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Richard DiToma Plumbing Business |
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If you were not a plumber…
BY ELLEN ROHR
contributing writer
“Opportunity is as scarce as oxygen; men fairly breathe it and do not know it.”
— Doc Sane
What if you weren’t a Plumber, and you could look at this industry with fresh eyes? What if you weren’t bound by what you know and the inertia of business-as-usual? Here’s what you might see…
Mega-opportunity #1: The roof is the place to be
“Green” is the big buzzword. Folks are making themselves crazy trying to define the word “green.” Within the industry, blood pressure is rising as the debate rages. Step aside. What is really important here? You and your customers can agree that it makes sense to have the sun heat some water for you, for a bath, the washing machine or the infloor heating system. And you can’t know exactly what the payback is going to be because we just don’t know how often the sun will shine. Intuitively and logically, solar heated water makes sense. So, give people what they want.
Most of the time, the solar panels are going to go on the roof. Now the roof is an interesting place. There is space up there to do lots of cool things. The hvac team puts their equipment up there. Smart roofers are working with light, reflective, super durable materials. And, if you travel like I do, you’ll notice that an urban landscape has a lot of roof space. Flying into any city unveils a sea of topside opportunity.
What if you laid claim to the roof? You could configure an energy and resources system that includes…
If you weren’t a plumber (or an hvac or roofing pro) you could see the opportunity on the roof.
Mega-opportunity #2: Consolidation
Over and over, an “outsider” has looked at a highly-fragmented industry and thought, “I could consolidate these mom and pop shops, create some ‘economies of scale’ and make a lot of money.” Waste Management, Inc. was started by a couple of fellows on a homeowners’ subdivision board who were trying to create a sound way to remove the trash from the subdivision each week. They discovered lots of waste haulers…and very few doing the job really well. So, they bought mom-and-pop shops and consolidated the industry. From my vantage point, they were well served…and so were hundreds of thousands of consumers. The folks who sold their companies had opportunities to move on to something else, and some realized some wealth for their precious efforts.
The phc industry hosts over a hundred thousand companies and most of them are 1-3 truck operations. There is nothing wrong with being a small shop, if that is your desire and intention. However, if you are trying to grow your company, I suggest you start buying companies. It is easier than you may imagine. And it is the best, most cost effective way to grow. Aim only for win-win-win deals…for your company, the seller’s and the customers. Acquisition is so much easier than you may imagine. Check out www.growbiginarecession.com
Mega-opportunity #3: Virtual command center
In the book, “The World is Flat,” author Thomas Friedman tells of McDonald’s using drive-thru service representatives located in India taking orders at restaurants located in the United States. Whether or not you support the idea — maybe it’s happening and you can’t tell your order is not being taken by the angsty teen at the window — it’s fascinating that it can be done. What an amazing time we live in.
Brian Scudamore of 1-800-Got-Junk has created a powerhouse franchise capitalizing on the world flattening effect of technology. Franchisees pay about 17% !! of total sales in exchange for a rockin’ call center and dispatch system. All calls to 1.800.Got.Junk are answered in Canada by a fairly accent-neutral person who does a wonderful job lining up service. If there is not a franchise in your area, they offer you a shot at applying to become a franchisee. And the benefit to the franchisee: No need for a person in the office. That may be worth 17% or more to someone who wants their own shot at business success without the headache of managing an office team.
There will always be a selling advantage for the Plumbing pro who markets himself as a real life local professional. However, for someone else, someone from outside our industry, this business model could change everything.
Mega-Opportunity #4: A real career ladder
One of the benefits of consolidating companies is that you will meet some really cool people. You may befriend savvy managers, great service techs and rockstar installation crews. Not everyone wants to – or can – be a successful business owner. If you were to take advantage of Mega-Opportunities #1-#3, you could be in a position to really expand Mega-Opportunity #4.
Generally, there is nowhere to go, to grow, in the phc world. The only choice for an ambitious go-getter is to start his own business when the shop he works for isn’t going anywhere. Seven generations and only two trucks? This fellow may hang up his shingle with high hopes and then discover what a ball-and-chain your own business can be. (Sound familiar?) He can gain the business acumen he needs to be successful. Or he can partner up with an owner who intends to expand career and ownership opportunities for extraordinary team members. You could be the one expand in a hub-and-spoke way, offering profit sharing and, perhaps, ownership opportunities to high-producing team members. For inspiration and ideas for structuring an industry-revolutionizing career ladder check out Jack Stack’s book, “A State in the Outcome.” Or email me to discuss. The hub-and-spoke business model has my full attention.
Mega-opportunity #5: Pop culture celebrity
If you lay claim to one or more of these opportunities, you might want to spread the word. Hey, it’s of service to know who is doing cool things with earth friendly, energy efficient living systems. It’s interesting to know that there are businesses booming in economically challenging times. It’s worth mentioning that you are developing careers for your team members, instead of indentured servitude. Why not expand your reach with online videos? You can use a Flip camera (http://www.theflip.com) and document the right way to install a disposer or put on shoe covers. You could use the videos as part of your training. You could film what really happens on a service call. (I advise you to get the customer’s written permission before posting that on You Tube!) You could record team members discussing why your company is different and better than any other place they have worked. As you document your business you may capture a wonderfully funny or silly or moving slice of life. It may create a wild-fire, virtual pass-along sensation…starring you. You can leverage 15 minutes of fame into even more opportunity.
Someone is going to turn the phc industry on its ear. Someone is going to lay claim to the rooftop and make a whole lot of money doing it. Someone is going to leverage the human potential of this industry and grow a massive empire. Someone is going to become the face of all the amazing things that the phc industry does to support the planet and the survivability of mankind on the planet.
If you weren’t a plumber, it could be you. Think outside the pipe.
“If we are to achieve a victorious standard of living today we must look for the opportunity in every difficulty instead of being paralyzed at the thought of the difficulty in every opportunity.”
— Walter E. Cole
Ready to embrace a Mega-Opportunity? Are you doing so already? Reach me at 417.753.1111 or contact@barebonesbiz.com.