Presentation on theme: "TEN COMMON SENSE STRADEGIES TO GROW AND IMPROVE YOUR BUSINESS Presented By Lane Post Welcome to the 2015 President & Founder Pacific Drain & Plumbing,"— Presentation transcript:
TEN COMMON SENSE STRADEGIES TO GROW AND IMPROVE YOUR BUSINESS Presented By Lane Post Welcome to the 2015 President & Founder Pacific Drain & Plumbing, Arrow Pipeline Repair, Inc. 1330 Park Center Drive, Vista, CA 92081
1330 Park Center Drive Vista, CA 92081 Your Full Service Plumbing & Drain / Sewer Specialists Your Sewer and Underground Utility Specialists
Common sense is often the least common of all the senses
Notice how house ALWAYS holds a small advantage over the bettor
25% failure in first year, 55% failure by 5 th year And 71% failure by year 10!!! Joint research by Entrepreneur Weekly, Bradley University, University of Tennessee, and the Small Business Development Center Research date February 5, 2015
Source, Joint study done by: Entrepreneur Weekly, Small Business Development Center, Bradley University, & University of Tennessee Research Research Date: February 5th, 2015 Survey taken 2014…….14,405,210 businesses polled
Small Business Failure Rate Plumbing, Heating, AC Failure Rate
Number 1 cause of business failure is incompetence…..46% a. Lack of planning b. No knowledge of pricing or emotional pricing c. Expansion too rapid d. Wasted advertising budget Number 2 cause of business failure is unbalanced or lack of managerial experience…..30% Lack of experience……….only…………11%!!!!
Seriously, library books? Why not……? Think outside the box.
Business Card Statistics Data Number of business cards printed daily 27,397,260 Number of cards printed in the US annually 10 billion Company sales increase for every 2,000 cards passed out 2.5 % Percent of business cards handed out that will be thrown out in less than a week 88 % Source: CNN, Businesscard ABC, Freelance Folder Fact: A colored business card is kept 10 times longer than a plain white. If 88% of cards are thrown away……..then 12% are kept.
Expand your network, increase your business. Let others promote your business for you!
Plumbing Heating Cooling Contractors Encinitas Business Exchange North Coast Business Group North County Referrals North American Real Property Managers California Real Estate Inspectors Association North County Business Network BNI I Refer Carlsbad North San Diego County Association of Realtors San Diego County Apartment Association Contacts and Coffee The Pizza Group The Fun Networking Luncheon 13 X 40 = 520 520 X 10 = 5200 5200/2000 = 2.6 X 2.5% = 6 ½ %!! Networking pays off!!
Get involved in your community, trade groups, service clubs, hobby clubs, church.
www.meetup.com Any group, any category, anyplace, expand your circle.
Niche marketing: Specializing in a service or product ignored or under represented by the market. It’s a focused, targetable portion within your primary market. 1.Specialized equipment. 2.Special license or certification. 3.Restrictive insurance requirements. 4.Undesirable or high risk work. 5.Ignored by competitors. Look around, be curious, stay away from the crowd, think outside the box. 7. Niche Marketing
Specialized equipment: Small diameter pipe cutter. Cost less than $25,000.00 Charge per cut $750.00+
Specialized equipment: Small diameter lateral cutter for branch re-instatement. Cost less than $15,000.00 Charge per cut $750.00+
Power Cutter 200 Robotic cutter for large diameter pipe (manhole access) And SLC installation…….Municipal application. Municipal contracts exceed $5,000,000.00
Backflow installation and repair 1.Backflow certification. 2.Commercial fire line install & emergency repair. “To boldly go where no man has gone before.”
Trade Group: San Diego Golf Course Superintendents Association THINK OUTSIDE THE BOX!!
8. KNOW YOUR NUMBERS!! There’s only 2 ways to increase your net bottom line profit: Increase revenues or decrease expenses. KNOW YOUR NUMBERS!!
InSinkErator disposal costs $100 from supply house Your shop needs a 20% profit margin on all materials. 20% of $100 = $20 You sell disposal for $120 = 20% gross profit margin WRONG!! Your markup was 20%......Your gross profit margin was only 16.7%!!!
8 of 10 contractors make this mistake and it costs you $$$
We can only do so much, EVERYONE draws a line, EVERYONE hits the wall!
Reasons your competitors need help 1.They won’t take after hrs, weekend, holiday calls. 2.They don’t have the capacity to tackle the job. 3.They don’t have the technology or equipment. 4.They don’t have the license or insurance to qualify. 5.They don’t do that type of work. 6.They don’t work in that geographic area. 7.They’re on vacation, ballgame, family emergency, 8.Weak work ethic. 7% to 8% of all revenues come directly from our competitors. Approximately $600,000.00 per year!
Start a CODE BLUE program Protect your referral ! 1.No selling 2.No business card or marketing material. 3.Ask for permission not forgiveness. 4.Communicate with your referral source.
Handymen hit the wall all the time, everybody needs help. Who is on the periphery of your industry?
Join your local PHCC or trade group, meet your competitors they NEED your help.
Hiring It’s always cheaper & more efficient to hire the experience you need than to train. When you need experienced help RIGHT NOW it will come from within the industry (your competitors). Employees leave for many reasons, salary is 3 rd, 4 th, or 5 th.
Acquisition Offer your competitor a job Buy a closed/shut down business Request business phone numbers
Best Seller list 1996 by Thomas Stanley 10. Perseverance Stay the course Stay focused Keep your eye on the bigger picture!
11. Always deliver more than you promise 1.Clean worksite, tools, truck. Show you care! 2.Reward your referral base. 3.Give back to your customers & community. 4.Share with your employees. 5.Go the extra mile.