#36: Moving The Needle of Profitability & Cashflow - Contractor Momentum

#36: Moving The Needle of Profitability & Cashflow

Contractor Momentum
#36: Moving The Needle of Profitability & Cashflow
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You’ve worked hard. But instead of feeling elated when you look into your books, all you get is a sinking feeling. Why do the numbers say you made less money than you expected? What went wrong? It’s a terrible situation and believe me, it has happened to me before. I understand a lot of trades business owners are stuck in a similar rut which is why we will tackle how to improve your cash flow and your bottom line in this episode of our podcast.

Facebook Group: https://www.facebook.com/groups/896216427196514/

1:00 The labor efficiency rate, what is it?

  • Determining how efficient your labor is in generating revenue
  • Why you should complete 3 times the amount of work for every dollar you spend in labor
  • Improving revenue by cutting down on labor costs

10:30 Do not underestimate the power of estimating (pun intended)

  • The pitfalls of pricing too low and pricing too high
  • Using pricing to get recognized as a premium brand
  • Markup vs. margin as profit
  • How underestimating profit margin will lead you into going out of business early

18:00 Deposits and collecting payments on time

  • A practical method for solving cash flow problems in your business
  • When deposits are and aren’t needed
  • How to use deposits as a marketing tool
  • Tips to eliminate the burden of collecting payment

30:00 Creating an annual budget map

Apply these tips and you’re on your way to improving your bottom line and reducing expenses!

Corey Philip
 

Founder & investor in home service companies. Aside from running these businesses, I love trail running and mountain running.

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