Running a business is a costly experience. There’s no doubt about that. But does it have to be an experience that leaves you feeling like you’ve put every dollar you’ve earned right back into the business so it will stay afloat? The answer is no, it doesn’t. You might be asking yourself how that could be possible after such a bust in the housing market a few years ago – and you’re right to do so. Instead of wondering how it could be possible to run your business without putting your hard earned money back into the businesses bank account, ask yourself where you’re losing money.
Why is it that there are broken, mismatched cabinets in the back of the showroom? How many times have you had to delay the start of a project because the quoting was off? How many times has someone walked out of your business and not bought because the process was backwards? If you’ve answered any of these questions with anything other than “none,” your business is costing you money instead of making you money.
The Cabinet Graveyard
The place where the leftovers and wrong orders go to die, the cabinet graveyard is that dark corner in your warehouse that houses all of the mistakes your business has made. A little sad to think about isn’t it? While it may have seemed to grow overnight, each mistake made is one that is going to cost you money. And even though it only cost you money that one time, if it happens often the graveyard can become a regular place that dollars are disappearing to each month. Imagine what the bank account could look like if you could keep cabinets out of the graveyard.
Delay in Quoting
Another expense to the company that has a huge effect on customer satisfaction is the quoting process. You’ve got them ready to buy but it takes you two weeks (yikes) to figure out how to quote it properly. In this situation, you are losing money for every extra hour spent in the quoting process. There is no need to bog salespeople down with quoting for days when you can automate the process and get it done in a fraction of the time. Think about the money you could be adding to your business if you could give your salespeople more time to sell, and have them spend less time in the office.
Ever look at your project notes and think “What the heck am I doing for these people again?” Yeah, we know you have. Potential customers can sense your distress when they walk into the showroom, even before they talk to you. It’s important for the team to have organization in place and processes that will keep them on schedule so that they can handle the new business that comes in. Every time you lose a potential customer because they feel like your business is a little too chaotic for them, you should count the dollars that your business is missing out on.
Everyone has put their heart and soul into their kitchen and bath remodeling business. It’s impossible to say that any owner hasn’t. Unfortunately, it’s hard to see owners pour all of their money back into the business just to keep it from falling under. Take a good look at what is costing your business big money and start to look for ways to fix those areas.