Damato of The Day Is ... "Focus on Profits"
One thing should remain constant in your roof contracting business - in good economic times, in challenging economic times, and even in times when you are left to wonder if there is an economy. You must maintain a constant focus on profits.
One thing should remain constant in your roof contracting business - in good economic times, in challenging economic times, and even in times when you are left to wonder if there is an economy. You must maintain a constant focus on profits.
As 2008 winds to a close many contractors will be able to count this as a very good year while some have been telling us they have never seen such a steep and sudden drop in the amount of available work. Looking forward, it appears that we may all be in for a tough go of it in the coming year.
If you have maintained a focus on profits in the years gone by, you should have built up the necessary reserves that will get you through the period of adjustment needed to “right-size” your business. If your business was built on the idea that taking tons of work at any price to build a presence in the marketplace, all I can say is, “It’s been nice knowing you.”
There is never a market condition that does not demand a focus on profits if your intention is to build a sustainable enterprise.
Cutting prices in order to hang onto staff or facilities or equipment “until the market returns” makes almost no sense unless you have a crystal clear plan of action (which would include knowing the future … good luck with that). Moving quickly to match your overhead with the demands of your market is difficult and sometimes painful, but that is how you maintain a competitive edge while preserving profitability. And without being profitable, the idea that you invest your time and money (even into your own enterprise) just does not make sense.
You cannot eliminate risk. You must invest and even borrow the capital that it takes to run your roofing business. You must also get up and work real hard every day to keep it all moving in the right direction. It does not matter how much the market changes (up or down), you must constantly see to it that your roofing business is always structured in such a way as to provide you with a return on your investment.
One thing should remain constant in your roof contracting business - in good economic times, in challenging economic times, and even in times when you are left to wonder if there is an economy. You must maintain a constant focus on profits.
As 2008 winds to a close many contractors will be able to count this as a very good year while some have been telling us they have never seen such a steep and sudden drop in the amount of available work. Looking forward, it appears that we may all be in for a tough go of it in the coming year.
If you have maintained a focus on profits in the years gone by, you should have built up the necessary reserves that will get you through the period of adjustment needed to “right-size” your business. If your business was built on the idea that taking tons of work at any price to build a presence in the marketplace, all I can say is, “It’s been nice knowing you.”
There is never a market condition that does not demand a focus on profits if your intention is to build a sustainable enterprise.
Cutting prices in order to hang onto staff or facilities or equipment “until the market returns” makes almost no sense unless you have a crystal clear plan of action (which would include knowing the future … good luck with that). Moving quickly to match your overhead with the demands of your market is difficult and sometimes painful, but that is how you maintain a competitive edge while preserving profitability. And without being profitable, the idea that you invest your time and money (even into your own enterprise) just does not make sense.
You cannot eliminate risk. You must invest and even borrow the capital that it takes to run your roofing business. You must also get up and work real hard every day to keep it all moving in the right direction. It does not matter how much the market changes (up or down), you must constantly see to it that your roofing business is always structured in such a way as to provide you with a return on your investment.
