FLOORING INDUSTRY BLOG & NEWS

Running Your Business
by the Numbers

Roulette

Winning bids is all about the “F” Word

In working with over 60 commercial flooring companies we have identified 4 competencies that when mastered, significantly improve business performance and consistency. They are: Lead Generation Pipeline Management Work in Progress Management Performance Management (Know your numbers) There is massive variation the maturity of these competencies from business to business.  We will headline some key…

An image of a typical clock with text time is money

Making more money in less time

Most owners think their purpose is to make money. In fact the owner’s purpose is to build a business that makes money. The problem we see is that most owners either don’t make enough money or their business consumes so much of their time they don’t get to enjoy the fruits or their labor. The…

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Why Flooring Companies don’t make money

Having seen inside the financial statements of over 60 flooring companies we can reveal the average net profit is a miserly 1-2%.   Shocking. Some owners may be OK with that as they have taken a decent salary and maybe a bonus. But this lack of profit means you aren’t building equity and have less ability…

4R's

Are You Losing the Bidding War

We have seen the big bid death spiral play out in multiple flooring companies. It goes like this: Salespeople default to the easiest option for new work. They go to the bid board. This creates the bid frenzy death spiral: 1. Owner: “We need more work as our existing accounts have shrunk” 2. Salesperson: Goes to…

team review

How to win and deliver more of your large job opportunities

On this week’s episode of Flooring by the Numbers LIVE! Show we discussed the importance of taking a strategic approach to winning and then successfully delivering large jobs. Our simple definition of a large job is one that represents as much as 50% of your net profit.  If your net profit is $1million then a…

sell (2)

Sales is a verb not an adjective

We learned this at school: A verb is a doing word. An adjective is a describing word. Many people describe themselves as “being in sales”.  They aren’t. Rainmakers “do” sales. Sales is a verb.  It means to take action and sell stuff. It does not mean passively scanning the bid board and lobbing a job…

Buy my product!

Listen First. Speak later

When we observe salespeople engaging with potential customers we often find salespeople do most of the talking They like to tell the customer about their company and what they do. This behavior is telling rather than selling. And there is a place for this in the right context. You will be more persuasive if you…

Underbilling & (1)

The secret to solving the underbilling nightmare

Last week we spoke about the problem of underbillings.  We identified several reasons why this happens but primarily the root cause is a lack of attention and will to bill effectively and in a timely manner. Many salespeople believe it to be a chore. The greater the chore the more we just want to get…

Underbilled

Are you overworked and underbilled?

In this week’s Flooring by the Numbers LIVE! Show, (watch the replay here) we discussed how important it is to have lean mean balance sheet machine and minimizing working capital. A key component of working capital is underbillings.  Specifically this work that has been performed but has not yet been billed.  Hence the title of…

waiting for a call

3 keys to getting your voicemails returned

Why don’t your prospects call you back?  You have a great proposal or bid you want them to hear about or you want feedback on the one you sent. All you get is crickets! The truth.  Your messaging is boring, irrelevant and unoriginal. Ouch!  (It’s true though). Let’s talk about that olde technology, invented by…

briefcase

How to manage your portfolio to optimize profit and cash

Our stock phrase is Revenue is Vanity, Profit is Sanity & Cash is King. We know there can be good revenue and not so good, or bad revenue. GOOD revenue has the characteristics: Sold and delivered CONSISTENTLY Reliable Has the required profit margins Converted to CASH in less than 60 days We can extend this…

repeat 2

Annuity revenues from selling to end-users

One of the most common challenges our commercial flooring customers ask us to help with is the lumpy nature of their business. From a financial context some months (mainly the summer) they do fairly well. Cash is always tight during these months, but profits are acceptable. The problem is that the outcome is significantly reversed…