Finance & Succession Planning

What You Should Know About Savings & Investments

Starting to build your wealth early will prepare you for large purchases or business expansion.

Originally published Published: 03.09.17 Author By Stoyan Panayotov

Increase Warehouse and Inventory Profitability

Inventory is a bet. You’re betting your hard earned dollars that you will be able to sell parts and equipment that you buy and store in a warehouse or on …

Originally published Published: 10.28.16 Author By Ruth King

How Much Are You Paying for Advice?

When it comes to investments, most people seem content to just “let it be” and not think about it. The problem with this approach is that the fees you pay …

Originally published Published: 10.28.16 Author By Frank Pedace

Six Easy Ways to Increase Marketing Profitability

If you want to waste marketing dollars, then just burn the leads that marketing generates. You invest thousands of marketing dollars to produce those leads. Keep them productive. Keep them …

Originally published Published: 09.30.16 Author By Ruth King

Three Ways to Increase Sales Profitability

Selling profitably, riding with your salespeople and tracking results will improve your company’s sales profitability.

Originally published Published: 09.06.16 Author By Ruth King

Increase Installation Profitability

At the end of the day or the job, these are the wasted materials that get left on job sites or damaged, rolling around in trucks. Returning materials at the …

Originally published Published: 08.03.16 Author By Ruth King

Increase Maintenance Profitability

If you want to sell your business, or have a strong company, you must have a growing, thriving maintenance base.

Originally published Published: 07.01.16 Author By Ruth King

Increase Replacement Profitability

Know your overhead cost per hour and net profit per hour for every job. When you include overhead in job costing, then you really know what net profit each job …

Originally published Published: 06.02.16 Author By Ruth King

Increase Your Dispatch Profitability

Your dispatcher can make or break the profitability of your service department and potentially your company. Here are five ways to increase dispatcher productivity and, therefore, profitability.

Originally published Published: 05.01.16 Author By Ruth King

Build Your Company’s Profitability

Implementing new procedures and ideas is change. Most employees hate change. As the leader, you must give them reasons for the changes, ask for their input and remind them of …

Originally published Published: 02.01.16 Author By Ruth King

Why Net Profit per Hour is a Better Way to Price

Calculating pricing using net profit per hour ensures your overhead costs are covered in each job.

Originally published Published: 01.01.16 Author By Ruth King

Entering the Second Stage of No Man’s Land

At the end of this stage the owner is likely to have a sales manager, an office manager, a service manager and several field supervisors each with a responsibility for …

Originally published Published: 12.01.15 Author By Ruth King

Where You Should Put Labor Burden

True profit is determined by net profit per hour, calculations which take both direct and overhead costs into consideration. Labor burden is included, whether you put it in direct or …

Originally published Published: 10.01.15 Author By Ruth King

Profitable Sales Turned into Positive Cash Flow is Critical

Although cash is king and is used to pay all of your bills, cash flow is important, but profitable sales turned into positive cash flow is critical.

Originally published Published: 09.01.15 Author By Ruth King

Know When You’re Growing Too Fast or Too Slow

Business profitability doesn’t mean business survival. By running out of cash and not having the ability to borrow or get it in an equity investment, you can be profitable and …

Originally published Published: 08.01.15 Author By Ruth King

Understand Your P&L: Overhead

Overhead is any expense the company incurs to stay in business. It doesn’t generate revenue; it sucks up the revenue the field labor produces. But it’s critical for company survival.

Originally published Published: 07.06.15 Author By Ruth King

Understand Your P&L Statement: Gross Margin, pt. 2

Gross margin should not vary more than a few points each month. If it does, then you must find out why the margin is varying.

Originally published Published: 06.08.15 Author By Ruth King

What is the Company Really Worth?

Whether you're looking to sell your company, or buy a competitor, it's important to know how to conduct an accurate business valuation.

Originally published Published: 05.01.15 Author By Brandon G. Jacob

Understand Your P&L Statement: Gross Margin

While gross profit can vary widely from month to month depending on how busy your company is, gross margin should not vary more than a few points each month.

Originally published Published: 05.01.15 Author By Ruth King

Understand Your P&L Statement: Cost of Goods Sold

However you decide to categorize expenses in your P&L, it's important to be consistent.

Originally published Published: 04.01.15 Author By Ruth King

Understand Your P&L Statement: Sales vs. Revenue

Sales are critical to survival — when revenue is actually generated is even more critical.

Originally published Published: 03.01.15 Author By Ruth King

The 20 Percent Profit Myth

For a realistic goal, include owners’ compensation in the net profit equation.

Originally published Published: 02.01.15 Author By Ruth King

Rethink Your Bonus Strategy

Enact a profit sharing program, rather than a bonus entitlement.

Originally published Published: 01.05.15 Author By Ruth King

Prevent Employee Embezzlement, Part 4

Most contractors don’t think about how much time is stolen by employees doing personal activities on company time.

Originally published Published: 12.01.14 Author By Ruth King

Prevent Employee Embezzlement, Part 3

If you ignore locking your warehouse and limiting access to it, don’t use material sheets and don’t make your technicians responsible for the inventory on their trucks, you’re inviting theft.

Originally published Published: 11.01.14 Author By Ruth King

Keep Your Money Safe

Keeping your hard earned money safe is your responsibility. Put the procedures in place to keep the honest people honest and protect yourself from employee embezzlement.

Originally published Published: 10.01.14 Author By Ruth King

Protect Yourself Against Employee Embezzlement

If you don’t have systems in place, it’s easy for a stressed out bookkeeper or stressed employee to get tempted. They make stupid choices they never would when thinking rationally.

Originally published Published: 09.01.14 Author By Ruth King

Do You Have Too Much Inventory?

The Inventory Days ratio lets you know how quickly inventory is increasing or decreasing in your business. Since inventory is a bet, it’s important to know how much of your …

Originally published Published: 08.01.14 Author By Ruth King

Do you have a Collection Problem?

The Receivable Days ratio tells you whether you have a collection problem or are heading toward one. It lets you know how quickly you’re being paid, and whether you’re being …

Originally published Published: 07.01.14 Author By Ruth King

Are Your Employees Productive?

Even if liquidity ratios are stable or increasing, showing increasing profitability, compensation percentages may show a different story. If compensation percentages start to increase, there’s a productivity problem.

Originally published Published: 06.01.14 Author By Ruth King

Do You Have Too Much Debt?

Like the liquidity ratios, it’s the trends that are important. The goal is to get your debt to equity ratio stable on a monthly basis.

Originally published Published: 05.01.14 Author By Ruth King

Accounts Receivable to Accounts Payable Ratio

Use the accounts receivable to accounts payable ratio to determine if you have enough money to pay your bills.

Originally published Published: 04.01.14 Author By Ruth King

Maximize Your Mark-Up

Learn to mark-up your mark-ups for lasting profits. Using variable mark-up charts to strategically boost your gross profit margin

Originally published Published: 04.01.14 Author By George Hedley