Are you happy with your 2018 business results?
Are you happy with your 2018 business results? This owner is…
Just finished up with a coaching session with a business owner that has been working with me for 18 months and he is OVER THE FRICKIN MOON HAPPY!!! Here is the ‘Cliff Notes Version’ to his story.
18 months ago, a business owner came to me frustrated with the outcomes of his business. He was doing a lot of things right: doing 1 million in sales in just a couple of years in business, all of his business came by referral, one part of his company was at capacity and the other part had a 6-8 week backlog. You have to be doing well to hit some of those outcomes. He also was experiencing the most serious issue that you can have for a 1 million dollar business…HE WAS NOT MAKING A PROFIT! His gross margin was too low, his cost of service was way too high and his equipment payments and maintenance were eating up any extra cash that was left over.
In July 2017 he engaged me to work with him and life has quickly changed for him. It was clear that profit margins were the most immediate issue that needed to be addressed if his 1 million in sales wasn’t producing a profit. Sure enough, we found plenty of opportunities. We implemented 11 different strategies to increase gross margin which as seen an increase from 26.59% in 2016 to 33.69% in 2017 and will finish 2018 with a whopping 45.89%!!! Along with a handful of other business building practices, processes, and principles that we have implemented the impact on the bottom line has been tremendous. From an average loss of $1,393 per month in 2016, an average monthly profit of $5,080 in 2017 to a strong finish in 2018 with a 4th quarter monthly profit average of $48,689!!!
The great news is that there is so much room for improvement and growth in 2019 as we have plenty of more business improvement processes, practices, and principles to implement. The 2019 profits projections at $750k based on CONSERVATIVE GROWTH! Those are life-changing numbers for him, his team and his family.
You should know that this particular business owner is not in a unique or ‘unicorn’ type of business. He is in a typical service business with tons of competition in an industry that has tons of challenges. What makes him different is his commitment to excellence and being an exceptional business owner in an industry of ordinary owners. As a result, his business is BOOMING and we are just getting started.
Are you ready for your business to BOOM? Are you ready for your business to take a huge leap in the next 12-24 months? If so, I am teaching a session this Friday at CFFCC Small Business Center that will teach the processes, practices, and principles that this formally frustrated business owner has implemented to create an EPIC and highly profitable business. Click here to register for 28 Keys to Building a Business That Booms!!!