The most important thing you can do to prepare your roofing business for success in the coming months is to take a moment to assess the long-term sustainability and health of your company. Not only will you get a better idea of areas of weakness that may need improvement or further attention, but you’ll also understand what you’re doing right and what you can utilize to achieve greater success down the line. If you’re interested in gauging the current health of your roofing business and learning the best course of action for improving it, it’s time to partner with a roofing business consultant from Cotney Consulting Group. In this brief article, we’ll explain two of the metrics we may utilize in accurately assessing the health of your company and making plans for its improvement.
By far, one of the most important metrics to examine in the evaluation of your company is revenue. This is going to be the source from which you pull information about the profitability of the jobs you are performing, how your closing ratio measures up to the sales goals you previously set, and the areas you should be capitalizing on to boost sales higher in the coming months. The simple figure of profit is not enough to determine the longevity of your company — you must consider the ratio of profits to total revenue. This margin will be your financial safety net as your company continues to grow and expand. The smaller this net margin, the more likely it is for your company to fall into red at the slightest increase in competition or operating costs. This is the last thing you want for your roofing business.
In order to properly assess the revenue of your company, you’ll need to invest in roofing business consulting services. At Cotney Consulting Group, we’ll conduct a roofing business revenue analysis to review all of your financial statements, including cash flow statements, balance sheets, and work-in-progress reports. We’ll determine if any funds are being used unnecessarily or in the wrong locations and help you anticipate trends to spot money problems long before they ever occur. We can also help you in the process of qualifying for projects that require bonds and obtaining loans.
Operational efficiency is just another one of the many metrics a roofing business consultant will examine in their assessment of the health of your company. This metric can be defined as the ratio between the output from your business and the input to run your operations. Essentially, it acts as an indicator of how well your business is controlling costs.
As with net profitability, many factors contribute to your company’s operational efficiency, such as resource utilization and competition. By partnering with someone like a consultant from Cotney Consulting Group, you’ll be giving your company a competitive advantage because you’ll gain the necessary tools to streamline essential business processes. You’ll have access to real-time data at your fingertips and a team invested in the success and growth of your business to provide you with the best course of action. For more information, request a consultation.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.