Business First Family Business, Accounting, Finance, Investing, Marketing And Management
When you’re running a small business, it can be challenging to make a big profit (or even a reasonable profit, for that matter). There’s typically a lot of overhead, especially in service industry businesses like HVAC. You’ve got a fleet of technicians to manage, tons of tools and operational expenses, and a seemingly inconsistent lead flow. These are just some of the challenges associated with HVAC ownership.
So, how can you make this year your best year for profit yet? We’ve got some tips on how you can work on restructuring your business to make the most out of your limited budget and really bring home the bacon.
Upsell And Expand Your Services
If you’ve already established a happy customer base—you’re about a third of the way to making the best year for your HVAC business. So, what are the other two thirds? You’ve already sold them on your HVAC costs and services— now it’s time to 1) upsell your existing customers, and 2) close the deal.
Try offering recurring HVAC maintenance appointments and cleaning packages so customers don’t have to worry about remembering to schedule in between visits. Note: upselling doesn’t mean suggesting part replacements each time you visit—you want your business to be fair and reputable, so focus on delighting your customers with even better service—not just a bigger bill.
Trim Expenses, Manage More Efficiently
You’ve got a lot on your plate as a small business owner. So doing whatever you can to cut your costs on management time counts. Make scheduling jobs and managing staff easier with tools like HVAC business management software. You can even check in on job statuses from the app and process payments from customer invoices.
Restructure Your Pricing
If your HVAC business has been focused on being the “cheapest HVAC repair in the area,” but you’re providing high-quality services, you may want to rethink your pricing model. Check in on industry averages regularly so that you can offer competitive pricing, but also set your profit margins up for success.
Budget Your Inventory
Tools = money. Make sure you have a structured inventory process integrated into your business operations so that you can keep track of how much you’re spending on your resources and materials. On average, small business owners should expect to spend around 20% of their budget on inventory in the startup phase. Having a small business inventory management system in place to help you track how much you’re spending on your monthly inventory is a good start to adjust your spending.
Are employees being wasteful with supplies, causing your monthly supply budget to go up? See where you can cut costs, opt for a more economical product, or implement better training to show employees how they can help maximize resources.
Hire The Right Employees
Hiring the right employees from the start is super important to minimizing your operating costs and maximizing your profits. Employee turnover costs an average of 6 to 9 month’s salary of the employee being replaced.
Make sure your hiring process is thorough— especially if you’re hiring for a managerial or salaried HVAC position. Focus your job description on the specific skills and qualifications your require and target your posting to your ideal candidates using a small business recruiting software tool.
Even if you have the most experienced new hires, you’ll still have to focus on the training and onboarding process. This way, employees can learn the ins and outs of your company and ultimately, be a brand ambassador for your business.
Track Your Leads
Tracking customer data is one of the most direct ways to guide you when you’re restructuring your business. Without an overview of the numbers, it can be hard to tell what’s really working and what’s not. Use a tool to help you record and analyze your leads. You can see where your best leads are coming from in a sea of referrals— are your best leads coming from Yelp or your website? Or perhaps they’re mostly sourced from your ad campaign. This can help you focus your budget on what’s the most profitable for your business.
Tap Into Free Press
Marketing costs can seem unachievable when you’re running a small business— but not marketing your business could end up costing you more. Even if your marketing dollars are super limited, there are plenty of ways you can attract new qualified leads to your HVAC business.
Build your business on social media by maintaining your online presence. Use a social media management tool to help you make the most of your time spent managing your social media accounts.
In Conclusion
Running an HVAC business is complicated and sometimes it seems like you’re at a plateau with your profits. But with these small business tips and your expert HVAC skills, you can make 2019 your year!
