HVACR BUSINESS MARCH 2024

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CONTENTS

How Data Mining and AI Can Create a Competitive Advantage for SMBs

It’s the new currency for profit, and the time is now.

When a Customer Calls Your Business, Are You Prepared to Answer?

Why that first impression is so important.

How Software Protects the Health of Your Business

It’s the tool for measuring, tracking and reporting on your business.

It’s Time To Enter Our Top In Trucks Fleet Design Contest

If you need a reason to enter the contest, you’ll find it here.

How I Manage My Fleet

A contractor and distributor share their views about managing their fleet.

Accountability in Partnerships

The essential ingredient that makes partnerships work.

Five Big Asset Protection Planning Mistakes

Here’s How to Avoid Them.

Achieve Your Freedom with Your Financially Fit Business Tracking Profitable Billable Hours Each Month.

DEPARTMENTS

5 Publisher’s Page | 6 Lessons Learned for the Small Business Owner

HVACR Business recently celebrated its 18th anniversary in business. Terry has learned a lot along the way and shares some of those lessons.

Terry Tanker

4 MRS | Editor’s Choice

We will highlight an especially worthy book or podcast every month.

14 3 Components of a Foundation of Purposeful Leadership

Here are three key factors that will set the foundation for Purposeful Leadership.

By Wade Mayfield

21 Product Focus

22 20 Questions with John Akhoian Owner, Rooter Hero

Management Resource Shelf

Editor’s Choice

Our Management Resource Shelf is taking a slight turn in the next issue. In the future, we will highlight a book or a podcast that we believe are especially worthy. We will vet the entry throughout, and if it makes the round table of praise, you can figure that it’s worth your effort to check it out. Also, tell us about a book or podcast that has affected you and made a difference in your business. If it gave greater clarity to help you reach your goals, we would love to share it with our HVACR contractors. Send your recommendations to tperic@hvacrbusiness.com.

Social Media Marketing Talk Show

Hosted by Jerry Potter, the Social Media Marketing Talk Show comes from the mind of the Social Media Examiner, Michael Stelzner, and keeps you updated on all the updates and popular trends on LinkedIn, Instagram, YouTube, TikTok, and Meta. The podcast engages with marketing experts to keep your marketing efforts current and effective in the ever-evolving social media marketing landscape.

https://www.socialmediaexaminer.com/ social-media-marketing-talk-show/

Harvard Business Review

The Harvard Business Review features articles from a broad range of industry leaders. The articles discuss topics ranging from leadership development, employee engagement and customer experience to negotiating skills, strategic analysis, technology, and analytics. Subscribing to the Harvard Business Review will enhance your business acumen and provide insight on evolving trends in the marketplace.

https://hbr.org/

Mistakes That Made Me Eman Ismail

We don’t (usually) write about failures in business, but here’s an entire podcast about mistakes that business founders made and learned from. If you follow any entrepreneurs, you know it’s rare that they don’t have a loss (or two) from which they learned valuable lessons. This podcast highlights those problems that you will (hopefully) avoid.

https://emancopyco.com/podcast/

Creative Endurance: 56 Rules for Overcoming Obstacles and Achieving Your Goals

Mike Schnaidt

You can’t always hit home runs in business or in life. At times, you’ll enter a slump. For those times, Mike Schnaidt wrote Creative Endurance. Within its pages lies inspiration collected from all walks of life that will provide you with the spark to reset, reevaluate and achieve your goals. Astronauts, 9-year-olds, and Olympic champions may not have much in common on the surface, but their perseverance, creativity, and work ethic set a clear path toward success.

https://www.amazon.com/Creative-Endurance-OvercomingObstacles-Achieving/dp/0760384827

Twelve And A Half: Leveraging the Emotional Ingredients Necessary for Business Success

Gary Vaynerchuk

Gary Vaynerchuk is a little outside the realm of HVACR. However, he is a renowned motivator, a successful entrepreneur, investor, and bestselling author. In leading any business, your employees and your relationship with them dictate your success. In Twelve And A Half, Vaynerchuk reveals the key to his success — soft skills. Each chapter provides a soft skill that will contribute to positive communication with your employees, a sustainable culture, and continuity within your business to achieve your goals.

https://www.amazon.com/

Twelve-Half-Leveraging-Emotional-Ingredients/dp/0062674684

First, Break All the Rules: What the World’s Greatest Managers Do Differently Gallup Press

Gallup Press is a global analytics and advisory firm with more than 85 years of data collection experience. They have used this experience to create First, Break All the Rules and reveal what the best managers in the world do to keep their employees happy, motivated, and performing at a high level. You don’t always have to follow the rules, and Gallup Press proves it with extensive research, giving you the blueprint to implement the rule-breaking actions of industry leaders.

https://www.amazon.com/

First-Break-All-Rules-Differently/dp/1595621113/

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker

Publisher ttanker@hvacrbusiness.com

TOM Perić Editor in Chief tperic@hvacrbusiness.com

MEGAN LaSalla

Art Director mlasalla@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net

BARBARA Kerr VP Operations bkerr@hvacrbusiness.com

ADVERTISING STAFF TERRY Tanker

Publisher

Tel 440-731-8600 ttanker@hvacrbusiness.com

PUBLISHER’S PAGE BY TERRY TANKER

6 Lessons Learned for the Small Business Owner

H

HVACR

sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information.

Copyright©2024 by JFT Properties LLC.

No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees.

This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication.

The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof.

Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions:

3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www. hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Copyright ©2024 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440-731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039

Tel: (440) 731-8600

www.hvacrbusiness.com

VACR Business recently celebrated its 18th anniversary in business. I’ve learned a lot along the way and thought I’d share some of those lessons with you. These aren’t in any particular order, and I hope you find them helpful.There is no substitute for making sales calls and building relationships.

Lesson Number 1: Be Prepared. As a small business owner, you have to be prepared for everything because you simply don’t have the resources of larger companies. And there’s no landing net. Whatever fall you take, the landings always seem to be much more like a crash. Part of that preparedness concerns the time frames in which you can make decisions. We typically make the larger decisions with a sense of urgency. We do our due diligence and make a decision because we think this helps move our company into the best possible position for a given circumstance. As a business owner, if you can avoid months-long decision-making processes, your company should benefit. Being prepared for events impacting your business is simply your business strategy. This is a topic we’ve written extensively on over the years. Think through the issue(s) at hand, then decide. This will help ensure your survival and growth.

Lesson Number 2: Cash. You’ve heard our very own Ruth King say it dozens and dozens of times in her column: “Cash is king.” And she’s right. For me, cash falls into several categories. First, it’s sales, because it starts the process. Next, you must perform work, delivering the equipment or the service. And then you have to collect. Many of you collect payment when equipment is installed or a service is performed. This means your accounts receivable column looks terrific. However, if your terms are net 10, 15 or 30, there will be slow-pay accounts. My advice is to get aggressive and start collection the day after you “should” have been paid. Accounts don’t mind dragging payments out, so don’t feel guilty calling and asking where’s the check? After all, you have signed the paperwork – right?

Lesson Number 3: Save. Saving some cash every month is literally money in the bank. This is no different from how you manage personal wealth. Be disciplined enough to set a percentage of each month’s net profit into an account. It’s the best business safety net ever – period. If you’ve suffered through a downturn (and who hasn’t?), you can attest to the fact that savings can make the difference between going out of business and staying the course. I like to have the equivalent of

three months of revenue held in savings. Currently, our company savings are invested in CDs, earning 5.25% up to 5.75%. It’s the first time in years that rates have been this generous, so take advantage.

Lesson Number 4: Negotiate. Being a better negotiator can earn and save you six- and seven-figure sums over the life of your business. And, no matter what contract or sale you are reviewing, you can almost always negotiate a better deal for your company. (I have found just one exception to this rule – the U.S. Postal Service. On our P&L, they are one of the largest expense items, and they don’t negotiate.) Contractors have dozens of areas to negotiate. Building leases, manufacturer rebates, fleet leases and maintenance, and health care, to mention a few. The old quote, “You don’t ask, you don’t get,” is true, so ask.

Lesson Number 5: Competition. Know them, chat with them, understand them. But never, under any circumstance, talk about them in a sales call. It’s not about them, it’s about your company and your products. As long as you have the customer’s attention, why waste a second saying a word about “them”? I’ve seen it happen; unfortunately, salespeople can’t help it. They want to grind the ax. When your competition does this, you know you’re really hurting them. It’s like the ref raising his arms on a touchdown. If they are talking about you, you are scoring! If your salespeople are disparaging competitors, it’s time to slap them on the wrist, but more importantly, you need to invest in training so they stop embarrassing themselves and your company. The biggest tragedy is that they are losing sales for you. No customer wants to hear it. The customer wants to know how you can solve their problem, not what you think about your competitors.

Lesson Number 6: Sales. There is no substitute for making sales calls and building relationships. If your sales team falls short here, your business will show clear signs on the P&L. The old adage is right on the money. Sales make everything better. Excuses on why salespeople can’t get appointments have been around forever. One of the saddest things about them is they haven’t changed in 50 years! But motivated, resourceful salespeople always find a way to see existing customers to sell them upgrades to a system, and they also find ways to meet and educate new customers. If you’re a business owner and not sleeping well at night, I’m 99% certain it has to do with underperforming sales. Get your people on the road and in front of customers. Soon, you’ll be sleeping like a baby. u

HOW DATA MINING & AI CAN CREATE A COMPETITIVE ADVANTAGE FOR SMBs

BY JG VAN GRAAN

In today’s digital economy, data is the new currency for small and medium-size businesses (SMBs).

Data analytics provides countless opportunities to gain a competitive edge, which SMBs are increasingly using. Data analysis can help reveal insights about existing and potential customers to help improve promotional targeting and personalize customer experiences. A growing number of SMBs are finding that their data helps to identify competitive advantages that allow them to stand out in crowded markets.

Data mining is analyzing large datasets to discover patterns and trends. It’s like looking for hidden gems that help businesses make smarter decisions, understand what their customers want and even predict what might happen. Data mining uses special technology tools and analysis techniques to dig deep

AI can also guess what kinds of products and services customers might want in the future.

into data and uncover valuable pieces of knowledge.

Artificial Intelligence (AI) is changing how SMBs can better understand their customers. Today, businesses can use AI to look closely at large amounts of data from places like social media, online stores and website visits. This creates a clearer picture of what customers like and how they behave. AI can also guess what kinds of products and services customers might want in the future. This means businesses can make their products and messages more appealing to the right people, ensuring they keep up with their customers’ needs, leading to more people paying attention and buying things,

which helps businesses grow.

This article highlights the various ways SMBs can use data mining and AI not just to survive but thrive in the digital age.

AI Is Coming, but Mastering Current Tools Is Key

As AI becomes more accepted and helpful for SMBs, now is the time for businesses to ensure they effectively use their existing technology. This process starts by creating the right key performance indicators (KPIs) that match the business’s goals with its challenges. Metrics such as customer acquisition cost, customer lifetime value and conversion rates—key numbers that

help businesses understand performance and how they can improve—are crucial for guiding data analysis.

Equally critical is developing a comprehensive dashboard that collects and displays high-level data on current prospects to offer actionable insights. A dashboard is a cornerstone for informed decision making, allowing businesses to adjust their strategies based on the most up-to-date information. By mastering this foundational tool, SMBs can optimize operations today, laying the groundwork for successfully integrating AI into their processes in the future. As AI promises to enhance decision making, automate routine tasks and uncover more profound insights into customer behavior, the key to unlocking these benefits lies in first understanding the technology already available.

It’s equally important to use a detailed

dashboard with essential information about potential customers, making it easy to see what’s working and what might need adjusting. A dashboard is important for making informed decisions because it allows businesses to adjust to emerging details. By mastering this foundational tool, SMBs improve what they’re doing now and get ready to use AI effectively. AI can help make better decisions faster, do regular tasks automatically, improve accuracy and reveal more about what customers want.

Leveraging Data for Servicing Existing Customers

Data mining is a great way for SMBs to improve customer service. By closely examining things like warranty information and how customers respond to ads, businesses can set up reminders or track preferences to improve the customer experience. Also, by looking at month-tomonth fluctuations, companies can spot trends, like what customers are buying or what equipment needs servicing at certain times of the year. SMBs leverage data to anticipate needs, make business decisions based on those needs, and be prepared when those customer needs are active. This makes customers happier because their needs are met quickly and makes them more loyal to the business because they will feel listened to and appreciated. Overall, data mining helps build stronger relationships with customers based on trust and service that feels personal.

Optimizing Inventory

Keeping track of inventory is critical for SMBs. Data mining helps smaller businesses see clearly what items they have waiting in the warehouse, what’s available for customers to buy in the store and online, and what’s being moved around on trucks. Having immediate access to accurate inventory tracking in real-time helps businesses be in control. They can determine what their customers need, whether fixing something broken or being prepared for high-demand periods when many people want to buy the same thing. AI allows businesses to optimize their inventory with the right goods at the right time. This means they’re ready to help their customers immediately without any delays and the need for costly overstocking.

Enhancing Sales Calls

Using data mining to improve how

Businesses need to embrace data mining and AI, not just as an option but as a must-do to keep up with the industry’s future.

you handle sales calls can be a game changer for SMBs. By looking closely at call center and dispatcher data, businesses can understand how many calls they’re getting and how many calls turn into sales. This information is valuable because it leads to more thoughtful decisions about who is dispatched for the jobs, ensuring they send the right person to the right place at the right time. This data also gives businesses a deep dive into customer expectations. Companies can better anticipate needs by following how these trends change over time. They can tweak their approaches to ensure they’re constantly hitting the mark with their target audience and stay mindful of what customers want and need as their desires evolve. This strategy can boost sales and strengthen the connection between businesses and customers.

The Shift Toward AI Will Be Easier Than You Think

The evolution from manual data analysis to automated, AI-driven processes isn’t a distant possibility; it’s a present reality. While phrases like “data mining” may conjure images of installing complicated systems, building spreadsheets and spending hours poring over data, the truth is this kind of analysis is becoming easier with each passing day. Many tools that SMBs are currently using are already tracking the data—it’s just a matter of pulling it out and presenting it in a consumable fashion. That’s where AIpowered dashboards will enter. You won’t need to go hunting for the gold. It will be automatically generated and displayed in the applications you already use.

AI-powered data mining is revolutionizing SMB strategies by providing unmatched accuracy in identifying potential customers and refining the ideal customer profile. As we march forward with a focus on the automation of service management, AI tools will be ready to help anticipate customer requirements, streamline repetitive tasks and deliver personalized experiences on a large scale. This transition heralds a new era where businesses can optimize operations, enhance customer satisfaction and stay ahead in an increasingly competitive landscape by harnessing the transformative power of AI technology.

Conclusion

Businesses need to embrace data mining and AI, not just as an option but as a must-do to keep up with the industry’s future. Data mining is a unique tool for tightening overall strategy, and you can implement it with existing tools. The next phase is automating service management and using insights from AI-powered technology tools. Now is

the right time for SMBs to invest in these technologies to grow and stay competitive. u

JG van Graan, Director for ThermoGrid, ECI Software Solutions. JG’s deep HVAC industry roots began as an installation helper and then grew through roles as a technician, service management, and residential sales. Today, JG helps HVAC companies implement business management software to simplify the management of their businesses by streamlining functions such as dispatching, invoicing, and inventory management.

WHEN A CUSTOMER CALLS YOUR BUSINESS, ARE YOU PREPARED TO ANSWER?

BY AARON LEE

As a business owner, you need to make a solid first impression with new customers, whether they call your business or reach out to you on your website. While you may be following all of the best practices for strong customer engagement, you may need additional guidance on navigating situations professionally.

When a prospective customer calls your business, you don’t know what request they will ask or how relevant it is to you. They may want an installation that you can’t provide, have a heating system you don’t operate on or are located outside of your service area. How do you prepare for this kind of uncertainty?

The key to building a strong business relationship is to navigate these different situations professionally and leave a positive impression while gathering the information you need to do your job.

To do this, you must prepare in advance. That means whoever is answering your phones and messages should have a checklist ready to respond to many different types of customer scenarios.

As the CEO of Smith.ai, we manage this frontline customer engagement for hundreds of HVAC businesses. Over the past eight years of answering calls and responding to messages, we’ve learned best practices for HVAC companies, and I am going to share some of these insights with you.

Are you prepared for those unexpected questions?

Preparing for Customer Inquiries

As a starting point, ensure you always have a standard checklist of information ready. This includes:

• Knowing your general availability and the services you offer — if someone asks for an urgent repair, does your team have the capacity to help them?

• The HVAC system brands you carry, and the warranties you offer for both systems and their parts — one of the most commonly asked questions is whether a system is still under warranty and if you can service an existing system.

• Do you have referrals to other businesses if someone requests a service you don’t offer? Could you help point them in the right direction, so you still maintain that positive first impression?

• If you are running promotions, do you have the language to talk about them? Maybe you are offering a discount for a bundled heating and AC replacement or are offering heating repairs in the summer.

Mastering The Art of the Free Estimate

In addition to this standard information, one of the debates among business owners is whether to offer free estimates. This will come down to your individual needs and bandwidth, but many of the HVAC companies we work with offer this service. Providing a free estimate can attract potential customers, build transparency and trust, and set your business apart.

If a customer calls and you can help them, you want to ensure you capture all of the information your technician needs to do their job or provide an estimate. Your customers need to understand the different factors that can affect pricing for services. This estimate will vary depending on whether you charge hourly or by the job. There may be other cost factors, like the price of parts for dealing with the disposal of hazardous materials.

Have a concrete list of information you will need to gather that will assist with estimations. With the correct information in place, your estimators know the facts and can walk into that estimation with a sales mindset. They will be less focused on gathering the baseline information and instead can prioritize helping a customer

and leaving a strong impression.

When gathering information for free estimates, make sure you collect:

1. Details about the current heating and cooling system, including its age, brand, model, and whether it is under warranty. If it is under warranty, confirm what the warranty specifically covers.

2. Any specific needs or challenges, like uneven temperatures in certain rooms or allergy concerns.

3. The size and type of property (residential or commercial), its age, and the number of rooms. Information about the condition of ductwork, if applicable, and whether it may need to be replaced or repaired.

4. The customer’s name, contact information, address, and how they learned about your business.

Be thoughtful about the number of questions you are asking, but don’t neglect the importance of capturing all of these details. Try to limit the number of questions to seven, and think through how to bundle questions together to maximize the amount of information you can collect.

Here’s why this is critical: Say someone is calling in about fixing their fireplace because that is their heating source, but you don’t fix fireplaces. You don’t want your technician going to their house thinking they’re doing an estimate for

a furnace when they’re not. It may be obvious to you as an expert that servicing fireplaces is different from working on heating systems, but that’s not obvious to everyday people (we know this firsthand because we handle these calls for many HVAC businesses). Being detailed and specific will help you understand whether you can help this customer and give a more accurate estimate.

Are You Prepared for Those Unexpected Questions?

The preparation doesn’t end here. As much as you anticipate questions from customers and information you have to collect, unexpected situations will always arise that you must navigate on the phone.

Say that someone is inside your service area but requests service from a specific technician who no longer serves that region. Do you agree to make an exception and have them travel out of their way? Or what if someone is outside of your service area but is offering to pay a travel fee? How do you decide whether to entertain those scenarios?

It all goes back to your initial checklist. You should know your team’s bandwidth

Have a concrete list of information you will need to gather that will assist with estimations. With the correct information in place, your estimators know the facts and can walk into that estimation with a sales mindset. They will be less focused on gathering the baseline information and instead can prioritize helping a customer and leaving a strong impression.

and the services you offer. If someone calls in asking for a part or an urgent request outside of your service area, you can make a more informed judgment call because you know if you can accommodate their request. Perhaps you are in a slow season and are more open to traveling outside of your service area.

If bandwidth is tight and your technicians already have a lot on their plate, accommodating this request may be more challenging while leaving a positive impression. Maybe you decide that it’s not feasible to take on these requests. It’s understandable, and you can still professionally handle these situations. Be

apologetic and helpful by offering a list of relevant resources and referrals.

Regardless, documenting your policies, including how and when you will consider exceptions, is critical to your business running smoothly, reducing chaos, and instilling peace of mind for your employees who expect consistency when they come to work. Remember the value and vulnerability of online reviews: If you make an exception, plan on everyone knowing about it. It pays to be consistent with what you do and don’t allow.

Another key aspect of “policy development” is deciding who can

enforce it. Is the person answering calls able to make that judgment call? In an ideal scenario, the answer would be “yes.” If all else fails, take someone’s number down and call them back once you have an answer — but do this as an absolute last resort. In the time it will take you to get a response and call them back, they may have already called another business that can help them, which means you’ve lost that opportunity. Do everything possible to have answers ready when potential customers call.

Dealing with uncertainty can be hard, but with enough preparation, you can navigate these situations like a pro and build strong customer relationships that will pay off for years to come. u

Aaron Lee is the CEO and co-founder of Smith.ai, the 24/7 customer engagement platform for businesses that combines the best of human agents and AI tools. Formerly CTO of The Home Depot and co-founder of Redbeacon, he also played a pivotal role in Google Video’s inception.

THE HEALTH OF YOUR BUSINESS HOW SOFTWARE PROTECTS

BY RYAN NELSCH

The Plumber Protects the Health of the Nation.” I have seen this caption on the walls of countless plumbing, HVAC, and electric service provider shops. The caption is profound because it demonstrates how essential trades are. All tradespeople contribute to the health of a nation. As a Software Coach, when service providers want to take their business to the “next” level and reach for that “star” in the sky that equates to a high level of performance, my role is to help them embrace and leverage software solutions. If “The Plumber Protects the Health of the Nation,” then software is a way to “Protect the Health of your Business.”

The most important thing software can do is to measure, track, and report

Lean on your coaches and support staff to help you get the most out of your software solutions.

on the health of your business. Software solutions can and should measure a company’s vital statistics, just like a doctor’s office or hospital. Vital statistics are measured as a part of our body’s essential functions and help physicians make informed medical decisions. Your software should be able to measure your business’s basic functions and health. Those vitals, also known as Key Performance Indicators (KPIs), help service providers make informed business decisions. These decisions dictate whether we are operating at a high level of performance or not.

Caretakers measure your blood pressure, oxygen levels, and heart rate as key health indicators. Service Providers should measure things like Conversion Rates, Sales, and dozens of other business KPIs. For example, if your doctor measures your cholesterol and it indicates you are at risk of heart disease, you might make a diet plan that reduces your cholesterol. If you measure your Conversion Rates and Average Sales for your technicians, you might create a dispatch plan to get the right tech to the right job to maximize revenue.

When leveraging software to extend

the health of your business, consider the following four benefits.

Build Accountability: Software solutions help to “manage by the numbers.” Track that data and track it well. If you aren’t measuring Conversion Rates and Average Sales, are you dispatching for dollars? If you aren’t measuring Return on Investment for marketing campaigns, are you spending your marketing dollars wisely? Measuring performance will naturally progress into accountability. Using software to create a budget is a great way to hold yourself accountable and create goals.

Maximize Growth Potential: Here is a specific example. Reputation Management and direct integrations for reviews with software can help a business maximize its marketing funnels.

Get those reviews up, get those phones ringing, and BAM … now you’re posting ads for new hires, desperately trying to get a new truck wrapped, and doing your best to keep your cancellation rates down. That is just one of many examples where software can help scale your business.

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Drive Profitability: What KPIs can software measure to help a business remain profitable? There are many methods, beginning with job costing. It is one specific example. Are you charging more than you spend on a job and making sufficient profit to sustain the business long-term? Measuring margins is a basic function of your business, and software can help. Take it a step further; software can help you respond to cost increases

If you measure your Conversion Rates and Average Sales for your technicians, you might create a dispatch plan to get the right tech to the right job to maximize revenue.

with price adjustments before it’s too late and the business is operating in the red.

Manage Relationships: Customer Relationship Management software, CRM, is essential. There are other relationships to manage, such as with vendors, employees and subcontractors. In some cases, you can use a single software solution. In others, you may need multiple software solutions. Software can tell you when it’s time for that checkup for a customer, maintenance for a truck, or when it’s time for a one-onone with an employee.

There are many reasons why leveraging software can be healthy for your business and why it helps service providers respond to business needs instead of just reacting to them. Of course, you must know how to use the software to reach its full potential and leverage technology. Support for the software goes a long way.

Lean on your coaches and support staff to help you get the most out of your software solutions. In addition, remember you can’t run the software without the hardware to match. Technology and software go hand

in hand. Nexstar Network founder Frank Blau says, “Fall in love with your numbers.” Consider software solutions to get those numbers, leverage them, and fall in love with them. u

Ryan Nelsch is a Software Coach with Nexstar Network and ServiceTitan Certified Coach with more than 15 years of industry experience. Ryan has experience as a Call Center Manager and General Manager for multiple Service Providers in the Denver area.

WHY ENTERING OUR TOPS IN TRUCKS FLEET DESIGN CONTEST IS AN UNMATCHED MARKETING OPPORTUNITY

BY TOM PERIĆ

HVACR Business is kicking off its 17th Annual Tops In Trucks Fleet Design Contest. You’ve spent money on the fleet and the design and had the fleet wrapped, so why not see how it stacks up to others in the industry? Do you have what it takes to win our contest?

During a recent coffee meeting, I was asked if the investment in wrapping the fleet really makes a difference.

I must have seemed surprised because I paused briefly before giving him the practical reasons for wrapping vehicles and entering our contest. Here’s what I told him:

Increased Brand Recognition.

We all know that repeated exposure is the cornerstone of brand awareness when someone needs your HVACR services, whether it’s advertising, public relations, direct marketing, or social media. The question is how to become relevant when

If the tips in this article don’t convince you to reassess your fleet’s design and enter our Tops In Trucks competition, fret not. You’ll suffer the displeasure of staring at competitors driving around your territory, earning eyeballs from potential customers.

they need you. Does your fleet represent your brand? Is it easily recognizable? Is contact information displayed prominently? Or are your techs driving beat-up, rusted out vans? It makes a huge difference to the potential customers who see these at a stoplight or parked in a neighborhood drive. Honestly, which contractor would you rather call, the one on your street that is well maintained and has a custom wrap or the rusted white van with the orange ladder on top?

Morale Boost.

Let’s face it, internally it’s a great morale boost for your team. It feels terrific to be part of a class organization

and a winning team and especially when someone recognizes your fleet and says enthusiastically, “Oh, that’s you? Cool design.” You become cool, too. It gives your team an added reason for workplace pride.

Free Marketing & Cost Efficiency.

OK, it’s not free because you have to pay for it, but it is essentially a fixed cost. Once you’ve absorbed it, it’s there for the long haul, a minimum of five years.

PR HIGH.

Let’s be real. If you win or place in the contest, please tell me you won’t write a

press release and send it to all the local media (print, broadcast and digital) in your service area. It’s a public relations bonanza. Tip: Never send a Word document. Paste the release in the body of the email, and you must include several photos to get acceptance.

Hesitating to Enter?

You might be proud of your fleet’s design, but some contractors still have a touch of inertia and are reluctant to participate.

Don’t hesitate. As mentioned, it’s a PR coup for you. You get bragging rights for your vehicle, demonstrating a sense of taste and pride in your workmanship. It shows care and creativity to design a noticeable fleet, whether it’s two vehicles or 20.

Everyone has an image, whether you like it or not. Your fleet is that movable, large business card that speaks volumes about your business. Does it look professional? Is it eye catching? It conveys

this message: If you believe we care about our trucks, consider how much attention we’ll provide when servicing your system.

If you refrain from entering your fleet design, it might be a message that either you don’t believe you have a chance of winning or you don’t think it’s important enough to make a modest effort and submit the entry form. I would suggest that if the former stops you, you’re right; you can’t win. It invokes that cliché: You can’t win the lottery if you don’t buy a ticket. In this instance, the pool of potential winners is significantly smaller and … drum roll … you’ve already made the first cut by just entering.

If you’re currently working on rebranding your fleet and your company, here are a few simple tips to consider as well as our judging criteria:

1) Look at Past Winners

We have all of them listed by year. Go to the left-hand navigation bar on our website and select Tops In Trucks, it’s just above the social media icons. See how others have done it.

2) Graphic Appeal

Is it attention grabbing and eye

www.hvacrbusiness.com/topsintrucks

catching? Does it stand out? Is it industry-specific and unique?

3) Quality Logo

Is the logo interesting and appropriate? Does it pop?

4) Information

Is there enough information but not too much? Information should not be overwhelming. Does it include

company name, phone, website, services?

5) Lettering

Is the lettering legible, clean, readable?

6) Color

Are the colors bright, vibrant, and bold? Are they complementary or do they clash?

7) Legibility

Is the design crisp and readable from a distance?

8) Creativity

Does the design create interest? Does it appeal emotionally? Does it stand out as unique?

9) Consistency

Is the theme used on all four sides of the vehicle and for all vehicle body types?

I hope I’ve done two things with this article. First, if you’ve made the investment in branding your fleet, enter our contest. Second, if you are considering a rebranding effort, I hope I’ve given you the resources to successfully implement a strategy. And should you need further advice, please don’t hesitate to contact me. u

BY WADE MAYFIELD LEADERSHIP

3 Components of a Foundation of Purposeful Leadership

Many books, seminars, classes, and schools are solely devoted to leadership. Leadership is a tough subject to fully comprehend or distill into its most basic form. What I have found through reading leadership books and going to leadership seminars and classes is that many people, if not most, miss one of the most important elements of leadership. It’s what I call purposeful leadership. All too often we confuse planning, strategy, and initiatives for actual leadership. This is not leadership in its truest form. Leadership in its truest form is leading. It is being out in front; making decisions, coaching, teaching, doing something; or, better yet, being purposeful.

The plan, strategy, or initiatives don’t actually do anything. They are a compilation of ideas, a road map to what drives leadership, but they should never be confused for actual leadership. This would be like your favorite football team calling a play in the huddle and never snapping the ball. Unfortunately, this happens all the time in business.

Here are three key factors that will set the foundation for Purposeful Leadership.

1. Risk

There is no risk in creating a plan, strategy, or initiative. You can sit in the confines of a nice, secure environment and make theoretical decisions all day, every day. Don’t get me wrong, great leaders know the importance of a plan, but they don’t stop there. They know that nothing happens unless they assume the role of leader, and leaders assume risk. Risk, to a leader, is not scary. Risk, to a leader, is opportunity.

2. Confrontation

One of the main reasons a lot of great

Purposeful leaders understand that nothing happens until they make it happen.

plans fall short or die a slow, painful death is the avoidance and dislike of confrontation. One of the main problems in business is that because it is often misused or done poorly, confrontation carries a negative connotation. But effective leaders understand that in order to lead, you have to confront the issues driving your company’s success. Let me clue you in on something — if you yell and scream at people rather than calmly having a discussion, you are not a purposeful leader. Purposeful leaders use every opportunity to coach, and the best way to coach is by mastering confrontation. Confrontation is a test of your problem-solving ability.

The first step in handling confrontation is candor, the act of being honest with people while leaving dignity in place. Confrontation takes on its negative connotation when we let the

problem go on too long. When we don’t address something, we get more and more disappointed in the actions of someone who has no idea what it is they are doing wrong because we haven’t confronted the problem. We let the problem build and build until anger takes hold, and then it becomes a negative confrontation. And when that happens, we want to find someone, some person, to blame for the problem. What we should have been doing is using our problem-solving abilities to find out where in the process the problem occurred. Was it training, direction, instructions not well stated or understood, the process itself? When you use candor and confront problems proactively, you will focus on the process that created the problems, correct them with help from the people involved, and set new and clear expectations that can be followed up and measured.

3. Coaching

Leaders are born, not made. I can’t tell you how many times I have heard this get tossed around and debated. I’ve heard it so much that I actually started to hear myself use this in conversations, and found it to be a fruitless debate and discussion.

Here is the best answer I can give to this debate. If you ever watch basketball, you will appreciate this analogy. Some basketball players are born with a natural jump shot. Some basketball players are born with an average jump shot. Both players will have a better jump shot with coaching and practice. All too often, we expect people to just understand what it takes to be a good leader rather than helping and coaching both the natural and average leaders to be even better. The bottom line is, everyone improves when coached. Harold S. Geneen said, “Leadership cannot really be taught. It can only be learned.” The purpose of coaching is to guide rather than to tell.

Now that we have looked at some common problems and misconceptions in regards to leadership, we can move onto the qualities purposeful leaders portray. In the next article, we will explore practical applications that will help you become a more purposeful leader. u

Wade Mayfield is President of Thermal Services, Inc., Omaha, NE., an hvacr firm with over 100 employees serving the commercial and residential market. Wade is both a student and practitioner of the management skills necessary to sustain company growth, empower managers and employees and build a wealth of happy and satisfied customers.

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FLEET OPERATIONS: A CONTRACTOR & DISTRIBUTOR VIEWPOINT

BY TOM PERIĆ

As HVACR Business’s Tops In Trucks Fleet Design Contest approaches, we chatted with contractor Joe Santacroce, owner of Douglassville, PA-based Santa’s Heating and Air Conditioning, and distributor Mike Riley, owner of Plymouth Meeting, PA-based Riley Sales.

Both serve the Greater Philadelphia area, including parts of Delaware and across the river into New Jersey.

Santacroce has more than four decades of experience and began his business with a few helpers. Nearing retirement age of 70, Santacroce now has 60 employees and operates about 20 trucks. “We focus on multifamily new construction projects, which is about 75% of our business,” Santacroce said. “I know that being reliable and efficient when serving our clients is extremely important, and our fleet is the backbone of our transportation needs.”

These service vehicles traverse an area of approximately 50 to 60 miles daily. Though he doesn’t have a formal maintenance program, Joe trusts his chief mechanic and techs to maintain the vehicles’ upkeep.

He allows the techs to take their vehicle home, reducing travel time to get to the first job every morning. He uses an electric card system and GPS tracking software to keep track of the vehicles in order to maintain accountability over his team members. He also streamlines operations with an electronic service tool that systematically tracks and efficiently

Santacroce has more than four decades of experience and began his business with a few helpers. Nearing retirement age of 70, Santacroce now has 60 employees and operates about 20 trucks. “We focus on multifamily new construction projects, which is about 75% of our business,” Santacroce said. “I know that being reliable and efficient when serving our clients is extremely important, and our fleet is the backbone of our transportation needs.”

Nick Cianci, Vice President

processes payments.

The one major difference from some contractors in handling his fleet is that Santacroce buys almost all of the vehicles.

“I hate debt,” he said emphatically, emphasizing his decision to buy rather than lease.

“We’re about to celebrate 40 years in business, and as we’ve grown, this approach has worked well for us,” he said. Noting that a succession plan is in place, and with his approaching retirement, the company will become an employee stock ownership plan (ESOP).

Would he change anything regarding his fleet usage?

“Sure, maybe we could create a system for a tighter maintenance schedule for the fleet, and in that sense, there’s always room for improvement,” he said. “But our approach with our techs, who are conscientious about the vehicles, has allowed us to grow as a company.”

Mike Riley generally has full maintenance leases on his vehicles, unlike his friend, Joe Santacroce. Riley admits it’s a permanent pain point because you pay forever. But he also says he doesn’t have to lose time or become overwhelmed with maintenance issues. Riley, who took over the business from his father, Tom, has 28 vehicles, including trucks, box trucks and pickups.

“Every wholesaler has issues with his fleet, and it begins with maintenance,” Riley said. “It’s not glamorous work,

Delivery reliability is paramount, as reflected in the company’s willingness to drop off supplies to contractors on the job site, especially when they unexpectedly realize they need a part, according to Riley.

but those basic maintenance tasks are important, especially for the diesel trucks because they require special fluids.” By having full-service leases with most of his vehicles, they can replace one almost immediately if it breaks down.

“No one likes reoccurring costs, but by leasing my vehicles, I can concentrate on my core operation and leave the upkeep and replacement issues to my leasing partner.”

Riley says his approach to the fleet is to lease them initially and then consider a buyout based on the performance and reliability of each vehicle. “You have to sit down and evaluate the cost-effectiveness of each option,” he said.

Riley also says some distributors, like himself, have strong personal

connections, which allow for favorable leasing deals. “You still can’t get away from the personal element in some business transactions, and if you don’t have one on the leasing side, you should consider trying to create one.”

Delivery reliability is paramount, as reflected in the company’s willingness to drop off supplies to contractors on the job site, especially when they unexpectedly realize they need a part, according to Riley. “We’ll get into one of our trucks and deliver right to them, and we can only make the promise if we have confidence in our fleet,” Riley said.

Riley uses large decals on all his trucks. He says it increases visibility but also reinforces Riley Sales’ professionalism and reliability in customers’ eyes.

Santacroce and Riley agree that when examining one of the major fleet issues – buy or lease – it comes down to a company’s grip on cost versus convenience. Regardless of the choice, they both say you must have

the reliability to meet your customers’ expectations. u

Tom Perić is the editor of HVACR Business magazine.

From left to right, Mike Riley, President; John Consolo, Driver & Fleet Maintenance; Brian Moncrief, COO.

BY ANGIE SNOW STRATEGY

Accountability in Partnerships

Can the simple act of accountability really lead to a stronger partnership? Most successful HVACR business owners understand the importance of daily accountability with their employees and management teams.

Accountability is empowering for business owners because it allows each member of their team to take personal responsibility for their tasks, assignments and other commitments. When these tasks are tracked and reported, the business owner can measure the progress being made toward the company goals.

When companies demonstrate a high level of accountability, it leads to more trust, positive company morale, strong employee engagement, and a higher level of productivity.

Accountability Struggle

But how do you hold your business partner accountable if they are not completing their tasks? As a professional speaker and consultant for this industry, I have had several HVACR business owners come to me with this very question. These owners have partners who struggle with keeping commitments, completing tasks on time, or pulling their fair share of the workload. In one case, an owner felt discouraged because his partner was getting ready to exit the business, and not following through on commitments.

In another case, the partner was distracted with other issues and became disengaged. When one partner does not follow through and stay accountable to the other, it can cause unwanted stress, owner burnout and a fractured relationship.

I’m lucky to have my amazing husband, Ryan Snow, as my business partner at Western Heating & Air Conditioning.

“A culture of accountability will make a good organization great, and a great organization unstoppable.” — Henry Evans

When we purchased our business in 2007, we committed to each other that our relationship would always come first.

Because of that, we really struggled with accountability as new owners and partners. When one of us did not follow through with a commitment, or complete a task on time, we simply let it go or ignored it.

I didn’t want to be a nagging wife, and he didn’t want to weigh me down with extra stress. We simply did not want to cause friction in our relationship.

What we didn’t realize at the time was that our lack of accountability was hurting our business. It hurt our productivity, our growth and, ultimately, our bottom line. Because we wanted to be supportive of one another, and not condemning or authoritative of each other, we took a backseat to accountability and our business suffered.

Around the same time, we were introduced to a business coach who helped businesses become more focused. He emphasized the importance of company values, of time management, and staying motivated.

He helped companies create systems and processes, and most importantly he kept them accountable. We began working with him and immediately began to see results. Having an accountability coach who understood our business was exactly what we needed in our company. Together, with our coach, we were able to identify the goals we wanted to reach and create a plan with detailed action steps and a realistic timeline that would get us there.

We received instruction, created deadlines and reported to him frequently so that we could meet our monthly goals.

Hiring an accountability coach

actually strengthened our relationship both in and out of our business. We were no longer worrying about being an authority over each other, but now we could take a supportive role in our partnership and work together to achieve our goals.

Since then, we have hired many different coaches to guide us, in various aspects of the business: annual planning, marketing, profitability, leadership and lean management techniques. We discovered we don’t know what we don’t know.

So, now that I’ve shared one of our secrets to a successful partnership, my bigger question for you is, “WHO will keep your partnership accountable?” Hiring a third party coach who is a neutral motivator, is often exactly what a business needs to reach their next level and beyond. u

Angie Snow is the co-owner and vice president of Western Heating & Air Conditioning in Orem, Utah. Visit timeforcomfort.com for additional information.

PROVIDED BY KEVEN PRATHER, CFBS

FINANCE

Five Big Asset Protection Planning Mistakes—and How to Avoid Them

If you have substantial assets, you may be a target for frivolous lawsuits. That’s why it’s important to consider asset protection strategies that can create barriers to protecting your wealth. Asset protection planning employs legally accepted concepts and strategies, as well as specific financial products, to ensure a person’s wealth is not unjustly taken from them.

But asset protection can be a tricky business. Make the wrong move — knowingly or accidentally — and you can easily blow up the legal wall you’re trying to build around your wealth. Here are five major mistakes that we see commonly made when the affluent engage in asset protection efforts — and how to avoid them.

Mistake #1: Starting asset protection planning after knowing someone can sue you. While there are ways to protect your wealth, they tend to be ineffective if they’re done too late. Move assets around after you know a claim can be made against you — into a trust, for example — and you’ll learn a new vocabulary term: fraudulent conveyance. The courts will likely reverse that strategy. There are two types of fraudulent conveyance:

• Actual fraud involves intent and occurs when someone transfers assets to a person they can strongly influence, resulting in not having any resources to pay creditors. Still, the person “informally” maintains control of the assets.

• Constructive fraud is about the economics of the transfer of assets, not the intent behind it. If you transferred the asset relatively quickly when the person was financially distressed, it might be considered constructive fraud.

To avoid this mistake engage in asset protection planning as early as possible. Without question, you want to do asset protection planning before you need the protection.

Make the wrong move — knowingly or accidentally — and you can easily blow up the legal wall you’re trying to build around your wealth.

Mistake #2: Not having enough (or the proper) liability insurance. Part of truly effective asset protection planning is ensuring you have the right kinds and amounts of liability insurance. Many people could, for instance, significantly benefit from larger umbrella liability policies. But often, they don’t think of this. Additionally, we see that many accomplished business owners have substandard general liability coverage. Many of these business owners might also benefit from higher-quality (and more customized) director’s and officers’ liability coverage.

The good news: Liability insurance is relatively inexpensive. After avoiding lawsuits (generally beyond your control), it can be considered the first line of defense in an asset protection plan. Periodically stress-testing your liability coverage is usually a smart move.

CLARITY & COORDINATION

Mistake #3: Failing to approach asset protection planning in coordination with your other wealth planning efforts. While you can engage in just asset protection planning, there can be considerable benefits if your plan takes into account other areas, such as estate planning and income tax planning. A holistic approach to wealth planning enables

you to understand the trade-offs you are making and any risks you might otherwise overlook.

One example: Gifting to heirs may be a good estate planning solution in your situation, but some might consider it a fraudulent conveyance regarding asset protection.

By approaching your planning as comprehensive wealth planning instead of piecemeal planning focused on one area, you will often end up with solutions that work best for you and your loved ones — and that are the most cost-effective.

Mistake #4: Not understanding what you did and why you did it. If you cannot explain the intended results of your asset protection planning and why you did what you did—at a big-picture level, at least—there is a good chance your planning will not deliver the protection you seek. In legal depositions, for example, there is a strong possibility a court will become suspicious and set aside asset transfers if you cannot explain the what and why driving them.

Keep in mind that you don’t need to be an expert on the strategies and financial products. However, you should be able to explain in broad terms the reasoning behind the actions taken.

Mistake #5: Failing to work with a skilled professional. Some asset protection planning professionals know just enough about asset protection strategies to get themselves—and you—into trouble. For you to get the optimal benefits of asset protection planning that you may seek, you need to work with a proper authority in the field—for example, someone who other financial professionals recognize as an expert on asset protection planning.

Stress-testing an asset protection plan

If you’re unsure about the safety of your wealth from frivolous or unfounded lawsuits, consider stress-testing your current plan.

The first step involves determining your high-probability significant risks. What is likely to happen? And if a risk is likely to happen, how detrimental will it be to you? This can be an actuarial calculation, or — as many people do — you can make an estimate.

Next, decide how concerned you are about the risks. This may involve balancing different needs, wants and trepidations.

Then, you and an asset protection specialist should evaluate your current asset protection plan. This includes completing an analysis , incorporating high-probability significant risks, your concerns and what you have in place to protect your wealth. Based on the outcome of this analysis, you decide on the next steps. Actions can range from not making any changes at all to making dramatic changes.

Ultimately, you want to feel confident that you have a plan in place that reflects your needs and preferences — and balances your asset protection goals with other key elements of your overall wealth plan. u

Keven P. Prather is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. Call 216-592-7314, send an email to kprather@financialguide. com or visit transitionextadvisors.com.

BY RUTH KING

I’ve written about the first two steps: Know how you generate revenue and make sure you have profitable revenue. Here’s the third step:

Track your monthly profitable revenue per unit, i.e., your billable hours.

Track billable hours every week. Assign this task to the person who does payroll.

Your timesheets, whether paper or electronic, should have the following categories (in addition to the standard ones):

• Training/meeting

• Shop time

• Warranty/callbacks

This way you can easily see the nonbillable hours. Once your field personnel have to “report” shop hours, they magically become smaller because what gets monitored improves.

In slower times of the year, some contractors have their field personnel work on their homes, the office, and other noncustomer activities to give them enough hours each week. You should track these hours as other or shop time.

How to get started tracking billable hours

First, how many billable hours do your field personnel have now? Calculate it and post it.

Post the percentage on brightly colored paper where everyone can see it.

Your team will ask, “What does the percentage mean?”

Answer with, “I’ll explain in a few days.”

Then explain why it is important, and why it is essential – without billable hours, the company doesn’t generate revenue. The company needs to keep it as high as possible so that you can track and post it every month.

When establishing the bonus, posting the weekly and monthly percentages is critical.

Note: Make sure that the billable hours are profitable … make sure you are pricing correctly.

Where should your field personnel’s billable hours be? Service should be 75% billable or higher. Install should be 85% billable or higher … as a whole, the company’s billable hours should be higher than 75% and preferably 80%.

Of course, if someone is on vacation, there is a holiday that week, the billable hours will be lower for the week. However, the monthly results should absorb the holiday hours.

Give bonuses

Some contractors give bonuses for maintaining billable hours at a certain level. For example, if your company’s hours are initially at 50% billable, a bonus might be $50 per person for bringing billable hours up to 60% or more each month. Then, when billable hours reach 70%, the bonus might be $100. If the company achieves an 80% or higher billable hour percentage for three months, the bonus might be $250 per employee. Every quarter, everyone in the company gets a $250 bonus (in a separate check or

electronic deposit) for maintaining the billable hour percentage higher than 75%.

Can you afford this bonus?

Assume:

• 10 field personnel

• 18 total people in your company

• 60% initial billable hour percentage

• Standard 40-hour workweek

• Net profit per hour is $50 an hour

60% billable is 24 hours a week.

80% billable is 32 hours a week.

8 additional billable hours a week

Additional net profit is $8 x 50 or $400 a week per person or $4,000 a week.

Additional net profit per quarter is $42,000 (assuming 13-week quarters)

Bonus paid out is $250 x 18 = $4,500

Yes, you can afford the bonus.

When establishing the bonus, posting the weekly and monthly percentages is critical. Everyone sees where the company is and can track their bonus payments. You’ll also get suggestions from the field

for making the office more efficient. Likewise, you’ll get suggestions from the office for making the field more efficient. Implement the suggestions (or say why they are not feasible). Everyone will know that you are serious about keeping billable hours up.

What about posting individual billable hours? Some owners and managers do post individual results. Some don’t. If all field personnel are nearly at the same percentage, seeing who is on top becomes a competition. If there are fewer field personnel, help them get their billable hours percentage higher before you post the results. Tell them you will post results in three months and don’t want them to be at the bottom.

Keeping your field employees profitably billable means more net profit on your bottom line.

I have an Excel spreadsheet template that HVACR Business readers can use to track billable hours. Just send me an email if you would like to receive it. u

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv or at 770-729-0258.

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GREENHECK

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DANFOSS

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ISMA CONTROLLI S.P.A.

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DECON7

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RUSKIN®

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FUJITSU

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SUNSTAT®

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20QUESTIONS >>

with JOHN AKHOIAN

Publisher Terry Tanker sat down with John Akhoian, owner of Rooter Hero, with ten locations and 500 employees, to discuss learning the trade as a teenager, managing a team and learning from audiobooks, as well as mentors.

1. If you could have an unlimited supply of anything, what would it be?

It would be mentors, teachers, and experiences.

2. What do you think you would’ve grown out of, but haven’t?

Well, one of the things that I still enjoy doing once in a while is grabbing some tools and fixing plumbing or anything around the house. I thought I grew out of it after I got out of the field, but I still enjoy doing it whenever I have time or whenever I need to fix something around the house.

3. How long were you in the field?

I was in the field for approximately 15 years. I used to work for another company. I started in the plumbing business when I was 17. I worked for a company for two years and then opened up my first plumbing company at age 19.

4. What three words would best describe you?

Hungry, humble, and grateful.

5. What are the three things you’ve got to do every day?

The three things I have to do every day, first of all, is look at my goals, I review them and focus on prepping to accomplish whatever I set my vision for. The next one is sharing my vision with my team. And then the last one is just being a great example to those I serve, my team members.

6. How big is your company?

We have about 500 employees and 10 locations, and we’re 99% residential and 1% light commercial.

7. What would people be surprised to know about you?

That I love to learn and I’m not afraid of making mistakes.

8. What pushed you into plumbing at such a young age?

Plumbing was a plan B for me, but my dad passed away, and my motivation was I didn’t want to move back into a one-bedroom apartment. I grew up sharing a couch with my brother as a teenager. I loved having my own bedroom, and I wanted to be able to sustain that. I dropped out of high school and got a job working with a family friend as a plumber to make extra money to help my mom out with the household bills.

9. What aspects of running your business do you enjoy the most?

Just being able to come in and work with my team and be a resource to them and give them the tools they need to be able do their job and do it

really well. I love being very resourceful and being somebody who actually encourages and helps rather than holds back.

10. Can you describe your business philosophy?

Yes. Our company has clients, and we’re here to serve those clients and give them a five-star experience. Internally, we serve each other. My clients are the internal team members, so I look at my team members, and I have to give them a fivestar experience.

11. What’s the best business advice you’ve ever received?

It’s by Zig Ziglar. It’s a quote I heard a long time ago, and he said that if you help enough people achieve their goals, you’ll achieve yours. So be focused outward, help people achieve what they want to achieve, and if you help enough people get what they want, then you will eventually get what you want.

12. Who were your business mentors early on when you started?

I love listening to audiobooks, and back then, when I was in my van, I had a tape player, like a cassette player, and I would listen to a lot of Jim Rohn, Zig Ziglar, just a lot of the people that are out there just giving positive information about how to become successful.

13. What other things did you do to become successful?

I bought into a franchise system, and some business leaders there in the early stages were great mentors to me. And then that’s when I started networking with other franchisees, and I just loved learning from those people who knew how to run a business. I would fly out, visit them, and take a lot of notes and apply what I learned. I remember one of them was the largest franchisee at the time, I visited him at least four times, and he said, “I know you’re going to do better than I am.” I asked how do you know that? He said, “I’ve never seen anybody wanting to come back over and over again to learn the same thing.” And I said, “Yeah, but every time I come out, I learn something new.”

14. Are you still part of a franchise?

No, I sold my franchises, and I got out in 2017. I started my own brand after that, and that’s what I’m running right now.

15. What are your core organizational values?

Faith, integrity, respect, service, and teamwork.

16. How do you effectively communicate with your management team?

One thing I do every day is send the entire company an action quote, and it’s a positive message with a daily action connected to it to do something that’s related to the quote. Another thing I do is make myself available at any time to both internal and external customers. And finally I meet my management team on a daily basis. We have huddles, and we do them through Zoom.

17. Do you have team-building activities?

We have one tomorrow where everybody will get together for the entire day. Usually, the day before that meeting, we all have dinner together. We typically go out, break bread, interact, and then, yearly, we take vacations together. We go to Cabo, we go places where we basically all get to meet each other’s spouses and spend a few days in Mexico together. And then annually also, we have our holiday party where everybody flies in and we give out awards and spend a lot of time just reflecting on the entire year.

18. Can you describe your company in 20 words or less?

We’re Rooter Hero, plumbing and air, and we’re here to save the day. So, when people call us, we respond immediately because they often call us for emergencies. We’re the ambulance company of plumbing.

19. What’s the most important quality you have to have as a leader?

Never ask your team members to do something you’re not willing to do yourself, and lead by example.

20. What’s the most recent the “Buck Stops Here” moment that you’ve had? There was an organizational change, and someone new reported directly to me. And I found that the person loved to tell White Lies. I mean, I figured that out pretty early because people who lie don’t remember what they said. I just have a very low tolerance for liars.

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