Stable Bottom Lines and Growth Can Be Easy With the Right Services

Disaster restoration often brings to mind hurricanes, tornadoes and other storm damages, but firms often offer more services than just after-storm cleanup. Expanding into duct cleaning, textile restoration, plumbing, and roofing services are no-brainers, but firms also can offer house flipping, disinfection, bio-cleaning, pet stain removal, carpet color restoration and other services to their offerings. Disasters can yield a high-intensity, short-term influx of revenue, but providing services to the community you serve can build the company’s reputation and ensure a steady stream of income if done right.

Disaster Restoration Services (DRS) owner Danny Strong says, “We have found that there is always work available depending on your willingness to travel, the local market, and the type of services you provide. We at DRS have a large coverage area – Massachusetts, Connecticut, and Rhode Island – for day-to-day emergencies, New England for larger jobs that we get called in on, and we travel for other catastrophe (CAT) losses to aid our fellow restoration networks and associates.”

Many times restoration firms are relying on cash flow from insurers, mortgage holders, and others to release payments, leading to kinks in a company’s revenue stream. Strong says budgeting is an essential part of reducing that strain, which is why his company carefully crafts departmental budgets before the start of the new year. He warns that this does not prevent revenue strain all of the time, especially when the firm is called in to clean up after a disaster. “You are picking up additional sources of work, and often purchasing large amounts of goods that you would not normally be doing, which leads you to over-exceed your budget,” Strong says.

Prevent Cost Overruns with Budgets and Plans

Adding ancillary or add-on services to a company’s list of service offerings can be a costly endeavor, and owners should carefully review their options from a qualitative and quantitative standpoint. Quantitative review takes into account the costs of equipment, staff, training, and marketing those services, and the qualitative review assesses whether those services would enhance the customer experience, diversify the company’s offerings to reduce vulnerabilities in the core business, offer further expansion opportunities given the market climate and provide staff with more career opportunities. The review also needs to determine if the company already has the staff with the expertise necessary or if additional training is needed.

Strong offers these tips for those restoration firms looking to add services:

1. Add services that you already have the equipment and skill set for
2. Plan ahead before adding services and review that plan with industry peers to ensure any problems or needs are covered
3. Look for services that offer quick pay to ease the day-to-day cash flow issues of the business
4. Look for jobs that are easier, keep staff busy, keep cash flow moving and create growth opportunities but minimize the need for warranty work
5. Track the results: the number of incoming calls, conversions, job sizes, length of each job, profitability and speed of payments

After assessing DRS’s local market for customer needs and spikes in odd requests, Strong says the company decided to add estate clean outs, content removal and disinfection, Steramist disinfection, property maintenance, contractor support, consulting and equipment rental, as well as services to clean up bug remains after exterminators are called in. The company’s Steramist service was added about two years ago and has provided DRS with opportunities in the medical, pharmaceutical, and other sectors that require deep cleaning and disinfection. Strong says the add-on is even used in many of the day-to-day services the company provides. When DRS was called in to help with the cleanups after hurricanes Harvey and Irma in places where groundwater and other areas were contaminated, Steramist was a unique disinfection service they could offer clients.

Strong advises that firms put in place a system to accommodate increased call volume. “An ability to answer calls is vital,” he says. Tracking types of calls can be as simple as adding a phone line or specific webpage for that business, and in some cases a service-specific promo code can be just as helpful. “In today’s society, you can always find someone who offers the same services, they may not be in restoration, but there are always competitors. This is a good thing; it creates a healthy market,” says Strong.

Differentiating your business through additional services, special certifications, and other qualities can set your business apart, especially when utilizing a targeted marketing strategy and social media. “Word of mouth is key. It helps get the jump on a call to action. Sometimes, just a conversation will spark the realization that something needs to be done,” Strong explains.