Transitioning from Truck to Office: Pros & Cons of Growing Your Business

1. Transitioning from Truck to Office:Pros & Cons of Growing Your Business By: Dave Smith, Dave Smith Appliance Services LLC Manny Ortega, Ortega’s Appliance Service Today Inc. Mike LaBeau, SoBellas Home Services

2. Subject: {ChatUSA} – I need help “I am at a point where the costs to grow my business are exceeding my revenue, and I am frightened because I have never ventured in this deep before. I have cash reserves, so I am not borrowing to grow. However I have increased vehicle expenses, rent, insurance, payroll and technology expenses by significant amounts and I’m worried I might not see the end. I have been waiting for a peer group to form for me to bounce these concerns off of, but it has not materialized yet. If anyone out there has experienced growing pains and can counsel me, I would appreciate it. Sometimes I wonder if I have made a mistake and should go back to the way I used to do it.”

3. Conventions are a Rare Opportunity! Talk to your peers Ask a lot of questions Join a Peer Group Learn from people who are doing it!

4. The Pro’s of Staying A One Man Shop • Great job • Maximum efficiency • Good income • IF you charge what you are worth • Flexibility • Work around your own schedule • Responsible only for yourself

5. The Con’s of Staying A One Man Shop • What happens if you get hurt, sick, or disabled? • Do you have a backup plan? • Insurance? • Bank account? OR • Are you out of business?

6. The Con’s of Staying A One Man Shop • Resale value… • How much is your business worth? • What will someone pay for it? • Phone numbers? Trucks? Parts? • Limited “sellable” hours • Limited income

7. Is Growing Your Business Right for You? Running a large service business is complicated. Growing one is a lot of work, it’s not for everyone. Are you an Entrepreneur? Are you willing to learn new skills? Can you delegate authority? Are you a leader and a visionary? Are you ready? Why do you really want to grow?

8. Goals for Business Growth Consider your goals for the business: • Where do I want to go? • Rapid growth, Capital Gains • How will I get there? • Strategy • Can I do it? • What are you willing to Risk? • Is it worth it?

9. Five Stages of Business Growth Stage I: Existence • Problems: • Obtaining Customers • Delivering Product • Do you have enough money to cover start up demands?

10. Five Stages of Business Growth Stage II: Survival • Problems: • Revenue • Expenses • No formal planning • Example: • Mom and Pop Stores

11. Five Stages of Business Growth Stage III: Success • Problem: • Staying Profitable • Hiring Employees • Company can stay in this stage indefinitely • Risk Financing Growth

12. Five Stages of Business Growth Stage IV: Take-Off • Problems: • How to Finance Rapid Growth • Owner Delegating Responsibility • Failure due to: • Running out of funds • Unable to delegate effectively

13. Five Stages of Business Growth Stage V: Resource Maturity • The Company Has Arrived! • Detailed Operational/Strategic Planning • Advantages: • Size • Financial Resources • Managerial Talent

14. Resources Harvard Business Review Website www.hbr.orgregister as a guest you get to read three free articles a month “The Questions Every Entrepreneur Must Answer” “Why Entrepreneurs Don’t Scale” “The Five Stages of Small Business Growth” Books “Managing By the Numbers” by Chuck Kremer and Ron Rizzuto with John Case - $11.98 on Amazon “The Ultimate Small Business Marketing Toolkit” by Beth Goldstein - $21.25 on Amazon

15. Things to Think About Before Growing S M A R T Systems-How do you want things done? Marketing-How to achieve new Business? Accounting-Understanding Business Financials Resources-How do I find the help to Succeed? Technology-Use of modern technology The downfall for many is: ignoring essential parts of running the business that they don’t like.

16. Blast Through The Next Plateau! Are you a tech who owns a service business? WRONGanswer You are a business owner who happens to own a service company? Its time to change your mindset and stop thinking like a technician and think like a business owner.

17. Who Can I Trust To Run My Company? How I can trust my employees without paying 100k or more. How does McDonalds do it? It is all about the people, processes and your organization….. ..and taking the time to work ON your business rather than INyour business

18. Look Ahead To Avoid The Next Plateau. How will you structure the company? How do you plan to expand and when? Will you diversify? How will you invest in your company? How will you get past the first Million Dollars? How will you get past the first 5 Million?

19. Misconceptions of the Service Industry Way more complicated with too many variables I would never want my kids in this business. Customers in this business just don’t understand There are no good employees who want to work in this industry

20. The Key To Your Success What do I really do? The first step to your next plateau… …Dress so you cant get in the truck!

21. Lets Recap Change the way you think. You are no longer a tech. Inspect what you expect. Expect to succeed. Trust your employees. Questions?

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