My father used to tell me, “If you can’t say anything nice, don’t say anything at all.’’ The advice has served me well in social situations where biting your tongue means something doesn’t come back to bite you in the backend at some point.
But how does the advice work when you’re trying to write a column looking back at the business climate in 2008? If I listened to my dad’s advice ringing in my ears, some might say this page should be as white as a polar bear on a glacier.
But I think there is room to say nice things about business developments over the past year. No, I think it’s imperative for us to look for the silver lining in these tough times.
As an industry, how are we going to benefit by dwelling on the difficult economic challenges that sprang to life in 2008? I think the best business owners — you know who you are — are spending their days looking for ways to turn the bad news to their advantage.
To stimulate that positive thought process, let’s first list a few of the toughest things PROs had to face in the past 12 months:
1. Diminished construction accounts mirroring the housing bust;
2. The human resources nightmare of having too many workers and not enough restrooms to clean;
3. Rising fuel bills that test the very profitability of every job;
4. Skyrocketing healthcare costs;
5. A bruised bottom line.
Now let’s put a productive spin on the negative news as we head into 2009. Direct the energy away from worrying about what’s gone and focus it on solutions to help your business.
Build back the numbers
While construction accounts drooped all over the U.S., PROs in some markets noted an uptick in large commercial construction projects and steady demand from special events. If you haven’t done so already, spend time researching commercial construction in your area and revisit special event customers you’ve failed to land in the past to see if they’re happy with the service they received in ’08.
Perhaps your market is ripe for higher-end services. Are there enough backyard weddings and small company events in your area to justify a few upscale restrooms or a restroom trailer? It seems counter-intuitive to buy equipment when business is down, but it’s the same strategy successful investors follow by adding shares of stock in a bear market.
Remember that hard-charging marketing and sales efforts now will pay big dividends when the business climate improves. While competitors are drawing back, you can be out there nailing down new business with the right equipment and diversified services.
Use resources wisely
No one wants to cut staff because of a lagging workload. People’s livelihoods are at stake, and there’s no happiness in letting employees go. But being forced to cut back on the workforce also gives you the opportunity to look for new efficiencies in how the remaining jobs get done.
With fewer hands on deck, is now the time to refine your route planning and streamline your office operations? Consider adding routing software to tighten up the time it takes to service all the units out on location. Rely on faster, more efficient reporting through business software programs and eliminate a costly and time-consuming paper trail. Always ask, “how can I do more with less?’’
If you’re able to maintain staff levels until the economy strengthens, use this time to pay special attention to your loyal customers. Ask drivers with reduced workload to spend more time making sure units are thoroughly cleaned. Have your staff interact more with customers, looking for ways to provide better service. Have drivers take along a toolbox and replacement parts and repair units with nagging problems they ordinarily don’t have time to address.
Be a miser with fuel
Tighten up your routes to travel the least distance possible every day. Instruct drivers on ways to curtail fuel use. That might include keeping your pedal off the metal, looking for the most fuel-efficient highway speed for your service vehicles.
Make your drivers accountable for wasteful driving habits. Start checking the diesel bills against the truck odometer. Find ways to reward drivers for more frugal route-running. Park the trucks that get poorer fuel economy in favor of smaller, more efficient trucks whenever possible. If you need a new truck, buy the smallest, most fuel-efficient rig that will still do the job.
If you have a driver that now finishes his routes in four days rather than five, have him spend the fifth day getting the truck in tip-top shape. Routine maintenance like oil and filter changes and checking for proper tire inflation can contribute in small ways to improved fuel economy. Regular detailing preserves a truck’s good looks, making for a better resale.
Trim the fat off your insurance premiums
If you haven’t reviewed your healthcare coverage in a while, it’s time to take a look at what’s out there. Health insurance is expensive for everyone, but often the major carriers don’t consistently cater to small businesses because they don’t bring in thousands of premium-paying members.
Insurance companies tend to offer attractive introductory rates to gain market share, then raise rates every year. As a result, you may find it advantageous to consider switching carriers every few years to get a better deal. An independent insurance agent specializing in small business coverage can help you navigate this complex issue.
Depending on the level of benefits you offer employees, it may also be time to ask them to take on a little more of the healthcare burden. If taking on higher doctors’ office visit co-pays or a greater percentage of the monthly premiums will ensure the business keeps going, employees may not mind the cost.
Raise the bottom line
Don’t dismiss the idea of raising your prices. If your cost of doing business goes up, you may have to pass those costs on to the customer. I know you love the industry, but not so much that you want to clean portable restrooms for free. This is hard work, and you should be paid fairly for it.
Other ideas to put more money in your pocket at the end of every day: Try marketing through a Web site rather than automatically buying that big ad in the phone book. Network with other PROs on business building ideas through the PRO Online Discussion forum at www.promonthly.com. Lobby your county and state health department officials to enforce stricter regulations on sanitation at construction sites and special events, which could bring in more business. Meet with your accountant — or hire one if you don’t already have one — and look for new ways you can use the ever-more-complex tax code to your advantage.
ONE MORE THING
Keep in mind that a tough economic period actually strengthens the industry in one way: It weeds out those contractors who, through poor service or unprofessional practices, have a tendency to reflect poorly on the rest. The strong and principled PROs will survive these times and be stronger for it. Have a happy and prosperous new year!
