Did you know that there are roughly 166,000 HVAC Contractors throughout the U.S.? Studies show they ALL share a single common goal. They want to be successful --- for their families, their employees, their customers, and naturally for themselves.
This sounds a lot like you and your company doesn’t it?
Unfortunately, as reported by the US Census bureau, the average HVAC contractor makes only 2.3% Net Profit Before Taxes. Now that’s powerfully close to making no money at all. Therefore,10% of all HVAC companies easily experience serious cash flow problems, that result in some suffering business failures.
It is true that most contractor owners and managers who get into the business have little experience or training in the BUSINESS of HVAC contracting, marketing, or selling. Most are technicians who know how to work in the business. Many owners make a fatal assumption: if you understand the technical work of a business, you understand a business that does that technical work. The reason this assumption is so fatal. is that it just isn't true. In fact, it's the root cause of why most HVAC contractors have poor profitability and needless business failures!
What will make the ultimate difference between the success or failure of your HVAC contracting business, is first and foremost, how you think about your business, as opposed to how hard you work in it. Let's think about improving you and your family's life through the development of a business built on extraordinary business processes; and all about getting a life that's yours.
With this new thinking, let’s explore these questions that contractors typically ask us when they begin thinking about improving their business and their life.
- How can I get my business to work, but without me?
- How can I get my people to work, but without my constant supervision?
- How can I standardize my business in such a way that it could be replicated and run smoothly every time?
- How can I own my business, and still be free of it?
- How can I spend the time doing the work I love rather than the work I must do?
Where do you find the symptoms of poor profitability? The most obvious way is when the owners tend to lament openly the days when the HVAC business was easier, customers weren’t so demanding, and when employees actually-did what they were told. The 1000+ BSI HVAC Contractor business evaluations and business improvement action plans have shown that there are actually;
4-Common Business Symptoms of Poor profitability:
- Poor Cash Flow: They experience poor cash flows with operating expenses often greater than cash coming in to pay for them.
- Low or cyclic revenues: They have cyclic revenues or more commonly known in our industry “feast or famine” sales.
- Poor Employee Recruiting/Retention: They have poor employee recruiting and retention which prevents them from finding, getting and keeping your good people.
- Poor Customer Retention: They have poor customer retention which is a death knell to any service-based HVAC business.
If you wish, now let’s take each of these poor profitability symptoms and review COMMON associated business process problems, break them down by work category, and determine their typical HVAC contractor negative net profit impact if in error/inefficiency and their associated best-of-the-best practice SOLUTIONS, of each.
Award winning HVAC Business Fitness Coach Wendell Bedell presents a how to customize a business action plan and how to implement using a 7-step, prioritized from greatest profit gain to least, tasking solution for growing your retail residential and or commercial service HVAC contracting business, Plus you will get to review today's best-of-the-best operating practices and online staff training and implementation support.
Date and Time: Wednesday Feb 14, 2018 3:00 PM - 4:00 PM EST
We encourage you to click here to take our online Google Drive 82-Point Business Evaluation to receive a custom to your business a FREE 2018 HVAC Business Tasking Plan.