Is Your Business Really Profitable?

Learn how understanding your financials can increase profitability and help you make informed decisions for your business's success.

Getting More Profitable is HARD and . . . so is the alternative
I know I keep bringing this up, but my guess is it’s probably pretty important to you. And if it’s not, it should be. So, if you’re interested in improving profitability, stick with me for a couple of minutes.

The reason I make these videos and coach restoration professionals and general contractors is because this is a tough industry. I know firsthand how challenging it can be, and I believe people in this industry deserve to be as profitable as possible. Unfortunately, many aren’t. A lot of businesses have high top-line revenue but aren’t nearly as profitable as they should be.

One issue I see, especially when I start working with new clients, is that they don’t really understand their financials. In many cases, this is the first time they’ve looked at their financials in any real detail. Some don’t even have the ability to run a profit and loss (P&L) statement filtered by job. They might not know how to do it, or their bookkeeping practices might not allow for it.

So, why is it like this? Why are they avoiding it? It often comes down to the fact that it’s hard. Digging into financials and developing the discipline to analyze what’s working and what’s not can be difficult, especially if you’ve never done it before. But think about this: everything is hard when you’re doing it for the first time. Building a house is hard if you’ve never built one before. The same principle applies here.

You’re already living with one form of “hard,” and that might be the difficulty of losing money or not being as profitable as your top-performing peers. The alternative is to take on a different kind of “hard”—the work required to develop an understanding of your financials and improve your profitability. For me, that’s the better choice.

When I started in the industry, I didn’t understand financials. The way we handled bookkeeping didn’t provide the information we needed, and it wasn’t until I got so frustrated that I decided to make a change. Once I did, I could analyze what was working and what wasn’t, and our business improved. If I can do it, you absolutely can, too—but it does take discipline.

If you need help getting started and your bookkeeper or accountant can’t assist you, feel free to book a call with me. Even if you’re not interested in working with a business coach, I’m happy to help you get pointed in the right direction. If there’s anything I can do, schedule a call, and I’ll help set you on the right path.