We’ve all had to tighten our belts such the global economic crisis of the last decade. Well most of us – but that’s an entirely different story. As a business owner the implications of what occurred and how it continues to permeate our day to day life is even more readily apparent. Working within construction equipment hire, like many other service based businesses, has been hit hard. There are many reasons as to why this has happened but the trend is mostly negative. But your business needs to tread water and maximise its survivability during these times so that you are in a good position to take advantages of any opportunities which arise in the future.
Know Your Numbers
You need to know exactly where your finances are sitting every day. Look at your payroll and make sure you are accurately forecasting. Compare the like for like weekly, monthly and annually and look for any peaks in trend. If your payroll becomes too high against your revenue you will be throwing money away. There may be periods which become a real lull and you might have to consider cutting back payroll expenditure during these times or cancelling overtime availability etc.
Sell Unneeded Assets
As the purse strings tighten so you are going to have to make more logical and even pragmatic decisions. Whilst it may be useful to have a full fleet of vehicles are there any which you very rarely use or are past their best in terms of conditions. Bite the bullet and sell off the pieces of equipment which simply aren’t giving you much return on your investment. You will be better off lacking one piece of equipment and being unable to fulfil one enquiry than lose money maintaining an unprofitable piece of equipment.
Buy Second Hand
You could potentially fill these gaps in your fleet of vehicles or just expand your availability buy purchasing second hand equipment yourself. Obviously you will want to make sure it is completely safe and reliable but as described above some companies will be selling off perfectly good machinery because it simply sees no use. Explore the market and see what’s on offer to be able to keep your business ticking over at a lower expense.
Speak to Your Customers
These really are the times when your level of customer service needs to be at its very best. When people have less money to spend they will be less receptive to anything which incurs a cost so you need to be demonstrating to them why your service is a bonus to them compared to others. Perhaps your excavator hire business has seen a drop quickly after a certain month. Speak to previous regular customers and see what their reasons were. It might be something you can change or do something about so you could discover new opportunities. Keep service at the front of everything you do and get the buy-in of people above everything else. No customers, no business.