Running a business is anything but easy. There are highs and lows, sales ebbing and flowing throughout the life of said business. It can be frustrating to go through those lows, sales falling and creating more questions than anything else.
Thankfully, Housecall Pro is here to help. Though there is no guarantee of navigating those down periods, there are things to be done that can help mitigate the issue. By the time you have finished reading this piece, you and your business will be better equipped to handle the downswings of running a business.
Why is Business Slow Right Now? Uncovering the Causes and Solutions
For home and field service providers, a slowdown can happen for several reasons. Here are some common factors:
- Seasonal Demand Fluctuations
It’s no secret many service businesses experience seasonal highs and lows. For example, HVAC companies may see spikes in summer and winter, but slower months in fall or spring. - Economic Downturns
Recessions or inflation can cause customers to cut back on non-essential services. A National Bureau of Economic Research study highlighted that home improvement spending drops by up to 20% during economic downturns. - Increased Competition
More local competitors offering similar services can reduce demand. If new businesses enter the market or existing ones increase advertising, it may divert potential customers away. - Downsizing or Staff Shortages
Staffing issues, such as layoffs or employee shortages, can affect the number of jobs a business can handle, resulting in slower revenue periods. - Client Budget Constraints
Rising costs for materials or labor may lead clients to postpone or cancel services. 41% of small business owners cited price increases as a factor for losing clients, according to a Goldman Sachs survey. - Outdated Marketing or Lack of Online Presence
If your marketing efforts are outdated or you lack a solid digital footprint, new clients may not find you easily. A HubSpot survey found that 61% of small businesses struggle to generate leads online.
“Running a business can be overwhelming! The ups and downs can be emotionally draining.” – Anonymous Pro
There is one simple fact to keep in mind first and foremost: downswings in business can and will happen. It doesn’t necessarily indicate that the business itself is failing, it is simply another challenge to contend with as a business owner.
There are a few ways to look at situations like these. For starters, there is an emotional toll to be dealt with. Motivation and emotional health can be challenged when business isn’t strong. More importantly, it is a struggle that many face, and knowing that can help. A positive way to look at the downswings is that it can be an opportunity to assess the business, measure strengths, and see what areas of the business could use an overhaul.
Free Ebook Resources To Beat Downswings
Whether you’re a plumber getting your business off the ground, a commercial HVAC contractor looking to scale or are exploring how to launch a new business Housecall Pro is your guide for all things field service. We have a collection of ebooks ready to help you streamline online booking, sales funnels and communication, and more.
Ultimate Field Service Management Software Buyers Guide
Ultimate Guide To HVAC Service Plans
Sales Funnel for Home Service Companies
Check out the rest of our free ebooks for field service management
Exploring Different Viewpoints and Strategies
In order to combat lulls in business, the key is to be proactive. Knowing that the struggles will come is a good place to start. From there, it helps to look at a few different strategies and viewpoints in order to properly address those less-than-welcome moments.
Resilience and Hustle
“When sales are low, that’s my driving force to work on more ads, reach out to existing customers for any maintenance they may need, and hit the pavement harder.” – Tonia Bennett-Singletary
The key to mitigating downswings in business is to remain resilient. Know that periods like these happen and work to address them. Start by increasing advertising efforts. Getting the word out about your business is a constant battle but there is never a bad time to ramp up efforts and try to reach your target audience more effectively.
It is also a great time to reach out to existing customers. Creating recurring maintenance and service contracts is always a good idea. It ensures a stream of revenue even when things are a bit slower. Moreover, it strengthens the relationship between business and existing customers.
Riding the Wave
“Trust the process and ride the wave.” – Cody Mills
An important thing to remember about being in any business is that it is cyclical in nature. Lulls happen before eventually giving way to a boost in sales and activity. The key is to ride out those periods by not only being resilient but also patient.
Work on certain areas of the business, review potential field services (if applicable) and remember that things will rebound so long as you are resilient and persistent. Being patient is not to say that you need to remain completely unchanged but avoid making drastic, desperate moves in an effort to temporarily drive sales.
Changing Mindset
“Come up with service plans to compensate for slow times… Embrace the suck.” – Jorge Garcia
The key to navigating the downturns in business is to have a long-term plan. Knowing about the lulls means being able to better prepare for them. Putting a focus on service agreements and plans can help to mitigate those downswings in sales.
More importantly, those service contracts can help to build greater customer loyalty with recurring customers. The income during slow periods is nice, but those relationships and service contracts will help to strengthen the business when others falter.
Learning from Downturns
“Make a list of things you haven’t had time to do… The next thing you know, business picks up, and I feel great because I got those things I never have time for completed.” – Look A Guero
While it may not feel ideal to have a lull in sales, there is a silver lining. There are always things that need to be done as a business owner. Sometimes, there is just no time to get to those things. A benefit of slow business means getting to the list and knocking them off.
Those improvements will pay dividends eventually, setting up your business to be stronger. Just as importantly, it will ensure that once sales start to perk up again, your business is in a better position to handle the uptick. Always look for opportunities to make the business better and there is no more opportune time than when things get quiet.
Reflecting on Trends
“Look back at your multi-year trends… Knowing that we are actually up makes me feel like we are winning if revenue is down.” – David Roberson
One of the most critical things a business can do is look at historical trends. See what business was like at that time last year. Compare three-month stretches from years prior. See how the business is actually faring compared to the same periods in the past.
Two things will happen. First, you will have a better idea of what trends and cycles happen within the life of a business. Two, knowing those trends will better prepare you to navigate the rough times. It will never be perfect but also the more informed you are, the better off things will be.
Having that information, particularly regarding business downturns, can make all the difference. Going into a standard down period with a better idea of how to work around it can turn what was anticipated to be a slow month into a surprisingly busy one. Information is always a good thing and can help make navigating the future a bit easier.
Addressing Common Challenges
Running a business comes with challenges. Even the biggest and most successful businesses have things that create issues on a daily basis. The key is to know what those common challenges are and how to best navigate them.
Staffing Issues
One of the things most pros will point out is the difficulty of keeping a good staff. Simply finding hard-working, motivated, knowledgeable staff is arguably the biggest challenge a business will face. Those are the lifeblood of the business and the reason why dedicated customers return again and again.
Unfortunately, great employees command a lot of attention. Other businesses may attempt to poach valuable employees, driving up costs for the business or creating openings that are difficult to fill. Finding a balance and a few trustworthy employees is something that every owner has to deal with.
Burnout
Burnout is a bigger issue than ever before. Both employees and business owners cite how difficult and tiring work life is. More importantly, there is the psychological and physical impact of feeling burnout.
Owners feel like they have to pour their entire lives into the business. That is the quickest path to feeling overwhelmed and exhausted. When that happens, poor decisions are made that can impact the business for years to come. Finding a better work/life balance is crucial for owners of all backgrounds.
Financial Pressures
Though burnout is a significant challenge, they are often a result of financial pressures. Business owners are under constant pressure to stay profitable, pay employees, manage jobs, and do so without avoiding corners that can significantly hamper the business.
Each business has to meet its bottom line, the cost of keeping the lights on. Of course, no one starts a business to merely tread water, so there is a constant pressure to do more and make more money, adding to the stress and frustration of running a business.
The Power of Community Support
It is important for business owners to utilize support wherever it may come. Using the Housecall Pro community is vital because it can act as a support network. Pros can share their strategies, frustrations, and wins, helping one another grow and navigate the challenges of running a business.
“Whenever you see a successful business, someone once made a courageous decision.” – Peter F. Drucker
“If you can dream it, you can do it.” – Walt Disney
“Patience: This is the greatest business asset. Wait for the right time to make your moves.” – J. Paul Getty
“I learned to always take on things I’d never done before. Growth and comfort do not coexist.” – Virginia Romerty
“The best way to predict the future is to create it.” – Peter F. Drucker
Things to Do When Business is Slow: Make the Most of Your Downtime
The one thing that the pros will tell you is to stay proactive. There are any number of things that can help your business navigate the quiet times and come out better for it on the other side. Here are five actionable tips from some of the most knowledgeable pros out there.
1.) Focus on Existing Customers
When your business struggles with creating new customers, turn your focus to those already signed on. It can be a great way to strengthen customer relationships, build brand loyalty, and generate revenue even during down periods.
Focus on follow-up calls to customers, maintenance checks, and special offers. Take the time to show existing customers that they are important and create more opportunities for not only new customers but the ones who come back consistently.
2.) Embrace Slow Periods for Internal Work
A great way to navigate the down periods is to look at them as a positive. When things are busy, there is seemingly no time for anything. Certain areas of the business can lag and ultimately hurt the business at the end of the day. Use the downtime wisely.
Take time to catch up on paperwork, organize aspects of the business, and train up staff for potentially busy seasons. While it may not be ideal to have a lull in sales, think of it as an opportunity to strengthen the business and better prepare it for the future.
3.) Reflect on Past Trends
Those who ignore history are doomed to repeat it. Take the time to educate yourself on the past trends of the business. See what past struggles have to offer in terms of information and preparedness. It might not be perfect, but it will give you a fighting chance at making things better.
See how the business stacks up in myriad ways. Compare sales for the month in both the current and past years. Compare sales for the quarter and year, and analyze which services or products did best and which struggled. It will provide more information that can be used to hone the business into a finely tuned machine.
4.) Adapt Your Services
“Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business.” – Mark Sanborn
The goal of any business is to develop steady streams of revenue. If your base services or products aren’t delivering at certain times, it may be time to adapt those services. Consider adding membership programs or custom service plans to attract different customers.
Being able to create steady streams of revenue when other businesses within the industry are struggling is what separates the wheat from the chaff. The businesses that stand tall atop the competition are the ones that find a way to thrive even when others struggle. Start by adapting available services to cater to a different audience.
5.) Maintain a Positive Mindset
“The credit belongs to the man who is actually in the arena; whose face is marred with dust and sweat; who strives valiantly, who errs and may fall again and again because there is no effort without error or shortcoming.” – Theodore Roosevelt
Frustrations and struggles are part of running a business. Heck, they are part of life. The key is to keep a positive mindset even when things aren’t going their best. That positivity will be a beacon, something to hold onto when frustration and negativity feel overwhelming.
Try to remember that businesses are cyclical. There will be good times and bad. Focus on the long-term, trust that things will pick up, and put your best foot forward in an effort to improve even the seemingly unimportant aspects of the business.
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How to Increase Sales When Business is Slow: 5 Smart Strategies to Consider
1. Launch Targeted Marketing Campaigns to Drive New Leads
When business is slow, focusing on the right marketing strategies can make all the difference. Here are smart approaches to increase visibility and generate new leads.
Focus on Hyper-Local SEO to Attract Nearby Clients
Improve your local SEO to capture nearby clients actively searching for your services.
- Optimize Your Google Business Profile: Make sure your business is listed correctly, with updated hours and locations. Add photos and get reviews to rank higher in local searches.
- Use Local Keywords in Your Content: Include location-specific keywords in your blogs, landing pages, and service descriptions to rank higher in searches like “plumber near me” or “landscaper in [city name].”
- Leverage Location-Based Landing Pages: Create separate pages for different service areas to better target local customers and increase relevance for regional searches.
Use Social Media Ads to Reach Your Audience Directly
Social media can be an effective channel to target specific audiences quickly.
- Use Geotargeting to Reach Local Audiences: Platforms like Facebook and Instagram offer location-specific ads to focus on people in your service area.
- Leverage Lookalike Audiences: Find new leads by using your existing customer data to target users who share similar traits.
- Test Different Ad Formats: Experiment with carousel ads, video ads, and stories to see which format resonates most with your audience and drives the highest conversions.
2. Offer New Packages and Promotions to Attract Immediate Business
When business slows down, creating attractive offers can encourage customers to act quickly and purchase more.
Bundle Services to Provide More Value and Encourage Larger Sales
Offering bundled packages is a great way to increase the perceived value of your services while driving higher sales.
- Create Attractive Service Combos: Group complementary services together and offer them at a discounted rate. For instance, a cleaning company could bundle a deep cleaning with a recurring maintenance plan.
- Highlight Savings: Ensure the customer knows how much they’re saving compared to purchasing services separately to increase perceived value and drive conversions.
- Promote Recurring Contracts: Create packages that incentivize long-term commitments, such as seasonal maintenance agreements or monthly check-ups, to generate consistent revenue even in slow times.
Create Limited-Time Offers that Prompt Customers to Act Quickly
Urgency is a powerful motivator for customers to take action.
- Flash Sales or Seasonal Discounts: Offer short-term discounts that create urgency, such as a 24-hour flash sale or a seasonal promotion tied to a holiday or event.
- “Book Now, Pay Later” Options: Give clients the ability to secure a deal now but pay later, which can remove hesitation and drive quicker decisions.
- Referral Bonuses: Encourage customers to bring in new business by offering discounts or credits for referrals during slower periods.
Prepare Your Business for Quiet Periods
Rather than dreading the down periods of the business, focus on the positives. Take the time to improve your business in any way possible, to focus on the customer relationships that make the business go, and to be the best you can be.
While there is no perfect system and no guarantee of insulation against those downtimes, keep this quote in mind:
“Change your mindset, change your life!” – Tamara Latimore
Housecall Pro’s 14-day free trial can provide the tools needed to streamline your field service business and make it more efficient. Whether you’re a small plumbing business or a larger commercial contractor, Housecall Pro has everything you need to streamline and grow your bottom line. Explore new avenues of revenue creation, strengthen customer relationships, and better navigate the tough times.
