Pest control’s future looks bright

Dan Gordon, CPA

Pest management businesses are likely to undergo significant changes over the next decade as they adapt to new technologies, increased regulation and changing customer demands. Here are four of the top financial opportunities and challenges I see today through 2033 — the year the National Pest Management Association (NPMA) and Pest Management Professional (PMP) celebrate their 100th anniversaries.

1. Technology has been the watchword for the past 10 years. This will only progress, and the use of technology will further proliferate. It will affect all aspects of the business, but most particularly utilizing cloud-based accounting software, financial modeling software and data analytics tools. These tools allow businesses to make better financial decisions, track their performance more closely and identify areas for improvement.

2. Data analytics is a relatively new buzzword. But what is it, and why will it become more significant as we move to the future? Pest management firms are increasingly using data to make better financial decisions. Data analytics slices and dices this information to gain visibility into historical financial data to forecast future trends and identify new opportunities for growth. Analytics include grabbing data points in areas such as:

• Customer data includes information about customers’ demographics, purchase history and behavior. It is used to understand customer needs and preferences, identify trends and develop marketing campaigns.
• Financial data includes information about revenue, expenses and profits. This data is used to track financial performance, identify areas for improvement and make strategic decisions.
• Operational data includes information on production, chemical inventory, route efficiency and other quantifiable components of pest control. This data is used to improve efficiency, identify bottlenecks and make better decisions about resource allocation.
• Web analytics includes information about website traffic, such as page views, bounce rates and conversions. This data is used to understand how users interact with a website, identify areas for improvement and optimize conversions and cost per lead.

3. Risk management is extremely important to the longevity of any business. Consider how we send drivers by themselves with chemicals on their trucks; instruct them to apply them at customers’ places of business or homes; and have them use heavy tools and ladders where they potentially can damage customer property and/or hurt themselves. Best-in-class companies of the future will constantly look to identify and mitigate risks, and have contingency plans in place in case of unexpected events.

4. Sustainability is becoming increasingly important to pest control businesses. This is reflected in the way many pest control firms are managing their finances. They are increasingly looking for ways to reduce their environmental impact and operate more sustainably. They will continue this trend well into the future. Implementing integrated pest management (IPM) strategies — using pesticides judiciously and treating each account on its own merit, not a cookie-cutter style of treatment — is good for both the environment and the bottom line.

Pest control’s financial future looks bright. However, headwinds presented by technology adaptation, risk management and compliance with new regulations will cause challenges. Companies that can embrace change and innovate will be well-positioned for success.

The post Pest control’s future looks bright first appeared on Pest Management Professional.

from Pest Management Professional https://www.mypmp.net/2023/10/11/pest-controls-future-looks-bright/
Sacramento CA