June 24, 2019
There are a million things that business owners worry about – from managing personnel to expanding marketing efforts. As a result, running a business can sometimes feel like balancing two dozen plates at once. One of the biggest concerns that business owners have is their finances. Without balanced financial sheets, everything from employee paychecks to branding initiatives fall apart.
Fortunately, there are ways that home service business owners can maintain balanced finances and prepare for unexpected speedbumps. Make sure you follow these steps for increased stability.
If you are still running your business with manual paper invoicing and work orders, then it is time to digitize. This also applies to business managers who rely on spreadsheets to manage their customers, income, and employees. Switch to a reliable software like Housecall Pro that was developed for the home services industry.
Using an online tool decreases the chances of mistakes by human error. It becomes unlikely that your technicians will lose a work order or write the wrong information on an invoice. This means you can keep track of your revenue and make sure that each customer has a positive experience. Digital services also make your finances more organized, so you can spend more time on other aspects of your business.
One of the best steps that home service businesses can do is create a regular plan to bring back customers. One-time customers can sign up for monthly, quarterly, or bi-annual services, solidifying their loyalty and building up your financial stability. If you have a certain number of customers opting for quarterly appointments, you can roughly forecast your income in the coming months.
As you build out your business model, develop incentives for customers to refer their friends to you and share recommendations. You might offer a discount on future services for each referral or send gifts to customers that recommend your brand to others. Referral marketing is a cheap way to grow your business and one of the most trustworthy sources of advertising that your brand can use. Customers trust their friends and family more than traditional advertising.
You can also build your brand around working toward referrals. Your service technicians can work as if their futures are on the line – because they are. For each positive recommendation or personal referral, your business can keep growing and your staff will continue to grow their careers. Consider offering an employee award or even bonus for the team member who gets the most leads or positive reviews each month.
If you are still in the process of building your home service business or need to take on additional expenses as you expand, make sure you have a strong and diverse funding system.
For example, many companies rely on small business loans when they want to expand. These can provide an extra cushion for you to buy fleet vehicles or specialized machinery. However, you can also reinvest your profits into your own expansion or take out small business credit cards to help with the expansion without the strict terms of a loan.
There is no one solution for small business funding. Many companies have multiple sources of funds, which protects them from risk and decreases the chances that they will fall into debt.
Does your business insurance cover every aspect of your business? Some business owners are surprised to discover that their insurance policies don’t cover the replacement costs of items or the lost time and money from business interruptions. This can cause significant expenses if your company needs to replace various tools or is shut down for a period of time. Additionally, many business owners overpay for insurance when they first start out, because they aren’t sure what constitutes a good deal and what they need.
Set aside time each year to audit your insurance policy and check for any changes or updates. You may decide to opt for better coverage or to work with a better company for your needs.
Business is all about mitigating risk. If you don’t take risks and put yourself out there, then you will never succeed. However, if you can avoid unnecessary risks and maintain financial stability, then you increase your odds of success. You didn’t start your home service business so you could worry about finances. Take this advice so you can focus on your customers and your services.
Christine Soeun Choi is a digital marketing associate at Fit Small Business. Currently based in NYC, she has a background in business studies and math with a passion for business development. Outside of work, Christine enjoys traveling and exploring art.
Housecall Pro is rated the #1 software to run your HVAC, Plumbing, Electrical, Carpet Cleaning and other home service businesses. Our features allow you to schedule and dispatch jobs, get booked online, send invoice and receive payment within minutes whether if you are in the office or out in the field. This comprehensive software can help you grow revenue by 30% in one year and save up to 500 hours a year. Join all the other successful home service businesses who have already started and try Housecall Pro for 14 days free today.
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