By Chad Reinholz
In his book, The Making of the Atomic Bomb, Richard Rhodes explains in great detail how the contributions of scientists working to make the atomic bomb in World War II only happened because of the scientific discoveries of others much earlier in the 20th century - and even the 19th century. Like most scientific developments, it can take years of research to perfect a new way of doing something, and that research is conducted by numerous scientists working on what are sometimes disparate projects. It’s the source of the term “standing on the shoulders of giants.”
If you plan to start a new green industry business, you likewise need to talk to those that came before you. Networking with experienced green industry business owners can help you avoid the mistakes that they made early in their business ownership and be profitable faster.
Luckily for you, we just completed a report based on a survey of hundreds of green industry business owners, and one of the questions we asked was “What advice would you have for a new green industry business owner?” Here are five of our favorite responses:
1. Understand what your strengths are, look for people to help with your weak spots, have a vision for your company and set goals to that vision.
One of the most important things you can do initially in your business is analyze what your strengths and weaknesses are. If you are a great salesman, but are terrible at managing people, find someone to manage your business while you sell. If you are great at crunching numbers, but can’t relate to people, find someone who can.
Then, create a vision for your company. What do you want to do? Who is your audience? What differentiates you? Why should someone hire you?
Finally set some goals. We like to start with a big, hairy, audacious 10-year goal. Where do you want to be in 10 years? Then work backward to set three year and one year goals.
2. Give quality. Know your numbers and price accordingly. Don't be afraid to say "NO!" Follow up. Hold employees accountable.
More great advice here. The first thing to focus on is quality. Then, know your numbers. Ultimately, running a business is a numbers game. Know how much it costs to deliver your service.
But the best advice here may be don’t be afraid to say no. I’ve run into a lot of new businesses that learn this lesson the hard way. They are so eager to generate revenue, that they take jobs that they know, deep down, are not going to end well. I know it can be hard sometimes, but if saying no is best for your business, you need to do it.
I’m shocked every time we have to call green industry businesses by just how infrequently they answer the phone. If you answer the phone every time someone calls, you’ll be better than 95% of your competition and you’ll get business as a result. The same holds for following up - underpromise and overdeliver.
The last part is vitally important, as well. You need to hold your employees accountable. We deliver work order software that helps businesses track productive and non-productive time so you can hold your employees accountable. Give them goals and numbers to meet and then step back and empower them to meet them.
3. Put systems in place in the way you operate your business to make it easier to delegate. Write down procedures, make check lists.
I remember when I first started a new job a long time ago with a company that was ISO certified. It was overwhelming at first because of all the paperwork and process documentation they had. But, before long, I realized that the level of effort they put into documentating every process had helped me get up to speed faster, led to a high-quality product, and was a key competitive differentiator.
So the first thing you need to do is put systems in place and document those systems. It makes it easier to train and helps you deliver a consistent product. I’m biased, but I recommend installing field service software to help systematize your business. It creates an electronic process that eliminates the paperwork, but still enforces process consistency.
4. Know your costs, know your production times, know who you are good at serving, and what mix of products and services you can deliver consistently. Then figure out how to reduce the back end costs, and then market the hell out of it.
I admit it - I’m a data nerd. So knowing your costs and production times seem obvious to me.
But just as important is knowing who you are good at servicing and what products and services you can deliver consistently. Costs and production times are only part of the equation; having a sound marketing strategy based on your strengths is just as important.
5. GET A REAL JOB, SAVE YOURSELF BEFORE IT IS TOO LATE!!!!!!!!
You’d be surprised at how often this response - or a variation of it - occurred in the Green Industry Benchmark Report. But it makes a good point - if you aren’t totally committed to owning and running a green industry business, you are not going to have fun. The hours are long, the competition is stiff and if you aren’t ready for it, it could overwhelm you. So make sure you are ready before jumping in.
If you are starting a green industry business, then be sure to download our 2014 Green Industry Benchmark Report for an overview of what to expect in your business.
