When one fabricates an idea in their mind to create a company and they have the passion and drive to build something great that is beyond just a job for themselves, it can become a true story of inspiration. This applies to any kind of business, and especially for home service oriented companies. Where an owner realizes the potential of what he can do with a new business by understanding the concepts of marketing in a unique manner and combining it with quality work and great customer service, it is a recipe for endless success. Despite what some proprietors may say about earning potential, this article states it is basically unlimited.
Current Status of Most HVAC Service Companies
The mantra of starting a company to become an owner and operator that perpetually is the guy spinning wrenches needs to come to a close. Usually the reasons behind staying at this level make no logical sense and stem from egotistical thoughts – they say:
- “Oh, customers want the owner on site”
- “No one can do this job better than me!”
The list goes on forever. These excuses are all false, and they are simply that, an excuse to look beyond solving the actual problem and usually this person will drown their sorrows in alcohol each evening to mask the problem. The real problem is that these company owners are not seeing the full potential of their business because they have tunnel vision that is hyper focused on these excuses.
Unlocking The Full Earning Potential With A Plan
Once the fog has been wiped off the lens of the an owner who realizes their dream can be manifested, the next step is the work to make it happen.
A testimonial of proof with these actions in play comes from a contractor that offers air conditioning repair, they wrote out their plan, and by plan it refers to basic calculations for goals they want to achieve. This does not involved a sixty page powerpoint presentation that most would assume a business plan entails. It involves taking a couple hours and figuring out what you want in life, long term financial security is usually at the top of every business owner’s list. Then writing it down and placing the numbers in a spreadsheet and working backwards from the top to see how much must be earned daily to make it happen.
Start with the massive goal, let’s say $3M liquid cash accumulated through earnings with the business and then the eventual sale of the business. Then you simply work backwards. If you are able to sell your business after 7 years of ownership by putting together the proper management protocol for growth, let’s say you are able to sell it outright and clear $2.5M after any debts the business may have is paid off. This means you’d additionally need $500,000 that was earned post tax through the business over those 7 years. For the first 2 years you don’t take a salary and work nonstop. This means at year 3-7 you’d need to take in $100k post tax and stash away while continuing your growth.
Work how the rest of the world (the 99%’ers) won’t, and then after 5-7 years of that you will have the ability to live how those 99%’ers never will and could only dream about. That is where the old saying of “entrepreneurs are willing to work 80 hours a week to avoid working 40 hours per week” comes into play, however this statement is only true when the right series of actions are taken upon by working diligently to delegate and scale. The part of “avoid working 40 hours per week” comes when that entrepreneur has millions in cash after those years of grinding and has those millions invested into low risk investments and earning him 5%-10% yearly without more than a couple hours per week of managing his time. Allowing him to choose how he wants to spend his time – he could sit on the beach, travel or start another company, perhaps an online education company of how he executed the exact methodology of how he arrived at his current financial position.