There is a process I use when I consult with contractors. I start out by asking them a few questions that really gets them thinking about how they treat their business. It works for any kind of company really, but for contractors, it really hits home. I will walk you through it and see how you answer. Ready?
Let’s start off easy…how many jobs a month do you do for each service you offer?
If you are a remodeling contractor, this answer may be one or two. If you are a plumber, it might be a couple hundred. Whatever the answer, this is the basis for the rest of our conversation.
The next question I ask is how much are those types of jobs worth to you, gross revenue. Again, the answer swings wildly. It could be $50,000 or it could be $500. But once we have that answer, and combined with our first answer, we now know how much your company is throwing off a month in gross revenue.
Now the fun part begins…
Our third and most important question is…how many MORE jobs can you add a month without adding a lot of overhead such as trucks, staff or material? If you said 1 and you are a remodeling contractor or home builder then we are in good shape. If you said one and you are an electrician, we have a problem.
Now for some math
Let’s take the average value of a client from our answer to question number two and times that by the answer to our third question. Getting too complicated? Let’s write it out.
If the average value of each client or customer is $5,000 and you can add 10 more a month, you want to add $50,000 in topline revenue to your business. Times that by 12 and you now want to add $600,000 a year to your business, a great number!
Now, what are you willing to spend to get at that $600,000?
If you don’t know or aren’t sure or have an unrealistic number in mind, then let me suggest you spend $5 and spend 50 minutes with me on a call talking about YOU!