Why More Profits Mean More Success (What You Might Not Be Thinking About)

If you don’t know who I am, I’m Scott Miller, the owner of thegrowthleague.com. I’m making these videos because I’m passionate about helping 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.

Let's go over the top three reasons why you'd want to increase your profitability:

1. Reward Your Hard Work: You're putting in the hours and the effort, so it's only fair that you see the fruits of your labor in your profit margins. You deserve it.
2. Be the Top Employer: More profits mean you can offer better pay and benefits to your employees. Guess who they'll choose over other companies? You.
3. Enjoy Life More: Who doesn't want to take more vacations, secure a cushy retirement, fund their kids' college education, or even buy a new car or boat? More profits can help you achieve all these.

Let's drill down into the first point. At some point, you'll want to move on from the business. Maybe you'll sell it to a trusted employee, someone else in the industry, or even a private equity group. They all have one thing in common: they care about profits.

Your selling price will largely be determined by your profit. To illustrate, let's compare two businesses: one has sales of $2.9M with a net benefit to the owner of about 20% ($600k), while the other has sales of $7M with a net profit of just 6% ($420K). Interestingly, the smaller business would sell for over $2M (at a 3.5x multiple) while the larger business would hope to get $1.7M. Yes, the bigger business could end up netting the seller $300,000 less!

It's these sorts of nuances I love helping business owners with. I’m passionate about helping you maximize profits and improve your lifestyle. If you’d like to chat more about your business and how to increase your profits and its value, let’s schedule a call. Let's design a 6-month game plan to work together and get you where you want to be.

Let's chat about your unique situation - I can help. Click the link below to book a call with me.

Here's to more profits and the success they bring!