Where Will Your Business Be in One Year?
In today’s Coffee…
* the best is yet to come
* 486 words, total reading time about 2-1/2 minutes
When they coined the phrase, “Even the best laid plans go awry”, they must have had 2020 in mind. Imagine owning a bar or restaurant, or driving an Uber, or trying to get an education. You are NOT in the place, today, you might have imagined for yourself a year ago.
But that doesn’t mean you shouldn’t have had a plan, and it certainly doesn’t mean you shouldn’t make a plan for 2021. Because, as a Custom Integrator, this is a time of great opportunity. You will have more options for your business next year, than in any year before. Where do you want to be late in 2021?
Start with Revenues
The housing industry is in something of a boom. You don’t need us to tell you your builders are busy, and that new projects are lining up. Are you staying in front of your trade partner relationships, making sure you get your share of the best projects? This is not a time to just wait for things to come to you.
Business is booming, too. Stay-at-homeowners are investing in home technology. You need to stay in front of them, too, making sure they understand the many different ways you can make their considerable time at home more enjoyable.
2021 could well be the biggest revenue year you’ve ever had. What’s that number look like?
Stop Going Low
This is not the time to get anything less than a premium price for the goods & services you provide. You should be averaging a 40% margin on hardware components, and 60% on install parts. And labor revenues need to cover your tech wages and subcontractor costs by at least 2X, preferably 2.5X. We’re talking an overall gross margin of close to 50% if you price things right.
Record revenues and a +/- 50% Gross Profit will make 2021 a very good year. What will you be shooting for?
Fine-Tune Your Process
You’re probably doing things in much the same way your company has always done them. But, is it the best way? How could you make it better? Most importantly, how could you make it resemble the best practices of the most profitable CI companies?
Addressing these three things will greatly enhance the value of your company. Which will be especially important next year, as more CI companies will be purchased by strategic investors in 2021 than in the history of the custom industry.
Start Prepping Now
You’re going to need time to make your plan, and more time to implement it. The time to start is NOW. We’ll show you what the process might look like during September’s 1st Friday webinar this Friday at 11a CT. If you haven’t registered, be sure to click the link below. Then, be sure to attend as we help you see a big vision of where your company could be a year from now.