Facing and Overcoming Business Fears

Transitioning from one year to the next can be exciting and stressful at the same time. As we trade the trials of 2019 for the challenges of 2020, we must prepare ourselves for situations both familiar and unexpected. Sometimes, business can be slow for residential electrical contracting companies during the first few weeks or months of a new year. You must factor in marketing, conversion, and average ticket costs, all while maintaining a healthy gross margin and asking yourself: What is it going to take to make the phone ring? What if my techs quit because business is sluggish? Should I even consider hiring people, knowing I am struggling to obtain decent leads for my current employees?

These thoughts and others run through the minds of residential electrical service business owners or managers during slow times. However, being slow doesn’t mean you’re taking it easy or resting. In truth, you’re probably working harder during this time of year just to keep the boat afloat. That’s why it’s important to create a running list of what you’re doing to make your goals a reality.

Budgeting and Estimating

Estimating is the life of the business. Businesses either grow or shrink in profit based on the accuracy of the price you are charging for the goods and services provided. Also, budgeting the correct revenue, gross margin, EBITDA, and marketing costs is crucial for success in the new year. Establishing attainable budgets can encourage your techs to push for new growth. Throwing out an unrealistic “pie in the sky” number may discourage the forward momentum  that techs have achieved thus far. In addition, you need to know exactly what your average ticket will be and base the demand for calls on that number. If your average ticket is $200, then you are going to need a lot more calls to hit your budget than if the average ticket is $500.

Know What You’re Spending

Imagine how hard it would be to figure out how much money you needed to pay your bills if you didn’t know the amount you owed. What I’m trying to say is: Make sure you know exactly what you’re spending money on. Phone bills, fuel, labor costs, rent, and utilities are the first things that come to mind. What about the license agreement for that estimating software? What about that lonely dumpster reserved for job trash? Remember, it’s the small, unexpected things that bite you in the end.

Make a list of every expenditure — no matter how insignificant it may seem — to make sure nothing is unaccounted for at the end of the year. It’s also a good idea to put aside money for employee bonuses ahead of time. Like I’ve said before, people don’t plan to fail, they fail to plan.

Leadership

Everything rises and falls with leadership. Leadership starts with taking responsibility for the morale and approach of your business. Take your job seriously. If you have a lax attitude about the goals your company has set forth, then most likely your employees will feel the same. Lead by example. Let your workers know this business is your lifeblood, and you intend to see it flourish into what you know it could be.

These are just a few things to think about as we embark on a new year and into the next decade. Take time to study your business and set your sights in the right direction for success.             

Talbot is a licensed, master electrician in Georgia, where he was born and raised. He has been in the industry for 19 years and is currently the operations manager for Mister Sparky Atlanta, where he oversees a team of technicians. In his spare time, he plays with his kids, volunteers, and enjoys flipping houses. He can be reached at [email protected].