Originally published: 11.01.13 by Terry Tanker
Over the last four months we’ve been discussing what it takes to own and lead a company and the necessary traits that leaders possess that set them apart from others.
July - Motivating the Man in the Mirror
August - It’s About The Money
September - A Touch of Class
October - Mental Toughness
I thought the series was important because even in good times its incredibly tough to lead and manage a business, especially companies like ours - we don’t have safety nets and no one is going to bail us out if and when we misstep. Being on top of your game takes persistence and practice.
Which brings me to a final Piece of Management Advice - Press On.
While conducting my research I found some startling statistics that reinforces all of the key discussion points we’ve been having. Depending on the source business failure rates across all industries is high. The chart below shows some of the more conservative statistics I found. What was shocking was the failure rate after five years in operation.
I know you’re specifically interested in heating cooling and plumbing businesses. To that end, here’s the bad news.
Business’ with the Worst
Rate of Success
After Fifth Year
1 Plumbing, Heating, Air Conditioning
2 Single-Family Housing Construction
3 Grocery Stores
4 Eating Places
5 Security Brokers and Dealers
6 Local Trucking
Major Causes firms went out of business:
Incompetence — 46%. Specifics of the category included no formal business plan, no knowledge of pricing, no knowledge of financing, failure to pay adequate taxes and no experience in record keeping.
Lack of Managerial Experience — 30% including inadequate borrowing practices, poor credit granting practices and expanding too rapidly, going into business for the wrong reasons, owner gets worn-out and/or underestimates the time requirements, family pressure on time and money commitments, pride, lack of clear focus, lack of financial responsibility and awareness.
Reviewing the major causes firms go out of business — is the major reason HVACR Business is in business! In every circumstance we’ve written and will continue to write extensively on these topics. And, this is probably the appropriate time to remind all of you — archived on our website is seven years worth of management advice addressing each of the problems above and many more with very specific steps that will help you through the mind field we encounter every day.
I’ve enjoyed writting this series and hope you’ve enjoyed reading them. Thanks for all the compliments, comments, and suggestions.
Nothing in the world
the place of persistence.
Talent will not;
nothing is more common than unsuccessful
men with talent.
Genius will not;
genius is almost a proverb.
Education alone will not; the world is full of educated derelicts.
alone are omnipotent.
Ray A. Kroc’s credo -
Founder McDonalds Restaurants
Articles by Terry Tanker
20 Questions In Memory of Jack Hutchinson
It is with heavy hearts that HVACR Business announces the sudden passing of Jack Hutchinson, Vice President of Sales, on March 13, 2014.
HVACR Business Publisher Terry Tanker collected memories from those who knew him well to create this month’s 20 Questions column.
Winners and Losers
20 Questions with Tony Petrolle
HVACR Business Publisher Terry Tanker sat down with Tony Petrolle President of Gaithersburg Cooling & Heating (GAC), Bryant’s 2013 Dealer of the Year award winner. The two discussed acquiring a company, assembling the right team, and the development of a quality assurance team to provide employees with the best work environment and customers with the best products, service and support.
20 Questions with Mike Reilly, President and Owner, EWC Controls
HVACR Business Publisher Terry Tanker met with Mike Reilly, president and Owner of EWC Controls, to discuss manufacturing, family businesses, and how his company can help provide contractors solutions to customer problems.
Common sense – it’s simply knowing the difference between right and wrong. It entails a personal and subjective process of analyzing a situation and finding a solution that works. For most people I think it’s their first instinct, the rational thing they would do without giving the situation a thought. Again, I said for most people.