Operational Processes
Home service businesses are not charities, right? You are in this business to make a profit. The problem is that if you are not aware of where your money is going, those profits can leak away so easily.
Operational processes are a particularly important area to keep a sharp eye on. That’s why I invited Lynn Wise from Contractor In Charge to help us uncover those hidden profit leaks. Lynn has 40 years experience growing several small service businesses from the ground up into incredibly successful companies, and she is a powerhouse of knowledge.
By the end of this conversation, you’ll have practical, actionable insights that could literally save you thousands of dollars and help you run a more efficient, profitable business.
You’ll learn:
- How misaligned job roles silently drain your business’s profitability.
- Why your current operational processes might be costing you revenue opportunities.
- The hidden truth about technician billable hours that most businesses overlook.
- How strategic call handling can transform your customer interactions and sales potential.
- Why your bookkeeping determines if you’re spending or investing in your business.
- The fine balance between AI and human interaction in operational processes.
- How one extra billable hour per technician could dramatically change your bottom line.
The key moments in this episode are:
[00:03] | Profit Leaks in Home Service Businesses
[05:56] | Call Volume and Revenue-Oriented Tasks
[10:20] | Inside Sales and Customer Relationship Building
[15:15] | Conversational AI Bots and Their Limitations
[22:26] | Reducing Friction in Customer Interactions
[28:59] | Operational Processes and Financial Software Tracking
[35:18] | Bookkeeping as a Business Investment
Profit Leaks in Home Service Businesses
Running a home service business comes with countless challenges, and one of the biggest is identifying where your money is silently slipping away. Your operational processes can hide profit leaks that you might not even realize exist. Many business owners are so focused on day-to-day operations that they miss critical opportunities to improve their bottom line. You need to step back and take a hard look at how your business is actually running, examining every aspect from call handling to internal staffing.
Call Volume and Revenue-Oriented Tasks
Your phone system could be costing you more money than you realize. Most home service businesses find that only about 30% of their incoming calls are actually revenue-generating. The remaining 70% are customer service inquiries, scheduling questions, or non-essential communications. Your operational processes should prioritize revenue-generating calls, ensuring that potential jobs and estimates are handled quickly and efficiently.
Inside Sales and Customer Relationship Building
Many businesses treat inside sales as an afterthought, but it’s a critical component of your success. Your operational processes should include consistent follow-up with existing customers, tracking unsold jobs, and maintaining regular communication. Most companies only do this when they have spare time, which means it rarely happens consistently. By dedicating resources to inside sales, you can build stronger customer relationships, generate repeat business, and create a more stable revenue stream.
Conversational AI Bots and Their Limitations
While technology seems promising, AI bots aren’t the magic solution you might think they are. Your operational processes need to carefully consider how and where to implement these tools. Surprisingly, AI bots have an abandon rate of 30-35%, meaning customers hang up frustrated. Most people still want to speak with a real person, especially for urgent or complex issues. You can use bots for simple tasks like sending invoices or providing basic instructions, but they shouldn’t replace human interaction entirely.
Reducing Friction in Customer Interactions
Every step you add to a customer’s journey can potentially lose you business. Your operational processes should focus on making interactions as smooth as possible. Customers hate complicated systems that make them jump through hoops. Think about your own frustrations when dealing with businesses – long forms, multiple transfers, or confusing automated systems. The easier you make it for customers to do business with you, the more likely they are to choose your company and recommend you to others.
Operational Processes and Financial Software Tracking
Your financial tracking is more than just inputting numbers. Modern field service management software provides real-time insights that can transform how you understand your business. Your operational processes should include regular review of these reports, looking for trends, understanding your performance, and making data-driven decisions. Don’t just import data – analyze it, understand it, and use it to drive your business forward.
Bookkeeping as a Business Investment
Not all bookkeepers are created equal. Your operational processes should treat bookkeeping as a strategic investment, not just an expense. A great bookkeeper does more than input data – they help you understand your financial story, identify opportunities, and guide your business decisions. Invest in training for your bookkeeping staff, look for professionals who can analyze numbers and provide insights, and view this role as crucial to your business’s success.
By focusing on these areas, you can plug profit leaks, improve your operational processes, and build a more successful home service business. Remember, small improvements can lead to significant financial gains.
About Lynn
Lynn Wise founded Contractor In Charge in 2016. She is the author of the book, “Build It, Grow It, Sell It! Nine Steps to a Thriving Contracting Business.” Over the last 40 years, Lynn has owned five successful small businesses including a plumbing and heating repair and remodeling company. She has 20 years of corporate sales and management experience with Ameritech and IBM. Lynn holds an MBA and Finance degree.
Lynn’s business accomplishments include building businesses from the ground floor to profitable and successful businesses. Her management and leadership grew the plumbing and heating business by three hundred percent. She was featured in Hardware Age for her accomplishments.
Her company, Contractor In Charge, provides inbound call support and appointment bookings, inside sales and leads management, full service bookkeeping and cash flow management for Plumbing, HVAC, and the service trades.
Contractor In Charge is a Certified Service Titan Provider. Lynn has completed the certification as a Value Builder Advisor from the Sellability Score and has completed a 40-week program with the Key Person of Influence-USA. She has achieved top sales and management awards with Ameritech and IBM earning her President Club and Golden Circle awards.
Connect with Lynn
4 Essential Roles To Success report from Lynn Wise
Social Links
Book Your Profit Impact Call – I’ll Find You $50,000 in Profits in 30 Minutes With a Live Profit Accelerator Simulator
