Bill Harrison - Looking Ahead to the New Year
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
This could add an easy 1% to the bottom line
Lots of ways to tighten the numbers here
What a wellness program could really save
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.
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