You are fighting a battle every day in business – a battle against mediocrity – a battle against your competition to bring more value to your customers than any one else can.
In episode 5 – Work Yourself Out of a Job, I talk about the need to get a crystal clear picture of your expenses and revenue which I elaborate on in episode 6 that includes an easy to use worksheet for helping get a handle on your business finances. I also talk about developing and implementing procedures in your business – a set of guidelines that instruct your business how to function day to day. In this episode, I elaborate on why that’s important and give some examples of other businesses that do this successfully.
- Shoot – Make sure every single employee knows exactly how to do their job and what is expected of them. Your business machine can’t run with broken parts and if your employees don’t know what to do and meet expectations, it will break your machine.
- Communicate – Establish and make clear the communication channels in your business. Technicians should know when and how they’re expected to communicate with customers, dispatchers, sales, and ultimately you as the owner if needed.
- Move on Out – This is where the big money in HVAC is – it’s in continuing the mission (Charlie Mike). You need a good process that’s repeatable that brings maximum value to your clients. Then, you repeat it until you’re ready to retire on the beach.
The tactic this episode is a repeat and extension of the last episode because it’s so important – get to work on getting out of debt.
The Dave Ramsey Baby Steps to getting and staying out of debt:
- Save $1,000 for emergencies ONLY. (Not Zoomlock, Not Vacation but broken down cars and such.)
- Pay Off Debt – Use the “debt snowball” technique to get laser focused on eliminating your debt – list your debt in order of smallest to largest and throw every penny of extra cash at the first one on the list until it’s vaporized. Pay it off and close that account. Then, repeat until they’re all gone except your mortgage which is excluded from this step.
- Increase your Emergency Fund to 3-6 months worth of your expenses – 3 months if there is little to no risk of you losing your income, 6 months if your income is more unsure. This emergency fund prevents you from going back into debt in the event you lose your job or otherwise your income for a period of time.
- Invest 15% of your income in retirement. We’re living longer and longer these days and the costs aren’t going down.
- Save for College or other Education for your Children. This helps them get on the right track for living debt free. It’s also perfectly good for them to work AND attend school. I did it and highly recommend it.
- Pay off your Mortgage.
- Build Wealth and GIVE.
The Course I mentioned: Dave Ramsey Financial Peace University
The Book I mentioned:
Keep Climbing folks!