Publisher's Page

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com

HEATHER Langone Managing Editor hlangone@hvacrbusiness.com MEGAN LaSalla Creative Director mlasalla@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr VP Operations bkerr@hvacrbusiness.com ADVERTISING STAFF ERIC Hagerman VP Sales Tel 216-409-3246 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, 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©2022 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: 1 year $48; 2 years $75; 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 ©2022 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440731-8600. 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 Web site: www.hvacrbusiness.com (ISSN: 2153-2877) www.hvacrbusiness.comwww.HVACRBUSINESS.comwww.hvacrbusiness.com

BY TERRY TANKER PUBLISHER’S PAGE

Lessons from a Small Business Owner

Another year, another lesson… I’ve operated small businesses for most of my career. As we get set to close the book on 2022 and open a new chapter, I thought I’d share some lessons learned over the years. I hope the suggestions below help manage your company more effectively in the coming year.

Lesson Number 1: Be Prepared. As a small business owner, be more prepared for everything because you simply don’t have the resources of larger companies. And, there’s no safety net. Whatever fall you take, the landing always seems to be a lot more like a crash. Part of that preparedness has to do with the time frame in which you are able to make decisions. We make decisions quickly and it helps move our company into the best possible position for a given circumstance. It’s not always true, but often, important decisions slow down and filter through layers of management at larger companies. As a business owner, if you can eliminate or avoid this slowdown, your company should benefit. Being prepared and thinking through issues that can impact your company can soften the landing and help ensure your survival and growth.

Lesson Number 2: Cash. You’ve heard this from Ruth King dozens of times in her column: “Cash is king.” And, she’s right. For me, cash falls into several categories. First sales – it starts the process. Next, you have to perform work, delivering the equipment or the service. And then you have to collect. Many of you collect payment at the time the equipment is installed, or the service is performed. This means your accounts receivable column looks terrific. However, if you’re terms are net 10, 15, or 30 there are going to 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 money in the bank. This is no different than 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. All of us who suffered through the pandemic can attest that savings make the difference between going out of business and staying the course.

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 United States Postal Service. On our P&L they are one of our largest expense items. They don’t negotiate, heck I couldn’t even find anyone to speak with….) We’re considering moving our office because like many companies we have more employees working remotely. We’ve investigated dozens of locations and found several that would be just right. We’ve found landlords very willing to negotiate. From existing space to build-outs, everyone in our area is eager to fill vacant space. Someone recently told me “You don’t ask, you don’t get”. We’ve been asking.

Lesson Number 5: Competition. Know them, chat with them, understand them. Stay away from talking about competitors in a sales call unless specifically asked to address an “us versus them” scenario. 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, and unfortunately, salespeople can’t help it. They want to grind the ax. When your competition does this, you know you’re 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 for them 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 of it on the P&L. The adage is right on the money. Sales make everything better. Excuses about 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 approach existing customers and sell them more, 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

Be Prepared. As a small business owner, be more prepared for everything because you simply don’t have the resources of larger companies.