How Do You Plan For Profit Growth? - Business - Contractor Talk

How Do You Plan For Profit Growth?

 
Thread Tools Search this Thread Display Modes
Old 06-07-2017, 08:40 PM   #1
Pro
 
Stevarino's Avatar
 
Trade: General contractor specializing in kitchen and bath remodeling and design
Join Date: Sep 2013
Posts: 247
Rewards Points: 415

How Do You Plan For Profit Growth?


This is year 5 of the business and each year my net profits have gone up by about 10%. Before the start of this year I re-structured my business plan and budget as well as the way I figure my rates. As I look forward to the upcoming years I hope to build up the business more and boost net profits.

As I look at this line of work I see three ways to boost profits.

1) increase quantity of work completed to boost gross profits
2) charge more for your work
3) work more efficiently to boost profit margins

Am I missing anything? Where do you place most of your focus for growth? All three? Are you actively pursuing profit growth?


Sent from my iPhone using Tapatalk
Stevarino is offline  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 06-07-2017, 10:37 PM   #2
New Guy
 
Sam @ PWE's Avatar
 
Trade: General Contractor
Join Date: Jun 2016
Location: Poulsbo, Washington
Posts: 28
Rewards Points: 62

Re: How Do You Plan For Profit Growth?


I'd say #4 is reducing overhead (unless you include that in working more efficiently). Figure out where you can cut current costs without sacrificing quality or service. Maybe you can print advertising materials cheaper somewhere else. Maybe you can do a cost-benefit analysis to see which tools and equipment are worth spending more or less on. Maybe you can buy certain materials in bulk that you use often. Etc. Etc.

- Sam

Advertisement

Sam @ PWE is offline  
Old 06-07-2017, 10:59 PM   #3
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 26,075
Rewards Points: 5,076

Re: How Do You Plan For Profit Growth?


Profitability for me varies dramatically from job to job...some just don't pay as well as others...avoid them.
__________________
The Following User Says Thank You to Inner10 For This Useful Post: Leo G
Inner10 is offline  
The Following User Says Thank You to Inner10 For This Useful Post:
sparehair (06-08-2017)
Sponsored Links
Advertisement
 
Old 06-07-2017, 11:44 PM   #4
Pro
 
Mordekyle's Avatar
 
Join Date: May 2014
Posts: 2,832
Rewards Points: 6,018

Re: How Do You Plan For Profit Growth?


Cherry picking profitable jobs and doing them efficiently.

They tend (for me) to be short in duration, but it's fun to make $800/ hr for an hour or two.


Sent from my iPhone using Tapatalk
Mordekyle is offline  
Old 06-08-2017, 02:08 AM   #5
Pro
 
carpenter uk's Avatar
 
Trade: carpentry
Join Date: Nov 2009
Posts: 427
Rewards Points: 657

Re: How Do You Plan For Profit Growth?


Do more
Charge more
Spend less
Invest in time saving tools to enable you to do more
Dont waste time on paperwork - make up standard forms for everything you do regularly
__________________

carpenter uk is offline  
Old 06-08-2017, 08:47 AM   #6
Pro
 
sparehair's Avatar
 
Trade: Painting, flooring
Join Date: Nov 2008
Location: Portland, Or
Posts: 821
Rewards Points: 1,484

Re: How Do You Plan For Profit Growth?


Control labor costs and incentivize labor.

Fire crappy employees.

Offer bonuses for behavior that makes you money.

Leverage your earning potential by turning other peoples time into your money.

Develop just in time labor through subs and on call employees so you only pay for workers who are working.

Sent from my SM-N910T using Tapatalk

Advertisement

sparehair is offline  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Chief Architect, Soft Plan or Other black95gt Drafting & CAD Forum 95 08-25-2017 01:23 PM
OSHA Safety Plan Nailerconstruct Framing 13 08-03-2013 07:49 AM
Young Roofer looking for business plan Harris Roofing Roofing 10 01-24-2009 08:59 AM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?