Tuesday 9 January 2018

How Do You Build Your Restoration Company into a Multi-Million Dollar Business?

Posted by at 9:00 AM in

Who wouldn’t want to do this? What restoration contractor doesn't want a multi-million dollar business? The largest part of the 25,000 restoration companies in the US generate less than $1 million in annual sales.

Most companies that reach this level soon thereafter plateau and never grow larger than $1.5 million. Why is this? For a restoration company that provides only mitigation services it takes approximately 400 jobs to produce $1 million in revenue and 600 to produce $1.5 million. What a daunting task to create marketing and direct sales systems that produce 400 – 600 jobs year after year after year. It seems nearly impossible to do and for most it is.

Restoration owners need to face the fact that if they want to become a multi-million dollar company they must expand their service offerings to include full-service rebuild. That’s the only viable way to build a larger than usual restoration business. The average size of a water mitigation job in the US is $2,500 and it’s matching rebuild is $10,000, plus $2,000 overhead and profit sets the average rebuild at $12,000.

Imagine a company with 400 (water jobs) prime opportunities to meet potential customers face-to-face who at that very moment in time are in desperate need of rebuild services -- and doing nothing to capture that opportunity. That's nuts! If the water damage company captured only 75% of the available business this would produce 300 jobs at an average size of $12,000 yielding $3.6 million in potential rebuild revenue – on top of the existing $1 million in water damage revenue. Gaining only 50% or even 25% of the potential rebuild opportunities would catapult any company over the $2 million mark and rocket their growth trajectory for the future.

The simple truth is that if you intend to build a multi-million dollar business you must become a full-service contractor adding rebuild to your portfolio of services. There just is no other way.

Reference: 6-Month Coaching Plan – The Sales Doubler; Fast Track Your Company’s Growth by Becoming a Full-Service Industry Leader Subscribe and receive our weekly blogs in your email inbox at http://growmyrestorationbusiness.com/blog/