In my conversations with business owners, there are issues and problems that seem to arise over and over again. They’re the same problems most owners deal with, the same ones I deal with. We found this article by Roberta Matuson to be very practical and helpful - 7 common mistakes business owners make and how to avoid them. I’m all about avoidance when it comes to mistakes! Take a look and let us know what you think. Do you have any other tips to add to the list?

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I've been in business for over 20 years and have seen my share of mistakes made by business owners — many that certainly could have been avoided. Here’s my list of common mistakes business owners make, along with advice on how to avoid following suit.

1. Failure to hire for fit.
Think about a job that you worked in that didn’t work out. Was it because you didn’t have the skills to do the job, or was it because your values did not align with the organization’s?

I’m betting it was most likely ...

80% of new businesses fail every year. 

While that number seems staggering, it’s not all that surprising. Owners get on the hamster wheel of being a technician and working in the business 24/7 instead of on the business and before long they are burnt out and have no money to show for it.

I have been there; I get it. Thankfully there is a better way.

Today’s book recommendation is a good one for this topic. The Pumpkin Plan by Mike Michalowicz walks you through a different way to look at and run your business by comparing it to the process pumpkin farmers use to grow the biggest pumpkins year after year.

While there is a tonne of incredible information, there are 3 things that really stood out to me:

1. The way he recommends asking for referrals. Instead of asking clients for referrals, Mike recommends that you ask them for the name of contractors that they are working with and that you build relationships with those people because they probably have a hundred clients they can recom...

If your staff are not making a living wage all winter long, chances are they will be looking for employment elsewhere. This can be challenging during winter months when you are reliant on snow events to provide them with hours. You’re going to need to get creative.

Can you work on a banked hours system through the summer? They wouldn’t make overtime but the banked hours could top up their pay throughout the winter months.

What about the SUB program we've chatted about previously? Look into it and see if your staff are eligible for it. You can read more about it HERE.

Can you set up an on-call schedule in advance (like some of our clients do) so that your staff know in advance when it’s their turn to watch the weather as opposed to being on-call all season long?

What about offering them new or late model equipment, training, regular communication and employee events during the winter to maintain culture? Whatever you do in the summertime for your staff - bbq’s, weekly staff meetings...

Have you asked your clients how they prefer to be contacted? Phone? Email? Text?

Choosing to communicate with your clients in the way that they prefer may seem like a simple thing, but it’s a simple thing that shows clients you are truly listening to what they are saying to you. 

If you are using their preferred method of contact, are you communicating well with that format?

Communicating well means being proactive in your communication about their project. Is it going to take longer than expected? Will a rain day or scheduling glitch mean a delay before you're back on their site? Communicate this information with them as soon as you know instead of waiting for them to ask.

Proactive communication builds confidence and trust. People who trust their contractors are more likely to them to their friends and family. It’s the simple things, like texting (if they prefer a text), that can make a huge difference.

Once you have great communication you can use things like a CRM, social medi...

Are you asking for customer feedback after every job? Not some jobs, but all of them?  

Gathering feedback from every client provides you with insight that will help your company understand your customers wants, needs and the necessary information to help you stay relevant in your industry. Surveys are important tools for improving your business and ensuring your customers send you referrals.

Over the years I’ve found customer surveys to be one of the most consistent and effective ways for receiving customer feedback. You can get great insight with only three questions: 

1. How likely are you to recommend us to a friend or colleague?
2. What’s the biggest factor in your answer?
3. What can we improve on?

There are a lot of platforms available for surveys, but two that I have found to be easy to use and cost effective are:

Survey Monkey

Survey Sparrow 

Customer feedback is one of the best tools we have - take advantage of it!

When we started working with Ryan at Mountview Landscaping, I asked him if he had a budget that they work from and review on a monthly basis, and was pleasantly surprised to hear his answer was yes. You may remember that we interviewed him last year about what they track, why they track it and the difference it has made in how the business is doing overall, as well as the impact it has made for him personally.

All of his insight was compiled into two blog posts and we felt it was worth revisiting. Check out part one below.

Grant: What do you currently measure on a weekly, monthly and annual basis and why?

Ryan: During the winter we track maintenance hours for snow, additional job hours from snow events, salt and ice melt product use on a weekly basis. This translates to lawn maintenance contracts during the summer season.  

We have people on a fixed schedule for snow with staff on duty 24/7. From a business point of view it just makes sense for us. We have people monitoring sites e...

Want to eliminate a lot of stress? Invoice and review A/R & A/P reports on a weekly basis with your team. Too often I speak with owners who have completed a lot of work but haven’t invoiced or collected on those projects and find themselves in a cash flow crunch.

If you review the following items weekly you will always have a clear understanding of where you sit financially. Waiting too long to invoice, or to follow-up on outstanding invoices can often result in the final payment never being collected, since many owners feel awkward trying to collect on a job that’s been completed for a long time. 

Weekly Accounts Payable/ Receivable Checklist:

• Create invoices for work completed in the last 7 days
• Create files for work to completed next week 
• Track incoming receipts per job 
• Follow up on outstanding invoices from the last couple of weeks
• Review incoming payables
• What needs to be paid this week
• What gets paid at the end of the month

Do you avoid reviewing AP and AR...

Successful businesses don't happen by accident. Business growth requires strategic planning and a commitment to work on your business and not just in your business. There are 5 important reasons why your business isn't reaching its full potential, despite all your time, energy and hard work. 

Mistake #1 - NOT SHARING YOUR LEADERSHIP ROLE

Are you trying to do everything yourself? We encourage you to start by looking at your own leadership role in your business. Have you identified what kind of leader you are? Is your leadership style serving your team well so that your business can grow and operate without you?

Mistake #2 - NOT LISTENING TO YOUR CUSTOMERS

Do you understand your customers?

You wouldn't have a business without your customers but at the end of the day, do you understand their behaviour? You have the power to create loyal ambassadors to your company by giving your customers a great experience and managing their expectations.

Mistake #3 - NOT INVESTING IN YOUR STAFF

A...

A-Players. Every employer is asking for them, but what are you doing to attract them? 

There are certain things that A-players are looking for from prospective employers.

8 Things A-Players Want:

1. To work with other A-Players. Are you willing to make a position available if an A-Player applies for a job at your company?
2. Accountability. Does your company have accountability and measurement tools to make the company better? 
3. To know what the long term goals are for the company. Are you sure of your long term goals? Have you shared that with your staff?
4. To not be part of a stagnant company. Are you evolving and changing? 
5. The opportunity to grow within the company. What are you doing with your current staff to nurture them in their personal and professional lives?
6. To not hear phrases like "that's the way we have always done it."
7. Financial transparency. Business is a game, what are you doing to keep score with your team? 
8. Owners who are developing themselves. As a leader in your...

If you have been following us for a while, you know I listen to Andy Stanley’s podcast. If you don’t already follow his podcasts, I highly recommend them. 

Last year Andy interviewed Donald Miller and they chatted about effective communication and the role it plays with your team. “People will not move into confusion, but they will follow clarity.” How timely is that quote based on what’s happening right now?

My takeaways from this episode are the five questions to ask yourself when you’re planning your weekly meeting:

1. What do your teams need to know? Pick one point and build your meeting around that central idea.
2. Why do they need to know it? Answering why keeps them listening. Let them know what’s at stake.
3. What do they need to do? Be specific.
4. Why do they need to do it? Help them understand why they should do what you have suggested and what is at stake if they don’t follow through. 
5. How can you help them remember?

You can listen to the podcast HERE.

Do you already ...