Beware of these Small Business Financial Pitfalls, Especially if You are a Field Service Company
Small businesses face several financial challenges and pitfalls. Whether you own a pool service software company, a home watch services company, lawn care services company, or a similar type of business, it’s important to understand the potential financial pitfalls that can derail your business, especially if you employ field service technicians.
CNBC reports that running out of cash is one of the top reasons businesses fail. More than half (57%) of small business owners said they had less than $5,000 set aside in case of a business emergency. During this inflationary period, it’s especially important for firms to focus on their accounts receivable and getting paid faster, especially if they don’t have the ability to raise prices.
Another common pitfall, according to LinkedIn, is the fact that business owners sometimes mix personal and business expenses, which can complicate field service operations, inventory management, service requests, project management, and lead to job site issues with field service technicians. This creates several problems that field service software and business software can help solve.
Mixing field service industry expenses complicates tracking business expenses and income and negates one’s ability to make sound financial decisions for the business. Furthermore, it can lead to issues with tax liability. Businesses are subject to different tax laws than individuals and failing to accurately track business expenses can result in fines or penalties. Finally, mixing personal and business finances can create problems if the business is ever sold or liquidated. Fortunately, field service software and service management software are great solutions. Most are available for use on a mobile device so they’re a great help to field service technicians at a service business.
Here are other common financial pitfalls to watch out for and for which field service software and/or other business software may be a solution in support of the service team:
Small Business Cash Considerations
Cash shortages. This is often one of the biggest financial challenges for small businesses, especially those in the field service industry with field service technicians. Make sure you have a good handle on your cash flow and always keep some extra cash in the bank to cover unexpected expenses. Know how much money is coming in and going out each month and keep track of your expenses. Educate field service technicians on cash-related issues.
Simplify Business Processes
Not getting paid on time. This can be a big problem if you rely on invoices to pay your bills. Make sure you have a good system in place for tracking invoices and following up with clients who are late in paying. Field service technicians can support this effort and field service management systems are a great help. You can’t go wrong with selecting the best field service software.
Customer History
Losing key customers or clients can be devastating for a small business, especially those that rely on solid field service management and field technicians, so it’s important to diversify your customer base, insist on quality customer management, and have a solid retention strategy in place for field customer satisfaction and field service operations. This will help you weather the loss of key customers or clients. Try to spread your business risks by having customers in different industries or geographic areas.
Time Tracking & Debt Management Tools
Having too much debt. This can put a strain on your cash flow and make it difficult to meet your financial obligations. Make sure you only take on as much debt as you can afford to repay. It’s a good idea to investigate field service software and other field service management solutions to support your field service technicians and field service teams. Mobile devices are often a great help for field workers, especially at small field service companies.
Taxes & Inventory Management
Not saving for taxes. This can be a big financial surprise for field service management companies come tax time. Make sure you set aside money every month to cover your estimated tax liability. This will help you avoid a big financial surprise come tax time. Put money into a savings account each month so you have funds available to pay your taxes when they’re due.
Financial Planning & Field Service Software
Not having a financial plan to support field service management. This is perhaps the most important financial tip for small businesses. Having a sound financial plan in place will help you make better financial decisions and avoid many of the common financial pitfalls faced by field service businesses. Without a financial plan for your field service management system, it will be difficult to make sound financial decisions and achieve your long-term goals.
Field Service Operations Businesses Must Heed the Pitfalls
If you’re aware of these financial pitfalls, you can take steps to avoid them and keep your field service management business on track. Field service companies should be sure to use the best field service management tools and field service management apps, educate field service technicians, use good field service software, insist on job status monitoring, use mobile apps, provide quality customer information, schedule preventative maintenance, provide stand out service with your mobile workforce, track job details and prevent human error, optimize costs, answer customer calls promptly, monitor custom pricing, use mobile access for the latest scheduling features, encourage employee productivity, promote team productivity, and use strong fleet management tools.
Customer Satisfaction & Field Service Management Software
To learn more about how to make your field service management business a success and improve customer relationship management, contact us at 239-349-9400 or email hello@provalet.io. Provalet.io is a powerful and simple field service software management solution that helps you run your field service management company, support field service technicians, and improve field service operations. Designed with the independent field service small business in mind, ProValet.io automates business management and elevates customer service to an entirely new level in a simple, easy to use format. With its user-friendly interface, you can manage your business without relying on pens, paper, or binders and provide a great customer experience. Keep your business organized and running like a pro with Provalet.io
This ProValet.io Blog Post is Part of a Series Designed to Help Small Business Owners
Manage Their Field Service Software, Field Service App, and Mobile Field Service App
and Keep Their Business Running Like a Pro