By Quality Service Contractors
Don’t panic! Your job as a business owner is to keep your employees calm! Stay focused, be decisive and lead. This is not the time to lead from behind.
To help you during this trying time, your QSC Business Coaches have put together some best practice suggestions for your consideration.
- Pay-Per-Click and Advertising Cost – if you can’t run the calls, review your marketing expenditures. Don’t continue to pay for advertising to get calls you cannot run. Maybe market for Drain Cleaning Services. Cash is KING – more people will be home and with all the recent toilet paper purchases, drain calls and blockages will increase.
- You may consider minimizing marketing expenditures that are not emergency- driven.
- Focus on emergency services.
- Encourage COD services to help with cash flow.
- Focus on organic marketing efforts, reviews.
- Do not arbitrarily reduce marketing.
- If call count is down, consider staggering non-essential personnel hours. To help manage cash flow, make sure you are managing productive hours. If cash flow is not an issue, take advantage of this lull in business to clean your shop, update your software, employ new processes and to prepare for seasonality. Have daily meetings to ensure systems and protocols are being followed. It’s a great time to ensure state and federal laws are being followed and your QSC practices are in place.
- Prioritize work that will produce immediate revenue and minimize accounts receivable.
- Hold off on all capital expenditures unless it affects your ability to perform.
- Verify insurance payments and policies remain current at all times.
- Manage dispatch to capitalize on calls and profit margins. Hold daily productivity and efficiency huddles.
If cash flow is an issue:
- SAVE CASH! Consider postponing capital payments.
- If you are in a cash crunch, partial pay supply houses – they charge interest but you keep the account open while preserving cash.
- Consider calling 35 – 45 days A/R first before chasing older A/R. Consider waiving fee on older accounts if paid immediately. Offer discounts if paid within 30 days.
- Review all accounts payable to ensure they are essential. Delay non-essential payments.
- If cash becomes a crisis, consider paying bills with credit cards.
Your QSC business coaches are here for you. If you need to talk, have questions, or just need a friendly voice on the other end of the phone, please give one of us a call. And remember to practice human kindness during this very stressful time.
On a related note, PHCC Director of Legislative Affairs Mark Valentini is on Capitol Hill working diligently on our behalf to obtain up to the minute updates so we can deliver the best information to you as quickly as possible.
Elk Grove, California
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