5 Things to Expect When You Walk Away from the HVAC Business
You sold your contracting business and stayed on for an earn-out, flip, or other reason. Eventually, you will walk away. Here’s what you can expect.
1. You Have Zero Influence
If your company is located in a small community and you are networked into the community, you are probably associated with your company. After you sell and walk away, you likely have very little influence over the new owners. After all, it is now their company, and they are going to operate it the way they want. That doesn’t make it wrong. It’s just different.
2. Disgruntled Employees Will Call You
Not everyone will be happy with the changes the new owners make. Some will feel they are mistreated. Some will likely be terminated. You will get phone calls from people who are hurting and want to vent. Listen. Empathize. But, remind them that it’s no longer your company.
3. Customer Service Issues Are Your Fault
Especially in smaller communities, your old customers, friends, neighbors, and acquaintances will blame any customer service issues on you, even if they result from changes or policies of
the new owners. It may not be your company anymore, but it continues to be associated with you. Many people will think you can do something about their problems. Explain that you cannot and that you’re not even supposed to talk about problems.
4. Pricing Hikes Are Your Fault
Even if you priced at the top of the market, company prices are likely to go up as a result of inflation, A2L, the need to generate greater EBITDA, and so on. People may not blame you for the price increases, but they will complain to you and ask for an explanation. All you can do is shrug.
5. Poor Performance Will Be Your Fault
If company performance dips in any way, the managers running the company will blame it on you in an attempt to avoid shouldering responsibility. They will communicate this to their superior, their employees, and other contractors in the community.
These are reasons why contracting legend, Ron Smith advised contractors in small to medium sized communities to move after selling and walking away. Maybe you should too.
Buy Matt Michel’s new book, “Contractor Stories” on Amazon. See him speak at the Service World Expo in October.
About the Author
Matt Michel
Chief Executive Officer
Matt Michel was a co-founder and CEO of the Service Roundtable (ServiceRoundtable.com). The Service Roundtable is an organization founded to help contractors improve their sales, marketing, operations, and profitability. The Service Nation Alliance is a part of this overall organization. Matt was inducted into the Contracting Business HVAC Hall of Fame in 2015. He is now an author and rancher.