There are many clichés regarding the word “Road.”
“Where the rubber meets the road.”
“On the road to recovery.”
“Hit the road, Jack.”
“Take the high road.”
“Fork in the road.”
“Road to nowhere.”
“Rode hard and put away wet.” Well, okay, maybe that’s the wrong road…
What “road” is your rental company on? All companies are different and each needs their own “GPS” system to tell exactly where they are. You need your own tools and systems to build your “GPS” system to tell where your company is and where it is going. We are still amazed at how many independent rental companies that are out there that don’t know where they stand or even worse, where they are going.
The best run rental companies know what road they are on and where they are headed and what their final destination is. They have systems in place that help them manage their business in a professional, and therefore more profitable, way. These systems that are used by the best run companies give them up to the minute displays of very important metrics that are vital to the well-being of their company. Revenues, expenses, fully burdened payroll, repairs and maintenance items and facility rent and related expenses are some of the items that are tracked continuously. These indicators keep these well run companies on the right road and that is one reason they are the best run companies in the industry.
In today’s climate and in the beginning recovery phases of 2011, you must know where you stand and manage your company on a daily, weekly and monthly basis no matter what road you are on and what your destination is. If you don’t have a plan, develop one. If you need a little profession help building your “GPS” system, then get it.
Are you looking to sell your business in the next few years? Are you going to expand? Are you taking on new lines of equipment? Are you divesting a division of your company? Are you handing the business down to your kids? Everyone needs to have a plan and work that. We always say, “work not only in your business, but ON your business.” In 2011, make sure you have your plan (map) and work your plan (go in the right direction as the “GPS” indicates). You need to have a short term plan, a long term plan and, finally, an exit strategy (ultimate destination).
Photo courtesy of Thomas Beck Photos.