In this issue…
Editors’ note: Not all Coffee’s are written by Steve and Paul. Like Lennon & McCartney, we each have our own way of penning our thoughts. Today, Steve pens a few of his…
I just finished a call with a client company I’ve served since before VITAL, when I was soloing as Fast Forward Business Coaching. We have been talking since early 2010, when this client was closing the books on $1.1M in revenues in 2009.
Can you imagine that, since then, we’ve had every-new management issues and challenges to discuss every month? No way! The same stuff comes up over & over, year after year. But their company has kept getting better, and making more money, year after year. Over the past 12 months they’ve achieved a net operating profit of over $1.2M – almost 30 times what they made in 2009.
I guess that’s why they keep getting on the phone with me, and hearing “the same old songs” over & over!
Here’s a favorite that came up today…
Only 3 Ways to Make More Money
Sell more (increase revenues)
Charge more (increase prices)
Pay less (reduce costs)
That’s it! 1-2-3 strategies. And while it is popular to focus on #1, it is infinitely easier, faster, & more effective to focus on strategy #2. Now…
How do you do that without making customers buy elsewhere? That’s one of the not-so-secret secrets of the VITAL Business Management Ecosystem. Here’s 3 more “secrets” to our clients’ success...
To be a successful integrator you need to be able to sell and install, of course. But financial success requires somebody to manage daily administration and reporting in your accounting software (usually QuickBooks). Find somebody really capable who knows QB and get them trained on the best way for integrators to use QB. A good Admin is worth as much as your best technician. A not-so-good admin costs way more.
Labor productivity is the key to operational success. When your techs are out there installing and billing jobs, you’re making money. When they’re not, you’re not. Streamline your company’s process and logistics to minimize techs’ non-project time, and make sure your techs are skilled enough to do the job correctly within the time allocated for the project. Sidenote: most integrators do not charge enough for labor (see strategy #2, above).
CI is not the same as a contracting business. Nor is it the same as a retail business. It is a far more lucrative and wealth-creating hybrid that, unfortunately, has not received the best business training from its trade organizations. If there were a standard, documented way for CI managers to run their business we would all be better for learning it, in the first place, and following it. That’s what VITAL clients do – follow a standardized business process.
VITAL has used these simple secrets to help hundreds of companies make more money. Lots more money. We can probably help yours, too. Here’s a 3-minute video that shows how you might get started… see bi4ci web site.