The Art of Scaling a Service Business

Discussion in 'Lets talk Business!' started by Ivan Turner, Aug 6, 2017.

By Ivan Turner on Aug 6, 2017 at 8:11 PM
  1. Ivan Turner
    Ivan Turner

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    The post started by Mike titled - According to Ray Crock.., hamburger joints sure, But carpet cleaning?

    This got me to thinking that more could be shared. Mark and Chavez both gave excellent advice about scaling to a second truck as well as great advise from others.

    Here is my perspective - to scale any business is a difficult undertaking. To successfully scale you must have an intimate understanding of the 3 fundamental systems that are prerequisites of scaling.

    Lead Generation
    Lead Conversion
    Client Fulfillment

    Each of these three key factors must be understood, then comes the mastering of each followed by the systemization of each category. At first glance, Lead generation would appear to be the most important category to Master. The truth is that Client Fulfillment is the most important category and should be the first to be Mastered followed by systemization. The client fulfillment system will include dozens or more processes within the system that allow your business to deliver a "Knock your sock off" customer services experience that is unparalleled by others. It is this set of processes that will serve as the foundation for your lead generation and lead conversion systems.

    A well thought out and successfully tested system will allow any service business owner the opportunity to position themselves as opposed to being positioned by others and in business positioning is everything.

    For example - while many won't admit it as the truth, Stanley Steemer has been highly successful at positioning others to base their pricing structure at 3 rooms for $99.00. While we all know that Stanley never leaves a home with just $99, their secret, or I should say system is that they have mastered lead conversion, whereby taking the initial 3 rooms for $99.00 and parlaying or converting it into a $1,000 - $2,000 per day per truck model. For the independent that has been positioned at 3 rooms for $99.00 and lacks a Client fulfillment system and lead conversion system, scaling the business becomes an almost insurmountable mountain to climb, due to the lack of financial resources.

    Everyday I hear or read of business owners from about every type of business space talking about The E-Myth and their understanding of the importance of having systems for their business. Yet, few will take the time and devote the hard work that is required in systemizing their business following Michael Gerber's teachings.

    I have had the pleasure of serving along with a few others as a Director of the Michael Gerber Elite Team, which has the sole purpose of locating men and women from every type of business sector who have taken systemizing to the highest possible level and scaled their respective businesses beyond measure that have an interest in co-authoring a book with Michael.

    I only make reference to this because each and everyone that I have brought into conference with Michael has been fanatical about systems!

    For the sake of brevity and to appease the Alabama Sow, I will close with this;

    If you are wanting scale your business to 2 trucks, or to a fleet of 20, reach out to Chavez, Tom King, Mark, Howard Partridge and countless others in here who have already been there and done that. Hop a plane if you must and visit their operations to see first hand how their systems work.

    Ivan

Comments

Discussion in 'Lets talk Business!' started by Ivan Turner, Aug 6, 2017.

    1. Desk Jockey
      Desk Jockey

      Steve Rogers

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      Very well written Ivan.

      You must have had a Kansas education. I'm sure that isn't any Misery Edumacation. :winky:

      You give us far too much credit. We gained our knowledge from industry experts. Either through training classes or as consultants.

      Education is alway worth the price of admission. :cool:
      Ivan Turner likes this.
    2. Chris A
      Chris A

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      Great post!
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    3. dealtimeman
      dealtimeman

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      I agree, with all Ivan has said and it ain't easy.
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    4. Chris A
      Chris A

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      I am smack in the middle of the 2-3 truck transition. I have one guy who I trust, but haven't been able to find that second really good tech to take over my route. So what we do now is each work 50+ hour weeks, and one of us works every Saturday. I take most of the larger carpet/upholstery jobs and Jr takes most of the 3-5 roomers. I used to think this is where I wanted to be in this business but I have quickly realized that this needs to just be a stepping stone or else I'm gonna burn out quick. I'm constantly on the lookout for the next great tech prospect.
    5. Desk Jockey
      Desk Jockey

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      You're in a good spot Chris. My concern would be that not only will you burn yourself out but even worse would be to burn out your help.

      Maybe a college kid could be the answer. They can be hard workers with above average intelligence that may be able to help you for several years as they get through school.

      Often they have short schedules on Tuesday & Thursday where they can work half the day. Might be worth checking out.
      Old Coastie likes this.
    6. Chris A
      Chris A

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      Yeah I've given some thought to part time, I haven't had much luck with it in the past but also never paid well either. In another week or two jrs hours should drop back closer to 40, he can handle it for now and he's making really good money but I wouldn't ask him to do it all the time
      Desk Jockey likes this.
    7. hogjowl
      hogjowl

      @

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      I'm the exact opposite
      Jr takes the whole house jobs and I take the 2 roomers
      Unless I'm napping
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    8. Russ T.
      Russ T.

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      Excellent post Ivan.

      I've only just recently bought a 2nd van and hired a guy who didn't stick around very long.

      Looking forward to reading more comments.
      Lee Stockwell likes this.
    9. hogjowl
      hogjowl

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      More comments
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    10. Nomad74
      Nomad74

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      Well, thanks a lot for not tagging me in this everyone!
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    11. Russ T.
      Russ T.

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      Never disappoints!
    12. darcie smith
      darcie smith

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      We had a good, solid tech on our second truck, worked with us almost a year, and then had to leave to take care of sick parents :( Finding a replacement has been maddening, but if he works out, we have a really good prospect doing a ride-along this Wednesday. Luckily, the guy who left worked out his schedule and we only had to move one appointment to a time when Scott could get to it. I'm praying for the new guy to work out so Scott can take a day off now and then.
    13. Mikey P
      Mikey P

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      Darcie, who's decision is it to have him work 7 days a week?

      I never set up either location with that as the goal so Im curious as to the thought process....
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    14. Desk Jockey
      Desk Jockey

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      We hired 2 really good ones this month but we are still down 2. To make matters worse we have a 3 story warehouse fire we are working. Once we get the drying complete there we have to start cleaning and we will need dozens of people there.

      Its always a struggle one way or another in this business. :winky:
      darcie smith likes this.
    15. darcie smith
      darcie smith

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      His. He can't sit still so he figures he might as well make money. I'm working on him making more time for other things, but it's a process. A good employee on the second truck will change this, it's just a matter of finding him/her.
    16. Mikey P
      Mikey P

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      As regular service providers, how many men have we seen die of boredom soon after they retire?


      Scott needs some hobbies and passion that don't involve cleaning.
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    17. darcie smith
      darcie smith

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      He has some. He's the guy who tries to do it all. We're going kayaking next Sunday. I am working on getting him to slow down, believe me.
    18. Desk Jockey
      Desk Jockey

      Steve Rogers

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      Let him work but plan for couples time weekly too. Dinner, movie, antique shopping. Some quality together time. Just book it like a carpet job. :biggrin:
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    19. darcie smith
      darcie smith

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      I do. Like I said, he was doing great til we lost the other guy. We went to see the Dark Tower night before last because it was storming and he had windows scheduled in the evening. Very disappointed in the movie, but was nice to spend time together
      Desk Jockey likes this.

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