22 Feb Do You Know Your Break Even Costs For Your HVAC Business?
A successful business is a profitable one. They bring in more income than they spend in materials, supplies and other bills. The point where your income equals your output is your break even point. Do you know yours for your HVAC business? If not how can you set goals for your business?
Discover your break even point
To discover your break even point you need to have a complete handle on your business finances. Do you know what you are spending? How about what you are collecting? What about jobs in progress? Do you have a bookkeeper or use bookkeeping software?
You MUST track your numbers. In order to plan for your business, set goals or even know how many jobs you need to be bringing in each month you need that information. So start by gathering your bills, receipts and deposits and get it in gear.
Related: 9 Key KPIs In Your HVAC Business
The numbers will show areas that need improvement
Once you have the numbers entered you can see where things stand and have a clearer picture of your business and what your breakeven point is. You will be able to see where you need to make improvements.
- Are jobs taking too long or being bid too low?
- What about the number of jobs, do you need more?
- Are there places where you can shave costs?
- Could you shop around for better utility rates?
- Phone and internet high?
- What about your supplies and suppliers?
- Do you buy more than needed or pay more than you should for those supplies?
- How about your payroll?
- While you may not be able to cut back on techs, what about office staff?
Not sure how? A customer service company can be a big help there. They could cut out your entire office staff and give your customers better service. They could also take over those bookkeeping chores and keep you up to date on your numbers.
Find a customer service company
Find your break even point, then use it to improve your business and make it a success. The answer to doing that may well be finding a customer service company to consolidate some expenses: answering service, dispatch and bookkeeping.
Learn more about how to get all this done for you! Check our In Charge Services