BUSINESS OPERATIONS: Winter Operations Checklist

As you look toward 2006, now is the time to pay attention to contract renewals, winter customer service and off-season business operations.

To make a run for new or renewed service accounts, get out  of the office and inspect as many projects as possible now. During your visits, develop a checklist of items for crews to address on their next visits. Also, take time to greet clients and ask if there is anything else you can do for them. Let them know you appreciate their business and look forward to working for them next year. They need to hear this from the company owner. The primary objective here is to get face-to-face with as many clients as possible before the winter doldrums set in.

Ensure that your crews take extra time to provide the best quality and leave sites looking impeccable. A nice touch is for crew leaders to leave notes saying, “My crew and I enjoyed working with you this season and we look forward to working for you next spring. Have a great holiday season. Thank You!” Be sure the note is hand written, as this is more personal and means a lot to the client.

While there are only a few weeks left in the year, you still can incur some unnecessary expenses – or have opportunities to increase profits even more. Keep an eye on labor requirements this time of year. Some companies have employees leaving too soon and others have too many employees for the work remaining. Remember the old saying “Hire Slowly, Fire Quickly” – don’t keep unnecessary labor on the books. Also keep an eye on overtime. Aim to keep overtime hours at zero, if possible. Determine your backlog of work and establish the budgeted labor hours to accomplish it.

Some companies in the warmer climates also have reduced workloads during the winter months. Don’t continue with the same schedule and budgeted hours on your maintenance jobs. The workload is different. Generate new to-do lists and new budgeted hours per job or visit. Consider reducing the number of people on a crew and/or the total number of crews performing the work. Your objective is to reduce payroll, which is your single biggest expense.

Now is also the time to determine your holiday schedule, if you haven’t already, and let your employees know the plan in advance. I suggest shutting down the majority, if not all, of your operations during the Christmas and New Year’s time. Try this schedule:

•   Thanksgiving three-day workweek: Work three days (Nov. 21 to 23) and take off Thursday (Thanksgiving Day) and Friday.

•  December holiday schedule: Last work day is Friday, Dec. 23. Stay closed for the full week of Dec. 26 and reopen on Jan. 2.

This plan helps save direct labor costs and also gives your employees some time off. But don’t forget about your clients during the holidays. While you may not be performing work, it’s still necessary to have someone answer phones (no answering machines, please) in case anything comes up. Additionally, if you provide snow removal services, be prepared in case it snows during this time off. Develop a game plan whereby crews are on standby for snow removal or any emergency that may arise. This can all be planned in advance so as not to jeopardize client services, but still have a greatly reduced labor force. Make sure your key people are involved in decisions to reduce your holiday workforce.

Finally, take this time of year to determine your equipment needs for 2006. Contact dealers now for favorable pricing and develop a plan for the winter refurbishment of each machine already in your fleet, even it it’s only cleaning, sharpening or repainting. Make a to-do list for each piece and prioritize your list to make sure everything is ready to go come spring.