This blog post is a summary of a Skimmer webinar from October 2024. Click here to watch the full webinar on demand.
At Skimmer, we work with some of the most successful pros in the pool service industry. While each of them brings their own unique flavor to how they run their businesses, those who consistently outperform the competition have one thing in common: they’ve laid the necessary groundwork for operational excellence.
During this webinar, Skimmer’s Director of Marketing, Niki Acosta, and our Director of Operations, Flavia de la Fuente, gave attendees a broad overview of what operational excellence looks like in the pool service industry and how to enable it.
Let’s dive in.
What are “operations” for pool service companies?
First, let’s define what we mean by “operations” in the pool service industry. As Flavia noted, operations are “the stuff we do to try to generate business value,” or the day-to-day processes and systems that keep your business running smoothly.
Operations can be executed at varying levels, depending on your business strategy. Ideally, your operational strategy dictates which parts of your business should be highly optimized and which parts can be simply done adequately.
Ultimately, there will always be bottlenecks in any company’s operations, but your strategy informs where they can be so that you can still execute your strategy well.
Systems over specific people
At its core, operational excellence means setting up excellent systems that can run on their own rather than enabling specific people.
When systems are set up to run smoothly, they run the business. If you prioritize systems, training, and integrity as guiding principles, you’ll deliver a consistent service that allows you to operate like a great company.
Now that we’ve defined operations and why it matters, let’s take a look at the operational habits of successful pool pros.
#1: They set SMART goals and track KPIs
Setting goals is the first step to achieving operational excellence. Casey Graham from Yummy Pools suggests starting with the question, “What do I want?” Meaning, what do you ultimately want to achieve with your business? Do you want to build a legacy for your family to inherit? Do you want more freedom in your life? Whatever your answer is will be your guiding principle in shaping your KPIs.
The goals you set should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. To accomplish these goals, you need to:
- Focus. Do a few things really well (and tie those things to measurable KPIs).
- Not be afraid to give up control. Hire help and train people well.
- Think creatively about how you acquire customers. There are many ways to grow a business, and different approaches work for different people.
- Take care of your employees. Employees who feel valued will put in the work.
- Leverage technology. Tools like Skimmer can help you systematize daily tasks.
Once you have a clear goal, you can define the Key Performance Indicators (KPIs) that will help you achieve it. KPIs allow you to assess the health of your business and run your business proactively. They should be reviewed regularly and be used in all areas of your business.
When it comes to KPIs, less is more. You can select a few based on your goals. For example:
Managing KPIs with operational excellence in mind means finding and naming the cracks in your current systems. Once you’re tracking KPIs consistently, you’ll start to see where problems are arising.
#2: They streamline processes
Streamlining processes will almost universally improve cracks in your systems. As Niki reminds us, this is one thing large companies tend to do really well.
Creating systems and playbooks that can be applied to any aspect of your business allows you to drive consistency and quality. The goal is to take what’s in your head and get it down in writing to make it repeatable. Tools like Notion, Monday.com, or Trainual.com can help you document everything and create playbooks that anyone can access from the web or mobile.
Creating well-documented processes around any of the following activities will allow you to offload low-value activities to focus on high-value activities.
One example of a powerful system anyone can implement is setting up Work Order templates within Skimmer. Crystal from Yummy Pools set up her own downloadable free guide on how to do just that.
#3: They train employees to retain them
Our 2024 State of Pool Service survey showed that attracting and retaining employees remains a major concern for many pool service owners. But as Niki reminds us, people quit bosses, not companies. As an owner, you need to take responsibility for your employee experience and make the time to lead.
The expectations you set from day one will influence your employees’ experience. This starts with their offer letter or employment agreement. Yummy Pools, for example, sets expectations by clearly outlining the following in their offer letter:
- Start dates
- Whether the employee is a W2 or a contractor
- How and how much the employee will be paid
- What constitutes a full-time employee (50 stops per week)
- How overtime works and when it’s applicable
- Probationary period
- Paid time off
- Technology used
- Vehicle policy
- Strike policy
- Expectations around chemical costs
Once an employee is onboarded, it’s important to keep them in the fold regarding the company’s performance. This includes activities like:
- Providing and encouraging feedback
- Holding regular team meetings where KPIs are shared and discussed
- Talking about what is and isn’t working during team meetings
- Introducing an anonymous suggestion box for people to share feedback they don’t want to share publicly
- Celebrating wins—be loud about what’s going well
- Creating incentives that drive behavior, like bonuses for good reviews or referral bonuses for new hires
Having a clearly defined advancement path to refer to gives your employees a reason to grow and gives you a checklist to ensure you’re holding them accountable and giving them the necessary experience and skill-building opportunities to grow their careers. Here’s an example Niki shared:
#4: They build and maintain strong relationships
Clear communication builds trust, and communicating well with customers will set you apart from competitors.
One of the best tools for building a communicative relationship with customers is a service agreement. As Flavia says, each component of a service agreement greases the machine and helps it run more smoothly throughout the customer’s time with you.
A well-written agreement will set clear expectations with your customers and prevent surprises around things like:
- Service frequency and rate type
- Your price increase policy
- Which services and chemicals are (and are not) included
- Access and inclement weather policies
- Preventative maintenance frequency
- How and when you bill, and whether you require a payment method on file
- Short-term rental policies
- Communication (email and SMS opt-in)
- Your termination clause (for either party)
The best time to introduce a service agreement is during new customer onboarding. Providing it early lets you talk your customers through the agreement and refer back to it anytime you need to. It also lets you set healthy boundaries from the get-go, which will change your business for the better.
If you’re not in a growth phase that sees you rapidly onboarding new customers, you can still use this tool for existing customers. The new year is a great time to introduce service agreements as a new policy.
#5: They manage cash effectively
Great companies use cash to fund growth. But you can’t use cash well if you’re not managing it effectively.
Many pool service pros want to grow their business but have a chicken-and-egg problem: “Do I get the customers first and then hire, or do I hire and then hope to get customers fast enough to recoup that cost?” If you manage your cash well, you’ll be able to fund those capital expenditures in addition to making payroll on time.
Cash flow conversion is the KPI that measures your cash management (also known as your operating efficiency). As Flavia says, it measures “how good you are at turning money spent on the business into revenue.”
Tracking your cash flow conversion means calculating your cash conversion cycle, or your “days to cash.” A low number for this metric means you can pay employees on time, deliver new orders, and invest in growth. Ultimately, this metric helps you identify improvements you can make to accelerate your time to cash.
There are three components to this calculation: Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding.
- Days Inventory Outstanding: How long after you purchase inventory are you invoicing for the work performed with that inventory?
- Day Sales Outstanding: How long after you send an invoice do you get paid?
- Days Payable Outstanding: How many days are you able to stretch your payables? The longer, the better.
Once you’ve isolated and identified each component of your cash conversion cycle, you can start making improvements to any problem areas. For example:
- Days Inventory Outstanding: To lower this number, review best sellers and drop your laggards. You can also accelerate time to invoicing.
- Days Sales Outstanding: To lower this number, you can streamline your payment methods by requiring a card on file, using autopay, and billing ahead for service.
- Days Payables Outstanding: To stretch this number, you can open a line of credit with a wholesaler or start using commercial cards.
#6: They upsell and diversify their services
If you have a customer list you’re happy with and don’t intend to acquire more, the only way to grow is to make more money from the customers you already have. As Niki reminds us, fear is the main thing holding people back from this.
There are a number of ways to diversify and upsell your services for current customers.
Package and promote your services
Presenting your services as packages gives people clear expectations. Plus, if you build a page on your website for each package, it’s great for search engine optimization (SEO). Your packages could include any or all of the following:
- A “good/better/best” tiered service system
- A green-to-clean package
- Pool opening/closing/seasonal packages
- Annual preventative maintenance packages
- Inspections, pool startups, pool school
Proactively sell and offer upgrades
Offering upgrades your customers might be interested in is a great way to keep them happy while increasing revenue. Consider upgrades like:
- Energy-saving initiatives
- Automation
- LED lighting
- Pool cover systems
- Loungers, umbrellas, accessories
Add service call charges
Proactively adding service call charges is a smart way to get paid no matter what. This charge can be applied to the cost of the repair if needed. You can also consider adding an extra fee for nights, weekends, and emergencies.
#7: They invest in the business
Investing in your business will allow it to keep growing, evolving, and achieving excellence. There are a number of areas of investment for pool pros to consider:
People
- Training and certifications (Orenda’s pool chemistry training is an example).
- Trade shows and boot camps. Pool Nation runs a great boot camp that many Skimmer customers have attended.
- Trade associations, which foster camaraderie and connection.
- Benefits. If you invest in your employees’ well-being, they’ll invest in your company’s success.
Growth & efficiency
- Marketing and branding
- Website & web presence
- Financial literacy
Technology
- Tools to help you streamline & automate tasks
- Take the time to set up Skimmer properly
- Leverage AI Tools to assist you in creating systems, processes, and playbooks
Operational excellence means a commitment to improving
We’ve suggested many ways to improve operations at your pool service company, and you don’t have to do everything at once (though Niki and Flavia both agree that if you’re going to do anything now, it should be implementing service agreements and autopay).
Achieving operational excellence is a long game. However, if you’re committed to building the right systems and continuously improving them, you’re moving in the right direction.
Webinar resources
In this webinar, our hosts touched on a number of useful resources, which you can find linked below. Every resource link will force a copy so you can have full edit and update access. Simply click the "Make a Copy" button to get started.
Calculators
Templates
- Sample Welcome Letter
- Service Agreement Template
- Service Technician Job Posting
- Technician Job Description/Offer Letter
- Career Path & Technician Levels
Webinars
- From 0 to 1000 Pools in 365 Days Strategies for Growing Your Pool Service Business
- Double Your Profits - Strategies for Growing Revenue (Without Adding More Pools)
Books
- The No B.S. Small Business Book: How to Win When Most Fail
- Mastering Skimmer Work Orders - free ebook
- Profit First (Entrepreneurship Simplified)