Sustaining business growth is among the common challenges any business leader faces, but it isn’t a new problem. If you want to stay in business forever, you have to focus on the long term. You must build a business model that makes assurance and trust with your customers and keep them coming back after a day, year after year. Ensure that when you are building a business model, you should emphasize sustainability over profit maximization in everything you do and planning to do. But it doesn’t mean that you don’t need to make a profit at all. Indeed, profits are the soul of survivability. Of course, business won’t survive without profits. Profits are everything when it comes to sustainability. Then again, it doesn’t mean that because you need to make a profit, you need to maximize it. All you have to do is to balance! Balance the need of profit with the need to sustain the business. If you want to win, then do both!
What I wanted to cover this morning was the business that relies on its owner is not a sustainable business. The reason behind is that if something happens to you, the business is gone. A sustainable business means that even if you are not around managing the business let’s say for a couple of months, once you come back it is still in good shape, or better than it was the day you left. Then if your business is doing that, you need to take steps to get it there. To set the business up, you need to make the strides to where it can run without you.
If you’re going to manage a junk removal business, in my experience, you cannot do everything by yourself. You will sink. You should build and learn how to trust somebody else to do that job and you should set firm instructions, communication guidelines, train them and make sure that they’re following it. Make it attainable and then go out there and find that best person for the position. It could be your bookkeeper to help you out with bookkeeping. Hire them in the business and start growing. What you need to have is a constant goal and always be moving forward on achieving that level of freedom in your business. We need to build a sustainable business and start taking steps to get to that point. If you need help, we are happy to help you contact us at +1 919-466-9322 or email me at [email protected] All of you need to do some thinking when you have a business that relies on you.
Good morning everybody, hope everybody’s doing great this morning.
I’m on my way to the office because I got a JRA paper job program which would go live. We’ll go finish it up in a day and assume we’ve got insurance information, we’ll also go live hopefully tomorrow. We are excited to do that, and we have another guy at Pennsylvania and the Harrisburg area which is going to do the paper job. We’ve also got some neat stuff going on, so there’s a lot of cool projects we are working on today.
What I wanted to cover this morning was the business that relies on its owner is not a business nor a sustainable business. The reason behind is that if something happens to the owner, the business is gone. A sustainable business means that if the owner wants to leave town, you ought to be able to leave town for 2 months and come back. Your business should still be in good shape if not, better than it was when the day you left. Then if your business is doing that, you need to take steps to get there. So, If the owner of Junk Removal Business gets hurt whether knee or shoulder issues or gets hit on the job, you could be closed down. When the business relies on its owner, the business could be closed down for weeks. In addition to the medicals bills that you’ve got, you also have missed income because you are not working. To set the business up, you need to take the steps to where you can run without you. This means that when you first get started, unless you’re in the position to hire and have plenty of money, your position to take losses on everything when you first started, all of these will rely on you. You have got to be on the truck, but you also need to do is look for people to hire and train everybody you can. There is a need for separation of the different functions of the business. My responses before when I first got into the business, is that I saw that I am responsible for sponsors working, taking customer calls for booking the jobs, repair, and equipment, doing the job for bookkeeping and for every single thing that’s required. What is every only thing or task that’s required which I am currently doing now or that somebody in the business is doing? At the start, it’s probably you and your wife or a business partner, but the thing is what is every function of that business and who is assigned to it. Over time, you will need to turn that over and the way you choose what to turn over. One of the ways is asking yourself, what am I worst at or what I could at least do, or what can I hire somebody for that can do this better than I can. Sometimes, it’s not hiring somebody full time at the start. It could be subbing it out or could be hiring a company to do it. For example, bookkeeping, at a reasonable cost you can hire a bookkeeping company to keep up with your books. They’re going to do it a lot quicker than you can or do a better job than you will.
Business Processes: Bookkeeping
Bookkeeping is a good thing to hire out at the start which will save you several hours every week. The jobs themselves are not extremely difficult but is getting harder but not extremely difficult to find good reliable employees actually to do the jobs themselves. You have got to work with them on getting jobs quoted, placing customer calls or dealing with complaints. You need to find out about complaints which need to be taken care of right there on the site. You always have to be always in training mode. Sometimes training is tough because it’s going to take a lot longer to train you than doing it on my own. For the short term it’s true, but for the long term, it’s not. Always have redundancy and back-ups in place with people and equipment and everything if you want your business to run without you. You’ve got to have a lot of business to be able to do that, so you have to reach a lot of people. When you’re first starting, and you’re on the truck, you can’t take a day off. If you can run on Sunday, then you will be but if you can’t go because of landfills and stuff like that. This is because nobody’s able to run Sundays, but you’ve got to do work 6 days a week. You’ve got to be on the truck that when a customer calls with same day service, you need to get out and take care of them. That one customer is going to lead to repeat business, referral business and review business. Right there, that one customer or the lifetime value of that customer is thousands of dollars if you do it correctly. If they only do 1 job for you, it could still be thousands of dollars between reviews and referral business. Chances are if you do a good job, they’re going to do more than 1 job with you two. You have got to be hungry at the very start, and you can’t say no when it comes to turning away jobs. Same day jobs, you’ve got to get to your work 10 pm at night. Get that business, and this will allow you to have some money to hire more people. If you have the money to hire somebody else, then it’s too late. So, if your income is wailing up and higher than you expect it to be and you know you can hire somebody right off the bat and you can afford that person you can afford. That person waited too long to hire which mean you really got to get in there higher that means you’ve missed out on business. If you want to build a high income as a business owner but you want a great life too. Building a free life was my goal going into this. I always knew that I could work hard, I love working hard. I also love seeing a project, but I can’t rely on that. I also love freedom, being able to go where who and whenever I want. That would take a lot of work and precise calibrations and actions to reach that. That takes time, and you are not going to do that immediately. What you need to have is a constant goal and always be moving forward on achieving that level of freedom in your business. Once you do, you’ve got a business thinking that you can sell as well. So single truck operators or when a company relies on you has no value. Value is the costumer’s good deal because you’re not going to help so many people if the business relies on you.
On the other hand, if you got a business where you can step away, you can hire a manager and pay them $60,000 a year. And then the business isn’t another $150,000 to $200,000 where you’re not having to do anything, and an investor hasn’t had to do anything. Get to a point where business was making its profiting 200 or 250 after paying a manager which is about a million and a half revenue. 1 to 1.5 million in revenue, you can do that depending on your markets. It’ll probably take you anywhere from 5, 8 or 9 years if some markets were not possible to make a million or at least you know just jump you might have to get another service. It’s always possible to make a million if you want to get in you into services but if you got a business where you are paying yourself a fair salary of what you’re doing for managing the business or hiring a manager. That business is going to make another 200 or 250 thousand a year, you are going to be close to making a million dollars. If you go out to the marketplace and sell it, you get almost a million dollars for it. You got something with high value, and you would retire on, and you’ve got something you can give your kids, then you’ve got a business.
Those of you out there that are running a business that relies on you and your job. Maybe a high paying job which is right for you, but you don’t have an asset that can be sold or something sustainable if you get injured, die, you lose interest and a need for a vacation, then your income starts at that point which is unsustainable. We need to build a sustainable business and start taking steps to get to that point. If you need help, we are happy to help you contact us at +1 919-466-9322 or email me at [email protected] All of you need to do some thinking when you have a business that relies on you. What do I need to do to get this thing where it runs on autopilot?
Thanks, guys, everybody has a great day!