In every field service business profit is the end goal, so here’s 5 ways to help balance your costs and hopefully increase your profits.
First, monitor your budget – make sure you know what costs your business incurs and that you are ready when they time comes to pay those costs without going too far into the red before payday. Take into account the money you expect to make in a given period, say a large weeklong job or the expected revenue from a month of house calls. Remember to factor in the cost of paying your employees, as well as the recurring fixed expenses you need to pay; this includes things like like rent and leases, subscriptions to Scheduleflow and other small business or field service software, loan payments, insurance and so on.
Also take note of the money you will have to spend at an undefined rate; for example, depending on the job you might be paying suppliers a lot more for specific materials or ,on the other hand, not needing new equipment for weeks. Use your past experience on jobs to estimate these costs before planning your budget and estimating your profit afterwards. Know how much money you need to keep your business going day-to-day while breaking even, only once you’re passing those figures can you look towards growing your field service business.
Second, once you’re spending money on growing your business, make sure you’re spending that money on things that will grow your business in the long term – don’t focus on the short term or your business may falter in its growth. Remember that spending the same amount on a long term investment as a short term one won’t give you results immediately, but will give you better results over a longer period. We spoke to Glenn Gleeson of Five Star Locksmiths a few weeks ago and his number one tip for those looking to grow a small field service business was to implement big business systems early so that as your business grows, your systems can grow with it.
The next important thing to do to grow a field service business is to keep as many useful records as possible. Make sure you’re taking receipts and storing them in the a safe (for paper receipts) and secure (for digital receipts) place. The more data you can store, centralise and examine, the more you’ll understand why your business is succeeding (or why its not!).
Starting a small business, especially in field service, can be an uphill battle even with family and friends behind you helping you out. To ease the financial stress, ensure that every dollar you spend has a good reason behind it and the the money you make goes back into the business in a meaningful way. Always look for ways to reduce your costs save money without sacrificing customer satisfaction. Without a doubt, happy customers will be the biggest asset your company will ever have and keeping them happy and engaged should be the core of your business philosophy.
Our last tip is simply to create separate personal and business bank accounts and spend money from each of them accordingly – spend too long lumping them together and you’ll have a hard time knowing when it’s okay to spend money on personal matters and when your business is draining your own savings.
Have you got any tips to share about running a field service business or general small business? Leave a comment or contact us at email@example.com