For many small home service company owners, being able to compete in their markets is tough enough, but if they aren’t applying practical industry knowledge, they are likely to miss surefire ways to grow their businesses. Too many small business owners are focused on the minutia of their daily work when they should be taking a high-level view of their companies. Focusing on personality will help you make better recruiting selections, and having a solid understanding of your finances will help you create realistic budgets.

Being a great leader doesn’t come easy to everyone, but it’s a trait that home service company owners need to learn if they want to scale their business. And they can’t do it alone. They need to surround themselves with good people who want to get to the same place.

This requires owners to invest in and develop their teams so that they’re able to work on the business instead of in the business.

Here are three things home service business owners need to consider if they want to reach the next level:

A Good Marketing Plan

Most home service business owners became owners because they knew the industry. They either worked as techs or were drawn into the industry through familial ties. Either way, they most likely have not done a great deal of marketing.

That’s why it’s important to hire a reputable marketing agency that understands the home service industry. The competition in the home service industry has become stiff. If you’re trying to stand out from your competition, you need to gain greater visibility in your community.

A professional marketing team can help you understand your market, target the right customers and offer the most attractive promotions. They can also assist you in developing a plan to help you get the most bang for your buck.

Your plan should also include ideas to help you remain in front of a potential customer in a variety of mediums, including online, in local media outlets, on social media and in person.

One of the best ways to stand out from your peers is to film videos. Video consumption online continues to increase. In 2023, people watched an average of 17 hours of online videos a week, according to HubSpot, a digital marketing, sales and customer service software company. Spotlighting your company through a series of video tutorials or even simply showcasing your team helps you stand out from the racket of online noise.

You should also be visible in your community. Marketing isn’t just getting your name in front of people or advertising on the local radio station, you also need some public relations to help your brand break through. Volunteering at area charities or becoming a board member of a local nonprofit organization helps you stay in touch with your service area and builds your reputation within your community.

A well-executed marketing plan helps your home service company expand its customer base, which you need to do in order to grow. Don’t leave your marketing up to chance. Ensure you develop and execute a plan to improve your company’s brand awareness throughout the year.

Customer Satisfaction

Happy customers not only do more business with you; they also refer you to their friends and family. Building a loyal customer base relies heavily on how well you provide a positive customer experience.

Your team may be able to repair a malfunctioning heating system or replace an old pipe, but that’s not what necessarily brings customers back to your company when they need more work. Customers return when they feel they have been treated fairly and were kept informed before, during and after the service call.

Your home service company’s culture also has a lot to do with how well customers rate their experiences. If your team shows up in clean uniforms, presents a pleasing demeanor and provides transparent information, the customer is more likely to have an extraordinary experience.

While smaller home service companies may not have the capital to invest in every new shiny object, maintaining a positive company culture doesn’t really cost you anything. And, if you consider training your staff, crisp uniforms and presentable trucks as investments in your company, you will simply recognize these items as the cost of doing good business.

For example, many home service companies feel they have to hire the most experienced techs. But those techs may already be set in their ways and won’t always buy into your company’s culture. Sometimes, the better decision is to hire a less experienced employee who exhibits personality traits that mesh with your company’s culture and then train them on the technical aspects of the job. 

A positive company culture carries over to your customers and helps you retain and gain business. For example, if you ensure that your frontline employees have the training and tools they need to do their job, you are better able to earn repeat business, earn great online reviews and attain more client involvement through club memberships or maintenance agreements. 

Finally, make personalization a priority. Get to know your customers and determine the services you can best provide to meet their needs.

Know Your Numbers

The best way smaller home service company owners can compete with their more prominent rivals is to understand their budgets and how they can get the most out of them.

As a plumber or tech, you may not automatically know what a profit and loss statement is or how to make sense of your cash flow statements, but it’s something you need to learn if you’re going to run your own business. Having basic financial literacy is imperative if you want to stay in business.

A good budget needs to provide a balanced approach to cash flow and expenditures. Understanding your company’s key performance indicators also helps you make informed decisions. By tracking revenue, the number of converted calls, the number of new or repeat customers and your employee retention rate, you can develop a budget that will sustain you during both lean and prosperous times.

An accurate budget is the lifeblood of a successful business. It helps you know when to buy equipment, when to hire personnel, when to purchase new trucks and when to scale back on spending.

It can also help if you have a mentor. You want someone who has been successful in business but who also understands what you’re dealing with so they can offer relevant advice. You should also make time to stay in tune with industry trends. Smart business owners take the time to educate themselves by reading or listening to relevant podcasts.

You can’t make decisions based on what you think you know. You need to make decisions based on what your budget and P&L and cash flow statements say are true.

When all is said and done, the most positive attribute of successful home business owners is consistency. The best way to remain consistent is to put the right processes in place. Repeatable and documented processes help you develop the right marketing plan, the correct budget and put the right people in place to improve the customer experience. 

As a director of advisement for CEO Warrior, Jason Noel implements sales and turnover processes, optimizing employee motivation, and executing successful business plans. Before coming to CEO Warrior, Noel worked as the general manager of American Residential Services and One Hour Heating, Benjamin Franklin Plumbing and Mister Sparky and the director of plumbing operations at Mister Quik Home Services.