Profit is your FUEL

This is Part 3 of a series taken from the our new E-Course "show notes"
 45 Days to build a STRONG restoration company. 

 

Profit is your FUEL

Let's talk about my favorite topic. 

PROFIT 

I have a sign in my office that says:

Gross revenue is vanity

Net Profit is Sanity

Cash is KING. 

 

It’s true!

 

Profit is your everything and I stand on mountain tops screaming that if you are not truly profitable you put a terrible strain on the engines, your wings and sometimes force the plane to land (to use the metaphor of your business being like an airplane).

The number 1 reason a business fails is CASH FLOW. Cash Flow, as we have discussed all along in this section is affected by a combination of many things.

 

Your marketing gets your product/ service noticed and entices people to buy from you.
Your sales effort to ensure that you are selling enough of a service to meet the financial needs of your company.

Then your control of the...

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Putting your dreams on paper

This is Part 2 of a series taken from the our new E-Course "show notes"
 45 Days to build a STRONG restoration company. 

Planning: Identifying your business goals?

From the desk of Sir Klark Brown.

Our big 2022 goal is in this blog. You don’t want to miss it… we don’t want you to. We need your help to accomplish our BHAG (BIG, HAIRY, AUDACIOUS GOAL)


You decided to start a mitigation company. Based on your experience and exposure you may have some lofty goals. 

Goals of money… Hopefully an emphasis on profit. 

Ideas of free nights and weekends. 

It is possible you feel like this recession proof business will provide endless quality leads. 

These are valuable in building your company. 

Let’s bring things back to reality and set short term and long term goals

In the world of setting goals, this sentiment is shared by many without being discussed as it should:

The crash of overwhelming failure felt when unrealized...

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What do you want out of your Restoration Business?

This is Part 1 of a series taken from the our new E-Course "show notes"
 45 Days to build a STRONG restoration company. 

Let's go back to the beginning and take a journey. 

Or maybe you are at the beginning and are wondering which direction to take.

Walk with me for a bit. 

 


 

As we start this journey together, it is important that we remember that we are…. well, at the beginning.
All successful efforts and endeavors start with a clear vision and goals. Not only for ourselves, but as we build a team to help us, the importance of this omni present vision will be among the most critical assets you have. 

Do you ever just not know where to start or how to do what MUST be done? You ask yourself if this is all worth it. 

Today our focus will be on never ever having a feeling that you are unclear and you show up at your office and not know what to do or what to do next.
This clarity and confidence will help you in marketing, team...

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Albert Einstein and a lesson about making mistakes

While I have not been able to confirm this story to be true, the moral of the story is a good one. So I want to share it with you.

This was shared online and I happened to come across it while digesting turkey and stuffing leftover from Thanksgiving.

 


One day Albert Einstein wrote on the board:

9 x 1 = 9

9 x 2 = 18

9 x 3 = 27

9 x 4 = 36

9 x 5 = 45

9 x 6 = 54

9 x 7 = 63

9 x 8 = 72

9 x 9 = 81

9 x 10 = 91

The chaos started suddenly in the hall because Einstein made a mistake. This was Einstein! How could this genius get such a simple equation wrong?

Correct answer 9 × 10 =. And all his students ridiculed him.

Einstein waited for everyone to be silent and had a powerful lesson that no one soon forgot:

"Despite the fact that I analyzed nine problems correctly, no one congratulated me. But when I made one mistake, everyone started laughing. This means that even if a person is successful, society will notice his slightest mistake. And they'll like that.

So don't let criticism...

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I knew nothing when I started

Toby here.

Just wanted to share a little of my story with you.

I started in business for myself out of necessity. I did not know what I was doing. I had a formal education. I had 15 years of corporate experience. But I didn’t know what it took to run a business.

I didn’t even know that there were a lot of resources available for people like me. From my perspective, I had the example of family and friends who had been successful in business. 

I started on my own after leaving the job that at one time seemed like part of the journey of a lifetime. 

In time I realized that the company I worked at wasn’t aligned with my core values. 

It took me starting out on my own to figure out what my core values were and why I was experiencing friction in corporate. 

I launched out on my own. I started where I was. I did what I knew how to do with the resources available to me.
I happened to get a call for help from a business coach. She actually hired my...

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The Impact of Mentors

 Mentors and mentorship have long played an important role in the development of greatness among leaders. It has often been said that self made leaders are a myth. I believe that. I think those that think they are self made have a debilitating ego and will never be about to lead 


The word mentor can be a noun or a verb meaning: An experienced and trusted advisor

I have had many mentors in my life and career. Some I recognized...and many I did not. Meaning I did not accept their help as being from a place of mentorship and guidance…..I was a younger-less wise person for many of my years. Life has a way of stripping that out of you, right?

I’ve had mentors in my personal life. I’ve also had mentors in business. The funny thing is that the lines are very blurred there. 

My first “mentor was Rudy Thrower at an old full service station. Rudy’s (original, I know). I worked there early in my life. As in about age 6-7.shhh. Don’t tell the...

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You can’t charge for your equipment!

Is the day coming when having equipment on the job is “the cost of doing business”? Is the day coming where you can’t charge for equipment?

We had quite a discussion in the Restoration Advisers Official Group on Facebook. If you aren’t in the group we highly encourage you to jump in there for some zero BS discussion. No outside advertising. No belittling. Just real, raw, and professional discussion. Join here.

The insurance company is always evolving in their arguments and creativity to drive their costs down so they can reinvest the premiums. In the book Delay Deny Defend, the author describes insurance companies as investment companies. They invest the premiums and drive down costs by negotiating claims. *

They are claiming that more and more standard practices are part of “the cost of doing business”. Supervisor hours, etc. So why wouldn’t they say that equipment is part of the cost of doing business?*

Those who believe the notion that...

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The myth about O&P, and 10/10

We often hear of insurance companies and third party adjusters claiming that restorers overcharged them for work. The claim is usually that the “restoration industry standard” is “10/10”, or that overhead and profit (O&P) cannot be included in the invoice.

Let’s be clear here, there is no such industry standard. There never has been and there never will be (unless you are on a program, then you have to play by the rules that you agreed to). If you have read the book that we talk about in Disaster Podcaster EP 22 Restoration Markup and Margin, you know that few restorers can run a business and breakeven at 10/10, let alone make a profit. The idea that a restoration company can survive at a low markup defies the mathematics of basic business and common sense.

Our experience in the industry tells us that “industry standard” of 10/10 is a old benchmark that has been propagated by insurance companies and TPAs that are trying to keep their...

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The Great Resignation - And how restorers can benefit!

staffing systems Nov 09, 2021

The Great Resignation is upon us. We can worry about the future, or we can figure out how to turn the resignation from other companies into opportunities to hire incredible talent.

After talking about the what and the why of the situation we find ourselves in, we will dig into the how. We have a tool to help you maximize your opportunity and streamline your hiring and onboarding process. A good process can help you make better decisions, and hopefully make better decisions on the people you hire!

Lets dig in.

Arguably politics may or may not play a role in this. We digress. 

 We need to figure out why so we can address the problem and become an attractive company and bring in some incredible people. 

Forbes put out an article for leaders to consider.

Here are some takeaways:

  • Forty percent of employees cited burnout as a top reason for leaving. 
  • Employees were so dissatisfied with their situation that more than one-quarter (28%) of all respondents left their...
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I'll hang my hat on this one sales tactic

sales systems Nov 02, 2021

I'm not a sales guru. But I have had my own business... a couple of them. I've been a corporate sales manager. If I could summarize all of my experience in to only ONE tactic, I'd hang my hat on this one.

When I was getting started in the small business ownership life, I was HUNGRY (for work). I started from absolutely nothing. I didn't purchase a business. I didn't get a franchise. I literally built from the ground up.
I was excited to get every single phone call. 

As my journey progressed, I got busy. My phone was ringing a lot more frequently. The challenge was that I was in the field doing the work. It was easy to keep focused on the job, and not the future. I started living the roller coaster business. Slow week, busy week. Slow week, busy week. You get the picture. I'm sure you've been there on some level. 

In the restoration industry, we have to respond in the middle of the night. On a weekend. Hell... many of us have answered calls on important family holidays. The...

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