How to Overcome Tough Times in Your Business & Rediscover Profitability (Part 1 of 2):
The Correct Way to Reduce Your Expenses NOW!
When the going gets tough, the tough get going. That’s an old saying that I can’t quite say where it started or who first coined it. However, it has a lot of truth to it. If you find your business struggling a bit, you can’t act like a turtle and hide in your shell. You have to keep fighting to get back to profitability.
To overcome tough times in your business and rediscover profitability, there are two things you must do: 1.) Reduce your expenses, and/or 2.) Generate more revenue… I’m going to address #1 in this blog, and #2 in my next blog…
Cutting back on expenses is a great way to become more profitable. How do you do that? Start shopping equipment and materials pricing. You should be doing this annually. Leverage one supplier against another. Make sure you’re getting the best bang for the buck.
Also, look for materials hiding in your warehouse and on your trucks. Develop a more efficient system to eliminate materials “walking away” from your company. I’m willing to bet you’re losing tens of thousands of dollars in stolen and wasted product—and you’re losing even more money due to your techs constantly wasting time by running to the warehouse to get parts and materials they have hidden in their trucks.
Now, while you should always look into cutting materials expenses, there are two things you should NEVER cut back on: marketing and training.
You can cut unresponsive marketing, but never completely pull your marketing budget. If you pull your marketing dollars, you’re killing the sales arm of your company. Instead of killing your advertising, just get better at it. Reallocate dollars away from marketing vehicles that aren’t working and put them towards vehicles that are working… How can you tell what’s working and what’s not? You better be tracking every call coming into your office… That’s a topic of another blog all together.
Training should be another core part of your business never to be touched. Yes, I know you’re paying your techs to sit in an office, but if that’s all they’re doing—sitting in an office and not getting anything out of training—I hate to say it, but you’re not training properly. Training should be an engaging activity that teaches your call takers, techs, and salespeople how to communicate better with clients, introduce new products and services to them, answer questions, overcome objections, and ultimately sell more!
That’s all the time I have for now… Check back in a few weeks for Part 2 of my blog where I go into how you should and should NOT be generating more revenue to ultimately become more profitable to help you overcome any lulls you’re experiencing in your business…. Talk to you then.