3 Success Factors in Running a Successful Service Businesses
In our work with service companies we’ve definitely noticed some trends. Here are 3 success factors that you should know about if you run a service business.Perhaps they can help you be more successful too.
Success Factor 1: Gain a large multi-site customer and deliver great service to them.
The most successful companies we work with have something in common even though they are in a variety of industries; they each have a large customer with multiple site locations and they provide great service to these customers. I’m not saying this is easy, just saying that it’s a key component of successful service companies. Here are some examples:
- One company services the phone systems for one of the largest banks in the U.S. The company acquired this bank customer a number of years ago and continues to serve them well. This large happy banking client asked the company and High 5 Software to establish an integration between Service Management Enterprise (SME) and the bank ERP system to automatically send and update work orders.
- Another company acquired the contract to handle all the security systems for a nationwide burger chain. The company leverages subcontractors around the nation to handle the installation and ongoing service and preventative maintenance of the security systems.
- Another company got their start working with a utility company to install and service equipment for a new energy savings program. This company became the exclusive provider for this service. The company later acquired large home improvement chains allowing them to expand into additional cities and states.
Success Factor 2: Eliminate Information Silos by Coordinating Data and Systems
The worst situation is when a company is using multiple spreadsheets throughout the organization, white boards visible only to a few people, and a number of unconnected systems. This makes it impossible to get reports and key performance indicators to properly run the business. Best in class companies have fewer systems to run their business and those systems are integrated together. Example for a small to medium service business would be an accounting program like QuickBooks that integrates with a complete service management software solution plus an email/calendaring solution. There are service management solutions with built-in accounting, but it’s difficult and costly to find specialized accounting and tax experts who can work with these systems.
Success Factor 3: Make Information Available and Visible to Everyone in the Organization
Everybody in the organization should be able to see what’s happening in the business at all times. Reporting tools with visible monitors or online access assist greatly in this area. Below is an example of a company that has 4 large screen monitors providing real-time information of what’s going on in the business so that anyone in the business can spot problem areas and help directly.
Whether you are currently using or considering using service management software from High 5 Software paying attention to these 3 success factors can help you to run a better service business. The clients behind these stories have robust profitable operations with happy customers. No matter what industry your service business is in, emulating these success factors can help you be more successful too.