It takes a lot for a small elevator contractor to succeed – including technical knowledge, business operations acumen and very strong business relationships. It can be overwhelming for an owner to do all things well alone, or with a team that is stretched to the limits. Sometimes it makes more sense to consolidate and become part of a larger organization. By doing so, you can lower overhead costs, create additional revenue streams, attract better employees and achieve general economies of scale.
3 Reasons to Consolidate Your Elevator Service Business
1. Reduce Costs
The number one reason to consolidate smaller elevator contractor businesses is to reduce operational redundancies and eliminate superfluous staff and administrative functions. Centralizing operations is usually the first thing to happen when consolidation spans multiple locations.
2. Increase Revenue
Businesses expand through either organic sales growth or acquisition. When a contractor is acquired, it might be able to serve building owners on a regional or national basis.
3. Attract Partnerships
When part of a larger organization, a business can establish greater purchasing power on parts or employee benefits. It can also have the advantage of reducing the number of competitors which can be helpful to keep rates higher.
Being an independent elevator contractor can be a lifestyle decision that is compelling on many levels. But as the business grows, the needs of the customers and staff may be too much for an independent contractor to provide. FIELDBOSS is an end-to-end field service software solution that links data between the field, office, customers and their equipment providing real-time profitability information to management. Having this information easily accessible, accurate and up-to-date will make it simple to quantitatively assess the costs and benefits of joining a larger organization which is a healthy exercise good leaders will do as part of their management process.
For more information on how FIELDBOSS can help you weigh the pros and cons of consolidation for your business, contact us here.
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