PCO Business Revenues: Eliminate Seasonality

Many PMP business owners think they are just providing a pest control service. If this is your way of thinking, then you are most likely leaving a good sum of money on the table. Developing tiered levels of packaged services gives your customers more choices and a higher level of service. The benefit and value to the client will be tremendous. In addition, you don’t have to peddle your services a la carte. Instead, you sell bundles of service, increasing your pest business revenue potential. 

In addition, you can attract more customers that have different needs and you can provide the service a lot less expensively. So, work towards developing your programs together. While your onsite performing a service, you can add value to the service you’re delivering by selling a package. It’s cheap for you to deliver the additional service since you’re already on the property. And the customer will come away with a higher perceived value because they are getting complete coverage and complete peace of mind. 

How do you increase your business revenues and build wealth?  You build wealth by building a book of service contracts. You’re trying to build the value of your company so that someone who’s interested in buying can tell how valuable your business truly is. 

If you want to sell your business, the purchaser may ask, “How much is your recurring revenue?” Recurring revenue is commercial route work and residential route work… It’s any service you provide on a regular basis that provides regular money coming in.

How much money am I going to make if I don’t sell any new work? That will tell you the value of your company. You build the value of your company this way… by building service contracts and renewable business that you can count on from year-to-year. This is called building an Annuity Base. 

So one day when one of the big players wants to buy you out, you can say, “I do $100,000 per month and I don’t do any advertising.” If you can manage to get to this point, your advertising initiatives become the icing on the cake – and that’s how you can get more value from your business.

Pest Control Business Revenues: The Peaks & Valleys

The Objective of the Game is to Eliminate Seasonality. The Pest Control business is highly seasonal with peaks during the warmer months and valleys during the colder months. We have also been there right before springtime, trying to manage our cash flow and make it through to the next season. Does this business revenues chart look familiar?

What if you could eliminate these peaks and valleys and maintain a steady stream of business revenue?

 Smooth revenue streams throughout the year are the key to a successful, manageable, and sustainable PMP business model.

Even Business Revenues Helps to Manage Cash Flow: How do you manage your cash flows so that it comes in even throughout the year?

Set up your contracts to expire during different times of the year. Offer the renewal on a pro-rated basis so that they expire in the winter. The idea is to get each month’s revenue to fall within 20% of every other month. You do not want to spike your business in April and have it spike down at other times.This makes the pest business unpredictable and difficult to manage. 

This is what you want your monthly business revenues chart to look like:

Keep Your Pest Control Employees PRODUCTIVE!

For example, one of the main problems with unpredictable and uneven revenue streams is labor expense. During the off-season, you will find that office people are not busy at all. But do not go laying off all your employees for the off-season just yet. For if you do, they will not come back next year, and you will have to deal with recruiting and hiring initiatives all over again!

The Pest Control Business Should be Very Boring and Predictable

Surprises are nice on your birthday, but not so nice when you are trying to BUILD and OPERATE a PMP business. Work towards taking the surprise out of your year by eliminating aspects of your process where unpleasant surprises may lurk!

Do you have a hard time managing your books, or looking for ways to grow your business? Contact us to discuss our Accounting, Bookkeeping, and CFO services!