Bill Harrison - Looking Ahead to the New Year

Posted: Monday, January 3, 2022
By: Gillespie Electric, Inc.

Looking Ahead to the New Year

Happy New Year to one and all. This year hopefully will be a big improvement from the last. Our focus this year will be on how to really sustain a good net profit.

Of course, it would be easy to bid jobs with gobs of net profit built in. But there might be a downside to that, right? We wouldn’t get many jobs. Tight bids have been the standard for many years and will be the standard for the foreseeable future. So, how do we get a good net profit?

And net profit is the only number that counts, gross profit is just that – gross.

You must focus on the cost side of your balance sheet. Most companies are wasting money hand over fist and can’t seem to grasp the importance of controlling cost. I do not make this statement lightly but base it on decades of observing how companies waste money every day.

When you get the entire team focused on cost control you will see some dramatic changes on the bottom line.

This year we will take a close look at cost control.

What’s to Come in 2022

Reducing Labor Costs

Some very interesting approaches you might not have considered

Reducing the Cost of Materials

This alone should add 1 – 2% to the bottom line

Reducing Mistakes and/or Do Overs

This is always a big hit to net profit

Administrative Supplies

This could add an easy 1% to the bottom line

Other Supplies

Lots of ways to tighten the numbers here

Health Insurance

What a wellness program could really save

Safety

What a difference a MOD rate makes

Any more ideas just let me know. If we cut all our costs in a systematic way we get much better net profit.

Feedback is always appreciated.

The Phoenix Leadership Institute, LLC

6200 Settlers Trail Place, Gainesville, VA 20155

Tel: 703-909-8230    e-mail:  wiharrison@comcast.net




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