Al figures out what a "Right-Size" company should be.
Frequently during my
consulting work one-to-one with clients, and during the free 30-minute
consulting calls I offer, I get asked the following question: “At what size
company does this get easier?”
answer is, “It depends!”
be evasive, but the reality is you can be profitable at any size and be
unprofitable at any size. It does depend on how well you run your business.
the ugly truth is you’re more vulnerable and have a bigger hill to climb when
you’re a small company. Especially, if you’re a one-tech shop (that means the
owner works while they try to run the business). If you get hurt, sick or
worse, the business is done for. And the fact is you’re most likely to have to
keep on working very hard till late in life because you’re the only income
most vulnerable shops are where there are two to three techs working. The
reason this type of shop is vulnerable is because if one of the techs quits,
gets hurt or gets fired your sales can be cut by 33-50%. Plus, if you are in a
trade that demands after-hours coverage, your techs tend to burn out because
they’re pulling on-call shifts so frequently.
The other nasty
truth is almost all of what it takes to operate a two- to three-tech shop can
support a four- to five-tech shop. That’s because you already have overhead,
such as a CSR to answer the phone, someone doing accounts receivable and
accounts payable, possibly an office, phones, computers, software and a whole
lot more. But the less techs there are out there making you money, the more
profit is elusive.
is the right number?
life gets a whole lot better when you grow your company to a five- to seven-tech
shop. I say that because then if you lose a tech you stand to lose as little as
15-20% of your sales – which hurts, but isn’t necessarily devastating. You have
many more billable hours to cover your fixed overhead expenses like the ones I
briefly covered above so there tends to be more profit.
if you have highly visible trucks rolling (I’m talking rolling billboards here),
you have a much more dominant position in the marketplace as they drive around
your service area getting your name out in front of your target market.
do you grow your company to this size?
having worked with a lot of owners throughout the years I can tell you there
are only two ways to grow your company. One is organically. That just means you
are so much in demand and you’re such a great marketer that you have calls and
all you need to do is add people. The second way is you acquire other existing
companies and put them under your roof.
of these two processes and you will be on the high road to “Having Less Stress
and More Success”. Master them both and you’ll be unstoppable.
Give Me 60 Minutes And I'll Show You The Secrets To Running A Profitable Service Business ... Even During A Recession!
Al Levi is a consultant and a
contributing editor to PM
magazine and blogs for
many other BNP trade magazines. He is presenting a free online video
opportunity called the “60 Minute Recession Solution” Online Video Seminar.
the first time ever, you’ll hear from him and just a few of the many
contractors who have engaged the power of the Power! Programs. They’re happy to
share how this dynamic program worked for them and how it is still working for
them, especially in these tough economic times.
program has helped dozens of business owners I’ve worked with one-to-one,” Levi
says. “The Power! Plans have also helped. But now thanks to new technology,
I’ll be able to help many more contractors with my 12-month Power! Plan
Coaching Program.” This program will include the building of your own
customizable Operating Power! manual.
These programs have
been working for him in his family business for years and in his clients’
businesses where they are now reaping the results. Click on the following link
so you can see and hear for yourself: www.60MinuteRecessionSolution.com