How has your Business Plan changed in this recession?

Josh M.

I was just refecting on how many services we have added and how many times we have changed our internal structure to stay profitable. What have some of you done to stay alive and profitable?

Mad Dog_2

We'll Josh.................................................

I have prepared for these times since Day-one. I have been called a pessimist by some: I always prepare (the best I can) for the worst case scenario, BUT always HOPE for the best outcome. I am actually very positive that we will get through this AND come through stronger, and not because of anything our lovely politicians will do. We never turned our noses up at ANYTHING: you have a stopped toilet? we'll be there....faucet? yep, sewer is backed up?? no problem. TAKE EVERYTHING THAT COMES IN!!!! I always had several irons in the fire: We have niches, but we don't ONLY do those. I dumped all the VERY EXPENSIVE Yellow Pages ads several years ago because we don't need them anymore. This is a time to reevaluate, take the time to read and study...your business plan and industry's technical knowledge. Other business owners I know have bragged about how many oil-to-gas conversions they did last year or boilers in general:
"yeah.....we did 70 boilers last year...how many did you guys do Matt?...that's it?" Another asinine measure of success: "How many trucks you guys runnin?....you guys ONLY have two????" These same fellows haver their parking lots full - during the day with their own trucks. It is definitely rough out there and I wouldn't want to be starting a business right now, but if you are established, don't have high adverstising and ridiculous overhead, you can get through. If you have a large staff, temporary furloughs and even lay offs could be necessary. I saw an old contractor associate recently who told me about 60-70% of the contractor freinds he has are packing it in, going back to school...new careers et cetera...and that when this is all over, only the strongest shall survive. I believe that. Plan on being at the finish line and I'll see you their, God-willing,of course. Mad Dog

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

Mad Dog_2

Scrape together some money and invest in your own edification

Invest in yourself and expand your knowledge base...this is what I did in the Early 90s when things went South. Wound up going to College for the first time, getting a four year degree, getting a master plumber's license, buying my house, picking up a Beautiful Blonde Wife in Community College, and eventually having three great kids and a business. Don't waste your time wringing your hands and worrying...because before you know it, this too shall pass and what will YOU have accomplished? Mad Dog

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

gary_6

Mad Dog is so right. I am a small time home builder and the subs that took care of people when times were good are still booked solid.

The guys that cut corners, talked down to people, never followed up and did the right thing when a problem occurred on the job, these guys are really hurting. I love Karma.....

Mad Dog Wrote

"I always had several irons in the fire: We have niches, but we don't ONLY do those."


I notice many guys on Long Island don't diversify their sources of income. If their one business goes down they are screwed.

Guys in Brooklyn will have two or three sources of income. For instance, a plumber will also own several rental units or be in partners in a pizzeria.

S Ebels_2

Eeeeeeeeasy

Here's my things to do.....battle plan.

Watch the overhead. Don't spend anything unless you have to. Spend more time fishing. Like MD said, don't turn anything down. Look for other niches you can get into, commercial, food service, agricultural, health care, they all need heat. Spend more time with the family. Think outside the box regarding who or what needs heat. Be flexible in what you do. Look for new sources of sales and sales leads. Keep your eyes open for new products and/or services that you can offer. Spend more time hunting. Get active and involved in your city, town or local government. Never forget to donate your skill and/or materials to causes that are worthy. Spend more time walking in the woods. Use idle time to further your education in whatever area you choose, not necessarily your vocation. Spend more time smelling the flowers. Learn to enjoy life, people and nature in all the ways God intended, and let me tell you, He doesn't care about your money. Thank Him every day no matter what because a life lived thankfully is a life lived happily.

Enjoy

The Steam Whisperer (Formerly Boilerpro)

Changes.....

I've been getting some home things done. I have been looking closer at the segments of my business to see where money is being made and am considering making changes. Number one is expanding services into the Chicago metro area for steam system tuning and consulting. I've been green for a long time (designing and installing highly efficient heating plants) and most of the local market is not sophisticated enough to see the dollar value of the investment in better designs and equipment, except in commericial. To enter the Chicago market I am building a website. I had one previously, but was getting no response locally. All of the leads I get from Find A Professional are from Chicago Metro.
To help pay for this expansion, I am cutting my oversized Yellow Pages budget, as I now am getting more and more work by referal.
The next major change I am seriously considering is to only provide residential repair and service to established customers or people referred. All(without a single exception) of my collection problems are with this customer group. At this point, there may be no direct profit in this segment. Very little of these collections are due to the bad economy, its just people deciding not to pay.
I am going to look closely at how this may effect other segments, but I have completed very few new installs from this contact group. New installs are almost always direct calls for replacements.


Boilerpro


To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

tim smith

It's all about customer service. If you provided good customer

service all along, then as the phrase starts with "customer" they will be there for you when times are leaner. We have always prided ourselves in our customer service. Treat them well, they are a valuable commodity. We have been at this a long time and been through the lean times before in the early 80s. Hunker down, as mad dog said, take all jobs. I think we all got a little too high and mighty in the boom, now it brings us back to earth. Good luck all, Tim

Supply House Rick

creative partnerships

i think a lot of people are going to want lower fuel bills for the next few years. if you go to do a maintainance on a system, think how nice it would be to offer a thermal scan, or insulation work. as we know the solution is not only the heating system, but also the envelope. find some one with energy and a little money, and set them up in a symbiotic/creative partnership to do the thermal scans, or other envelope tightening. this just what our plumber did 10 years ago with a young drain-cleaning service.

timing the point of steam arrival at the vents would be so much easier with a thermal camera-wish they weren't quite so expensive!--nbc

hot_rod

look to the sun for options

to offer your exisiting customer base. Offer more products to your current customer base.

There are many programs and grants availabe for alternate energy projects. Check the www.dsire. org site often as programs on the state level are added weekly.

The USDA grant is an often overlooked program for rural area business.

In many areas 50% of the installed cost of a solar thermal system, for example, is covered by incentives.

Look further than federal and state programs. In many areas utilities, and even county and cities have additional incentives from rebates to no interest loans.

If you can show a customer a $10K installed solar system for 5K or less the numbers on ROI start to look very attractive. Expect a well built, properly installed solar thermal system to last 20 years and more.

hr

RonWHC

Glad you asked Josh.

Gross, thru January, is even w/ last FY. Net is down 2%. So, I'm going to fire some - - customers.

You know them. Won't buy a P. M. Agreement. On-site staff takes care of that stuff. Question invoice prices. Just to be sure they understand what we did. "You know." Responsible for too many weekend, night, & Holiday calls. We place bets about the exact time of the almost inevitable close to 4 PM Friday call(s). Hasta la vista, babies.

Time to shape up the shop. What day in-day out tasks can be simplified, or eliminated? Can we get more suppliers to Fax or E-Mail invoices & statements? How much inventory is obsolete? Should we reduce, or even increase some, stocking targets in the stock room, & on the vans? What tools, of all kinds, do we need to increase productivity? What other gremlins lurk in the cracks?

Then there's our people. Can I provide more positive motivation? Can we improve productive communications? Which of their suggestions should be retrieved from File 13 & reconsidered? How can we more fully utilize their strengths? And help solve their weaknesses? We'll figure it out.

The most important part of our strategy is we're going to concentrate on our good customers. The ones who trust us to do the right thing. The ones w/ the long track record. The ones w/ the bosses' heads screwed on tight. The ones who are going thru much the same process we are. The ones who will survive, & prosper.

The phone calls & door knocking starts in 3 weeks. We're going to offer a range of enhanced service to those who value it. We're going to lock them in tight. We want them to know that we value what they have done for us, & that we're going to do our darndest to help them reach their goals. And. If a few more good customers want to come along for the ride - - welcome aboard.

Recession be damned.

joel_19

Recession?

What's a recession? BAN that thought from your head. Simply refuse to partcipate in the downturn. i know iknow we are slow too but the point is look for oppertunity. How bout HIRE some people. Lots of good guys layed off from weak companies maybe you can pick up a few better techs and build an even better team than you have now. Consider some lucky souls just got Matt Castle who was the #2 boy here yet better than starters elswhere.

Not in position to hire that's ok interview anyways. Be upfront tell them no jobs now but come on in anyhow. That way when things do pick back up you'll have a file folder stuffed with potential canidates.