Business Builders Blog

Category: Increasing Your Profits

volume over profits: the ugly truth

A word of caution… if you think selling more work at a lower profit margin is the key to growing a more successful profitable contracting business, think again.

The truth is, that strategy can actually bankrupt your contracting business!

When my new client Sandy first called me, he was very frustrated by the fact that while his revenue had grown by over 30% in the past year, he went from making a solid profit to losing a lot of money.

When we began to dig deeper, it was apparent that he’d taken on larger projects that were priced with a margin that wouldn’t even cover his overhead. (A very common mistake that happens when you miscalculate your OBP).

At first, Sandy wanted to argue with me that “other contractors who do work of this nature only have those kinds of margins, and they are very successful.”

I could appreciate Sandy’s frustration. What I shared with him, and what I’m sharing with you in this video is why that strategy didn’t work, and what to do differently going forward.

There was a critical number that Sandy didn’t understand and that a lot of contractors actually don’t get right that was absolutely killing his profits.

Check out today’s important video to make sure you aren’t making the same profit-killing mistake in your contracting business!

The one number you want to make sure you GET RIGHT  is your OBP (Overhead Breakeven Percentage) – It’s the one figure that will make or break your business. Use this powerful free tool to find the right calculation.

your ‘blueprint’ for a financially healthy contracting business

Do you ever worry whether there will be enough cash in the bank to pay your taxes, meet that next payroll, or buy those new computers or equipment you need? Do you wish you had a ‘blueprint’ that lets you have more peace of mind about the financial health and cash flow of your contracting business?

This week’s video will give you the blueprint for how to do just that!

ALSO, you’ll get a FREE guide (read blueprint) with benchmarks and construction industry standards that will show you how to use your profit & loss and balance sheet as a powerful management tool and get more control over your profits and cash flow!

building a more profitable contracting business

Have you ever wondered what your competition is making in profits? Do you ever wish you had a better way of measuring the financial success of your contracting business?

This week’s video will give you those answers and show you how to use your profit and loss statement as a powerful tool to build a more profitable contracting business.

ALSO, you’ll get a FREE guide with benchmarks and construction industry standards that will show you how to use your profit & loss and balance sheet as a powerful management tool.

This is a unique opportunity to get insight into how to build a more profitable contracting business – so don’t miss out!

Get your FREE Financial Benchmark Guide for contractors.  In this guide, you’ll learn not just how to read your financial reports and use them as a powerful management tool, but also provides benchmarks to compare your results against.

creating your new year – part I

Each year I do this really cool process with my clients (and for myself) that kicks off the year in a great way. In this two part series I’m sharing with you what we do.

What’s really neat is that I’ve seen how this process has created amazing results for the contractors I work with – and it will for you too.

Enjoy!

how to build your budget for 2022

Building a profitable contracting business is just like building a successful project – it begins with a blueprint and plan that outlines what you want the end result to look like. And just like bidding a project starts with the end in mind, so does building a budget for your business.

In today’s video, I walk you through how to build an operating budget, that includes benchmarks for what a successful remodeling business wants to have in net profit margins and cash reserve goals.

You’ll also get my free Budget Goals Worksheet guide to help get you started!

Warmest,

Vicki

p.s. If you want more tools to help you increase the profits in your contracting business, check out my book, ”The Profit Bleed – how managing margin can save your contracting business”. For a limited time, it’s FREE – you just pay for shipping and handling.

Get your FREE Business Health Assessment to find out where your business is bleeding profits!

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