What comes to mind when you hear the words "gut punch"? According to the Cambridge Dictionary, a "gut punch" is defined as a hard hit to the stomach, something that shocks and upsets you deeply. If you're running a business, especially in the trades, you've likely felt this at some point.
We often hear about the processes we need to implement to make our businesses run smoother. What we don’t often talk about are the gut punches that occur along the way.
Let’s dive into some gut punches we can all relate to and figure out how to overcome them.
Gut Punch 1: Cash Flow Crunch
Have you ever been in a cash flow pinch? What a rollercoaster ride that can be! Seasonality is a constant in our industry, and there’s no changing that. However, how we financially plan for the entire year can make all the difference.
- Save Aggressively: Put 10% or more of every deposit into a savings account. It adds up quickly and can provide a cushion during slow periods.
- Build Relationships: Partner with vendors and banks that want to see you grow. They can offer resources like favorable payment terms, lines of credit, and savings accounts that earn interest.
- Prioritize Payroll: Your team is essential to your success. High performers won’t work for free, and making payroll your top priority ensures you keep the talent you need to grow.
Gut Punch 2: Losing a Top Performer
Have you ever felt like your business was running better than ever, only to have your top performer quit suddenly? It’s a blow that can make you question everything.
- Always Recruit: Don’t wait until you’re short-staffed. Continuously keep an eye out for talent, even if they’re inexperienced. Train them now so they’re ready when you need them.
- Ongoing Training: Regular training keeps your team prepared for the challenges they face daily. It may feel like there’s never enough time, but training should never be put on the back burner.
- Referral Program: Implement an employee referral program. Your team knows what it takes to succeed, and they’re likely connected to people who would be great additions.
Gut Punch 3: New Competitor in Town
Just when you feel like you’re gaining traction, a new competitor enters your market. It’s easy to panic, but this is where focus matters.
- Stay Consistent: Consistency is your best weapon. While competitors might lack it, you can stand out by being reliable and consistent in your services.
- Avoid Retaliation: Don’t waste energy getting mad or trying to mimic competitors. Stick to your strategy. Customers appreciate professionalism, and giving competitors too much attention can backfire.
- Focus on Strengths: Worrying about competition can distract you from what you do best. Keep delivering great service, and your growth will continue.
Gut Punch 4: Upset Customers Despite Your Best Efforts
Ever felt like you’re going above and beyond for your customers, only to have some still call in upset?
- Set Realistic Expectations: Honesty is key. Customers choose you for a reason, so be clear about arrival times, parts availability, and installation schedules.
- Strategic Solutions: When a customer is upset, ask yourself, “What is best for the customer? What is best for the team? What is best for the company?” This approach will often lead to the right solution.
- Tailored Communication: Match your communication style to the customer’s preference—email for emails, texts for texts. This can improve response rates and satisfaction.
Gut Punch 5: Wearing Too Many Hats
Do you ever feel like you’re wearing all the hats and can’t seem to get everything done in the 24 hours you’re granted each day?
- Join a Best Practice Group: You’re not alone. Networking with others in similar situations can provide invaluable support and insights.
- Sales First: Your business doesn’t exist without sales. Prioritize generating revenue before tackling other tasks.
- Pace Yourself: Remember, this is a long game. It’s easy to get overwhelmed but take it one day at a time and plan carefully. Rome wasn’t built in a day, and neither is a successful business.
If you’ve answered “yes” to any of these gut punches, know that you’re not alone. Whether it’s a late payment, losing a top performer, facing new competition, dealing with upset customers, or feeling overwhelmed, your business isn’t doomed. Take a deep breath, focus, and keep pushing forward.