Did you know the average small business waits 21 days to get paid? Or that the average small business has only 27 days worth of cash reserves on hand? These stats are jarring because cash flow problems can have major ramifications for your plumbing and drain cleaning business. Healthy cash flow is important to survival, and it requires more than the right amounts of money coming in and out; you have to take timing into account, too. Getting paid on time and in full is key to the success of your business.
Eighty-two percent of all businesses fail because of poor money management. Given this number, ensuring effective money management should be a priority for any small business looking to thrive and succeed in today’s economic environment. And having a thought-out, well-written and executable budget is a necessary component of running a business that can withstand common financial roadblocks. Budgeting can help your business become financially sustainable by helping you:
As a small business owner, deciding your hourly rates is one of the most important tasks that you face. You have to look at your business in a holistic manner, balancing costs with profit, and calculate a number that can satisfy both.
Is Your Crew Ready for National Safety Month?
Keeping people safe on the job is crucial to the success of any business and the morale of its employees. However, safety training is too often overlooked during on-boarding and throughout the tenure of your crew. In any case, keeping employees safe on the job is more than just a good business practice — it’s the law. Under the Occupational Safety and Health Act (OSHA) of 1970, employers are responsible for providing a safe and healthful workplace, and safety training is an important aspect of complying with this requirement. When was the last time you thought about your training program? June is National Safety Month, so now is the perfect time to improve or reevaluate how you’re helping your employees stay safe on the job.
Pricing your services is one of the most important business decisions you'll make. Whether you’re an established plumbing company or an up-and-coming drain cleaning business, the right economic strategy can make or break your success. Price too high and you'll drive away customers, price too low and you may struggle to cover costs. So, how can you find the sweet spot? It takes a little research and reflection, but these five steps are a great place to start.
Look back at the last time you needed a new service provider, whether it was a new barber, landscaper or handyman. Did you blindly pick the first option you found? Or did you rely on your friends and family for a referral, and do further research to see whether they’d fit your needs? Now, think back to the last time your purchased something online. Did the yellow star rating beneath the product name influence your purchase?
If a homeowner’s drain was clogged in 1998, she’d open the phonebook and choose a plumber based on a friend’s recommendation or a print ad in the yellow pages. Today, life isn’t so simple. That same homeowner logs onto Facebook to ask for referrals, clicking through as many websites and profiles as it takes to find the provider that best meets her needs. If you want her business, you need to meet her where she is—online, on social media.
Growing a drain cleaning or plumbing business comes with many challenges. Finding new clients is only half the battle — creating a team to service those new clients presents several different obstacles. Many businesses in the plumbing industry start as a one-man shop — someone who is great at what they do and services an area where they’ve made a name for themselves. When it comes time to grow though, those owners have to go through hoops to find employees who have the perfect balance of on-the-job expertise and customer service skills. Where does a business owner find these superstar employees? And what can a business owner do to keep them?