The Cost of Being Lowest Bid
Why would a serious construction-related business owner want to be the lowest bid on a project?
Why would a serious construction-related business owner want to be the lowest bid on a project?
You can’t focus on being competitive if you want to be profitable. You have to focus on profitability.
I take many calls from contractors whose business is more like a low-paying job than a successful construction business. Some ask, “Is it even possible in today’s economic climate? Can my business make money?”
It’s the last Wednesday of the summer, which is a great time to look back and see how your business fared.
When everyone but your family benefits from your business, it’s time for a reality check.
You can be competitive, or you can be profitable. You can’t be both.
I read many articles on the construction industry looking for, among other things, information on how the construction industry is doing and what we can expect in the immediate and near future. One statistic that always interests me is the size of the average remodeling job.
In every business, some things we do eat into our profitability. Do you run your business or does your business run you?
Last week we discussed knowing where you stand financially, whether you are making money, losing money, or breaking even. What now?
This is the criteria I use to tell if a company is making money. It isn’t the only measure, but it’ll give you an idea of how your business is doing.
If you are tired of starving because you have enough work but don’t have the money to pay your bills, heed these words.
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