If you said yes, you’re not alone.
When Reese asked me this question I was compelled to go dig into the data and find the answer. Some of what I learned surprised me, and it may you too!
“What percent of revenue should my rent be if I’m trying to grow my business? Next year I’m going to look into buying property and then rent it to the business, but I’m not sure what a reasonable monthly payment should look like?”
In today’s video, you’ll learn what the numbers showed is the average cost for subcontractors and general contractors (of varying sizes) for facility costs (rent, utilities, insurance, repairs & maintenance, taxes, and janitorial). After watching this short video you’ll be able to do this analysis on your company as well!
Go do a bit of analysis on your own business and see what your numbers show for facility costs and see where you compare. Simply run a profit & loss statement for the last 5 years and do a side-by-side comparison (make sure to click the button that says “% of income”).
If you are interested in more ways to increase the profitability of your business, make sure to check out my book, “The Profit Bleed – how managing margin can save your contracting business.”