It is interesting to see how you can dramatically impact your business by making small changes. Given the relationship between gross margin and net profit then consider whether it is easier to improve margins or increase your revenue. I encourage you to consider the following thoughts to improve your gross margins:
· Improve the accuracy of your estimating.
· Prepare a budget before you start.
· Finish the job on time.
· Focus on higher margin work.
· Use subcontractors and give them a price before they start the work.
· Obtain discounts.
· Track, limit and manage travel and material procurement time.
· Provide exceptional customer service.
· Collect deposits and draws from a position of strength.
Although this is not an all-encompassing list it is a good start at improving your business in 2011. Read this list and then review with your staff and discuss how you can add to your bottom line this next year. You can also get a more detailed description of each of these ideas in our online training subject for PRODUCTION MANAGEMENT. Please send an EMAIL if you wish to view this subject and more with a free 48 hour pass to the program.