For many HVAC contractors, financial statements can be a hassle. Particularly when they start out their HVAC business and find themselves trying to figure out what all the numbers, figures, and percentages mean. Likewise, sales reports, data analytics, and lead generation trackers often have a high learning curve.
Yet, with some effort, anyone can master these tools. If you find financial statements difficult to read, think back to the first time you tried reading a wiring diagram. At the time, the lines, symbols, and labels may have looked like more trouble than they were worth. Over time, however, these diagrams likely became second nature. The same can be true for your data, reports, and financial statements.
Here is how mastering these tools can help you improve your lead generation efforts, conversions, and cost-effectiveness:
1. Keep the score of your HVAC business
Believe it or not, your financial statements and analytics dashboards are more similar to a scorecard than you realize. How? You can get a snapshot of your daily HVAC sales conversions, monthly profits, highest recurring expenses, and more.
Not to mention, competing HVAC businesses within your area are likely well versed in their financials. And have the ability to leverage key insights to make strategic moves in pursuit of your prospects.
By comparing your progress this month to your results during the same time period last year, you can see if your scorecard is trending upward.
2. Avoid repeating mistakes with your HVAC business
Imagine going through your financial statements reveals the following insight. The capital you spent on last quarter’s direct mailing campaign cost more than the revenue you earned. The impact this insight can have is clear:
With this insight, you can shift your marketing efforts elsewhere.
Without it, you may continue running the same direct mailing campaign again without re-strategizing.
The truth is your financial statements offer insights that can help you avoid making the same mistakes from the past. Here are just a few questions you may be able to answer by frequently reviewing this key document:
- During which months were billable hours least profitable?
- Did your company recoup the cost of your digital marketing campaign?
- Is your company relying too heavily on current personnel based on overtime pay?
By gaining a clear understanding of your full financial picture, you can make sure every operational and financial decision is geared toward the sustainability and growth of your HVAC business.
3. Build a track and train cycle based on your tracking insights
As the saying goes: We don’t rise to the occasion, we fall back on our training. The same is true for HVAC contractors. When you have a firm grip on your analytics, you can more effectively track what is working and what isn’t. Once you know which changes you need to implement, you can begin training your personnel. Of course, this “track and train” cycle is only effective when HVAC contractors and their teams know how to use tracking tools.
Why tracking tools can help you grow your HVAC business
Some of the best HVAC contractors are as fluent with their financial statements, sales reports, and tracking tools as their wiring diagrams. In turn, these data-savvy leaders are in the best possible position to thrive in the information age we live in.
Our Credit for Comfort team recommends that you leverage your analytics to the full extent, seeking out opportunities for growth at every turn. Along the way, incorporating financing into your business model is a cost-effective way to elevate your conversions.
We wish you the best of luck with your financial statements and analytics dashboards. Please feel free to reach out if you have questions!