You have grown you electrical business from the ground up. You are busy to the point of turning away customers. So, you are wondering if you could increase your profits by expanding your business. This would mean taking on more employees, perhaps establishing more locations, and taking on more work. Then again, you wonder how much trouble it will be to manage a larger business. But, if you do not take care of demand, someone else will! When should you expand your electrical business? And, if you do, how do you go about it? You need to make an intelligent business decision and if your bookkeeping and accounting are not up to the task, you should consider outsourcing your bookkeeping. If your goal is a greater profit, more so than running a business empire, talk to the top accounting firm in the Kansas City area about both intelligent business decisions and the best way to take your Profit First without necessarily expanding your enterprise.
Too many small businesses like yours have their bookkeeping done as an afterthought. They dread looking at pages of numbers that do not make a lot of sense and only look for the profit or loss on the bottom line. At Exigo Business Solutions in the Kansas City area, we work hard to maximize the profits of our bookkeeping and accounting clients. This certainly means accurately tallying up all of the numbers. But, then we use any of a variety of business intelligence solutions to help you make better sense of the numbers and use your improved insight to make smart decisions about expenses that you can cut, the choice of better-paying jobs, and more. We use the best bookkeeping software for small and medium-sized businesses, QuickBooks and generate customized reports for your business. We may even use Microsoft Power BI (for business intelligence) to further improve your understanding of the details and the possibilities of your business.
So, when should you expand your electrical business? You should expand when there will be not only enough work now and in the foreseeable future but also when that work will remain profitable and not require that you constantly give discounts in order to keep your employees business and bring in enough to pay expenses. The various factors needed for this sort of decision can be built into your reports so that you have a clear idea how well expansion would work out and when to pull the trigger with more hiring and/or another location. An Exigo Business Solutions, getting this sort of business decision solved most effectively is exactly what we do. If you would like to get more out of your bookkeeping than just pages of numbers, contact us for a consultation.
At Exigo Business Solutions we work with many businesses in the skilled trades. While the issue of expanding often comes up, it is most commonly driven by a wish for a more profitable business. Using intelligent bookkeeping software and the reports that we can generate, we often discover that the company does not need to expand to make greater profits. In fact, expansion might just lead to business failure as the owner takes on more expenses and then has to take jobs that do not pay well in order to keep a larger staff busy! But, if that is the case, how can we help the electrical business, or any business, increase their profits? Here is where we introduce the Profit First method of bookkeeping to our clients.
It is all too easy for the owner of a business to become overwhelmed by the details of the business, miss opportunities and let minor expenses add up to the point of sapping profits. The Profit First method instills financial discipline, allocates a profit “off the top” and results in maximized profits instead of profits as a wish or dream.
The basics of Profit First are to set up segregated bank accounts for profit, owner’s pay, taxes, operating expenses, and more as required. Money is allocated to these accounts twice a month. This guarantees a profit right away. Then Profit First puts the spotlight on your expenses, your cash flow, your budgeting (or lack of it) and started cutting out the unnecessary “fat” that was robbing you of routine profits. At this point, it really is a good idea to have outsourced your bookkeeping to someone who knows this system and who can provide business intelligence solutions to make your business more cost-effective.
If you are considering expanding your electrical business, we strongly suggest that you invest the time and effort into looking at effective business intelligence solutions as well as the Profit First method first. Get your business running as efficiently as possible and then expand if and when do doing so will reliably increase your profits, which are already a habit!
Contact us today for any questions about Profit First, intelligent business software, and how Exigo Business Solutions in the Kansas City area can help you.