Business Builders Blog

get consistent team results – without constant follow-up

In a recent survey of contractors who were queried about their experience in managing a team, 73% said “my team is great, but I still need to be constantly involved in the day-to-day.”  They cited that the biggest reason for this was feeling like if they did not, things would fall through the cracks.

Can you relate?

Here is the good news – it does not have to be this way!  In today’s video, I share with you a few things you can do in your contracting business starting today to begin turning that around.  I do not just talk theory here – I give you the steps to help you overcome this problem in your contracting business.

Managing people can be hard work. Yet building great teams is so important to the success of your business.  I will show you a few things to shift in your management practices that will make all the difference.

This video is an interview I did with Kyle Hunt, host of the Remodelers on the Rise podcast – check it out – 15 minutes of pure solid strategy!

Make it a great day!

Warmest,

 

Vicki Suiter helps people see their businesses differently, then gives them the tools to do things differently.  Since beginning her business in 1990, Vicki has helped hundreds of contractors achieve the kind of success they never dreamed possible. Today, in addition to consulting, Vicki is an in-demand speaker at industry conferences nationally and internationally. Vicki’s articles and opinions have been widely shared in print and across the web. She is also the author of the book “The Profit Bleed” How managing margin can save your contracting business.

Get Intentional About Your Profits!

Imagine it’s December 2021, and you’re reviewing the results of your business for the past year and you notice that compared to 2020, your profits are WAY up, AND, you didn’t have to kill yourself to make it happen! How great will that be?!

That’s what’s possible when you get intentional about your profits. Planning for increased profits by creating an operating budget for your business is the first step. I don’t just mean a revenue plan (most people have one of those), I mean planning for bottom-line net profits and increased cash flow.

In today’s video, I’m going to share with you the tools and steps to employ to help you do just that for your business.

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The Story Your Numbers Tell

My client, Bob, called saying, “I’m a little freaked out, and I need your help.” He continued, “I’ve been working my butt off to get my revenue up, but my bottom line profit is dropping.”

If you’ve ever experienced your revenue increasing, but your bottom line staying flat, or worst yet declining, then you can probably relate to why Bob was freaking out.

Making a consistent profit can be a common problem for many contractors, but it doesn’t have to be your problem.

When things like this happen, I tell clients to start with the data. Numbers always tell a story. So Bob and I sat down together armed the company’s profit and loss reports.

Sure enough, he was right. Revenue was steadily increasing, but the gross profit margin had been falling little by little from 30% a few years ago, to 27%, to 25% this year.

Contractors live and die by gross profit margin, so this decrease was worth a closer look.

If you’re working super hard, but you’re just not seeing the results you want, keep reading. I’ll explain to you why this happens, and then, what you can do to change it.  We’re going to talk today about what causes gross profit margins to drop, how to avoid “overhead creep”,  and how to price for increased profits.

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How to Nail Profits in the Bid Stage

Contractors live and die by gross profit margin.  And if you don’t learn how to control that one element in the bidding stage, you will always be chasing after profits.

The contractors I know who have learned to manage gross margin when bidding, nail project profits right from the start, and the result is a construction business that produces a consistent profit.

Gross profit dollars vs. gross profit margin:

Gross profit dollars are the difference between your bid price and your project costs. Often I see that contractors only look at that number before a bid goes out.

The gross profit margin is your rate of return and is measured as a percentage.  It’s that percentage that you want to learn to manage in the bidding stage in order to make a more consistent profit in your business.

So how do you manage gross profit margin? In the video and the post below I show you how.

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Systems for Increased Profits

It was 2005, the economy was booming, and my appointment calendar was full nearly every day.  I was grateful for the abundance of work, but at the same time, I was weary.  I’d been working non-stop for two years and longed to work fewer hours. “Teach a course!” my business coach suggested cheerily.  “That way you can work with “one-on-many” vs. just “one-on-one”, then you could cut down on your hours.”

The thought of developing a course when I was already working so many hours sounded daunting and exhausting.  For several months I kept objecting and explaining all the reasons why it wouldn’t work.  But she didn’t give up and each time I complained about working too many hours, she would remind me that I had other options.

In late 2005, tired of hearing myself complain, I relented and agreed to build the course. In the 1st quarter of 2006, the first Business Boot Camp course was launched.  A course designed to help contractors create better systems for increased profits. As I wrote each new lesson plan it made me stop and think through what I do with clients when working one-on-one.  As I wrote and then taught each session, the most amazing thing happened in my business…

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