Say Goodbye to Financial Stress: Transform Your Restoration Business NowSep 11, 2023
How to take better charge of your restoration business’s finances.
Taking Control of Your Financials: Why Avoiding the Numbers is Hurting Your Restoration Business
Why are you avoiding your numbers? Isn’t it about time you start taking control? If these questions make you feel uncomfortable, you're not alone. I start a lot of coaching engagements with this as the number one challenge for the business. Many restoration business owners struggle with understanding and confronting their financials. The lack of proper data and comprehension often leads to this avoidance, but it doesn't have to be this way. Here's how you can turn things around.
If you don’t know who I am, I’m Scott Miller, the owner of thegrowthleague.com. I’m making these videos 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 - even if it’s simply booking a call with me.
Understanding the Fear and Avoidance
Financials can be daunting, especially if you're not accustomed to dealing with them. Fear of the unknown, confusion over terminology, and worry about potential mistakes may lead you to avoid your numbers altogether. But avoiding this crucial part of your business only leads to a lack of control and missed opportunities for growth.
The Importance of Accurate Data Collection
Good financial management starts with proper data collection. If your business isn't set up to gather essential information, you won't be able to produce meaningful Profit & Loss statements (P&Ls). Implementing systems that capture the right data will enable you to understand your company's financial health accurately. If you’re like most restoration businesses, you’ve already got the tools in place, it’s just a matter of some education and getting some new processes in place.
Reading and Understanding P&L Statements
Once you have accurate data, you need to learn how to read and interpret your P&L statements. By understanding the overall company's P&L and P&L's filtered by job, you can make informed decisions that lead to increased profitability. Breaking down the numbers and understanding revenue by division, the corresponding cost of goods sold, gross profit, expenses, and net profit are much easier than it might sound to you. Learning to recognize trends and patterns can guide your business decisions and help you to lose that feeling of flying blind.
Taking Action and Seeking Help
Avoiding your numbers won't make them go away. Taking control of your financials is a sign of a mature and thriving business. Start with small steps, such as setting up proper data collection or dedicating time each week to review your numbers. If you need assistance, don't hesitate to reach out to me.
Want to take the next step in mastering your financials and getting more profitable? Book a call with me by clicking the link below this video.
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