Good cash flow management ensures there is always enough cash on hand to meet expenses. For most restoration owners, this is rarely the case. We always seem to be cash strapped. We are either preparing for payroll or just completing it. There is rarely a surplus of money on hand, making this one of the highest pressure experiences in our business life.
NO, you don’t use it for masking a paint job, silly! Have you ever had a customer at the end of the job come up with a two-page punch list that’s easily a week’s worth of work? Yes, I have.
What if one TPA sent you 3 jobs a month. That’s 36 a year, and if you are a mitigation-only company that will produce more than $100,000 of revenue. If you are a full-service contractor, those three jobs a month…
If you want to grow your restoration business and are not providing rebuild services, you are missing out on the biggest moneymaker ever! Every Restoration owner wants to grow their business! They want more revenue, higher profits, open up new markets, add services, and generate more work?
This statement is about your future and it should begin directing your steps today! The matter is vitally important to you, and I hope you read this carefully! To the 25,000 Restoration Company Owners, I ask you, “What size must your business be to retire?"
Fear? Know-how? Confidence? Of the 25,000 restoration companies in the US, 80% are mitigation-only businesses. Would it surprise you to learn that many of those want to become full-service? But they don't do it because of nagging self-doubt.
ROI measures the amount of financial benefit you receive from a particular marketing investment.
Owners should receive a salary of no less than $100,000 annually. While some smile at such a notion, others frown because they see no way of doing this. A young fledgling company may allow for a $60,000 or $70,000 annual salary while the Owner reinvests in the business, but beyond one or two years, the $100,000 salary must become attainable.
That was the greeting I recently received from one brash young contractor. “Tell me what you can do for me,” he said. After starting to recover my composure, I stuttered and sputtered, saying that contractors come to me because they are interested in two things: 1) Starting or improving their rebuild services, and 2) they want to get on TPA managed repair programs.
How many companies have a process in place for estimate review? I'm not just talking about checking an estimator's work to ensure they are not leaving money on the table. It includes that, but more. Owners should take an active interest in upgrading the skills of key employees, especially estimators.