With the busy season winding down for most portable restroom operators, it’s time to think about what we’ve learned from 2014 and how it can help you plan for the year ahead.
For the PROs I’ve talked to, the past summer presented a series of small-business challenges to meet and overcome. On the positive side, there’s a general optimism with growing demand for construction and infrastructure – like roadbuilding and bridge projects – as well as a gradual improvement on the special-event side. Unlike in years past, the tendency today is to add a new restroom route rather than take one away.
On the negative side, questions persist about how to deal with rising costs for things like waste disposal and employee benefits. PROs still feel pressure to keep their prices in check to remain competitive, but at the same time see looming issues on the expense side that threaten to eat away at profits.
The year started on a high note, with PROs meeting up at the Pumper & Cleaner Environmental Expo International in Indianapolis (rebranded the Water & Wastewater Equipment, Treatment & Transport Show for 2015). I heard a lot of cautious optimism among contractors visiting the COLE Publishing editors’ booth. My sense today is that it’s been a productive year in most regions, but some questions remain to set PROs up for further success.
Look back at 2014 and ask yourselves the following questions. I’ll offer some perspective on each timely issue and make a few suggestions on how to move forward.
Are you still doing more with less?
Action: Did your summer include tiring days from sunup to sundown in an effort to keep up with demand for service? Was 2014 a year where work kept you from getting away with the family on a vacation? Did you find yourself thinking, “If I just had another reliable worker I could keep the trucks and restrooms in better shape and spend time going after more work”? Though their workload has been steadily growing the past few years, many PROs have not fully ramped up their workforce to meet demand and provide the best service. They’re still striving to do more with less.
Reaction: Look ahead to 2015 with the appropriate optimism and consider whether you can add an employee or two as part of a growth initiative. Dust off your business plan and work with your accountant to come up with revenue projections that reflect an improving economic outlook. Then over the winter, attend job fairs, place an ad or use your social media to identify folks who could become solid contributors to your team. Keep in mind that a good worker can have a significant positive impact on your bottom line.
What’s the impact of big health insurance changes?
Action: At the risk of stating the obvious, the past few years have been a period of great uncertainty for small companies that provide health insurance for employees. If you fall into this category, you’ve likely been nervously treading water, waiting to learn more about the impact the Affordable Care Act, or Obamacare, will have on your business. It seems like the rules are changing by the week, and you hear many stories about rising health care costs. You’re not the only one concerned about where health care is headed. Your workers are in the same boat.
Reaction: Fall and winter will be a good time to catch up on your reading … though I’m sure you’d rather crack open a great novel than the reams of information at www.healthcare.gov. Go to the website and learn about options for small businesses and self-employed workers. Companies with 50 or fewer employees can enroll in the Small Business Health Options Program (SHOP) to offer coverage. You can check out plans and prices, learn about tax credits and read frequently asked questions. Whether or not you already offer insurance to workers, talk to your accountant to find out if it’s feasible or advantageous. If you find you’ll have to drop existing coverage, do what you can to help employees work through the process of using the health care exchange.
Is it time for a truck upgrade?
Action: There’s no question the industry’s collective fleet is getting older. In the wake of tough times, you may have put off replacing older vacuum trucks for a few years. And you may have been putting off purchases even before, waiting to see how the new diesel emissions equipment is working out. It’s common for me to talk to a contractor still using a 2000-era truck, at least as a backup rig. But the wisdom of running a 15-year-old truck on a service route should be questioned. Many PROs are feeling more secure and starting to buy new trucks.
Reaction: Take a good, hard look at your vehicles and identify at least one that can cycle out of the rotation to improve your overall fleet reliability. Visit your banker and check out the likelihood that you’ll be able to get a loan for a new truck. If you can get the financing and justify the truck for efficiency or to meet projected demand, make plans to check out the latest rigs at the 2015 WWETT show in Indianapolis Feb. 23-26. Many of the best truckbuilders will show their work, and some of the trucks on display will be available for sale. And there’s always a lot of activity on the boards where contractors post used trucks for sale. With so many PROs on hand at WWETT, you might find your next truck or someone to sell your older rig to.
Is a new service provider biting at your ankles?
Action: With your success and an improving economy comes increased competition for available accounts. The real estate bubble bursting in 2008 brought a sudden halt to most construction work and took a toll on the lucrative party and special-event market. The downturn brought a contraction to the portable sanitation industry, as the most vulnerable and under-capitalized companies sold their inventory and went away. That’s changing, as small-business entrepreneurs are dipping their toes in the water and buying restrooms and trucks. It’s all part of the natural ebb and flow of the economy.
Reaction: Don’t sit still and watch competitors gain a foothold in your territory. Ratchet up your marketing efforts with a refreshed and more interactive website. Use social media to tout your accomplishments and encourage your best customers to write testimonials. Look for ways to further personalize your service, offering nice upgrades and constantly look for ways to follow up and get feedback from your customers. Set a goal to be the best, not necessarily the cheapest.
