This is your intro to a critical metric for pest control business owners
(if you are not afraid of adding a zero to the price of their business when you sell)
Before we get into your quiz results, there’s some basics you have to understand. In the world of pest control, understanding the METRICS that drive your business’s success is crucial.
And let’s face it, owning your own business is not the kind of competition where everyone gets a participation trophy.
One of these key metrics is the Technician Efficiency Ratio. This is one of the “secret sauce” metrics FRAXN uses to help you assess and grow your business’s performance.
So based on your quiz answers, we’re going to explore the importance of this metric for your pest control business while adding a little humor. After all, who says your monthly financials can’t be fun and exciting?
Why is Technician Efficiency so important?
Technician Efficiency Ratio directly affects the profitability and efficiency of your pest control business, kind of like how your morning coffee affects your ability to function as a human being (sorry if you don’t drink coffee).
But it’s super specific – imagine if an algorithm in your financial reports told you that drinking exactly 2.5 cups of coffee before 10am was guaranteed to double your daily revenue. And it was correct.
These are the kind of specifics we are talking about.
“Ok I’m listening…”
Sound pretty good? It’s real.
A higher ratio on this metric, tells you that your technicians are generating optimal revenue, i.e. increased profits and better resource utilization.
There are well over 40 hours in a work week and your technicians are out there every day, for all that time. Maybe you’re even one of them. In each work week of the year, why should each one of them bring home two or three times LESS than they should?
If you know and understand how this metric works, then you can make a plan for what to do with that number.
(Imagine *knowing* that hiring a new technician meant adding a quarter of a million or more to your bottom line)
Most importantly, when it finally comes to selling your business and retiring, you look like an absolute boss to potential buyers and they treat you like one (by adding zeros to the check…)
Punchline – you should get started today!
What does a healthy Technician Efficiency Ratio ratio do for the value of my business?
Improving your Technician Efficiency Ratio ratio has several immediate and obvious positive effects on your business. Getting this metric right kind of feels like you’ve hit the jackpot in a Vegas casino – minus the buffets and the hangovers.
Here’s the specifics:
Higher valuation: A strong ratio makes your business more attractive to potential investors or buyers, substantially increasing its market value.
Stronger financial performance: A higher ratio means better profitability and efficiency, which will contribute to predictable and scalable growth and revenue.
(this one – you get to enjoy way before you retire)
Attractiveness to lenders: Cash flow is king…and a healthy technician efficiency ratio proves efficiency and demonstrates effective resource management. Ultimately a healthy ratio here makes it easier to secure financing or negotiate better terms with lenders.
Where do I find this ratio in my current financial reports?
Unfortunately, chances are almost 100% you can’t find this in your current reports.
Most accountants focus on traditional financial statements and metrics. While these reports are foundational + essential, they don’t provide insights into specific operational aspects of your business, like Technician Efficiency Ratio.
“So what do I do?”
To gain access to these specialized metrics (which are already at work in your business whether or not you are paying attention), you need to work with an industry-specific bookkeeping service that’s in tune with times and (more specifically) with the industry.
So I’m digging through QuickBooks and can’t find this ratio
Yes, no surprise there. QuickBooks Online is wonderful and the default chart of accounts and views cater to various industries. However, it does not offer industry-specific metrics like Technician Efficiency Ratio out of the box. That would be like expecting your toaster to also make coffee – it’s absolutely in the same room, but in a totally different space.
“So how do I find this number for my business?”
The hard way?
To access this information, you need to customize your reports, take on a complex integration project adding additional software to your bookkeeping systems etc.,
The easy way?
Work with a specialized bookkeeping service like FRAXN that focuses on the pest control industry and provides actionable financials based on data. FRAXN exists because pest control owners deserve visibility to numbers that matter, not just a P&L and a Balance Sheet.
Wait so I just learn this number and then I start making more revenue?
Well, that’s the start.
Learning the actual number is step 1. The whole point is learning your number and then how to translate it – how to increase & optimize it within the specifics of your business.
This is where FRAXN comes in.
We not only help you determine your Technician Efficiency Ratio score, we consult with you on how to optimize it & grow it, in scalable fashion. We’ve gone so far as to give it to you on a “scoreboard” you can watch & track each month because we know and understand the value so deeply.
( After all – we used to be in the exact same seat you are in now. Running a pest control company and hoping to sell it one day. We are trying to save you from the mistakes we made…)