Since March of 2021, small businesses have invested time and money into operations and growth. It’s no secret that things have changed and may never go back to the way they were. I’m going to take a few minutes and share what trends we’re seeing in the market and take a shot at guessing where businesses will spend their money in 2022.
As you may know, I interview a lot of people on Torsion Talk Podcast. I also have Garage Door University which includes small groups of like-minded business owners that discuss challenges in their businesses. We’ve been asking around and here is what we’ve been hearing and what the data is showing about 2021-22 market trends for small business owners.
Market Trends For Small Business Owners
Difficulty Finding Employees
The primary issue business owners are experiencing is having a hard time finding employees. Well, let me rephrase that. Business owners are having a hard time finding good people willing to work. This is especially true in the home service industry which typically requires skilled labor or a learning curve before technicians can safely be in the field. Many business owners are having difficulty finding quality people, training them in the proper skills, and keeping them on the books long enough to pay off their investment.
Adjusting Profit Margins With Price Increases
We also see a determined focus to increase profit margins and identify what they should be charging for products and services. This is probably due to the fact that prices are changing so much. Since 2020, material prices have dramatically increased, meaning home service companies have to adjust their prices accordingly and explain the differences to customers.
Pulling Back On PPC
The last thing we’re hearing is how businesses are pulling back on paid advertising like PPC campaigns. They have more work than they can get to so they’ve decided to cut back on low quality leads. This is a significant change from the way most home service companies have run their businesses over the last ten years.
So what do we project will be spending trends in 2022?
Employee Benefits, Training, and Recruiting
Employees really do make the company, and you can’t get where you want to be by the end of 2022 if you don’t invest in quality ones. That’s why we recommend finding a way of recruiting good people, training them effectively, and giving them the benefits to stay.
Software like HouseCall Pro and Service Titan
If you haven’t invested in quality customer management software for your home service business, you are living in the past. A good CRM is vital to handle effective scheduling, customer and employee communication, and even requesting reviews from customers. It will make life easier for your schedulers and technicians alike. Our favorite softwares are HouseCall Pro and Service Titan.
Business and Financial Consultants
Don’t be afraid to ask for help or advice; we certainly aren’t! There are smart people in your circle who have done what you’re trying to do. Ask them what they regret and how they found success in terms of business, finances, and employees. You also can’t neglect spending money on consulting with industry experts or financial advisors. You could easily multiply your investment by following their advice.
We know, a marketing company recommending you invest in SEO, but we can’t stress this enough: You have to invest in SEO to make your home service company a success online. Word-of-mouth advertising isn’t what it used to be, and a large majority of consumers use the internet to find home service companies. If you aren’t investing in SEO, we can guarantee your competition is and taking your customers with it.
But this doesn’t just mean starting SEO. 2022 is a good time to look at the success your current marketing company made for you in 2021. Are you getting what you’re paying for? If not, maybe it’s time to make 2022 a better year by choosing a new marketing company or strategy.
I know for my company, we’re investing in these areas. We’re even planning these things throughout the year. I hope this article helps you make some choices about where you should focus in the coming year! Comment and let us know how many of the 5 trends you’ll be spending on in 2022.