How Remodeling “Big Dogs” Earn More and Spend Less (part II)
In part one of this two part series, we discussed why some remodelers earn more and spend less, and others do not. Today we’ll discuss how the “Big Dogs” do it.
Every remodeling company wants to eliminate steps that add no value to the business or may even cost you money, which eats into your bottom line. So, let’s look at how business process improvement can take your home improvement company to the next level.
Identify, Implement and Follow-up
Identify all the lead management activities where improvements can be made. Implement new processes to reduce waste, redundancy, repetitive and manual steps. And follow-up to make sure that everyone is using your new best practices.
Once everyone knows what they should be doing, they pick up the slack when their MVP is missing in action. Marketing handles every lead the same way. Sales works every prospect the same way. Production coordinates every job the same way.
Write it down
It’s crucial that it is all documented in some way. You could use something as simple as a Word doc or Excel spreadsheet. There is also technology available that requires your team to follow the best practices when it comes to lead management and automates many of the steps – like confirmation e-mails, call reminders, and appointment scheduling.
But however you handle your process improvement, it needs to be standardized and in written form. Here’s an example of how you’d write out your instructions for the people who manage leads:
- Each lead will be entered into a single, secure database that everyone has access to and all updates to every lead will be made there
- All leads will be sent a confirmation e-mail when agreeing to an appointment
- Every sales rep will call a homeowner to confirm the appointment the day before
- After every appointment, every lead gets a quote e-mailed directly within 24 hours
The end goal of improving your processes is performance – which means you are managing the performance of your business by using all your assets in ways that achieve a value-added set of goals and objectives.
If this seems too complicated, don’t let it overwhelm. Start with one section of your business and measure the results. Look at your lead management process, or how your sales team operates, or all of your project management procedures.
See how improvements can be made, set up a new documented process that makes your team more effective, and then set it in motion.
Then you manage, measure, and improve again. Finally, take advantage of technology to automate as much as possible for even greater efficiency and effectiveness.
Keep this in mind, nearly every company that has documented processes and policies in place can more easily be passed on to a family member, sold, or managed during an extended absence.