“You see, my wife, she has been most vocal on the subject of the pretzel monies. Where’s the money? When are you going to get the money? Why aren’t you getting the money now? And so on. So please, the money”.
-Fat Tony // The Simpsons (Season 8 Episode 11)
Ah money, what a glorious subject!
The harsh reality is that is if your business is not making money there are two main options:
Option 1: Change what you’re doing.
Option 2: Stop what you’re doing.
But what is good money in an electrical business?
We like to think that it is making a market wage (ie what you could earn for someone else), with a business net profit of between 20-35%.
If you are south of these parameters, then something might need to either change or stop.
If you are north of these parameters, then beam me up Scotty and god speed my good friend!
Enjoy the pod xx
Keywords
end of year, profit first, business goals, financial reflection, industry standards, job performance, pricing strategy, profitability, coaching, Sparky Coach
Summary
In this conversation, the hosts reflect on the end of the year, discussing the importance of understanding profit, setting realistic financial goals, and analyzing job performance. They emphasize the need for business owners to be aware of their financial standings and the factors influencing their profitability. The discussion also touches on industry standards for pricing and the importance of making informed decisions to improve business outcomes.
Takeaways
Reflecting on the year is crucial for business growth.
Profit First is a system that requires understanding and adaptation.
Setting clear profit goals helps in measuring success.
Industry standards for pricing should be adhered to for sustainability.
Job performance analysis is key to identifying strengths and weaknesses.
Micro adjustments can lead to significant profit increases.
Understanding the components of profit is essential for business owners.
Simplifying business goals can lead to better focus and results.
Data and details are critical for making informed business decisions.
Enjoyment in business often correlates with financial health.
Titles
End of Year Reflections: A Business Perspective
Understanding Profit First: A Deep Dive
Sound bites
"It's the end of year reflections."
"The worst result is not knowing a result."
"You can make the micro adjustments."
Chapters
00:00 End of Year Reflections
01:22 Understanding Profit First
06:47 Setting Profit Goals
12:31 Analyzing Job Performance
17:11 Identifying Influences on Profit
24:37 Working Smart for Profitability