Did you know that 20 cents of every dollar your restoration business brings in should end up in your wallet? The best way to ensure you achieve this goal is to develop a 12-month business plan utilizing our “Pay yourself, first!” technique.
First, project how much money you want to realistically earn 12 months from now. Calculate your sales then subtract your 20% profit. The difference is the amount you can spend – for everything. For example, let’s say your sales total 1-million, the profit you want to make is $200,000. That leaves $800,000 you can use to pay all of your costs and expenses for the next year.
If this doesn’t seem possible, it means you need to start making strategic decisions, now. These include cutting expenses wherever you can while increasing production and operational efficiency. As your net profit grows, the value of your business grows. And this makes it more attractive to buyers when you decide to sell and retire.
You might be thinking this is not possible, but trust me it really is. I have helped many businesses achieve this, which means if they can do it, you can too.