Creating a GPS for Your Business
Brad talks about how important it is to make a GPS for your business. Having a clear set of goals and measures can help your business succeed, just like a GPS helps you get from one place to another.
Here are the episode's key points and steps that can be taken.
Key Insights
1. Why navigation tools are important
Brad starts by talking about his time in the Marines, where he learned the important skill of finding his way around on land. This skill is like being in charge of a business. For the same reason that you need a compass and plan to find your way in unfamiliar territory, you need clear goals and metrics to guide your business in the right direction.
2. Setting Clear Goals
Setting clear, measurable goals is one of the most important things to remember. Having a clear goal, like making a certain amount of money, working a certain number of hours, or making a certain percentage of profit, lets you make a plan for how to reach it.
3. Keeping track of your progress
Brad stresses how important it is to keep track of your progress often. To do this, you need to look at important numbers like cash flow, job costing, and profit and loss accounts. Without these, you're pretty much lost in the desert without a plan or compass.
4. The Dangers of Not Knowing Your Numbers
Many contractors fail to track their financials accurately, leading to underbidding jobs and ultimately losing money. Brad shares that understanding your numbers, such as your average job size, closing ratio, and overhead costs, is essential for making informed decisions.
5. The Power of Being An Expert
Brad also talks about why it's good to focus on a niche. Focusing on a single area can help you streamline your business, making it easier to keep track of costs, boost efficiency, and eventually make more money.
Action Steps
1. Set Clear Financial Goals
Determine what you want to achieve financially. Whether it's a specific revenue target or a profit margin, having a clear goal will help you create a roadmap to get there. Break down this goal into smaller, manageable milestones, such as monthly or weekly targets.
2. Track Your Key Metrics
Start by regularly reviewing your profit and loss statements, cash flow, and job costing. Use tools like QuickBooks or even simple spreadsheets to keep track of these metrics. Knowing your numbers will help you make informed decisions and adjust your strategies as needed.
3. Specialize in a Niche
If you’re offering multiple services, consider focusing on one area where you can excel. Specialization allows you to streamline your operations, making it easier to track costs and improve efficiency. This focus can lead to higher profitability and less stress.
Creating a GPS for your business is not just about setting goals but also about tracking your progress and making informed decisions. By setting clear financial goals, regularly reviewing key metrics, and specializing in a niche, you can navigate your business towards success. Remember, profit is not a dirty word; it's a sign that your business is healthy and growing.
For more insights and tools to help you track your business metrics, check out the Hammer Grind podcast and consider reaching out to Brad for personalized advice.
Resources
Grab Brad's tell-all book: The Contractor Profit Blueprint
