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...

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...

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...

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...