Fuel Oil News February 2024 | Page 17

I have had the opportunity to manage and work with a very diversified company in the mid-Atlantic region for over 30 years . Here is some of what I learned — many times I learned the hard way . I will cover each aspect with a “ Myth vs Reality ” approach or as my dad called it : the “ BS Meter .” 1 . “ Many of my current customers will buy my new service .” 75 % Myth / 25 % Reality

Your existing customers are busy and distracted and their current needs are being met . They already “ have a guy ” for needed services . Your entry into another service line will not resonate as a big deal . You may need to tell them more than 10 times before they even remember . Their brains are trained to correlate you with what you currently do — “ You are my oil company .”

2 . “ The person I hired with experience in my new service will be able to run it .” 90 % Myth / 10 % Reality Technicians and tradespeople are the lifeblood of a service . They perform the work and are often your first hire . They will be considered the go-to person . Giving them a desk and an office to help develop a business plan and manage staff is typically a mistake as they have no idea how to proceed . You need to develop roles on your team to fill these voids .

3 . “ There are too many competitors for me to survive with my new service .” 80 % Myth / 20 % Reality There rarely are too many good service providers in any Industry . I want to go where the largest crowd demands many providers . You are probably not smart enough to offer a service that nobody else thought of . There is an economic principle where the supply and demand is always balanced over time .

4 . “ My existing salespeople can also sell my new service offering .” 60 % Myth / 40 % Reality Salespeople like to eat at the virtual buffet line . They will migrate to the most desirable and easiest sale . Expecting them to sell your new service line is risky when they have choices on where to spend their time . They need to be focused and limited with what you let them sell . Expecting something different is not a good plan .

5 . “ Involvement in industry groups with my new offering is important .” 5 % Myth / 95 % Reality Getting involved at new industry gatherings requires repeated efforts to be a part of the new group . Asking questions and being vulnerable will get the best results . People like to help people that are genuine and have developed a level of trust . This will take years to feel belonged .

6 . “ I can use an acquisition to enter a new service line .” 50 % Myth / 50 % Reality

When you acquire a business to get you into a new service you can make many assumptions on what you bought . Your assumptions may include any of these : They know how to sell new or acquire business ; or They charge a price that returns desired margins ; or They follow all laws ; or They follow acceptable HR practices ; or One of their employees was promised a chance to buy the business and that never happened . Some of these are recoverable mistakes . You need to be very careful . I recommend an industry expert to advise you on these risks .

7 . “ Hiring and retaining staff in my new service line will be easier .” 100 % Myth

The dependency of your staff without redundancy is a perilous way to run any business . Just because it ’ s different doesn ’ t make it better . I would advise being more prepared for HR turbulence when you are starting and routines have not yet been developed . Offering diverse new service lines requires as much energy as when your business just started . Your advantage is having a support structure ( HR , marketing , facilities ) and life experience to observe and manage . Murphy ’ s Law holds true : Nothing is as easy as it looks . Everything takes longer than you expect . l FON

Bob Williamson BIO :

Bob Williamson is a director with Cetane Associates . He has handled over 40 acquisitions and has visited diverse service companies nationwide .

The services he has managed include heating oil , propane , HVAC , plumbing , home security , swimming pool , lawn and tree care , and pest control . He earned a BS at Penn State University and an MBA from LaSalle University . He and his wife Kathy have two children .

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