Fact: most small business owners don’t have a budget. That’s a big problem.
At the first Certified Contractors Network meeting I ever attended I literally felt like the dumbest guy in the room. Why? Because I was one of the thousands of small business owners that was operating without a budget for my business.
Now that I am a part of CCN I realize how common this problem is. All of us here are pretty familiar with business owners who don’t understand their numbers. Don’t be one of them. Instead, grow your business by planning for growth!
So, where do you start?
First, I recommend 4 Reasons that a Company Budget Matters. This article covers the basics, as well as some downloadable sample business budgets. At a minimum your budget should break down into:
Once it’s clear where your money is going, you know how to best keep it going…with gusto!
Budgeting Tips of the Trade
Here are two budget basics to get you moving in the right direction:
While you think you’re the high priced guy in your business, you’re probably not. Trust us on this one. Price is often more of an obstacle for the contractor than the homeowner. Offer value, not just price.
Your profit margin should be around 40-50%. If you’re not hitting this margin, you’re operating your business on cash flow. If the cash flow ever stops, you’re in trouble.
If you are curious to know more of our insider secrets, consider attending the Business Planning Boot Camp. This 3 ½ day program in Washington D.C. walks a contractor through annual business planning, including a sample business budget.
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Operating your business with intention can, and will, go along way!
Get Ready To Succeed!