What Is The State of the CI Industry?
In today’s issue:
Unrealized potential how pervasive is it?
364 words, total reading time about 2-minutes
With housing strong again, a stock market on a historical roll and the words "consumer confidence" no longer in the news, one would think the CI business is booming again. And, it is.
There are over 1050 CI companies who do $1M or more in Annual Revenue, together they did more than $2B in retail sales in 2017 and purchased over $800M in products to serve their clients.
Only less than 3% of these companies get financial guidance in maximizing their potential.
Yet, over $80M in unrealized profit occurs each year. And, productivity remains at over 2,000,000 unproductive hours annually. So why don’t companies and owners get the real potential of their businesses?
It can be summed up as one thing: they see only their own numbers and assume they are ok or even good.
The second reason, (more than one) is that most counting systems give them untimely data or distorted data that prevents them from making proactive, anticipatory decisions.
We promise you, we have fixed both instances.; providing standard counting and a real time picture of your company’s condition combined with validation of performance against other CI companies. Its metrics, on-line dashboards and industry wisdom not found anywhere else in our business.
In 2018, take the first step in getting the business optimized for performance, growth and high return. You can find 3% to 6% of additional profit and gain productivity you have been walking past for years. In six months, you will know if it’s possible for you. No doubt it will be the best $2,800 you will spend, ever.
So here is what is possible (we call it BLUE performance):
Revenue Growth consistently over 10%,
Profit 20% or greater on Revenue,
Cash: Net Cash excluding deposits that equal one year’s payroll or greater than 30% of annual sale,
Productivity over $12,000 per tech per month,
Margins greater than 60% without labor costs in,
Compensation at or under 30% of Revenue.
We find much of the chaos in business is caused by not aligning best practices to these metrics. Better performance begets less chaos and more predictable outcomes. Chase what matters.
Together we can change the state of the industry.