As a business owner, understanding your own role in the company is crucial. It isn’t just about managing day-to-day tasks, it’s about financial responsibility. Recently, Mike Disney, who has the background of a Chief Operating Officer (COO) for a Home Service best practice company, and I discussed the importance of being disciplined in monitoring numbers and job costing. It’s about embracing the highest and best use of time to prevent profit leaks. Truly, understanding your business’s identity can lead to profitability.
In this episode we discussed:
- Understanding profit leaks in home service businesses
- Importance of financial responsibility and monitoring numbers
- Defining roles and focusing on the highest and best use of time
- Planning for profit and not treating it as an afterthought
- Overcoming the misconception that profit is bad or greedy
- Mindset and its impact on pricing services
- Avoiding assumptions about customers’ affordability
- Importance of systems and processes for success and profitability
- Partnering with a financial person or accountant
- Taking action, avoiding complacency, and having a sense of urgency in business
The key moments in this episode are:
- [00:02:15] -Finding Profit Leaks in Home Service Businesses
- [00:04:48] – The Importance of Daily Financial Management
- [00:09:39] – Building Profitability and Planning for the Future
- [00:10:43] – The importance of mindset in entrepreneurship
- [00:11:38] – Challenging beliefs about pricing
- [00:14:53] – The significance of financial management in business
- [00:21:05] – Importance of having a relationship with financial professionals and understanding the impact of finances on business.
- [00:23:47] – Transitioning from working in the field to becoming a CEO and the importance of war planning and budgeting.
- [00:27:31] – The importance of consistent planning and discipline in order to achieve desired net profit and business growth.
- [00:31:12] – Discussion on the group of people who are content with just buying themselves a job and the need for daily exercises to become successful.
- [00:31:33] – Exploration of the negative effects of complacency in today’s world, the potential positive impact of growing a business, and the importance of a sense of urgency and desired outcomes.
- [00:33:15] – Sacrifices and financial acumen in business
“None of us went into business to lose money and none of us want to have the inherent risk and…you have to have a reward for that.” Mike Disney
The Importance of Understanding Your Business
Mike emphasized the importance of understanding the true identity of a business and the financial responsibility that comes with it. He pointed out that many business owners lack discipline in monitoring their numbers and job costing, which often leads to profit leaks.
He suggested that defining one’s role in the business and focusing on the highest and best use of time can be the most profitable thing for a business. I couldn’t agree more. I’ve seen firsthand how measuring numbers, paying attention, and staying focused on the financial aspects of the business on a daily basis is crucial.
Planning for Profit
It is important to plan for profit and not treat it as an afterthought. I shared an example of a coaching member who was surprised to learn that they could plan for the amount of profit they wanted to have.
We also tackled the misconception that profit is bad or greedy, which some business owners may have due to their upbringing. Mike believes that being profitable allows businesses to give back to the community and hire more.
The Mindset of Pricing
We delved into the importance of mindset and how it can impact a business owner’s ability to charge what they’re worth. Mike suggested that when faced with doubts about charging higher prices, business owners should ask themselves, “What if that’s not true?” He emphasized that every business is different and has its own unique needs, resources, and overhead costs, which should be taken into account when determining pricing.
I advise my clients to focus on quoting their prices confidently and without assuming what their customers can afford. Mike added that business owners should avoid putting themselves in their clients’ shoes too much, as it can lead to distractions and judgments that hinder profitability.
The Role of Systems and Processes
We both stressed the importance of having systems and processes in place to ensure the success and profitability of a business. Mike highlighted the need for timely and accurate financial reporting, as well as understanding and analyzing financial statements like cash flow statements and balance sheets.
The Power of Partnership
Mike emphasized the importance of having a partner, such as a financial person or accountant, to help manage and understand the financial aspects of a business. He believes that this partnership is not just an expense, but an investment in the success of the business.
From Field Worker to CEO
Mike also discussed the transition from being a field worker to becoming a CEO and the need to spend time in the office to understand financial strategies. He highlighted the significance of budgeting and war planning, which involves setting goals and creating a budget based on historical data.
About Mike Disney
Michael Disney is a dynamic entrepreneur and business leader with a passion for operational excellence and growth strategies in the Home Service industry. Over the past decade, he has coached and empowered nearly a thousand Home Service Businesses, leaving an indelible mark on the industry. Michael’s extensive experience spans across Retail Management, Home Service Sales and Operations, as well as the Automotive sector.
Hailing from New Jersey, Michael began his journey in the world of business by owning and managing automotive centers. His entrepreneurial spirit and dedication soon led him to new heights, and he became the Director of Sales for the largest home service company in New Jersey. His visionary leadership and innovative strategies contributed significantly to the company’s success.
With a background as the Chief Operating Officer (COO) for a Home Service best practice company, Michael Disney has honed his talents and expertise. This experience has allowed him to extend his knowledge and insights to clients not only across the United States but also beyond its borders. One defining trait of Michael is his relentless work ethic and unwavering commitment to his clients and their futures. His dedication to delivering results is evident from the very first meeting, and it’s this dedication that sets him apart in the industry.
Throughout his journey, Michael has been fortunate to have numerous mentors who have guided him in growing and scaling his talents. His ability to leverage this wisdom and apply it to benefit his clients and their future success is a testament to his commitment to excellence.
In the ever-evolving Home Service industry, Michael’s passion for helping businesses thrive, coupled with his extensive experience, makes him a trusted advisor and partner for those seeking to reach new heights in the industry. Michael’s story is one of dedication, hard work, and a genuine commitment to the success of his clients and their futures.
Connect with Mike:
Websites https://windingriverrecruiting.com/
Social Links
FB: https://www.facebook.com/michael.disney.71
LI: https://www.linkedin.com/in/michael-d-6557704a/
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