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December ♦ 2018


In This Issue...

HVAC Event of the Year in 2019! [Grandy & Associates]

Office Theft: Are Checks and Balances in Place? (Part 2 of 2)  [Tom Grandy]

Improve Your Business and Yourself in 2019 [Dave Ramsey]

Increase Your Rates for Fun and Profit [Tom Grandy]

Planning For Profit: Fall/Winter Workshop schedule and locations announced [Grandy & Associates]

Profit University Audio Series: Business Lessons From a 39-Hour Bike Ride [Gerry Kinnard]


The HVAC event of the year is coming in 2019!

Join us March 18-20, 2019 in Atlanta, GA

Featuring Industry Experts from:

Design Extensions| Enterprise Selling Solutions| Grandy & Associates |Microf
  • Is your HVAC business ready if the economy turns south?
  • Are you selling the highest levels possible?
  • Are your margins what they should be?

Increase Leads

Acquiring new leads is at the heart of any business. But knowing where to find them, how to spend your marketing dollars and what's actually working can be a real pain. Clear up that confusion and find great new ways to get the attention you need and acquire new customers.

Improve Sales

Getting leads is great, but knowing how to present the right options to the prospect and then sell a high quality product can be harder than it sounds. In our sales sessions you'll learn proven strategies you can take back to you team to close more deals today.

Grow Margins

Finally, you can have all the leads and sales you want, but if your services aren't priced correctly and you don't have great margins, nothing else really matters. Business may not be all about profits, but without them, it's pretty hard to stay in business. You'll learn the specifics you need to grow your margins to the maximum levels.

Financing Class

Take the pressure off the Sales Process – When their system breaks, homeowners are concerned with two things. How fast can I get it replaced and how am I going to pay for it? Answer the second question by joining the top 18% of contractors that offer monthly payment options to their customers and learn how they close 33% more sales at a 30% higher price point. Offering financing is easier and faster than ever and there are solutions for consumers with good or bad credit.

Check this event out HERE. Registration has already started and seating is limited!


 

Office Theft: Are Checks and Balances in Place? (Part 2 of 2)

by Tom Grandy

Last month we began discussing theft in the office.  We talked about creating checks and balances so that no one person has total responsibility for any area of your company without someone else having oversight in that area as well.  We talked about how to deposit money, monitoring your lines of credit and reviewing your P/L Statement internally as well as with your CPA.  We also discussed creating and reviewing budgets and having periodic internal audits performed.

This month we will look at eight (8) more areas that might be helpful in terms of putting checks and balances in place. 

  • When opening mail, stamp checks “For Deposit Only” and list checks on a log before turning them over to the person responsible for depositing receipts - This statement is self-explanatory.
  • Require supervisors to approve time cards before turning them over to payroll - Again this is called accountability.  Checking time cards ensures the actual time worked is correct and that any additional information (job number, service ticket, etc.) is properly filled out.  Few techs will put extra hours on their timecard if they know their supervisor is reviewing it.  A word of caution.  One company I am aware of had a “team effort” to steal from the company.  The service manager and two of the service techs worked together.  The tech would pad his hours and the supervisor would approve them and then they split the extra money.  Make sure you are aware of what is going on within your company.
  • Require accounting department employees to take vacations - This might seem odd but I personally have worked with a company that had an office staff person (that handled money) that refused to take a vacation because they were just "too busy".  In reality, they were stealing from the company and didn't want anyone else doing their work that might notice what was going on.
  • Require reconciliation of checkbooks be completed by an independent person who doesn’t have bookkeeping responsibilities or check signing responsibilities - Again, check--double check.  If there is no one in the office capable to doing this, than pay your accountant or another outside person, to do the reconciliation.  By the way, the term reconciliation is simply a fancy accounting term that means balance the checkbook.
  • Prohibit writing checks payable to cash - This simply should not be allowed.  If money is leaving the company it should be for a very specific purpose.  There should be no reason to write a check for cash. 

Store blank checks in a locked drawer or cabinet and limit access to the checks - It's hard to take what you don't have access to.  Include the company checkbooks here as well if the checks aren't computer generated.

  • Require two signatures on checks above a specified limit – There should be a cap on the dollar amount of a check that can be signed by only one person.  This can be accomplished by requiring two signatures on check over a certain amount or at least the initials of the owner, along with the normal signature, over that dollar amount. 
  • Issue receipts for cash, using a pre-numbered receipt book - Any time a customer pays with cash, whether in the office or in the field, they should receive a written receipt.  This protects the company, the employee and the customer.  Please keep in mind that failure to report income is a federal offence and they can, and will, put you in jail for it.  It’s very tempting to put a cash payment in the owner’s pocket and/or use it for a company function.  Don’t do it!  You will sleep better at night and will have zero concerns if you are ever audited. 

Again remember, the overall responsibility of the business rests squarely on the shoulders of the owner.  It's your money so keep a close eye on it.  Creating proper checks and balances will safeguard the company and protect the employees from unnecessary and/or unwarranted accusations.  Bottom line, everyone can sleep at night.

Website Special

Thief is just one of hundreds of areas a typical business owner needs to think about.  There is marketing, pricing, business management, incentive systems, preparing to sell the business or how to utilize a property lien.  No one knows it all so why not find out what the experts have to say on YOUR time! If you would like to learn a bit more about the business side of the business, check out our Self-Paced Online business training.  Each module lasts about 30 minutes with interactive questions and a short quiz at the end.  Each module is normally $34.95 but this month’s Website Special will allow you to purchase any of the modules for only $29.95.  Order today! 

Like all our products, if you are not 100% happy, simply return it for a full refund no questions asked.

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Improve Your Business and Yourself in 2019

by Dave Ramsey

Have you noticed there are some business owners who just seem to get it right every time? It seems like anything they touch turns to gold. How do they do it? What’s that magic formula that finds them so blessed, while many other entrepreneurs continue to struggle?

For most successful people, it’s as simple as this: They have a plan. They write down their goals, and stick to them. Goals force practical steps into your life that help make your dreams come true.

If you haven’t tackled your business goals for the new year, here are some ideas to help you get started. Remember, they’re only suggestions. For your goals to truly work, they must be yours.

1. Get your finances in order

Want to know the number-one reason small businesses fail? Poor accounting. If you don’t keep up with it, you’ll sink like the Titanic.

But that’s just the start. You can’t rely solely on a profit-and-loss statement to see what’s happening with your business. You need a realistic budget that forces you to address the present while planning for the future.

2. Commit to a better hiring process

The main reason small business owners hire the wrong people is they move too quickly. They’re afraid the work won’t get done until the position is filled. While there’s some truth to this, you should also know it takes more time to quickly hire three people who don’t work out than it does to find that one good person who’s perfect for the job.

Commit to slowing down your hiring process. Invest more time and thought in the interview process, and don’t make an offer until you find the right person — no matter how long it takes. At my company, each new hire has gone through five or six interviews.

Remember, you don’t want someone who is just looking for a J-O-B. You want someone who is passionate about the position and your mission.

3. Find a mentor or coach

What’s the one trait that almost all successful entrepreneurs have in common? They have a wise and experienced mentor who shows them the ropes and holds them accountable.

Find good people who are doing things with excellence, who are having the kind of success you envision having one day, and learn from them. You don’t have to stick to just one. You can have a different mentor for every area of your life.

4. Get healthy

Have you ever noticed you don’t have a lot of fight or enthusiasm in you when you’re tired? In business, there’s always going to be a battle, so take care of yourself! Get in shape, eat healthy foods, and get plenty of rest. Give your mind and body what they need, so you can fight another day.

So, what are you waiting for? Write down those goals and get started. Goodbye, stress. Hello, prosperity!

* Small business expert Dave Ramsey is CEO of Ramsey Solutions. He has authored numerous best-selling books, including EntreLeadership. The Dave Ramsey Show is heard by 13 million listeners each week on more than 585 radio stations and multiple digital platforms. Follow Dave at entreleadership.com on the web.



Managingservicedepartment Forweb

Increase Your Rates for Fun and Profit

By Tom Grandy

It’s a simple process to increase your profitability…immediately.  Let’s start with a couple assumptions.  We are going to “assume” you are on a flat rate pricing system.  Let’s say your internal hourly rate is $140/hour which yields a 15% net profit or a profit of $21.00/hour.  Let’s also assume you have two service technicians that bill out 50% of their time or roughly 1,000 hours per year.  By doing some simple math we find out our projected profit per year is $42,000 ($21.00/profit per hour x 1000 billed hours per tech x two service techs = $42,000).  This calculation obviously does not consider part sales and the corresponding markup. 

Want to make a bit more money?  If so, bump your hourly rate by $10.00/hour.  If you are on mobile devices like a laptop on smart phones the formula gets changed at night and the next day the change is in place with no additional investment.  The added $10.00/billed hour is all net profit.

What just happened to your projected net profit?  Overnight net profit jumped from $42,000/year to $62,000/year.  If it’s a one-hour call do you really think the customer in going to complain (or even notice) an additional $10.00.  Absolutely not.

If there are no complaints after a week or two jump it again.  You can always drop back down but think of what the company could do with an “extra” $20,000 to $40,000 in profit.  Pipe dream a bit.  What new equipment could be purchased, tech bonuses paid at the end of each month or year, additional benefits, etc.  As they used to say in the old TV commercials “Try it, you’ll like it!”

Web Site Special

If you would like to learn a bit more about the business side of the business, check out our Self-Paced Online business training.  Each module lasts about 30 minutes with interactive questions and a short quiz at the end.  Each module is normally $34.95 but this month’s Website Special will allow you to purchase any of the modules for only $29.95.  Order today! 

Like all our products, if you are not 100% happy, simply return it for a full refund no questions asked.

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Planningforprofit 2 Dayworkshop


Planning For Profit: Fall/Winter Workshop Schedule and Locations Announced

Planning For Profit seminars are two-day workshops held around the country and are in-depth training on how to significantly increase profitability.

You will learn exactly what you have to charge per hour to cover costs while generating the profits you want. The program will also create month-by-month, department-by-department cash flow budgets, set proper residential and commercial maintenance agreement pricing, and let you bid jobs for profit (based on your cost of doing business).

Attendence to these events are limited and space is still available. Learn more and register today!

If a workshop isn't scheduled for your area we encourage you to talk to your Distributor to see if they will be sponsoring a workshop in your city!

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Profit University _Audio Series

Business Lessons from a 39-Hour Bike Ride

By Gerry Kinnard

Short Presentation Description:

What does a 39-hour, non-stop, bike ride across Florida have to do with running a successful business?  Actually, a lot!  Gerry Kinnard is going to share his adventure and how it relates to the basics of running a profitable business.

Listen to a sample of this months' program! The Profit University Audio Series features a new trade focused audio presentation every month. These programs are designed to provide the trades contractor relevant information that can help their business immediately. Get more information on this program or sign up for a monthly subscription today.

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Monthly Website Special 

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SALE - $29.95

(Normally $39.95)

 

 



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Featured Program

December 2018 

Gerry Kinnard

Business Lessons From 

A 39-Hour Bike Ride 

 By:

Gerry Kinnard 

 

 

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Bill Kinnard, President

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Tom Grandy, Founder

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Self -Paced Online Training Icon -Revised 12-2016

 

Grandy & Associates offers several different products that can help train you and your staff.  We now offer Self-Paced Online Training.  Currently we have more than ten training modules available.  Each module typically takes only about an hour of time out of your day but keeps your staff current on their training.  Check back often for additional modules as our library is continually growing! 

 

 

 

Why Charge LOGO

Why Do We Need To Charge So Much?  DVD version is designed for group discussions.  It leaves out the interactions and quizzes to make it ideal for group training in your company. You can view any section of the program in whatever order you choose.  It is perfect for company meetings or weekly tech breifings as each section takes only 10 minutes or so to review and helps explain to your team all that is involved in your pricing.  

 


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For more in-depth content about running a profitable business, check out the Grandy & Associates Blog.