The most accomplished home improvement contractors measure success each year and adjust their company’s plans and goals. However, many contractors are so caught up in day-to-day work that they don’t have time to focus on improving the business. This can cause a major problem for the long-term health of your home improvement company. Let’s look at how you can measure the success of your business to promote growth and prepare for the future.
Key Factors that Help Contractors Measure Success
Did you know that half of all contracting companies fail before reaching five years in business? In fact, there’s many key factors that can lead down this path.
For example, a few of the most common reasons why a contractor goes out of business include:
Each of these issues can affect one another and lead to a downward spiral. Yet, you can solve them by making improvements to your business operations that give you a clear picture of your company’s health. If you can’t identify a problem that is costing you time or money, then you’ll never be able to fix it.
That’s why it’s so important to have data that supports your goals and outlook. And furthermore, you need to know how to interpret this data before adjusting your goals or implementing change.
“Successful contracting companies have specific systems for measuring their daily, weekly, monthly, and yearly performance in critical areas,” said Gary Cohen, VP of the Certified Contractors Network, during his Contractor Development Series. “Mediocrity is not acceptable. Being the same as last year is not acceptable to successful companies.”
You need to understand and analyze your entire operations. How much money are you spending on marketing and what initiatives are in place? What are the close rates of your sales reps and which products are selling the best? In what areas can you capitalize and others where you can cut costs?
This must be an active conversation to ensure you make the right adjustments. The best contractors measure success by having specific systems in place that help run their business in sales management, marketing, production, operations, financial management, and so forth.
“Successful contracting companies all have a culture of continuous improvement,” Gary Cohen added during the webinar. “You don’t want to wait too long to start seeing your progress and results because you can always make adjustments and fine tune in order to improve your performance.”
Organize and Analyze Data with New Sales Software
Sales software is the latest trend within the home improvement industry that’s changing the way contractors do business. It helps to eliminate common paper errors, prevent underselling jobs, make training easier, and organize data for your entire sales operation.
You can now plug customers directly into the software and access job information in one place. This includes product information, pricing packages, inspections, estimates, contracts, financing, and all communications. This data syncs throughout the software for you to access at any time.
Better yet, you can interpret this data to make adjustments on the go. For instance, price control features allow you to change pricing based on factors such as supply and demand, inflation, and more. You can take control of pricing to prevent a sales rep from underselling a job or selling a product that is outdated or no longer available.
Your sales process can now evolve with the market. It makes it much easier for contractors to measure success. Every job from the past, present, and future is stored within the software to help you better understand the journey of each customer.
Which sales reps are closing the most jobs? Which products or pricing packages are more popular than others? How often is your office staff following up with customers? Everything you need is right at your fingertips to help you make calculated decisions that help the business move forward.
Moving Forward in the Home Improvement Industry
Home improvement contractors measure success in many different ways. But one thing is clear; the industry waits for no one. It’s critical that you update your systems and processes to promote business stability and stay ahead of your competition.
Leap’s point-of-sale software will bring balance to your sales efforts and give you the data to improve your operations. Your sales reps will save time in the field and provide a more professional experience for homeowners. Leap also partners with industry leaders that provide measurement tools, aerial imaging, 3D mapping, financing, manufacturing, and more.
To learn more about Leap, fill out the simple form below. You can schedule a 15-minute demo with our experts to gain a better understanding of how Leap can help your company thrive in today’s market.