Increase Your Profit on Every Revenue Stream
Grow Your Restoration Business by Increasing Your Profit on Every Sales and Revenue Stream
One of the very first strategies to grow your restoration business is set profit goals for each and every sales and revenue source.
What’s a revenue stream? Water damage, mold remediation, carpet cleaning, duct cleaning, fire restoration, contents cleaning, roofing, reconstruction, and any other major source of revenue. What profit margin do you expect for water damage services, or for reconstruction, or roofing services? You should have a profit margin benchmark for each category of revenue that you rigorously work to achieve.
Each source of revenue can be clearly identified and broken out on your Profit and Loss Statements so you can see from which sources your revenues are generated, and how well your business is doing in each one. With established profit benchmarks you can test your operational efficiency to see how often you reach your goals on each job, and what you need to do to improve the overall profits for each revenue stream of your business.
There are many internal factors you have control over that affect your ability to sustain higher profit margins. You need to understand what they are and how to control them. Your estimating practices, wholesale materials sourcing, job costing, and a few other key areas make all the difference in profit generation, or loss. By continuously assessing each one you can make the necessary changes to increase and maintain high levels of profit for each area of work. Increasing operational efficiency by just 5% will increase your bottom line profit by 20%. It’s true!
Internal, incremental profit growth is the easiest growth you will ever gain. Keeping more of what you have already earned is simple – and profitable!
Set realistic and attainable goals at the higher end of the profit range, and you should pursue these profit benchmarks on every single job and for every revenue category. How would you like to regularly achieve 50% profit margins on reconstruction, or 40% on roofing, or 75% on water mitigation? Can you imagine the difference it would make in your company if you could accomplish nothing more than to regularly attain these profit goals with work you already have?
At The Restoration Entrepreneur I coach for business success and growth. My #1 purpose is to help grow your Restoration Business. All the services provided and all the work done has this one goal in mind. Over 9 years my Restoration Company was added to 27 Preferred Contractor Programs for major insurance carriers. We reached an average annual growth rate for this period of 46% with some latter years as reaching as high as 60% growth year-over-year. My company achieved an extraordinary level of growth and I can help you grow your company too. I have discovered answers to many of the most pressing growth questions you have and I want to share my learning with you!
You can download my FREE eBook and other valuable growth resources today at www.growmyrestorationbusiness.com.
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