What makes a small business successful? More specifically, what defines a successful, small service business? Here are a few traits characteristic of successful small businesses in the heating, ventilating, and air conditioning (HVAC), plumbing, electrical, and solar industries. The presentation is based on one of Matt Michel’s columns, “The Rant,” which appear in Contracting Business Magazine. Matt Michel is CEO of the Service Roundtable, an organization dedicated to helping service contractors improve their business and financial performance, leading to a profitable exit strategy. The Service Roundtable serves Electrical, HVAC, Plumbing, and Solar contractors. Learn more at www.ServiceRoundtable.com.

1. www.ServiceRoundtable.com

2. The following is based on Matt Michel’s column,
“The Rant,” which appears in Contracting
Business Magazine.
Matt Michel is CEO of the Service Roundtable, an organization dedicated to
helping service contractors improve their business and financial
performance, leading to a profitable exit strategy. The Service Roundtable
serves Electrical, HVAC, Plumbing, and Solar contractors. Learn more at
www.ServiceRoundtable.com.

3. Apologize for price,
not quality.
Charge a little more and do the
job right. You only have to
apologize for price once, but you
will apologize for quality forever.

4. Get social.
People are interacting in new ways
with social media. If you don’t join
them, you’re not part of the
conversation.

5. Eat lunch with “centers
of influence.”
You have to eat. Why not eat with
community leaders at BNI, Rotary,
Lion’s, Kiwanis, Optimist, or other
groups?

6. Offer solar.
Offer solar electric or solar thermal. This is plus business that most
contractors overlook. Depending on the trade, the same is true for
generators, geothermal, home security, home automation, water
purification, jetter services, remodeling, etc.

7. Watch your image.
You sell intangibles, which are invisible. People pre-judge you based on
the tangibles they can see. Your trucks, your people, your uniforms, your
marketing, your social media, and your website should consistently
present a positive, professional image.

8. Flat rate.
Consumers prefer flat rate. It’s easier for field
personnel. It allows you to price without
gamesmanship.

9. Build it to sell.
Whether you intend to sell your business, or not, create one that you
could sell. It will result in a better, more profitable company. Always be
working on an exit strategy.

10. Watch your cash.
Lack of cash kills more
businesses than anything else.
Conserve your cash. Stay away
from slow pay customers
whose require significant
expenditures of your cash
before getting paid. Better yet,
become 100% COD.

11. Hire slow. Fire fast.
Always recruit, but be careful
about hiring someone else’s
mistake. Develop your people.
When you make a hiring
mistake, fix it fast.

12. Focus on getting and keeping customers.
Market always. Market continually. Market to existing customers as
much as new customers.

13. Join a buying group.
Don’t pay more than necessary. Get
rewarded for a group’s buying
power.

14. Train.
Training never stops. Incorporate
training into your service meetings.
Pay for your people to take distance
learning courses, attend webinars,
and go to local and national training
programs. Remember, it’s better to
invest in employees who might leave
than to fail to invest in employees
who stay.

15. Know your numbers.
Track your important metrics.
Study your key performance
indicators and financial statements.

16. Build “your” brand.
If a customer wants your brand, you’ve got a monopoly. Make it the
focus of all of your marketing and sales activities. After all, it’s the only
brand you own.

17. Learn continually.
Read books. Read trade magazines.
Read blogs. Go to conferences and
seminars.

18. Pay for performance.
What gets rewarded gets repeated.
Reward behaviors you want. Create a
compensation system that turns
people into self-managers.

19. Relax and recharge.
Take vacations. Get away from
the business. This is mandatory.

20. Make yourself
unnecessary.
If your company cannot exist without
you, you don’t own a company. You
own a job.

21. Hire above
yourself.
Hire people who are
better than you. Hire
people who will lift the
organization up, rather
than hold the organization
back..

22. Don’t reinvent
the wheel.
Your industry has lots
of resources from lots
of smart people. Take
advantage of other
people’s successful
ideas, products, and
programs. Pay them
for their experience.
In the long run, you
save time and money.

23. Seek good partners.
Find manufacturer and distributor partners
who will work with you to grow and prosper
together.

24. Own your customers.
Only offer extended warranties that you control. Be
sticky with service agreements, loyalty marketing,
and affinity programs.

25. Be easy to do business with.
Answer the phones with humans. Work
extended hours. Provide service and
installations on the weekend. Offer third
party financing.

26. Share your vision.
Where do you want to be in
five years? Describe it. Share
the vision with your team and
they will help you achieve it.

27. Give back.
Give back to your community. Get involved locally. Support local charities
and associations. And give back to your industry. Join a contractor group.
Mentor others.
www.ServiceRoundtable.com

28. www.ServiceRoundtable.com
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