5 Reasons Pool Companies Don’t Thrive
Being in business for yourself can be difficult – over 50% of small businesses fail within the first 5 years (compared to only 8% of franchise). We’ve narrowed down 5 key reasons pool companies tend to fail.
5. TRYING TO COMPETE ON PRICE
Often, pool construction feels like a race to the bottom. With increased competition most builders are continuously trying to find ways to build pools cheaper. Unfortunately, this is a never-ending process.
4. LACK OF BUSINESS KNOWLEDGE
Most pool builders are good at pool construction; however, there is more to running a successful pool building company than just building pools. A pool company is a business, not a charity, and needs to be run as such. Profit & loss statements, balance sheets, budgets, etc. are all important components to any successful business.
3. LACK OF SYSTEMS, PROCESS AND PROCEDURES
Most pool builders in this country are the sole “brain trust” of their company. The moment they step back or away from the business, that’s the end of the company. Unfortunately, documented and established systems, processes, and procedures are sorely lacking from most pool companies. That’s one reason franchising has become so popular in so many industries.
One of the most important factors of a successful company is keeping the right team. Quality of character and trustworthiness are almost more important than their knowledge of pools and the ability of leadership to recruit is paramount
1. NOT ENOUGH LEADS
Being a pool builder is simply not enough anymore. 20 years ago, a pool builder could just put their ad in the Yellow Pages and wait for customers to come to them. However, the world is changing and in today’s marketplace a successful pool company needs to have a complete and comprehensive marketing plan!