MY TIPS FOR Business Owners

MY TIPS FOR

Business Owners

PERSONALITY:

If you don’t utilize this trait correctly, you have decreased your chances of winning the job, even though you may have ticked all other boxes relating to a successful outcome. (As there is too much to talk about on this particular subject, I have included a past article I wrote in 2015 in the magazine).

WEBSITE:

When a client is searching for a contractor they want to know as much as possible about that business. Unless someone has recommended and given you a high approval rating, they have to source you in some other way. Once found, having a website can provide abundant information about your business. A client needs to know things like company information, customer testimonials, picture gallery, guarantees, what products you use, contact numbers, etc. All this information will help ease their mind that they are choosing a reputable company.

ANSWERING SERVICE:

A second party that can answer your phone professionally in your company name if you are unavailable, is far more personal than an automated recording. A client is more likely to leave a message to someone that is actually conversing with them than having to talk to a machine. There is only a small cost to this service but it far out-ways the possibility of losing a prospective client.

LETTER DROP:

This is a great way to promote your business around the areas you are working in; and the best part is that it’s free to do. I have two introductory letters that you can use. Just email me on jimbaker@notjustapainter.com.au and I will send them to you.

DATABASE:

It takes a lot of time and effort to gain a client from an advertising source. So keeping a record of all your clients is one of the most important factors of a successful business. You need to know everything about your client, not just their contact details. If that client is happy with the work you have produced, there is a 50-80% chance that in the future they will recommend you to a friend, relative or neighbour. Because these referrals are coming to you by word of mouth, it means you won’t have to spend as much on advertising or, you can keep your advertising going at the same rate and expand your business at no extra cost. Also by keeping a record, it means after a certain period you can make contact with them again to see if they require any more work done. Many people forget your details after 5 years or more so a friendly reminder that you are still in business is great PR work.

KNOW YOUR ‘BREAK-EVEN’ RATE:

This is where many businesses have absolutely no idea what their hourly rate should be to cover their outgoing expenses. You cannot go by what someone else is charging because every business is different and has different costs. When you are desperate for a job, you need to know how low you can charge. If you go below your ‘break even’ cost, then you are losing money. To check out what you should be charging, follow the link to ‘My Hourly Rate Calculator’ at www.mytools4business.com

DON’T ARGUE WITH THE CLIENT:

Even though you may not agree with a client, it is in your best interest to listen and accept what they have to say and fix the problem. Arguing only causes friction between both parties and hence, lead to slow or non-payment. So what if it takes you an extra four or eight hours in time! Look at the time, cost and stress of using a debt collector. It is simply not worth it. Swallow your pride, do what they want and you will find they will appreciate the effort and recommend you to others. Sue them and your name will travel quickly as a painter to not recommend.

KEEP ON TOP OF WHAT IS OWING TO YOU:

Constant cash flow is the key to all successful companies. As soon as a job is finished, send an invoice, otherwise you may find you have run the bank account dry and need to go into an overdraft. If the job is large, then have a clause in your Contract Agreement that you require progress payments.

VEHICLE SIGNAGE:

If you spend $1000 on signage for your vehicle, it will work for you for at least seven years. That’s a small investment of $142 a year. It acts like a moving billboard. It goes with you to every job or trip you do and will be seen by tens of thousands of people.

BE ON TIME:

The easiest way to upset a customer is to be late. If you can’t make an appointment, have the decency to call them and arrange a new time. They may have gone to a great deal of trouble to stay home especially, so don’t disappoint them.

DON’T BE AFRAID TO ASK FOR ADVICE:

Every business person wants to achieve success, but when there are problems, most are too proud to seek help. Asking for advice or guidance is not a sign of weakness, but a sign of intelligence. Sometimes you have to come to terms that you can’t do everything yourself. No one is going to laugh or think you are incapable of running a business. I can guarantee that every successful business has been mentored or have taken advice from a peer at some stage in their life. Most people are willing to give advice and share their success, so don’t hold back and don’t be afraid.

Listen and learn from others as I have done.

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Jim Baker

www.mytools4business.com