Mike Andes (speaker) argues that for home service business owners, chasing more leads is often the wrong answer. Using a 4L framework (liquidity, leads, labor, leadership), he says the bigger constraints are cash flow/profitability, staffing (hiring, onboarding, training), and weak leadership (pricing and management), and that increasing lead volume can worsen problems if these areas aren't addressed.
More leads won't save you better pricing and better profits will everyone? When I go on turnaround shows or talk to hundreds if not thousands of home service business owners everyone thinks they need more leads. When we look at the 4L framework we have constraints of liquidity, leads, labor and leadership and for some reason everyone thinks they need more leads when reality getting more leads usually would actually just hurt hurt most business owners because they have problems around liquidity, cash flow, profitability as well as labor their team, employees, hiring, onboarding, training as well as leadership. There is no leader in the business and so many times we look at leads as the scapegoat for all problems of the business and we just think if I get more leads it solves all my problems when in reality there's three other big constraint to the business and they have nothing to do with getting more customers it's having to do with getting more cash, getting more labors and being a better leader.
