From auto dealers and restaurants to professional service firms, the service providers industry is as diverse as it is dynamic. Within this multifaceted industry, driven by an innovative and forward-thinking group of professionals, efficiency and operational excellence are essential for success.
To gain a better understanding of the factors that impact this wide-ranging industry, we spoke with Steve Turner, our Service Providers Industry Leader. In this article, Steve discusses his background and expertise, illuminates key trends shaping businesses in this sector, and offers valuable insights into how they can optimize their performance and increase efficiency.
Meet Our Service Providers Industry Leader
With over 15 years at The Bonadio Group (TBG), Steve is no stranger to client service. Throughout his time at the firm, Steve has used his extensive knowledge and expertise to assist business owners within the service providers industry in a number of ways, leading to his current role as the Service Providers Industry Leader.
“I truly enjoy building connections with people, and given my experience with clients within retail, restaurants, and the auto dealer sector, the industry leader role was a natural fit,” shared Steve.
As Industry Leader, Steve is responsible for business development, geographic expansion activities, and coordinating the firm’s industry specialists to ensure our clients are best serviced within our service providers Industry, which consists of both consumer and professional services clients.
“My role as Industry Leader allows me to make influential connections each and every day with those both inside and outside the firm,” he added.
What’s Impacting the Service Provider Industry?
Being aware of current trends is essential for businesses to adapt, innovate, and thrive in a rapidly changing business environment. Below are two key trends that businesses in the service providers industry must account for:
1. Labor Shortages—Labor shortages and personnel management are significant challenges impacting all businesses in the service providers industry. The industry relies heavily on skilled professionals to deliver services, such as technicians, consultants, and customer service representatives. However, finding and retaining qualified staff has become increasingly difficult due to various factors, including demographic shifts, changing work preferences, and competition from other industries.
“This issue spans across the industry—businesses everywhere are asking themselves, “how can I find enough people? However, it’s really about adapting to this challenge and learning to do more with less. One way to do so is through working with a trusted advisor to develop solutions,” shared Steve.
2. Economic Uncertainty—The economic uncertainties triggered by the COVID-19 pandemic continue to reverberate across industries, impacting businesses worldwide. When will interest rates go down? When will the supply chain disruptions subside? When will the economy recover?
As businesses navigate the lingering effects of the pandemic, it is important to move forward while factoring in these challenges. “Do you have a plan for your business’s growth? Or perhaps you need to downsize,” added Steve.
Optimizing Performance & Operations
Optimizing performance and operations is a crucial component of running a successful business. Below are two considerations for how service providers can increase efficiency:
1. Maintain Good Data—the key to good decision making is good data. “Businesses must maintain accurate as well as contemporaneous financial information. It is no longer sufficient to simply review your financial records once a year,” said Steve.
Other areas to keep track of are your people, inventory, and pricing. Do you have enough inventory? Or perhaps too much? Do you have the right number of people? Is your product or service priced correctly? Accurate records will allow you to answer these questions, and therefore, make informed business decisions.
2. Outsource Time-Consuming Tasks—Another way to increase efficiency is through outsourcing various business functions. Outsourcing routine or time-consuming tasks can lead to cost-savings, access to expertise, and can even provide you with more time to strategize and focus on decision-making. Learn more about our outsource accounting and finance services at TBG here.
There is a lot to consider when running a business. The best way to ensure efficiency is by working with a trusted advisor. “Running a business is often a pay now or pay later situation—you either take shortcuts now and pay more later, or pay upfront and avoid backend problems,” Steve concluded.
If you need further guidance or are interested in learning more about our service providers industry, we’re here to help. Please do not hesitate to reach out to our trusted experts to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.