Wednesday 20 January 2016

Restoration Business Coaching - The Retirement Achiever

Posted by at 9:23 AM in


The Retirement Achiever

Maximize Your Business Sales and Cross Over into Retirement with Financial Security

  We help you get the maximum value for the business you worked so hard to build. We will help you insure your business growth is positive and rising; your net profit is strong and increasing; and each aspect of your financial and operational structures represents the best practices of our industry.

You CAN achieve a top dollar sale of your business if you take time to prepare. The countdown to retirement could begin today! Getting you ready for sale is comprised of three primary emphases: financial and operational development, increasing your top line revenue growth, and improving your bottom line net profit. Buyers are interested in financial statements that present gross revenue, net profit, year-over-year comparisons and indebtedness.

Buyers want confirmation that the financial practices of the business exhibit integrity, accountability and transparency. They are interested in the organization and presentation of financial statements that are clear and follow Generally Accepted Accounting Practices (GAAP).

Buyers evaluate financial controls that help to verify the company’s financial statements are reliable, and show a complete and accurate picture of the financial health and history of the business.

If a Buyer’s review of financial statements and practices does not meet their minimum expectations they may choose to not move forward in their consideration of the purchase. Therefore, it is vital that each aspect of the company’s financial systems are ready for review and meet industry standards.

Buyers also expect to see that revenue is stable or increasing year over year if they are to pay top dollar for the sale. Revenue should display diversity in its sources and be clearly presented in a line item breakdown by category.

Financial Statements should clearly show where growth has occurred over the past three years along with an explanation of what activity has led to changes in sales by category and source. Additionally, Buyers are interested in a business that has potential for growth.

Having a business development plan in place that presents an ongoing and future picture of opportunity for growth goes a long way in helping potential Buyers gain confidence that their purchase provides a good opportunity for their future. Developing such a plan is equally vital to earning top dollar for the business sale.

Each of these areas helps the Seller's efforts to maximize their sales price. While Buyers are interested in financial integrity and sales the Seller is most interested in net profit. Net profit along with Seller add backs such as salary, owner distributions and draws, and other owner benefits will comprise the Seller’s Discretionary Income which is used to calculate a reasonable sales price.

Improving net profit is vital to the Seller’s efforts to secure a top dollar sale. Net profit should be at the upper end of industry standards nearing 20% or more of gross sales. Improving internal operational efficiencies is the focus of our efforts to help you improve the net profit of your business. Here is a description of the help you will receive from this 12-month Coaching Plan: Financial Statements and Processes

  • We will review financial statements including Income Statement and Balance Sheet. The review assesses the Chart of Accounts for its clarity, and reviews the way the company organizes itself financially. Further it evaluates the way sources of income are broken down and recorded to insure transparency of each revenue source. It includes a line item evaluation of Cost of Goods and Expenses as a percentage of income and identifying areas that may need correcting.

  • We complete an assessment of financial controls for bookkeeping, Accounts Payable management, credit card usage, job costing procedures and practices, material purchasing controls, and Accounts Receivable processing including mortgage company processing procedures.

  • Our review of the most recent three years of financial statements will assess changes in Sales, Cost of Goods, Expenses and Net Profit.

  • We will help you determine a reasonable sales price for the business using a three year average of net profit and owner add backs multiplied by an appropriate industry multiplier. This forms a base to determine your business potential sales price in order to retire with financial strength and lays the basis for goals and efforts to grow the company.

Accelerating Revenue

  • Available only through The Restoration Entrepreneur you will be introduced to ALL 8 National Third Party Administrators (TPA) who manage the bulk of insurance property claims. We will provide you with the right contact for your company, coach you on how to make the most positive and notable first impression, show you how to navigate the application process, inform you what most interests each TPA in reviewing contractor applications, and walk you all the way through to program selection. Our client contractors are typically activated for three or four TPA programs during the initial application process. For those TPAs that don’t activate your company immediately we will show you how to work around the barriers that hinder activation in order to help accelerate your company’s selection.

  • You will be introduced to three Government Agencies that work in your community, and who provide homeowner grants ranging in size from $7,000 - $70,000. Each agency is searching for dependable and quality contractors to which they send referrals. You could become one of those privileged contractors receiving these fast paying high quality referrals for customers who already have money in hand, and possess a strong determination and need to complete their remodel quickly!

  • We will introduce you to referral sources that can result in $1 million of fire services available right now in your community. What would it mean to you if you began receiving referrals from local fire departments, law enforcement agencies, and first responder services who invite you inside the protected area of the incident? Say NO to fire chasing, and YES to referrals from local fire referral sources.

  • You will learn the secrets of on trend marketing strategies that really work in getting more work from insurance agents, plumbing contractors, and commercial property managers and owners. More insurance loss referrals are made outside of insurance programs than through them. You will learn how to secure more of this work for your company than ever before.

  • You will have unlimited access to The Restoration Entrepreneur Network (hosted on LinkedIn) peer-to-peer learning community. This gives you access to company owners who are working hard at growing their businesses with whom you can ask any question you want, as well as learn from the questions and answers others are sharing back and forth. Learning from other practitioners is a valuable opportunity you don’t want to miss out on.

  • If you want to jumpstart and fast track increased sales growth this is the way to do it. Each one of these sources listed could be sending work directly to you. Not leads that you have to go out and sell, but referrals and assignments that result in high capture rates.

  • My company did $5 million of revenue per year comprised of nearly 800 jobs. The majority of our work came directly to us by insurance carriers through TPAs. How could you possibly create a marketing process that would produce that many assignments and do it year after year? Every fast growing large restoration company I know has made their mark largely by contribution of insurance program work. Imagine what direct assignments could mean to you as the number of carriers grows year after year.

  • Diversifying your revenue sources will protect you from over dependence upon a single source of sales revenue. Adding referral sources from government agencies, local fire service providers and local industry professionals will build a broad and strong revenue base shielding you from unexpected changes in the marketplace.

Improving Net Profit

  • I will assess the design, structure, and implementation of the construction services division including identifying necessary personnel for where you are right now and who will be needed in the future to expand your capacity for even more work. I will help you determine reasonable compensation for each position based upon performance objectives, determine needed equipment, help you prepare subcontractor contracts, and build new relationships to support your growing construction work. I will help you with everything you need to know and do to effectively manage and grow this division of work.

  • I will complete an internal assessment of personnel, policies, positions and compensation with recommendation for improvement or further development.

  • You could earn 50% profit on every construction services job you do. I will show you how to achieve this through profit improving techniques in estimating, controlling material purchasing and labor costs. I will show you how to take control of your construction services and earn top profit margins on every job every time.

  • Working together we will set profit margin benchmarks for each revenue source for your business. We will determine your typical per job profit margin and set steps to bring about immediate improvement where needed.

  • We will give you immediate access to flooring and other material wholesalers who provide your materials at 35% - 50% below retail costs. No more sending customers to local retailers where they spend every nickel you are allotted for their materials. By taking the showroom to them you can insure customers are getting the same quality materials but ay deeply discounted prices for you. You will discover other profit producing programs for purchasing drywall, paint, roofing supplies, and many other materials commonly used on most damage repair jobs.

  • I will help you insure that your estimators are not leaving money on the table. What difference would it make if you closed the back door to this profit killer? I will introduce you to internal Xactimate features and estimating practices that most estimators are completely unaware of that will insure the level of thoroughness and accuracy that makes you more money on every job. Imagine if your estimators were leaving just 5% of chargeable lines items off their estimates and the positive impact it would have on your business if you were able to reclaim those losses?

  • More money is lost through a lack of control over material purchasing than any other single issue. When was the last time your crew bought 15 sheets of drywall when the estimate allowed for only 10; or paid $35 a gallon for paint when the estimate paid you only $26; or paid $200 for a sink for which you were paid only $95? We will introduce you to Xactimate features that will enable you to take control of material purchasing insuring huge savings on every job every time.

  • Are your change orders out of control? Do your estimators and project managers even know how to complete proper change orders? Do you pay more or do more work for your customers because you don’t know how to use change orders? We will show you how to take control of your change orders so that you are not paying for someone else’s dream or upgrade.

  • Do you accept bids from subcontractors? If you do you are paying too much for your labor. We can show you how to take control of labor costs without upsetting or losing your subcontractors, and lock in your profit achieving 50% profit per job every time for your construction work. Life is so much better when you have the cash flow to support your business and not worry each week as payroll approaches.

  • Stop paying subcontractors an hourly wage. Contractors are known for milking the clock and costing you money when paid hourly. I will show you how to use Xactimate to determine a per job approach to labor that will encourage worker efficiency that will actually increase their hourly rate making them more money than ever before and at the same time locking in your profit. Say “NO” to hourly wages and “YES” to paying by the job every time!

  • Roofing is the General Contractors best and most overlooked opportunity for a major boost to sales. In the past 10 years roofing has become a high priority for TPAs and preferred contractor programs, and has produced dramatic increases in claims volume for program contractors. Most insurance carriers now send their roofing claims through their TPA programs directly to preferred General Contractors. You can get in on the revenue and profit surge roofing provides by adding this construction niche to your service offerings.

  • You’d be hard pressed to find a business owner who didn’t believe cash flow was one of their biggest and most pressing problems. It is one of the clearest indicators of success or distress and of operational excellence or dysfunction. I will help you implement a multi-faceted system that can help you solve your cash flow chaos once and for all. The biggest issue most contractors face is not over-spending, but rather not getting paid soon enough for work completed resulting in a financial float that gets to be more and more and more until it is unbearable. I will show you how to get your first construction draw at the start of the job instead of waiting until you are done before you see your first cash. I will help you squash excess spending, effectively navigate the mortgage company maze, and get your final payment on time instead of waiting for months.

  • Imagine the benefit of having a personal trainer available to you to answer any question about any issue you face including restoration industry technicals of drying and construction. How do you resolve issues with problem homeowners, or adjusters, or employees? Do you need insight into how to deal with a particular problem for which you are unclear which response to choose? How many times have you wished you had available an experienced restoration expert who could weigh in on a critical decision you must make? Now you can have all of the help you need for any issue you want help with through The Retirement Achiever. What could be more life changing than this!

  • Do you want to earn top dollar on each construction job? What difference would this make in your cash flow and your year-end net profit, and your personal wealth? You can, and should, and you can start now!

  • For many business owners the best place to start in earning more money is to improve internal operational efficiencies that increase cash flow and profit. Close the door to profit-killers and keep more of the money you have already earned.

There is a lot to accomplish to get ready to sell your business. The Retirement Achiever will help you prepare your business for a top dollar sale.