12 Common Errors Made by Home Improvement Companies
One of the topics that we covered at our recent home improvement program was the most common errors that we see companies make when we do client visits or conduct a business analysis.
In most cases, these errors are easily fixed and can result in a major boost in both cost savings and profitability.
In no particular order:
- Lack of business plan and operational model
- Improper pricing formulas
- Direct costs not clearly defined
- Fully loaded marketing costs not defined, allocated or managed
- Insufficient safeguards to ensure net profitability on each contract performed
- Lack of cash flow management
- Poor distribution and control of leads
- Failure to maintain adequate internal records and accounting
- Failure to understand personal exposure (liability) in ongoing business transactions
- Outmoded (often risky) sales compensation methods
- Lack of information regarding federal and state laws (Frequent failure to conform)
- Failure to examine the law of “cause and effect”
In forthcoming blog postings I will go into further detail about each of these; however, if you have any questions in the interim feel free to contact our office at firstname.lastname@example.org.