This month's President's Message is about understanding and planning to improve margins and the financial outcome of your The Grounds Guys franchise.
The other evening, as I channel surfed my way up the TV dial (or listings for the younger folk) to the History Channel, I stumbled across the new hit TV show, The Profit. During this episode, the show’s main character, Marcus Lemonis made the following profound statement, “Efficiency is Labor. Labor is Money. And, Money is Margin.” Well, wouldn’t you know it… those are the same understandings that we coach and encourage at The Grounds Guys.
To improve your margins, you must first start by clearly understanding your financial outcomes and trends. Once validated (with accurate QBO data), I ask you to work closely with your franchise consultant (FC), as needed, on the following steps:
- Define how to improve your financial outcomes/results and generate more cash to efficiently operate your business.
- Develop S.M.A.R.T. goals against your key performance objectives.
- Create or revise your 2017 budget forecast.
As a reminder, owners should already review your P&L performance results, on a monthly basis, with your FC. By forecasting the operating elements of your franchise, you can make educated adjustments to achieve your end goals and objectives. It is important that you compare your results against your budget on a weekly, monthly, quarterly and annual basis. This powerful tool helps you strategically plan and design your sales growth with built-in projected margins. Used with deliberate purpose, budget forecasting allows you to create, develop and implement an action plan (based on S.M.A.R.T. goals) intended to help you improve the overall financial performance of your business.
Additionally, this tool allows you to efficiently measure and manage the success and effectiveness of your The Grounds Guys franchise. The sustained success and growth of your business is based on your ability to manage the critical, financial elements of your franchise:
- Overhead recovery
- Revenue per man hour
- Percentage of billable hours
- Utilizing and implementing proven, revenue-increasing strategies such as leveraging Neighborly/Neighbourly to secure more customers
Please reach out to your FC and begin creating and implementing your very own action plan today to ensure your business is on track to improve margins and profitability.