I have the distinct honor of talking to restoration business owners from all over the country on a daily basis. In our industry, there’s a huge emphasis on revenue growth and very little focus on growth in terms of profitability. But why is that?
When I thought about it, the answer was glaringly obvious, and a little alarming. People are prone to shy away from in depth financials and often outsource that part of the business. They simply don’t know the important numbers of their business.
You’ve invested your time and talents into this business you’ve built, brick by brick, and you’ve most likely worn all the hats. The journey to true entrepreneur means growing out of wearing every hat and embracing the owner role, a role that requires regular attention to key financials. Without fully understanding those numbers, making changes and improving profitability can be out of reach.
Knowing the numbers of your business begins with understanding your books, aligning with what makes you profitable, and then making sure your team understands how to support that profitability. Understanding financials affects every part of your business. Sit down weekly and start learning where your business is from a financial standpoint. Know your numbers. Once you get comfortable and start understanding those financials, you can better give your team targets and hold them accountable. Then you can move the needle forward, one informed decision at a time.
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