@moseskagan@ArtemTepler This is terrible to hear. Artem was a friend more than anything else. He communicated regularly but stopped a month ago - didn't realize he was struggling so much.
Very heavy to deal with - will miss you buddy.
@HeroDividend I feel for these kids - because the adults lied to them. They said go to college, get a degree, you will get a good job - that's your ticket to a good life. Its all a lie (probably even STEM). I have an MBA, and realized this 15 years ago and quit my job. Best decision ever.
In hiring or promoting, we always recommend employers look for the tradeoff between attitude and skill and always favor attitude over skill. A person with a good attitude can learn any new skill. A person with a bad attitude, the more skill they have the more problems they create in a company.
Even though this an very useful HVAC thread - I'm sure contractors of all trades are on interested in the business numbers shared here - here are the gross margin guidelines we give our clients:
- Service work - 55% or higher
- Residential Remodels - 25-35%
- Commercial/TI - 15-25%
- Governmental work - 8-15% (this is a volume game)
FYI - This number includes, labor, material, subs, and insurance costs
@sweatystartup Very true - we started to 'fire' clients at the 90 day mark if they did not implement our program immediately. It has been a very positive development as the word got out.
@RickVazza Welcome to the good life! The blue collar business world is far more rewarding in terms of work and real relationships - that's been my experience for the past 15 years after switching from training software sales teams to now coaching contractors.
@Codie_Sanchez Very true - first lesson for our clients is always mindset. Are you a contractor or a construction business owner? The answer can mean the difference between running a $5M or a $50M business:
This client got it:
youtube.com/watch?v=paq4i_…
Last month we did a survey of our clients who are mostly home service and light commercial businesses (across the US)- the results were surprisingly even:
1/3- Business is growing too fast
1/3 - same ol, same ol
1/3 - business is down
Conclusion is - easy times are over, now it comes down to business location and business skills
@ChandlerReedSMB Several factors have come together to make this the perfect time to acquire SMBs.
Cap rates hovering around 5%, mortgage rates at 7% make real estate a tough call.
A service SMB run with good systems can easily have 25%+ profit margins - making it easy to handle debt service
One of the saddest ways to lose in life is to play hard and win the wrong game.
Sometimes it helps to step back and ask yourself
"What game am I playing?"
Quick Survey: If you are a Contractor, how have incoming leads been in your business in the last 6 months:
Reply with:
1 - slower than normal
2- same as before
3 - seeing an increase
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