Many small pest management firms fail to reach their potential or simply grow. The owners wind up selling their
business, after years of hard work, for a fraction of what they thought they were worth. There is an uncomfortable place between big and very small — where the owner is still doing a lot of the work, and still not making much of a living.
External factors like market size and competition figure in, but there are also internal factors. Reasons for stunted growth include: lack of thought, poor planning, execution and follow through, inability to capitalize on growth, and the
reluctance to assume risk. It might be time to take a look at how to grow your business.
Time management
Poor time management can sink your business. You can’t afford to let critical tasks pile up. If you don’t
want to do them — hire someone who can. If you’re lacking in a particular area, educate yourself. Talk to successful business owners, industry leaders and consultants. Increase your business skills by attending classes or reading new books.
Plan for success
A business plan helps you focus on your goals and vision, and set out strategies to put you on the path to growth. Revisit and revise your business plan annually. It’s well worth the investment to hire a professional who can assist with putting your plan together. Many small companies punt the ball where marketing and advertising is concerned. They aren’t proactive and don’t plan in advance, This type of approach usually leads to wasted time and dollars. The success of a small company’s marketing relies on the abilities of the owner. Consider consulting with a professional for help.
Recordkeeping and reports
Recordkeeping and tracking are mandatory if one wants to grow. The following reports are essential for
fostering growth:
- revenue tracking by service category (monthly and annually)
- monthly customer cancellations (by percentage and reason)
- leads and sales/close ratio
- accounts receivable dating
- annual projected budget (reviewed monthly)
- advertising budget
- advertising tracking, referrals, etc.
Cash flow and cost cutting
Having enough cash on hand to pay bills is crucial. Having enough cash and access to capital via a loan, to launch the next stage of business growth is mandatory. The other side of this is keeping costs under control. While cost cutting might create a short-term win by improving net income, it’s not sustainable in the long
term. Cutting sales or marketing investments may very well lead to a decrease in revenue.
Investment and risk
Growing companies require more cash than others. Getting it might require borrowing money, or finding investors. Some business owners tire of the demands and decide to slow down the investments — and that
slows down growth. Likewise, those who are more concerned with preventing mistakes than they are trying something
new may be shortchanging themselves. People who take calculated risks are rewarded at the expense of those who don’t.
Taking action
Execution and follow-through are important leadership disciplines that are both outcome driven.
Remember, ideas are free; execution is priceless.
Goldglantz, president of Pest Control Marketing Co. and author of Marketing Matters, can be reached at hgpcmincinc@aol.com.
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