Fearless Business Growth From The Bottom Up!

Part 1

Growing from the “bottom up” is a unique idea whose day has arrived. Like the old saying “when the going gets tough, the tough get going”, growing your business in today's economic climate is challenging at best.  When the phone is not ringing as much as you would like and when your long time, 5 day a week accounts cut back to 3, it's time to pull yourself up by the bootstraps, take a good long look at your options and build your company's bottom line.

It doesn't matter how much business you do annually, a healthier bottom line can be achieved in any economic climate. Whether your company grosses less than $50,000 annually or more than $1 Million annually, a bottom line can grow at a steady pace with some simple steps.

Let's start with the Internal tweaks you can make starting today to see a better bottom line.

First, UNDERSTAND your financial health.   Take a good, hard look at your financial statements. What! You don't look at your P&Ls on a regular basis? Phew! That's a sure recipe for disaster. Not knowing how to read a P&L or what the numbers mean can be the difference between staying in business and falling to the roadside.

Ask yourself: 

• Is my labor cost where it should be to make a profit on every job?
• Are my advertising expenses at or below budget?
• Am I tracking my ROI so I can see what is working and what is not?
• Am I making money on every job?
• Am I making any money overall?
• Do I have a clear understanding of what my numbers mean and how I can improve them?

If you can answer NO to any of these questions, it's time for the cure:
 
• Enlist the help of a CPA who can guide you and help you become profitable
• Read and analyze your P&L's thoroughly and at monthly at the least
• Make necessary changes – be FEARLESS about changing what's not making money for you
• Quote and estimate jobs with profit in mind
• Relentlessly control expenses everyday

Next, STOP the revolving door of turnover.

Turnover is a critical profit leak.  Companies who experience 100% or more in annual turnover will find their profit dollars disappearing quickly. Here's the real cost of turnover: on average a turned employee can cost you 25-100% of their annual salary.  To give a glaring example; a 32 hour a week employee earning $9/hour has the potential to cost a business $312 a month.  This includes your time, training time, advertising costs, background checks, new employee start up costs and much more.

People leave jobs for many reasons, money is only one. It is a fact that engaged employees stay longer. When employees feel that they contribute positively to the company and are appreciated, they will stay. 

APPRECIATION is the strongest currency in your corporate culture. Appreciation and loyalty reciprocating between employee and employer will transform your business.

Finally, EXPENSES “gone wild” will make your business disappear.  Uncontrolled and unmonitored expenses can be the end of the road for many business owners. Here are three controllable and immediate actions to take to achieve a healthier bottom line today:

1. Track results from all advertising efforts. Don't throw money at every salesperson trying to sell you a fabulous advertising deal. Track, track and then track some more, all of the results of your advertising efforts.  Don't sign long term contracts and think before you spend. Remember the ad salesperson is trying to make a living and will sell you the moon if you allow it.

2. Control labor costs as if your life depended on it! And in fact, it does.  Know what your real labor costs are and keep them under control. Do this with a budget in place for every job and a strict adherence to the budget.  No extra hours that you don't approve, and no “fudging” hours on timesheets.  Timekeeping software will pay for itself here.

3. Single source suppliers to keep supply costs in line. Although this is a small percentage on the P&L, when you don't take advantage of buying concentrates, vendor special sales and buying in bulk, they become a larger percentage and you are losing money.  Monitor use by each crew, use dispensing systems when possible and partner with your supplier to get the best pricing on commonly used products.

There are many “down and dirty” ways to build profit and add to your bottom line IMMEDIATELY.

Planning, analyzing and professional execution of your plans will bring desirable profits quickly.

Fearless business growth and significant profit increases can be yours.
 
Part 2 will discuss how diversification and expansion can bring profits as well as volume.

Sharon L. Cowan is the former President and CEO of a multimillion dollar regional commercial and residential cleaning company.  She has a passion for helping fellow business owners reach their potential and realize their dreams.   Sharon is a popular speaker and workshop leader. She has been a guest speaker and seminar leader for BSCAI and ARCSI and twice won marketing awards from the BSCAI.  Sharon holds workshops throughout the country teaching cleaning business owners how to maximize profits and grow their businesses. Sharon can be reached at 772-563-7320 or www.cleaningbusinessconsultinggroup.com