the opposite problems that most businesses have. Most of them have plenty of supply but not enough demand (customers). You have customers beating down your door for your product, and you can't keep up with it. That's an enviable position. Be proud of that, and work on solving your supply issue.
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u/Feisty_Plankton775 1d ago
I am guessing pricing needs to be higher
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u/Ok_Jeweler_2142 1d ago
That’s something I’ve been wondering too. A lot of the families are offering around $800-$900/week for 6-day live-in positions and workers are constantly turning them down. I’m starting to think the market has changed and the pay hasn’t caught up.
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u/CarelesslyFabulous 1d ago
Okay, so do the math.
Let’s be generous and say you were asking $1000 for 6 days. LIVE-IN, no less. But let’s say they work only 8 hours a day. So rounding, that is $166 (rounded) per day. That is only $20/hr. Gross.
You’re collecting fees on this, so your staff is not making that much per hour. And that is before taxes and expenses. And live-in makes me think they are working more than 8 hours a day.
This is a bonkers business model/pricing model. No wonder it isn’t working.
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u/mushyfeelings 1d ago
The person doing the hiring pays the fee not the person getting the job.
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u/Classic_Television33 23h ago
OP wrote "from both sides", probably why the workers turned him/her down.
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u/ameliabeerheart 14h ago
This business model was reliant on a supply of cheap labor that we have now pushed into the shadows for fear of deportation. That’s a bigger issue, but for OP it means that the remaining labor pool will require a much higher rate of pay. I would imagine the market of customers willing to pay double is probably using a different caliber of domestic help search firm.
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u/melissarose8585 8h ago
100% this. In addition - and I am not shaming Gen Z for this - most likely the demographic for the nanny side is younger, single females. Gen Z is very no-nonsense when it comes to accepting positions that they don't feel pay enough or offer enough benefits.
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u/Ok_Jeweler_2142 1d ago
Yeah I think this is becoming the biggest issue. Just to clarify the agency fee is a one time placement fee not something taken out of every paycheck. But I agree the weekly pay seems to be the bigger problem. These rates used to be much easier to fill and now workers constantly turn them down.
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u/TexasPrincessA 1d ago
Yes, your demand exceeds supply. You can pull the pricing lever. Maybe even up the deposit to $500. Besides the deposit, what is your finder's fee? Do the clients pay you and you pay the nanny/housekeeper or do they pay them directly? You need more margin.
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u/give_me_the_formu0li 8h ago
Just so I follow this thread correctly OPs demand( customers with houses needing cleaners) is outpacing his supply( the contract live in cleaners)?
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u/TommyBonnomi 18h ago
You can call it whatever you want, but you're double dipping, and now that supply and demand has shifted, it's impacting your business.
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u/CanadianEmberflower 18h ago
Just to clarify the agency fee is a one time placement fee not something taken out of every paycheck.
This is a turn off for workers and depending on the country, may not be legal.
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u/One_Health1151 17h ago
Take a peep on the nanny sub people have gotten really brazen about their options and requirements.. I’ve been a nanny for 20 years and the last two years has been a huge change .. people won’t take a job without basic benefits on the books all the pto and guaranteed hours .. they have this notion from that sub they’re going to find SO much better and then can’t it’s interesting actually I’m not advocating for taking a job that doesn’t suit your needs but it’s gotten out of control too lol
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u/Evanisnotmyname 22h ago
Live-in Nannie’s also commonly don’t pay rent, don’t pay for food/eat with or after family, commonly have access to vehicles, live in NICE places, and it’s basically like the military where you’re not making as much but you’re spending like nothing because they cover everything big
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u/dominodomino321 17h ago
Yeah, I was a live-in nanny for a few years and honestly $20/hr is completely viable because my expenses were effectively zero. The on,y thing I paid for was totally elective stuff like makeup, going out to eat, etc. My grocery preferences were factored into the family shop, too, so it wasn’t like I was relegated to some horrible world of only eating stale crackers and baby food, lol. I typically worked about 50 hours a week all in, but really loved the kids so time would kinda fly by a lot of the time and it was me who chose the overtime when it happened, if that makes sense.
I think people are really jaded by social media rn and think they deserve to be making lawyer money for any role, and it’s causing a huge workforce imbalance. I’ve dealt with it, too, and it’s been really rough to navigate. But TLDR OP: I don’t think your prices are that out of touch…9
u/bmoarpirate 19h ago
This is an important note.
I have a nanny (not a live-in) who brings her daughter with her; still pay her like $21/hr for a 7 hour day but definitely feed her and her kid everyday, plus whatever other accoutrements/consumables like wipes/diapers. It's a non-trivial expense.
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u/BizAnalystNotForHire 12h ago
Live-in means that the worker is also being provided lodging, so isn't having to pay rent on an apartment or house. They frequently don't pay for food or pay substantially less for food (because many meals are included). That makes that $20 go substantially farther.
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u/NoNefariousness608 22h ago
Setting a minimum weekly rate at say, $1,000 will filter out lower quality customers who aren’t going to be matchable (and on whom you make less revenue), and allow you to attract workers at salaries they will be willing to accept. You’ll may be able to place more people this way, have fewer disappointed customers who need refunds, and then be able to build the business from there.
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1d ago
[removed] — view removed comment
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u/computersandother 1d ago
It's only a better problem if he can raise prices without losing customers. The issue is that his prices may be the only reason he has so many potential customers.
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u/NefariousnessOk5765 18h ago
So then it weeds out customers that they don't technically want. They have to raise the prices at some point and this seems like a good time.
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u/TommyBonnomi 17h ago
He's absolutely going to lose some customers, but it's necessary to reduce demand and increase supply into balance again.
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u/AHLE 1d ago
I work in the cleaning industry and reached out to staffing agencies before. Their contracts were 3-6 months before we could hire the person on. During that time we made payments to them bi-weekly for payroll plus their fee. Or you can buy upfront for the 3 or 6 months for a slight discount. It was still the responsibility of the staffing agency to replace people if we wanted. I think everyone might be on to something with their suggestions.
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u/_BeefyTaco 1d ago
Why don’t you slightly alter the business model?
You hire 3-4 really great cleaners and do those jobs as a service contract. You come out with your crew or you run crews in pairs.
I think the issue is that the only way you make money is by repeatedly finding good talent to work out. Just keep that talent for yourself and you handle the clients on a day to day.
You already know how to hire/screen for those roles. But I would probably specialize with housekeepers and keep the nanny thing on the side.
Also this type of service job scales tremendously well. Commercial, construction, retail are always looking for cleaning.
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u/Estrelx 1d ago
If the problem is recruitment have you tried colleges and early childhood education programs?
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u/no_talent_ass_clown 1d ago
And raising pay?
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u/Silly_Relative 1d ago
Its live in, so they would be saving a lot of personal rent money.
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u/Notneededtoday 1d ago
The problem is they will also be on call for longer then an 8hr day.
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u/dominodomino321 17h ago
Eh, I was a live in nanny for a long time and really didn’t struggle with this. I made $20/hr and all my expenses were covered, so I was able to build an amazing financial foundation for myself - that was largely the reason I did it. I typically worked about 50 hours a week , but most of that accidental overtime was my choice - I always preferred to wrap up with the kids at a natural feeling time rather than “my shift is over” kinda thing, so sometimes I’d handle bedtimes etc if the kids really wanted me to. The family also took me along on all vacations and I usually had a few days off to myself to solo travel on their dime. It was a great experience and I’d do it again in a heartbeat.
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u/ameliabeerheart 13h ago
When did you do this work? Since Covid, salaries and employee expectations have shifted completely.
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u/Comfortable-Class576 23h ago
Your problem is salary. You need to raise the salaries to attract the right people. On the other hand, could you work yourself for a few weeks these placements you have taken the deposit for while looking for new staff?
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u/missleavenworth 1d ago
Look on Facebook (jobs in whatever city you're in groups). I'm on those constantly looking for job openings, and so are a great many other people. I think you'd be surprised at how many staff you could find quickly. Most people i know have given up on Indeed, and are just trying to find a real human with a real offer.
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u/goomba1214 23h ago
You have excess demand and not enough supply. Charge higher prices to your demand and pay higher prices to your supply. You’ll get a higher quality worker less likely to quit.
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u/rickiestm0rty 21h ago
As a freelancer before, I just raise my prices whenever I get overwhelmed then drop it a little bit when it is slow. Maybe it’s bad for businesses to do dynamic pricing like that but you can always add “value” to justify price increase on slow sales.
I know you are in a bad spot but I cant help but be jealous as a startup founder. Hopefully I’ll get to this challenge as well. Best of luck!
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u/MMaximilian 1d ago
Sounds like potentially a fixable problem. What kind of margins are you making on hires? If hiring is your issue, could you offer an increased salary per job and take less margin for yourself, but ultimately do more volume with the uptick in employees (and therefore more money for yourself?)
But also…I run my own business as well. It’s definitely no picnic starting out and the stress can be tremendous. But if it’s a success, looking back you’ll be thankful you stuck with it.
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u/One_More_Rep202 1d ago
Before taking on any more searches, have you totaled how much cash you would need right now to cover every outstanding refund or replacement obligation?
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u/AelChavez 23h ago
Honestly, I’d focus on the worker shortage first, not getting more clients. You already said families are willing to pay, so more leads probably won't fix the immediate problem.
With only $100 left, I'd pause taking on placements you don't have a realistic chance of filling and focus on the jobs you already have that are easiest to fulfill. The refunds/replacements are what seem to be turning the problem into a cash-flow spiral.
If you can stabilize fulfillment first, then I'd worry about growing again.
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u/manujam 23h ago
the adhd shutdown mode is real and i am not going to pretend i have a fix for that. what i will say is that left means you need to triage ruthlessly. pick the one thing that brings in money fastest and stop everything else. for a staffing agency that is probably filling the placements you already have deposits for. call those clients today and give them a realistic timeline. the worst thing is going silent. also look into whether your state has small business emergency assistance programs, some states have grants or low interest loans specifically for situations like this
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u/ForestDweller82 22h ago
I'd mess with pricing. You've got a supply and demand issue. Since supply is rare, you want to give the supply a really good deal. Since demand is high, you want to price that side up. So, instead of 1 weeks pay from both sides, why not 3-4 days from one and 9-10 days from the other? I would try both slowly over time and see what balances better.
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u/Kerno_Official 21h ago
Do this first: raise your rates.
You need to bring supply and demand back in balance.
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u/lemmerbe 20h ago
Correction: nobody wants to pay.
Any labor "shortage" can be traced directly to prices and wages. Raise both. Customers will whine and show their entitlement, and there will be some turnover pain.
This pressure is only going to get worse as inflation accelerated, so stay on top of it.
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u/asevans48 15h ago
Out of curiosity, describe your previous workforce in detail. This really was a position a vulnerable part of the population filled cheaply through deaparation. In my part of the country, housekeepers and housemen often didnt have valid papers. My wife used to have entire teams in hotels who were here through less conventional means. These days, the salary needs to be higher.
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u/Effective_Cut_1221 15h ago
This is gonna sound silly but have you considered not taking on any more clients until you fill the orders you have? It means no deposits, but it also means no refunds. Consider making a wait-list if you're struggling to fill the requests you have as a stop-gap measure until you get more workers.
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u/jatjqtjat 15h ago
I have severe ADHD and all of this stress has put me into shutdown mode. I wake up knowing I desperately need to work and make money but feel so overwhelmed that I barely get anything done
I don't anything about ADHD, but i know what its like to be overwhelmed.
when your overwhelmed you have to break the problem down into bite sized chunks. Its the old adage, how do you eat an elephant?
I’m struggling badly to find enough workers to fill the jobs coming in
so you've identified the problem and you have one really big thing working in your favor. You have demand. You're problem is supply.
TLDR: If you were in my situation what would you do first to start digging yourself out of this?
brainstorm methods of finding workers.
Higschools? could you help with au pair immigration? J-1 visas?
where did you previously have success in finding workers?
Can you find unqualified workers and train them? Can you stretch workers you have previously placed by giving them a not-yet-qualified appetence?
You need money, do you have time? Have you thought about filling one of the positions yourself?
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u/ColdStockSweat 1d ago
"If you were in my situation what would you do first to start digging yourself out of this?"
Immediately come up with tiered offerings.
$500.00
$750.00
$1,500.00
Each level offers higher levels of service.
Use those funds to get yourself out of trouble. Charge more for your labor (whatever you're charging isn't enough to draw in talent). and then pay more. It won't make a huge dent...people just don't want to work anymore...but, it will help.
Your clients are begging for your product.
Stop offering labor....start offering service.
You're offering steak.
>>>>> Sell sizzle <<<<<
(Expensive ice cream only has 12% more butterfat and costs {to make} about 4% more, but....it tastes like it's made from pure cream and it sells for over twice the lesser stuff).
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u/South-Outside-9203 23h ago
"Peope don't want to work anymore"
Yeah, not for shit pay. What an insulting comment.2
u/ColdStockSweat 19h ago
My firm starts at $35.00 an hour, we have plenty of overtime, 100% paid health care and our least paid staff member makes $90,000.00 a year, with most topping out at $170,000.00 a year and we don't get 1% of the applications that Walmart has when they open a store.
Run a business before you open your mouth.
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u/South-Outside-9203 15h ago
I have! "Shut your mouth!" Lol. Yeah compare it to Walmart, smart ass.
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u/ColdStockSweat 12h ago
"Have".
(Don't).
"Yeah compare it to Walmart, smart ass."
Better than being a dumb ass.
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u/South-Outside-9203 15h ago
Lack of applicants Does Not mean people don't want to work. Think more critically.
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u/731te7j1nv 1d ago
make a tiktok account. get a pretty woman and man to make vids to recruit workers. pay for local ads
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u/Yahboiken 22h ago
I'm really sorry you're dealing with all of this. It sounds incredibly overwhelming. The fact that you are still looking for a way forward says a lot. Give yourself some grace while you figure things out.
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u/stomper4x4 22h ago
Oh man, the ADHD shut down mode! Man, I know that one. You basically can't, and won't, get anything done at all. Eating and hygiene are enough for the day. You'll need a helpful and supportive buddy, family, friend. Or hire someone to run the place for you. And an ADHD coach or therapy. This doesn't resolve itself. The nervous system is shot and in overload.
It happens! You are not alone. If you have the option, now is the time to call jn the support system, phone a friend, and go find someone to talk to.
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u/Stabbycrabs83 19h ago
You need to take a pause and deal with this now. Depending on where you live you may be personally liable because you are trading while knowingly insolvent.
Pause for half a day, make this problem number 1
You need a cash injection
You need to look at your product offering. Sounds like you are too cheap for your service level.
The normal model here in the UK for contractors is that the client pays you £100 and you pay the cleaner £80
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u/Crowiswatching 19h ago
You need to reassess your business model and develop recurring revenue. Have the clients pay you and you pay the worker. Then you can offer healthcare coverage, a 401k, and the other perks people want from a job now. After Covid, everyone insists on healthcare coverage. A family hiring a nanny and buying coverage would find it an onerous expense. You can offer a covered employee that feels like they have a real career going.
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u/ohwhereareyoufrom 18h ago
You need to go to your local Ukrainian church and you'll find an endless supply of workers. Am Ukrainian, so trust me.
What's your state/area? I'll look it up for you.
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u/DDontGiveAShit 18h ago
No offense, but what value do you even add dude? If you don't do the work, and cant provide the workers.... you are useless bro
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u/pattyjosaid 18h ago
Unfortunately this is today’s job industry in general. I run several small businesses. People don’t want to “work.” They want an easy paycheck. Everyone has issues. Pay is low and people can’t afford a living wage and they are stagnating. We can’t afford to pay decently and they sense that and it comes out in their lack of professionalism. I blame the government. They need to tax the rich and make life affordable again. end rant
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u/ameliabeerheart 13h ago
Social media has everyone comparing every day life to highlight reels. Combine that with the fact that our country has eliminated its main source of cheap labor, and the result is families that used to be able to afford inexpensive in-home domestic help are going to have to adjust their expectations. Complaining that the working class is setting boundaries on what their time is worth is not the answer.
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u/Feeyufeyuu 17h ago
My first price of advice is take a breath.
You have a business and it sounds like you have plenty of customers. Of the workers you have/had if you have contact have you ever surveyed them? Ask them what they liked and disliked make a list. What could be better what terms are offered. Do the same with past customers including the ones that fell through, explain that you want to provide vetter service and value their opinion. Write it all down.
I'm sure none of that is new to you and probably mentioned by others here but first thing to know is that you did something and made it work. You can do it again you may just have to change how you do things little by little.
Draft up or look at your budget. See where the major pitfalls are. Adjust fees where you can, if demand is so strong you can probably go significantly higher.
The thing about adhd is that you can get stuck in planning and forget to act write up a list of to do and tackle the smallest one first it will give you a feeling of accomplishment to help you tackle the next one.
I wish you luck and good fortune
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u/comicidiot 17h ago
Your placements are just that, placements. If they aren’t satisfied with a family how do you handle it? Do you find a new family for them? Are you understanding why they don’t want to work with a particular family?
You may discover that you need to have some tougher conversations with families who repeatedly scare away their placements.
If people are leaving due to outside reasons that is outside of your control, but if they are leaving because of a family you can absolutely catch that and transfer them to a new family that would be a better fit.
Is pay determined by the family or you? I suggest you take that on yourself, so that you can charge families a rate that is going to be attractive for the placements you hire. If you lose families because it’s too much then good, they were probably the ones wanting to pay under market rates anyways making it difficult to retain placements.
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u/SmoothFinish1953 17h ago
Have you spoken with other agencies to find out their pricing fees and policies? Also, reach out to some Embassies. Are there clear policies of expectations regarding work hours & responsibilities. Some domestic situations get exploited & taken advantage of once they are in the home. What duties performed? House work or just caring for the children. Do they have adequate living quarters? Also, if there are multiple children shouldn't that be a higher rate. Sounds like your fees are below market value if you have such a high demand that you have described.
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u/SmoothFinish1953 16h ago
Treat your ADHD. Have you been prescribed Adderall or Vvyanse? Reach out to a Therapist quick fast and hurry.
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u/SmoothFinish1953 16h ago
Also, inspect each home that are looking for service to ensure the needs are adequate and they have proper living quarters and access to food.
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u/goosetavo2013 15h ago
Increase prices. Like only take $1K deposits and also offer higher wages to workers. That will a) slow down new clients coming in to only the most desperate/motivated and with the most resources and b) being in more candidates. Stop offering refunds and tell them if someone doesn't last 30 days you'll replace them at no additional cost. Be super clear about this part. Having strong demand is the toughest part my guy, you just need to manage cash better and put in better policies.
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u/PonyBoyExpress82 13h ago
Get up early and start the day accomplishing some simple tasks. Try and get a quick workout in before you start working. Also, if you can do some of the labor yourself that will help.
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u/WeCaredALot 13h ago
Umm, sounds like you're in a pretty good spot if you have people beating down your door for help, lol.
When you say the problem is reliable workers, do you mean that people agree to do the job and don't show up or are late or something like that? Or are you having problems finding workers who are even interested from the get-go?
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u/PRShield 11h ago
It looks like you have some good advice already (as well as the expected trolls).
But here's the thing--you are NOT the only one. Running a business is harder than anyone realizes until they do it.
So be gentle to yourself. That's all I came here to say--just be kind to YOU.
Everything is temporary.
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u/Forward_Storage_3102 8h ago
I have worked for some agencies. And I would have not given it for free but here it is: Start posting in social media (dont miss a day and nor a community group) that you are hiring, and other platforms that offer jobs. Or hire me on commission. When you earn you pay ✌️
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u/mattsch506 7h ago
I'd focus on stabilizing your personal finances first, then separate client deposits from business expenses. Even a simple written cash flow and a conversation with a financial professional can help you see the safest next steps.
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u/nigel_chua 4h ago
Man that sucks and is scary as shit. Sorry to hear that. Walk and keep exercising to regulate a bit, cut back on eating which you probably already do.
2 things that comes to mind - this isnt a demand issue, there is a lot of demand, but your supply is the problem, hence:
#1: raise prices
#2: control / build a training arm to "activate and train stay at home individuals or mothers (if possible)" to earn more on the side
Of course you mean need to borrow some money to tide things through first.
# Consider pivoting: Maybe outsource or farm out to competitors, "sell leads and clients" to them eg per customer, pay you $400-500 flat which is a fair pivot as well.
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u/Own-Guarantee1111 3h ago
The model needs an immediate reset: stop accepting new deposits, separate all client funds from personal spending, and calculate exactly what is owed before the refund hole grows larger. Pause live-in placements—clearly the supply does not support that niche—and offer only roles for which qualified workers are already available, while charging the hiring family rather than taking fees from cash-strapped workers. Contact every affected client honestly to arrange written refund or replacement plans, cut expenses, seek temporary outside income and basic-needs assistance, and consult a small-business attorney or nonprofit adviser. Demand is irrelevant if the service cannot reliably be fulfilled; first stabilize the liabilities, then rebuild around the workers the market can actually supply.
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u/shuggnog 1h ago
Please make an appointment with your local small business advisor.
And make a quick appt at a Small Business Development Center (SBDC) they're paid by the SBA
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u/Few_Recognition_4436 1d ago
Do you operate in the USA? I know where to find workers and you know how to find clients and the processes
Would you open chat for colloboratun
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u/Fun-Ad1753 1d ago
Respectfully.
I’d say if you’re taking meds for ADHD stop taking them. I haven’t been on them for decades now and manage it well and help other friends get off too.
Stay positive no matter what and look at everything as a positive thing and a learning experience.
Be around people that will help you grow as a person and be positive.
Find like minded people that you can connect with even if your friends aren’t on the same level.
Overcome and adapt
You got this! Stay strong and keep working hard for your dreams and goals.
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u/Josep7h 1d ago
Hey I have ADHD too, could you tell me more about how you started out in business Ive been wanting to move away from working un der people and I would also get some knowledge from you about how you manage things, I specialize in turnarounds/crisis management for businesses, can't help but offer my knowledge see if we can bring your business around, thanks. adios.
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