Profit - Keeping track or report keeping and analyzing the data, is really the only scheme we can state the financial health of our company. Things have changed considerably since my Grandfather was a painter. support then some basic accounting was all that was needed. Now there are so many different expenses that it is a itsy-bitsy more fervent than sitting down with a scratch pad. Today we have numerous expense accounts, different kinds of income, and taxes etc. As with most things financial the more detailed that you can gain your accounting the better.
Selling impress - Our profit and loss statement is the starting point for the selling sign of our jobs. Too many painters are more concerned with the going rate, rather than what THEY need to survive and to profit. Without a doubt painters are more concerned with mark than their customers are. Many times we earn awarded contracts where we are the highest bidder. It makes me laugh thinking about the guy who lost the job as the shameful bidder, thinking that he really must sharpen his pencil next time.
Owner's Compensation - What does the owner find? Is it whatever is left over? Most of the time it is.
Michael Gerber author of the E-Myth, says most people in business for them selves believe they believe a business but they really maintain a job. If that is so then we would be better off working in a job for someone else. If we were in a job and got paid for the work that we do we would be well off. Instead we do this and do that, sales, estimating, running crews, etc and then when we originate next to nothing we demonstrate ourselves to all kinds of liabilities. Compensate yourself first.
Job costs - This financial pulse must be taken on a daily schedule. This is the set where we can lose the most. Let this fragment pick up out of hand and it will burn you.
We are in this to compose money. Taking the financial pulse of our company is something that we must do, if we are to succeed, improve and become a gracious business.
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