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KellyUGuerrero's avatar
KellyUGuerrero
Contributor 3
2 months ago

Go for it!  I would strongly recommend making sure your pricing covers your helper as well and as a pro who has built (and sold) two service businesses, here's my quick list for making the shift

  1. Implement simple systems EARLY: Invoicing, tracking my numbers, asking for REVIEWS and collecting email addresses are four I'd start with out of the gate.
  2. Set up dedicated business bank account:  NO COMINGLING FUNDS.  Keep your business and your personal separated! You'll thank me for this one. Small town banks are great for businesses starting out.  Whether you're a sole proprietorship or you go big and open an LLC from the jump, it's so important to keep those $$$ each in it's own account so things don't get squirrelly for tax time.
  3. Master your numbers from Day 1: what do I mean by this one?  Clients I've worked with wish they had understood that "revenue alone doesn’t tell you if you’re profitable". Knowing the direct costs of each job (like fuel, specific materials, labor for that job) is fundamental to accurate pricing and understanding your true profit margins.  
  4. Prioritize strategic time (even when you're small):  Set aside time each week to look strategically at your business. Think of it as a CEO time - an appointment you keep with yourself each week to look at what your business did, how many leads you got, how many reviews you snagged, what did you bill/receive in income, how many quotes did you send out, goal-setting for next week and reviewing last week's goals. This may start as a monthly appointment with yourself but consistency will pay off and help you scale so much faster!   

 

PatriotLC's avatar
PatriotLC
Contributor 2
2 months ago

This is very helpful information. Should I put much effort into marketing/advertising in the early stages? I feel like it could get expensive but on the flip side, the people have to know that my business is out here and wants their business. Would you recommend getting the LLC off the rip? I’ve bounced back and forth. What would be the most important thing (in your opinion) to invest my personal money into to make sure this business starts on the right foot?

  • KellyUGuerrero's avatar
    KellyUGuerrero
    Contributor 3
    2 months ago

    I would put most of your effort into Marketing but capitalize on the word of mouth and reviews and adding to your Google profile at least once a week.  Nothing fancy - a picture of a mower with a little caption, a picture or video of a completed job - things like that.   These aren't high-cost items - all of this is free.  I'd also work on getting into the facebook groups in your area and self-promote - not like crazy but when people are saying it - link them to your Google Profile or your website (if you have one).  If it were me doing it, I'd use Jobber's marketing suite they have great templates for a super simple website and requests for quotes are all captured right there and it integrates really nicely.  What's good about that is that it really helps you compete with the larger companies and helps to present a more professional image.  That would be where i spend my "marketing" budget - but you'll be doing that in your off time or perhaps a close friend or family member can be the one out there on FB recommending you in those groups, etc. 

    I wouldn't recommend getting the LLC off the rip but I'm not a lawyer so this isn't legal advice.  You can usually register a ficticious name for around $50 or so and then it's free to get an EIN. I'd just set yourself as a sole proprietor but open that business account so that you can accept credit cards and it's CLEAN. 

    To me, the most important thing to invest in is your data and your brand.  You can always get new equipment down the road, expand marketing efforts, hire more people, transfer your Sole Proprietorship into an LLC, but you need to be collecting information from the people you're working with now and even the people you're quoting but not winning the job.  WHY?  Because that becomes invaluable as a warm market to promote products/services/specials to.   I'd spend MONEY on my systems.  Jobber's not paying me to say this (Hi, Jobber lol) but getting your Jobber subscription running and adding on some of the things you don't think you need but they set you up for success - like the Marketing add-on.  Get your bookkeeping in order (Jobber syncs seamlessly into QB and I can help get that all set up if you need).  Promote promote promote your business on Google and Social platforms.  Social platforms for your 'warm market' - people who already know and like you and will recommend you; and Google My Business for those who aren't direct referrals but heard from a friend of a friend. I truly hope this helps and if you'd like, feel free to check out my coaching services at http://www.homeprocoaching.com