Make customers your number one priority, and they will continue to buy from you.

Originally Published in HVACR Business Magazine.

If your company is looking for a strategy to increase sales in 2010, consider one that has worked well for my company: Offering customers more products and services to buy.

It sounds simple, but offering more to customers — and in turn selling more — takes dedication, training, and a true focus on satisfying customers. By offering your customers as many options and solutions as possible, you are providing them with valuable information and the key to success in the hvacr industry.

So what does it mean to offer more? A good example is offering customers as many solutions as possible to reduce their energy costs. More and more, consumers are looking for “green” products, and they are always interested in saving money. Whenever possible, educate customers about the efficiency benefits of your products and the service upgrades you offer that may include humidifiers, UV lights, and air duct cleaning services.

Here are some important aspects of our business that support this strategy:

Offer everything in the original proposal.
This includes potential service upgrades or necessary air duct cleaning. If a customer buys upgrades all at once, they get a discount at the time of service.

Follow up after a closed sale.
We send a thank you card after every new installation and/or air duct cleaning, along with a customer survey card. One of our comfort advisors also follows up with information about our preventive maintenance programs.

Stress the benefits of preventive maintenance.
We have been very successful in selling preventative maintenance agreements because we educate our customers about the key elements for saving energy costs. In the hvacr business, educating customers and giving them options works well because you have direct access to key decision-makers who want to pick what system is best for their home at a price they can afford. For example, staff members at McAfee talk about how cleaning coils, tuning up furnaces, and installing programmable thermostats can help save money over a long period of time and in some cases, how a few minor upgrades can pay for themselves the very first year.

We also share information about our preventative maintenance plans, and the extended benefit of having routine maintenance checks to prevent expensive repairs in the future. For example, if you fail to spend $30 on an oil change for your trucks every 4,000 miles, it could cost you a $4,000 engine. It works the same way for hvacr systems.

Train your staff to listen and observe.
Teaching strategies for really listening to customer needs and asking key questions are very important. For example, we ask if there are any comfort problems in the home, or if one room is hotter or colder than the others. We also ask about utility bills. We train our team to be educated, informed and to ask probing questions that help them problem-solve on the spot.

Additionally, my team looks for signs of problems such as multiple air vents that are closed off or dirty air ducts. They are there to offer advice, point out any problems and provide service that the customer wants.

But there is a fine line between providing service and pressuring customers too much.

Let the customer decide.
There is a subtle difference between educating customers and being too pushy, or putting high-pressure on clients to make a sale when they are not ready. Through experience in the field, you learn that putting too much pressure on any customer can be a turn-off and cause that client to never call you again. We train our team to always educate when possible, but to use common sense and let the consumer decide what is best. That is why our customers keep coming back.

Don’t ruin it with bad customer service.
One caveat of this sales strategy is that it assumes you already have outstanding customer service practices. Bad customer service will ruin any opportunity for sales growth, so it’s important to get this right.

Use unique promotional strategies.
At McAfee, we make customer service and satisfaction our top priority. We are also not afraid to invest more in marketing and advertising strategies and “think outside the box.” For example, our company has three separate commercials for specific services, versus just one that is all-inclusive. My philosophy is also that whenever possible, pay for everything related to customer service (i.e., warranty returns, added gas charges, etc.) because if you don’t, chances are that your competitors will. Customers are very smart and can research everything about you and your competition online to comparison shop. So when consumers want something from you, try to give it to them. Then, do something extra!

Additionally, our team is focused on customer satisfaction because we offer dedicated training, which really sets us apart from competitors. For example, we have developed customer scripts for everyone who answers the phone, and hold training sessions for our installers to role-play, acting as both “customer” and “installer.” This really makes a difference and helps our team learn techniques that they can use immediately in the field.

I know that our “offer more” strategy works because a high percentage of McAfee customers who receive estimates at the time of service – but don’t close at the home – actually call back to have the work done. This high return rate speaks to the integrity and trust that our clients have in our technicians, installers and other team members who interact with them.

Our sales numbers also show our success in this area. In 2008, we had a record-breaking year at McAfee. In 2009, even in these tough economic conditions, my company has increased sales by double-digits. This is an outstanding example of the success you can have with a hard-working team that makes customer satisfaction their first priority – by offering more to sell more!

Greg McAfee founded McAfee Heating & Air Conditioning Co. Inc. in 1990 when he was just 27 years old. More than 19 years later, he is a leader in the residential HVAC market in Dayton, Ohio. Greg now consults and teaches others how to succeed.

McAfee Proud to Accept Award from DBJ at a Special Banquet Held in December 2009

At a business awards banquet held on December 11, 2009 in Dayton, Ohio, McAfee Heating and Air Conditioning, Co., Inc. was named “Service Business of the Year.”

The local awards gala, sponsored by the Dayton Business Journal (DBJ) and presented by Soin International*, is a prestigious, black-tie event held each year at the Shuster Performing Arts Center to honor local companies and business leaders who have outshined their competition.

On this night, awards were handed out in seven different categories that gave recognition to a top executive, non-profit organizations, manufacturers, minority businesses, young and start-up companies, community supporters and service businesses. The final award is given to the overall Business of the Year as selected from winners in each of the other categories.

In a special insert printed by the DBJ, feature articles were included that highlighted all of the award winners, including McAfee Heating and Air Conditioning. In that story, written by staff reporter Joe Cogliano, Greg McAfee talks about his company and explains its success.

“We decided at the beginning of the year that we weren’t going to participate in the recession,” said McAfee. “That’s not to be cocky… I say I can’t control GM, I can’t control Chrysler, but I can control McAfee Heating and Air.”

As a result, McAfee increased their sales by 18 percent in 2009. Their ideas to boost business included advertising special offers tied to helping customers through the recession, including a discount (up to $1,500) that matches federal income tax credits for new heating and air conditioning installations.

Their tried and true marketing methods also worked just as effectively, like continuing to promote their preventative maintenance program (Comfort Club) that offers regular customers annual inspections and priority service to keep air conditioning and heating systems in top shape. McAfee also offers the exclusive “8:00 to 8:00 at the Same Great Rate” program, meaning customers can schedule evening appointments for the same price as a daytime service call.

According to the DBJ story, McAfee also has been more successful than other HVAC companies in the area because they have stayed out in front of potential clients by continuing to implement new marketing and advertising strategies to communicate their value to customers. This was a key point in Cogliano’s story as explained by Paul Stalknecht, president and chief
executive officer of Air Conditioning Contractors of America.

McAfee also credits his hard-working employees and his strategy for keeping employees in the loop with regular updates about the business. He also guarantees his workers a certain number of hours, even in tough times. But the future looks bright for the company in 2010.

“We know who we are and where we are going,” says McAfee. 

*Headquartered in Dayton, Ohio, Soin International companies serve customers worldwide through offices in North America, Europe and India by providing strategic management, administrative systems and financial support to a diverse array of subsidiaries and affiliates.

Staying aware and understanding industry trends will help you educate your consumers, leading to loyalty and a better bottom line.

Originally Published in HVACR Business Magazine.

A fad, by definition, is a short-term event — some might say, “a flash in the pan”. A trend, however, has the potential of becoming a long-term influence on the future of a market. The two may resemble each other, but a fad usually can be characterized as having an absolute beginning and a definitive end.

The distinguishing factor between a fad and a trend is its duration. For instance, air duct cleaning was once thought to be a fad. Over the years, a need for air duct cleaning evolved. According to National Air Duct Cleaners Association (NADCA), heating, ventilation and air conditioning systems have been shown to act as a collection source for a variety of contaminants including mold, fungi, bacteria and very small particles of dust. The removal of such contaminants from hvacr systems should be considered as one component in an overall plan to improve indoor air quality, and one that also allows for industry growth.

Some of us remember when the cold beer method of charging an air conditioner was used. In other words, by holding your hand on the suction of the refrigerant line, you could tell if a unit was properly charged. Ideally, the line should be as cold as a can of beer just out of the refrigerator. If it didn’t feel cold, the unit was considered to be low on refrigerant. If frost appeared on the suction line, it was now over-charged or had restricted airflow. Fortunately, this method was just a fad.

As times change, technology advances. We learn better methods for servicing our customers and equipment, and customers also are more educated via the internet and expect more. We must meet their needs and exceed their expectations.

Technicians have to carry the newest tools and equipment, and be outstanding in service and monitoring. What was used 10 years ago is no longer adequate for the precise degree of measurement needed today.

Looking back a decade or two, can you imagine technicians needing a meter that measured DC Micro Amps, OHMs, AC and DC voltage, microfarad, temperature and continuity? Probably not, But today, these are required for efficient and accurate diagnosis. Strict charging methods, proper metering devices and stringent leak tests all work together to ensure peak system performance.

Accuracy should never be construed as a fad in our industry, but must be considered a trend-setting staple in the very core of business!

Most dispatching and scheduling systems are now about 90 percent paperless. Technicians receive and acknowledge all service calls via digital phones. In addition, this software allows communication back to a server, notifying the dispatcher when they are traveling, starting and completing a service call.

Less than a decade ago, we used a daily planner for all of our scheduling. We actually passed the book around the office depending on who answered the phone. These technology improvements have allowed for faster response time for customers and improvements in overall business operations.

If you’re tired of hearing the term, “Going Green” you may want to change your thinking. In the hvacr industry, thinking of the environment and implementing changes can be very lucrative for your company.

Our profession provides an opportunity to share knowledge about improving indoor air quality for customers. We can help make the environment better by not only encouraging environmentally-sound equipment purchases, but by also performing combustion tests on furnaces.

Fine-tuning can decrease or eliminate certain emissions into the atmosphere. Riding your bike to work every day in Alaska may not be an option, but properly sizing a system or sealing ductwork can and will conserve energy in any part of the country.

By now, most of us are on board with switching to R410-A. Regardless, the date for the HCFC phase out still stands, so it’s time we get beyond yesterday’s thinking and start taking advantage of the opportunities we have today. The consumer has more information available via the Internet than ever before, and if we don’t give them what they want or expect, someone else will.

We can take charge of the messages consumers receive and make sure they are accurate. For example, McAfee Heating and Air Conditioning Co, Inc., recently partnered with a waste management recycling company and a water purifying company to produced an hour-long infomercial on conserving energy and going green in the Dayton area. It was a great educational tool for consumers, helped create awareness about green issues and shaped our relationship with the community. McAfee received a lot of positive feedback.  By shifting our thinking about changes in our industry, the initiative impacted our market performance and bottom line.

With our economy limping along, now is not the time to lay off people and reduce marketing and advertising. Now is your opportunity to help consumers save money by providing more education about efficient alternatives to comfort. Talk about how cleaning coils, tuning up furnaces, and installing programmable thermostats can and will save money. In some cases, they pay for themselves in the first year. You also know that performing preventative maintenance on hvacr systems during the year will not only save the customer money, but will prevent problems from arising in the critical seasons. If you fail to spend $30 on an oil change for your trucks every 4,000 miles, it could cost you a $4,000 engine. It works the same way for hvacr systems, but customers have to be reminded and won’t know if you don’t tell them.

The trend of having to compete with big box stores and utility companies is real and here to stay. However, most consumers still want personal, face-to-face service with a company they can trust. By continuing to educate your consumers, using the latest tools, offering more service agreements and outstanding quality service, you are sure to keep and attract loyal customers.

McAfee’s membership in the Dayton Area Chamber of Commerce has paid quite a few dividends over the years, but nothing quite as fun as this:

The beautiful Harley (pictured above) was the prize for a Chamber fundraiser to help raise money for their business education activities. I was the lucky winner!  That’s me in the middle, with Jeff Stolzenburg, co-owner of F&S Harley Davidson on the left, and Phillip Parker, President and CEO of the Dayton Area Chamber of Commerce, on the right. 

Thanks so much to Jeff and everyone at F&S Harley Davidson.

Regularly sharing information guarantees that everyone is on the same page, and moving in the same direction.

Originally Published in HVACR Business Magazine.

To launch a business and lead it beyond the first five years, you need to be an innovative leader.

Originally Published in HVACR Business Magazine.

Johnny was the best hvacr service technician and installer in town. He entered all the contests and won many awards. There was nothing Johnny couldn’t install or service. He enjoyed a good steady income, but had dreams of really making a lot more money. After thinking it through, Johnny decided to leave his job and start his own business. His boss tried to talk him into staying, but his grand dream of being his own boss inspired him to go.

The first few months couldn’t have been better. Doing work for family and friends, even taking a fishing trip with a buddy. Life was good. Throughout the next few months, however, the phone didn’t ring much and that steady paycheck never arrived. Johnny hired an assistant to help carry equipment.  Unfortunately, he couldn’t provide steady work or benefits, so his employee turnover was high. Johnny also learned that accouting work was difficult, and that there was never enough money at the end of the month to pay bills. Marketing and advertising were on his list, but turned out to be too costly to implement.

His old pick-up truck with a cap was fine at first, but Johnny found that it was not perceived as professional by new customers. So, Johnny eventually joined the 64 percent of business owners that close their doors within the first five years of business. He became a statistic and went back to work for his previous employer.

Why did Johnny fail? He was a great technician and installer, and had all the trade skills he thought he needed to run a company. Right? Wrong! What Johnny didn’t realize until it was too late was that his technical competence only took him 10 percent of the way toward success. What he really needed was more business skills.

Some hvacr businesses have a Johnny running them, and have made it past the five-year mark. But they are barely getting by and dread going into the office each day. Some companies have second or third generation family members running things and are struggling to stay afloat. What do they need and what are they lacking? For the most successful companies, there is a leader in place who is innovative. To start a new hvacr company or take an existing one to the next level, there has to be one or more dedicated, passionate and visionary individuals who think and act boldly. This is the essence of innovative leadership. Here are some examples:

• Leaders have a sense of urgency. Regardless of company size, they understand the importance of speed, responsiveness and agility. These traits are essential for innovative leaders who analyze situations, make decisions and act on opportunities.  They’d rather make a wrong decision than blow a potential opportunity by cautiously sitting still and playing it safe until more information is gathered. In the hvacr business, reacting quickly and responding to customer needs are imperative for success. At McAfee, the phone must never ring more than twice before it’s answered. Our first call for the day has a guaranteed arrival time of 8 a.m., and every customer receives a courtesy call before arrival. A “no heat” or “no cool” call is put at the top of the list and takes priority over all others.
   
• Leaders also find that motivating and inspiring others is very important.  Innovative leaders first get people excited, then committed and then get them moving swiftly.  They tap into the professional aspects of coworkers work want to achieve success and know what “buttons to push” to generate team pride, drive and perseverance.  If everything is the owner’s idea, it can get pretty boring for the rest of the team. At McAfee, we empower coworkers to use their creativity and innovation through many channels including company meetings, shared ideas, new customer procedures or other methods. This accomplishes two very important things:  It makes people feel good about themselves, and feel even better about what they are accomplishing.
   
• Innovative leaders are very passionate about what they do. They are incredibly driven, which rubs off on their employees. Leaders express emotions openly and showcase their excitement about new ideas. At times, they may even get upset because they are going at warp speed and believe so strongly in business progression and growth, that others either have to get on board or get out of the way. E.M. Forster once said, “One person with passion is better than 40 people merely interested.”
   
• Leaders are opportunists. Innovative leaders aggressively seek out and move on opportunities before others are even aware of their existence.  They are interested in spending time with other successful people, and are well-rounded readers.  They’re always asking questions like, “How does ‘this’ apply to my organization?”  “How can I use it or get ideas from it?” “How does this help me improve?”
   
• They are future-seekers. The beckoning horizon ahead excites leaders. Someone once said that ”dissatisfaction and discouragement are not caused by the absence of things, but the absence of vision.” Innovative leaders visualize their organization’s future and plot its course. They are not concerned about yesterday’s trophies, but are always asking themselves what’s next for the company. They create the future by visualizing it in the present.
   
• Leaders are not afraid to take risks. You won’t find innovative leaders thinking small.  Plans are grandiose and their dreams and actions are big and daring. They seek progress and aren’t afraid to take smart, calculated risks. These are people who create solid, and sometimes very large companies. Not by cautiously holding back, but by boldly staying ahead of the average crowd.

How much risk have you taken lately? About six years ago, McAfee went 100 percent private. During that time, our gross revenue increased by more than 100 percent. It was a risk worth taking, and our goal is to double every five to six years. I’m reminded of what former Dallas Cowboys coach Jimmy Johnson once asked, ”Do you want to be safe and good, or do you want to take a chance and be great?”

Innovative leadership is a must for every successful company. Those companies are then admired for the huge contributions they make in the lives of employees, customers and the community. Strong leaders are moving to far away, exciting destinations.

Greg McAfee founded McAfee Heating & Air Conditioning Co., Inc. in 1990 when he was just 27 years old. More than 19 years later, he is a leader in the residential HVAC market in Dayton, Ohio. Greg now consults and teaches others how to succeed.

Originally Published in HVACR Business Magazine.

In the 1988 movie, “Tucker: The Man And His Dream,” Actor Jeff Bridges plays great entrepreneur Preston Tucker. He is forced to hire a board of directors with prestigious names that will allow his company, the Tucker Corporation, to excel and go public. Robert Bennington chaired the board and eventually took over the company. Bennington then vetoed every great idea that Tucker had for the company. The board, with the help of Congress, put Tucker right out of business.

For many small business owners, what happended to Preston Tucker is what most think about when someone mentions having a board of directors. But let me assure you that this is not what I am talking about when I suggest that you form a board for your HVACR company.

To be clear, there are four different types of advisors:  A Board of Directors; Mentors/Business Advisors/M.I.X Groups; Family Council and a Board of Advisors.

Some of you may be thinking that you have good people in place, and don’t need help. Others might be convinced that they don’t need outsiders telling them what to do or that boards are for bigger companies. Other reasons also might include:

• I can’t afford them.
• No one would want to be a board member in my company.
• We already have board members — our employees, family and my attorney or banker.
• I am active in an association/group already.

Well, I thought some of the same things at one time. However, if you want your business to really grow and set long-term goals for the future, you may want to reconsider. Will Rogers once said, “Even if you are on the right track, you’ll get run over if you just sit there.”

What are your weaknesses? Is it in marketing, accounting, team building or human resources? What about strategic planning and/or operations? Recruiting a board of advisors requires careful thought, because the outside members you seek should off-set your weaknesses.

The company should select different advisors for different reasons. Some may be recruited to provide added credibility. Well-known leaders in your area can be especially helpful. The McAfee Board of Advisors consists of three very skilled and successful business people. One is a successful owner and great national leader in the landscaping industry; another is a human resources expert who assisted in most of the hiring for the Iams Co.; and the third is a former owner of a manufacturing company whose specialty is developing the core operations of a company.

As I mentioned earlier, I have some great mentors in the HVACR industry, but gathering knowledge from these mentors and advisors is normally on an as-needed basis, and the topics we discuss mostly pertain to the industry. Although I value and respect my mentors, I prefer not to do everything they do. My board offers new and fresh ideas that work for my company.

Although my relationship is very good with my vendors, banker, attorney and accountant, I don’t recommend having advisors on your board who are also on your payroll. Why? Because a potential board member should have no desire to promote or generate income for their firms, but rather to help your company perform at a higher level.

However, your vendors, bankers, attorneys and accountants can be good resources to identify prospects for your board. As you are reading this, you may know someone that would be great on your board. Consider newly retired company executives, college business professors or senior executives in other industries that have a proven track record of success.

Forming and running a board of advisors is not as complicated as it sounds. It doesn’t require any voting and uses an informal structure. More than likely, your board members either sit on other boards or have one of their own, so they can guide you through the process. Since trust  and confidentiality are so important, have an attorney put together a one-page letter of indemnification and a hold-harmless agreement. It’s a low-cost investment that is worth it.

When you’ve located a candidate for your board, take the time to interview them. Take them to lunch a few times and make sure they fit. Also ask for references before making a final decision. Your first board member can help you find others. You want people who are independent thinkers and who are not afraid to challenge you. In other words, you don’t want a rubber “yes” stamp. Define your working relationship. Talk about what you expect from them and ask them what they expect from you. Good communication throughout the entire process is the key to making it work.

So what do you pay these professional advisors? Well, if they ask about pay or salary during your interview, then exclude them from your list. The pay is just a side benefit for helping you and most members don’t need the money. Typically, $400 to $700 per board member, per meeting is a general price range. That is less than $3,000 per year to tap resources in your area that your company cannot product on their own.

On average, a board meets four times a year, for about four hours per meeting. It’s a good idea to give them dates, times and locations a year in advance so that everyone can plan on attending. It’s also a good idea to take their checks with you to the meetings and pay them right after they end. However, these meetings should not be the only time you meet.  Opportunities or challenges may arise that require meeting for breakfast or lunch on occasion with some or all of your board to discuss concerns or ideas. A quick phone call or email will also occur from time to time.   

Remember, the job of a board is to be a resource to the owner/CEO and the business overall. They will ask questions and make recommendations. My first McAfee board meeting was about four hours of sharing information, and allowing them to get to know me and the company. I gave them a brief history lesson and brought them up-to-date on the company. I also told them about my long-term goals. They asked a lot of questions and I gave them lots of information. They began to learn about my passions and get the pulse of the company.

Your board will need to know all the details of your business, no holds barred. You will need to share your finances, future goals, company vision and your strategy for getting there. With that in mind, the most important question for you is whether or not you are willing to listen and act on sound advice? If you are not good at taking advice and wanting to improve, then this board idea may not be for you. Remember, you don’t have to do everything that they recommend. It’s your business and you should always make the final decisions. However, it’s to your benefit to be very open-minded and trust your board’s instincts and wisdom in certain areas. 

Clay Mathile, former CEO of The Iams Co. in Vandalia, Ohio, sold Iams (a private company) to Cincinnati-based Procter and Gamble Co. in 1999 for $2.3 billion. When Clay had revenue up around the $200 million mark, his board told him it was time to bring in someone else to run the operations of the company. Needless to say, this idea did not sit well with Clay. According to him, it took almost a year for him to even consider the idea. Then another few years to actually find the right person for the job. But in 1990, Tom MacLeod, former president of the bakery division of Sara Lee, became the new president of Iams. No entrepreneur (we are first entrepreneurs, and then contractors) wants to hear that he or she needs to change or that someone else could do a better job in our own business. Clay will say that he didn’t either. However, what he found was that he and Tom worked well together… as Clay remained the CEO and visionary, while Tom filled the president’s position. Together, they took the company from $200 million in sales to over $1 billion.

Whether your company is very small or large, the benefits of having a board will get you to the next level and beyond. You still own the agenda; the strategy and continue to lead your company to new levels, while your board uses their skills and experience to assist you by offering unfiltered insight, and giving fresh ideas.

If you want to make future progress, then a board of advisors is for you. If you can’t afford to hire the talent, then rent it by recruiting the best available advisors in your area. Recalling the words of the great inventor Charles Kettering, “There exist limitless opportunities in every industry. Where there is an open mind, there will always be a frontier.”

Greg McAfee founded McAfee Heating & Air Conditioning Co., Inc. in 1990 when he was just 27 years old. More than 19 years later, he is a leader in the residential HVAC market in Dayton, Ohio. Greg now consults and teaches others how to succeed.

Originally Published in HVACR Business Magazine.

Once upon a time, a young entrepreneur decided to start his own hvacr business. So he rented some office space with a little warehouse attached. Sitting in his small office the first day looking over his business plan, he saw a potential customer about to enter his office. In order to appear busy and important, he picked up the phone and started to pretend he had a big deal in the works.

While pretending to talk on the phone, he said, “I will have four of my best crews out there next week and we will get those 20 systems installed for your new facility Mr. Jones,” When he finally hung up the phone and asked the visitor what he could do for him, the man said, ”I’m here to hook up the phones.”

We’ve probably all done something similar in the business world. When I started McAfee Heating and Air Conditioning Co. in 1990, I was 27 years old. I didn’t have a business degree or enough experience, but my inner drive and passion continues to lead me above and beyond my original goals.

So, what came first…the “Contractor” or the “Entrepreneur”? For some reason, business owners in the HVAC industry see themselves more as contractors then entreprenuers. Should they?  The definition of a contractor is, “a tradesman who works in the construction industry under a contract with the owner or manager of the property.”

An entrepreneur is “one who assumes the financial risk of starting and operating a business venture. Usually carries the connotation of being creative, self-motivated and visionary.”

Which one are you? Whether you founded, purchased or inherited your business, someone with entrepreneurial traits has to lead it in order for it to succeed.

According to a survey done by Northeastern University’s School of Technological Entrepreneurship in Boston, Massaschusetts, of the more than 200 entrepreneurs in the U.S., nearly two-thirds claim they were inspired to start their own companies by their desire and determination, rather than by their education or work experience.

According to the same survey, only 1 percent cited higher education as a significant motivator for starting their own venture, while 61 percent talked about their “inborn drive.” Other motivators cited were work experience (2 percent) and success of entrepreneurial peers within their industry (16 percent).

While entrepreneurship skills can be taught, the survey results suggest that the desire to be an entrepreneur usually is not. Rather, as 42 percent of respondents said they launched their first venture in childhood. So research suggests that the enterprising spirit is discovered within the individual, not developed by the individual’s experience.

Having had the privilege of meeting several business owners in the hvacr industry, I’ve noticed that many enjoy the technical/mechanical aspects of the business more than running it.

For some, running a business is like fitting a square peg in a round hole, but they still struggle to make it work. This may be why so many owners would rather sell the business or close if they could. However, it would be better to hire an entrepreneurial Operations/General Manager to run the business. By doing so, owners could focus on what they do best, which is the service/installation or sales side of the business.

With a good business plan in place and a few more positions filled, their businesses would not only be stronger, but it would thrive! Success should be measured by the liveliness of our business, not from the title we wear.

For some small businesses, the depth of a management team may be limited. For example, the owner is required to be there most of the time, and the company may not be able to afford a support staff to cover all business functions. Therefore, owners will need to work long hours.

We all know people who use part of their sick leave each year when they are not sick. Entrepreneurs are not among this group. In the early morning before most people arrive at work or after an eight-hour day when everyone goes home, the entrepreneur will be at the office working and developing new business ideas.

Others may say that owners should be working less and playing golf more. Yes, there should be a balance of work and family time, because our loved ones do like to see us once in a while. But for the truly successful companies, owners/leaders, whether he or she is working on their business or in it, will be working longer hours than the rest of the team. It’s been said that if you own your own business, you only work half days..but just pick which 12 hours you want to work. The first half of the day or the second.

Entrepreneurs are unique in their own way, and each has his or her own set of strengths, weaknesses, talents and abilities. Although there is no single characteristic or skill that will guarantee business success, the entrepreneurs who stand the test of time, and make a difference in their communities and industries do share some common traits. Displaying a good mixture of the following traits will mean growth for your company:

1. Persistence - There are many ups and downs, as well as challenges you will face. You may not like everthing you do, but by working hard and not giving up will improve your chances of success.
2. Strong Drive to Achieve - It’s that inner drive that keeps us going even when sales are down and cash is low. That drive and need to achieve success is better than coffee or drugs. It motivates owners to keep moving forward.
3. High-Energy - There are “morning people” and “night people”, but regardless of which one you are, it takes a lot of energy to start and run a business. Having a high energy level can take you to the next level and it’s contagious.
4. Goal-oriented Behavior - If you don’t know where you are going, any road will get you there. Writing down goals creates a visual and forces you to commit to them. Reviewing and fine-tuning those goals often creates a successful future.
5. Self-Confidence - If you don’t believe in yourself and your business, don’t expect your team to either. Tackling problems immediately with confidence and being persistent in pursuit of objectives are common traits of a winner.
6. Strong Integrity - No one will last long without it. It’s doing what is right even when no one is looking, like reporting all income to the IRS, pulling permits, treating and paying coworkers fairly and paying suppliers on time. These are just a few of the right things we do because integrity matters.
7. Competitive - Knowing the competition and treating them fairly is good business. Wanting to win and get ahead of the competition is good as well. It energizes our inner drive to constantly improve and succeed in our business. Most competitive people don’t like losing.
8. Change Agent - Changing direction is easy if and when it improves your chances for achieving goals. You will be the same person in five years as you are today, except for the people you meet and the books you read. Why and what you change will have an impact on your success or failure.
9. Tolerance for Failure - Entrepreneurs have to experience failure in order to appreciate success. Most see failure as an experience to learn something new. James Dyson, the inventor of the famous Dyson Vacuum Cleaner, once said, ”I made 5,127 prototypes of my vacuum before I got it right. There were 5,126 failures. But I learned from each one. That’s how I came up with a solution. So I don’t mind failure. I’ve always thought that children should be marked by the number of failures they’ve had in school. The child who tries strange things and experiences lots of failures to get there is probably more creative…”
10. Dream - Dream? This aspect is not talked about at association meetings, but without a dream, nothing happens. When he was growing up in Houston, Michael Dell once said tht he used to look at the modern, shiny buildings being built along the Interstate-610 loop, and that he would imagine himself as owning one of them someday. “I’ve never imagined myself not doing something significant,” says Dell. So if you want to achieve your goals, create a mindset of dreams and beliefs to support the truth that you want in your future.” Dream big!

Are we not great or what? Before our egos get too big, let’s take a look at the other side. We may lack sensitivity to other people’s feelings, which can cause turmoil and turnover in our organization.

Entrepreneurs can be impatient and drive themselves and everyone around them crazy. We may not have the tolerance or empathy necessary for team building unless it’s our own team, and we can be difficult to work with.

As the business grows and assumes an organizational structure, owners may experience a classic management crisis. For many of us, the need for control makes it difficult to delegate authority in the way that a structured organization demands.

Our strong, direct approach means that we seek information directly from its source, thus bypassing the structured chains of authority and responsibility we have worked hard to form within the company. Our moderate interpersonal skills, which were adequate during the start-up phase, will cause problems as we adjust to the new structure and/or corporate organization.

However, entrepreneurs with good interpersonal skills will be able to adjust and survive as their organization grows. The rest won’t make it. Taking classes, reading good business books and having great business mentors can improve these skills. Also, see article in previous HVACR Business magazine about how forming an objective board of advisors can help form a structure and lead to success in your business.

Holding the title of contractor is fine, but remember that we are first and foremost entrepreneurs. We must think and act like business professionals who take companies to the next level, regardless of the title we hold.