What should residential contractors be focusing on in their business plans Workshops for the new year?
They need to make sure they are focusing in on the three bottom lines of their company:
- The emotional bottom line – Measuring the level of engagement of their team.
- The environmental bottom line – How their company is being accepted by the marketplace.
- The financial bottom line – How well their company is achieving set goals that drive financial success.
Nexstar members have the opportunity every year to participate in surveys that allow them to see how they are being measured against those three bottom lines. The feedback from these surveys is priceless, and the direction they can provide can be the difference between staying on course or losing traction.
What key metrics should they be tracking?
Every department has their own set of key metrics that, when achieved, drive profits to the bottom line. Every manager within the company should have a scorecard that is updated daily; this will allow them to identify areas of concern and make the necessary adjustments in a timely manner. Scorecards help ensure that you have the right measures in place and can identify what is missing, and they foster a culture of accountability.
What do business owners or managers tend to forget when implementing these plans?
A proper business plan must include the following components: a manpower plan, a training plan, a Marketing plan Training, a budget and finally, a priority list. Often times a budget will be created and little to no time has been given to the priority list. In order for you to achieve your plan, you will need to know what the business needs to focus on first, second and so on. Then make sure every priority has a designated owner and a completion time.
Do you have any tips to make the plan implementation go smoothly?
While setting up your business plan, get out of your office and away from all the distractions and “got-a-minute” meetings. Many members within Nexstar attend a Business Planning Workshop, which allows them to focus strictly on their plan and provides an environment where they can network with other owners and share best practices.
Rob is a business coach at Nexstar. In his role, he’s passionate about guiding independent contractors to success. Before Nexstar, he spent 20 years driving revenue growth and providing leadership in competitive markets with PHCE franchise operators.