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Business Frustrations, Part III Tired of the same old? Try a different approach…

January 21, 2020



In today’s issue…

  • The incredible opportunity of Custom Integration

  • 446 words, total reading time about 2-1/2 minutes

A couple weeks ago the Tuesday Morning Coffee asked what things might be frustrating you in your business. We put out a survey and about 40% of our readers responded. Here is what you told us…

  • 77% of you are frustrated by daily CHAOS

  • 87% of you are frustrated by INEFFICIENCIES

  • 84% of you are motivated to do something to make things better

Owners are uneasy about the chaos & inefficiencies in their business. And motivated to find a way to fix it. But then you told us this…

  • only 45% of you are frustrated by RESULTS

Being Comfortable

It is our belief that the significant majority of CI business owners aren’t aware of the really great results that can be achieved by an integration company. For example, 10% net operating profit has long been the “gold standard” for custom installers. Which makes an 8% operating profit seem pretty good, and a 5% operating profit acceptable.

These same owners, “comfortable” with the results they’re getting, might be motivated to fix chaos and inefficiencies, but, hey – there’s not that much improvement to be had so no need to be in a rush. “We’ll work on it when we have time”.


Economic Truths

During last week’s “Reducing Frustrations” webinar (recording available here), we showed a simple process for increasing profitability by 6.7 points. If you’re at 5%, it’s a map to get to 11.7%. If you’re already at 10%, it points the way to 16.7%. And we’ve seen integrators add that kind of improvement to their already-excellent 15-point bottom line, taking them to over 20% net operating profit.

Now we’re talking.

Custom Integration is one of the best business models we’ve ever seen. Integrators have the opportunity to enjoy exceptional financial success and cash flow. They just need to learn how.

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