It’s end of January… are you still using that gym membership that was one of your New Year’s resolutions? I hope so. Now that we are one month into 2024, it’s time to check on the New Year’s resolutions you made for your custom installation business. Your New Year’s resolutions don’t always have to be audacious goals; they can be as simple as checking in on the status of a certain part of your business. Whatever your goals are, here are seven to check in on for 2024.
1. Investigate RMR Opportunities
Consumers’ appetites to pay recurring monthly fees have changed. It is commonplace today. They pay for Spotify, Netflix, Amazon Prime, HBO Max and a slew of other entertainment options. Integrators’ ability to offer a service agreement to their clients has never been more amenable. If your business model is purely based on installation revenues, you are missing an opportunity. Today’s remote service management solutions can enable even small integration companies to provide ongoing service for their clients and earn valuable recurring monthly revenue (RMR). One important element to note: Make sure you have a solid contract in place for your service business, including using the new D-Tools Cloud service module.
2. Examine Your Insurance Coverage
Insurance coverage is something that should be looked at every year. Working with your agent, it’s advisable to at minimum check on the need for various insurance riders that can be customized to fit your business. Everyone knows about carrying insurance for Errors & Omissions, health, worker’s comp, disability, and vehicles, but what about insurance for business interruption, cybersecurity, sexual harassment claims and other uncommon situations? At the same time, make sure you are covered for the proper amounts.
3. Check on Your Business Tax Registration
Are you a Limited Liability Corporation (LLC) or incorporated? Are you conducting business under your own name or a dba? Are you exposing yourself to unnecessary personal liability for your business activities? These are all questions that you should ask your tax advisor every year. As your business grows, there can be needed changes in your tax status.
4. Review Your Business Licenses
As more custom integrators delve into lighting fixtures, it is becoming somewhat common to bring on a licensed electrician for the business. The owner of the integration business needs to make sure he or she has a valid Qualifier Agreement in place with that license holder. That agreement will spell out the responsibilities of each party and ensure that both the license holder and the business understand the rights and obligations to one another. Also, business license requirements will differ from state to state. By being license compliant it will avoid the potential for heavy fines, suspension or loss of the license. Also, being license compliant is an important responsibility to your employees.
5. Plan Your Exit Strategy
Most integration companies don’t think about their exit strategy until just before the time comes. By planning well head. … years or even decades… it can increase the value of your business while at the same time help you line up the succession plan, whether that be among employees or family.
6. Pay Down Debt
This is a no-brainer. Your company needs to exist within its means, just like you do for your own personal finances.
7. Review Your Suppliers
The pandemic and the supply chain crisis aftermath either solidified your loyalty to certain suppliers or killed it. Whatever your experience was, it is always a good idea to review your suppliers every year. Are you getting the best deal from them? Are they responsive to your requests? Are you getting the product in a timely manner? Those are just some of the questions you should ask. If you pay your bills on time, you have every right to be demanding of them.
