3 Costly Business Mistakes to Avoid
The demand for home service providers doesn’t look to be going anywhere any time soon. That being said, some home service business owners find more success than others. While the quality of work can certainly affect a company’s bottom line, more often than not, long-term success boils down to business management. Find out if you are making these three costly business mistakes and how to avoid them.
Common Home Service Business Mistakes
While every home service provider has their own unique processes for running a business, there are certain things successful owners do that many don’t. Likewise, there are costly mistakes veteran business owners have learned to avoid. Though business ownership always comes with its fair share of trial and errors, we’ve listed three home service business mistakes to help you avoid learning the hard way.
1. Poor Project Management
From scope creep to unexpected costs to poor budget management, there are dozens of ways a project and its costs can spiral out of control. Though nearly every remodel or repair job is bound to present some surprises, a solid plan that leaves room for the unexpected can help reduce costs associated with setbacks and keep customers happy. You can take steps such as these to keep costs under control:
• Clarify in writing exactly what you plan to do for the customer and the anticipated completion date.
• Specify that change orders will be necessary if unexpected issues or changes arise.
• Refer clients to the project plan when they request changes.
• Regularly communicate deadlines and roles with team members and check in with them periodically.
Failure to take the above steps can cause you to invest more time and resources into a project than it is worth.
2. Undercharging for Your Services
It is not uncommon for small business owners to lowball their own prices in the hopes of landing a job. Some do this in the hopes that they can complete the project on a small budget, while others do it planning to raise the prices later. Neither strategy is beneficial or effective.
If you fall into the former camp, you face one of two outcomes:
1) You complete the project within budget, but the work is low-quality because you were unable to afford quality help.
2) You go way over budget and therefore do not earn a profit.
If you fall into the latter camp, you risk making customers angry. Neither scenario is good for business, and it’s best to offer a fair and realistic price the first time around.
3. Failing to Keep Your Sales Pipeline Filled
Failing to maintain lead generation sources can be the demise of your business. You may provide quality work, but if you have weeks to months between jobs, you cannot grow your business. Ideally, you should have sales processes in place that keep your pipeline full so that when you complete one project you have another to move onto.
Consistently bring in high-quality leads with 33 Mile Radius
Many home service business owners do not have the time or the know-how to consistently prospect, sell, and close. That’s where 33 Mile Radius comes in. Our expert team is adept at bringing in high-quality, exclusive leads to keep your pipeline full, help you book more jobs, and grow your business. To start generating leads today, contact a member of our team at 1-888-594-8381 or online.