Standby for the prescription.
In This Issue:
*Get The prescription; become 1 out of 10
* 319 words less than a 2 minute read
Over the past four years, we’ve clocked 70 company years of coaching. We have helped our clients increase their collective profits by over $10M during that time, and companies are still seeing headroom in their operations.
The big lesson here: growing the bottom line is a totally doable proposition.
Here’s the Prescription:
1. Start counting correctly so you can see the business better
2. Get discipline in your core process for managing projects and recognizing revenue
3. Price your projects, especially labor and parts, to get the profit you deserve
4. Proactively request & collect payments
5. Focus on labor productivity
6. Pay your people according to success
7. Keep a lid on overhead
The Outcome: Drive 15 to 35 cents for every revenue dollar to the bottom line (yes, we have clients achieving monthly operating profits in excess of 25-30%. Client results vary, of course).
Adopt a strategic chart of accounts (ours). Organize your item list into Equipment, Parts, & Labor. Keep collection requests and project billings separate. Use the clients’ deposits but always be responsible. Regularly progress invoice projects for goods delivered, labor expended, and parts used.
Review every bid and manage to profit benchmarks. Hold highly effective production meetings. Conduct monthly postmortems on your financial performance, with Bi4Ci dashboards being an invaluable feedback & analysis tool. Conduct project postmortems as necessary. Plan staffing and compensation to less than 33% of revenue. Manage overhead to less than 12%.
Do this, and you will be one of the top performers in this industry. You will become cash flush and profits will be very predictable. Chaos will be diminished and organizational improvements can become a methodical series of achievements.
Continue to pave the wild road or get help getting to the high performance highway. There is nothing more significant you can do for your business.