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.
The critical issue for Owners is, “how do I grow my business to such a point that I can take a $100,000 salary without it hurting my business?”
The answer is, you need to produce more revenue and higher profits.
Revenue is a function of sales and marketing, while profit-making is a matter of earning the highest profit margins on each job you do. In other words, you need to make more money and keep more money.
What are the keys to making more money:
- Become a full-service contractor adding rebuild services.
- Get on TPA managed repair programs.
These are the two biggest money generators in the industry today!
Adding rebuild services generates three times your annual mitigation income. If you are doing $500,000 in mitigation work, the rebuild side of those jobs should produce another $1,500,000. A $500,000 business can become a $2,000,000 business in 24 months by adding this new service.
TPAs produce more sustainable, dependable, consistent, high volume work than any other combination of sales strategies. Just about any company can qualify, but you will need help successfully getting through the process.
While increasing revenue is vital to gaining that $100,000 salary, your net profit is the key determiner. If you make $2,000,000 and spend $2,000,000, you have missed the mark.
You need to produce a 20% net profit!
$2,000,000 of revenue should make $400,000 of net profit. This level of profit-making ensures not only your $100,000 salary but also an annual distribution of profits to aid your wealth building. After all, isn’t that why you started your business … to earn a good living AND to build your personal wealth?
Earning a substantial net profit requires a level of operational sophistication and competence that eludes many owners.
You may need support to do this!
Wej install the systems, establish the processes, improve your staff’s competence, and equip you to manage your business while targeting those salary and wealth-building goals.
Take a look at the extraordinary results reported by others – https://www.growmyrestorationbusiness.com/successes
What I have done for them, I can do for you!
CALL ME TODAY for a FREE 30-minute consultation to learn how coaching can help you grow your business. Call 800-655-1598 or email me at Jack@growmyrestorationbusiness.com to schedule a phone call.