We all know the next one is approaching; the run-up to a recession starts with a subtle cooling after a hot market, and many are feeling that cooling already. The next recession may be inevitable, but its impact on a remodeling GC can be surprisingly controllable. While the usual advice may be valid (save money, trim your expenses, reduce your debt), there is a more head-on approach to addressing the underlying problems and developing a meaningful strategy to succeed and prosper. In this session, you will learn three key areas and be provided tools to protect your business and profits in an economic downturn that will also ensure your long-term business success.
Improve Margins by Plugging Profit Leaks
- Understand the real costs of production and accounting for all costs within the project.
- Build business projections based on actual overhead and targeted net profit to know exactly how many jobs per year you need to achieve your goal.
- Identify and fix profit leaks. There are many profit leaks we see in the remodeling business that account for 4-8% slippage in profit. Fixing these areas will increase efficiency and profitability.
Understand and Manage Your Job Mix
- Not all jobs have the same risk and return. Selecting the best jobs for each remodeler based on your strengths and abilities will improve efficiency and profit.
- Identify the right job mix for your business and build projections to identify how many of each type of jobs you need to achieve your goals.
- Refine staffing needed for each job mix and understand the true cost of low production.
Targeted Marketing To Your Ideal Client
- Identify your ideal client based on the business model desired and how to differentiate your business to attract the right clients.
- Build marketing funnels that will consistently attract the clients you want.
- Tracking marketing leads and conversion rates to fill your pipeline with the best jobs.