Arkansas HVACR NewsMagazine September 2019

Business

Taking Your Company to the Next Level…

“A major deterrent to success in a small business is that the owner spends too much time working in the business…and too little time working on the business.” Michael E. Gerber Author of The E-Myth Revisited.

Bob Gee, Sales and Management Consultant to the HVACR Industry

So just what does “taking your company to the next level” mean? It could mean to position the company for transition to an employee, a family member or perhaps an outside buyer. It could be to position the company to provide security and a better living for all of the members of the team or to provide the owner with more personal time. It will vary with the company and/or the owner. Simply stated it means improving the company’s ability to grow, to position it for the future. Taking your company to the next level requires hard work. Analyzing where you are and why you do things the way you do them and why you are doing them at all. It means change. It means doing some things differently. Leadership guru Warren Bennis, author of the best-selling book “On Becoming a Leader” says it this way. “If you keep on doing what you’ve always done you will keep on getting what you’ve always got”…and that may be less than what you want, need or deserve. If you are going to take your company to the next level, whatever that means for you, there are three key factors in

developing a successful HVAC company. Revenue : Profit : People You have to develop a sustainable revenue stream driven by sales of equipment and service. You have to create a pricing structure that provides a profit commensurate with the needs of the company. You have to build a team of committed employees. Companies succeed and grow when they maximize… • Profitability • Productivity • Employee Recruitment and Retention • Customer Satisfaction Profitability. Here is powerful exercise to help you understand this concept. It’s called 5-2-1-1. What if you could increase sales revenue by 5% while increasing gross margins by 2%? And what if you could reduce cost of sales by 1% while reducing overhead by 1%? A challenge: Gather a group of your key personnel and complete this exercise using information from your most recent Annual Profit & Loss Statement. A guarantee…your excitement will start with step one when you calculate your new Net Profit after Let’s take them one at a time.

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