Where’s Your Focus - Revenue or Profitability?
Sep 01, 2023On a scale of 1 to 10, how dialed in are you on your revenue reporting? What about profitability? If you're laser-focused on the top line, but profits are a bit of a mystery, we may need to reassess. As a restoration business owner, fluency in your financial reports is vital. They're the keys to informed decision-making and underpinning your success. In this video, I'll share some thoughts on the importance of producing and analyzing specific reports in QuickBooks or your restoration-specific management platform. Stay till the end, and I'll share a practical tip to help you get a handle on your financials, regardless of whether you're just kicking off or looking to fine-tune your know-how.
If you don’t know who I am, I’m Scott Miller, the owner of thegrowthleague.com. I’m making these articles to help restoration business owners get more profitable, reduce the chaos, and build something they can sell for a lot of money when they are ready to move on. I also am hopeful that you’ll watch this video and take action.
If you want to learn more about how I help clients, book a call with me by clicking the link BELOW this post.
If you’re own or manager a full-service restoration business, it's essential to produce and analyze the following reports:
- Profit & Loss (P&L) report with % of income for a mitigation job
- Profit & Loss (P&L) report with % of income for a rebuild job
For the mitigation job, determine your target budget for labor (as a % of income). For the rebuild job, establish your labor and material budget along with the target gross profit percentage (GP%).
These reports are your guiding light to your business's financial performance, steering you towards data-driven decisions for improvement. Not only that, but if you’re not tracking these numbers, how can you hold your team accountable for the financial performance you need? If you’re like most owners, you work too hard and take on too much risk to not focus on being as profitable as you can be.
If you can't produce these reports, don't worry! Book a call with me, and I'll give you some action items to get started. On the other hand, if you're able to generate these reports, let's take it a step further. Book a call with me, and we'll run through a review exercise that will bring you significant value.
By understanding and leveraging the power of these financial reports, you'll be well on your way to optimizing your restoration business's performance. Don't miss this opportunity to take control of your financials and unlock your company's full potential.
To learn more about how I can help you with financial reporting and other strategies to boost your restoration business, book a call with me by clicking the link below this post. Let's work together to make your restoration business more profitable and valuable, giving you the option to sell when you're ready.
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