How Do You Build Your Restoration Company into a Multi-Million Dollar Business?
Who wouldn’t want to do this? What restoration contractor wouldn’t want a multi-million dollar company?
More than half of the tens of thousands of restoration companies in the US generate less than $1 million in annual sales. Most companies that reach this mark plateau and never grow larger than $1.5 million. Why is this?
For a restoration company that provides only mitigation services it takes approximately 400 jobs to produce $1 million in revenue and 600 to produce $1.5 million. What a daunting task to create marketing and direct sales systems that produce 400 – 600 jobs year after year after year. It seems nearly impossible to do and for most it is.
Restoration owners need to face the fact that if they want to become a multi-million dollar company they must expand their service offerings to include full-service rebuild. That’s the only viable way to build a larger than typical restoration business.
The average size of a water mitigation job in the US is $2,500 and it’s matching rebuild is $10,000, plus $2,000 overhead and profit sets the average size at $12,000.
Imagine a company with 400 (water jobs) opportunities to meet customers that are also in need of rebuild services and doing nothing to capture that opportunity. That seems nuts, and I think it is! If the water damage company captured only 75% of the available business this would produce 300 jobs at an average size of $12,000 and yielding $3.6 million in potential rebuild revenue – on top of the $1 million in water damage revenue.
Gaining only 50% or even 25% of the potential rebuild opportunities would catapult any company over the $2 million mark and beyond.
The simple truth is that if you intend to build a multi-million dollar business you must become a full-service contractor adding rebuild to your portfolio of services. There just is no other way.
Reference: 6-Month Coaching Plan – The Sales Doubler; Fast Track Your Company’s Growth by Becoming a Full-Service Industry Leader
Subscribe and receive our weekly blogs in your email inbox at http://growmyrestorationbusiness.com/blog/ – scroll to bottom of the page.
Comments are closed