#32: Operating A Trades Business As An Investment [The SOC Method] - Contractor Momentum

#32: Operating A Trades Business As An Investment [The SOC Method]

Contractor Momentum
#32: Operating A Trades Business As An Investment [The SOC Method]
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This week’s episode with Gokul Padmanabhan was a complete EYE OPENER. With customer acquisition getting harder and harder, how do we know if our companies have what it takes to stay and grow?

From recruitment, so we become the company people want to work for, to marketing, where we become the company people want to hire… All this and more is part of the SOC method that Gokul shares with us in our 32nd podcast episode. Learn how to treat your businesses as investments, and why doing so is key to succeeding.

Facebook Group: https://www.facebook.com/groups/896216427196514/

00:24 A recap on the last episode explaining name change (listen to it here)

01:09 Our collaborative Facebook group where you can connect with 1500 trades business owners on the topics of marketing, sales, and operations 

02:14 Where Gokul is currently at in the business world

04:52 Key numbers to look at when assessing a business

  • Gross profit margins and why 50-55% is best
  • Scaling as companies go up and down
  • Why boring is good when it comes to investing in a company
  • How sustainable are too-good-too-be-true businesses

07:15 Jumping into businesses with zero trade knowledge

  • Going into a screen repair business
  • Why the general belief of “You have to know how to do the work to run the business” is wrong
  • Importance of financial discipline and marketing knowledge to grow a company
  • Why trade knowledge is not enough, and what you need to actually succeed

11:50 Problems encountered in buying a business

  • Dealing with company culture problems
  • How to take action as an owner and fix issues
  • Boosting morale for a minimal employee turnover rate

16:56 Why customer experience is as important as your PPC ads

  • How online marketing now is different from when it was in its infancy
  • Increasing customer lifetime value to combat the higher cost of advertising and growing competition
  • Turning customers into salespeople to perpetuate talk about your business
  • What to do when you don’t get a 5-star review
  • What it takes to get a sustainable business for longterm growth

24:55 The SOC method

  • Why getting more leads won’t always lead to your company’s success
  • The three areas of your company that you need to improve upon

28:10 Managing your business remotely

  • Phone calls with the key managers of your business
  • Cutting the cord on people who don’t buy into your vision
  • Conducive staff meetings done weekly

32:47 How to keep weekly meetings simple and productive

  • What topics are covered during staff meetings
  • Key performance indicators to discuss with managers

38:19 How to structure the compensation of a product manager

41:01 Choosing the most important KPIs for your business (and why you shouldn’t go over 12)

43:25 The Drift Phenomena that happens to entrepreneurs

Corey Philip
 

Founder & investor in home service companies. Aside from running these businesses, I love trail running and mountain running.

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