Are You A “Profit-Builder”?

nguyentheanh

Tác giả Dự toán GXD
Thành viên BQT
Tham gia
6/7/07
Bài viết
4.561
Điểm thành tích
113
Website
giaxaydung.vn
by George Hedley
Business owners often ask me: “How much profit should I expect to make? 5%, 10%, 15% or MORE?” Most business owners and managers have no specific targets. They claim their profit goal is to make as much money as possible or to make MORE than they are currently making.
AS MUCH MONEY AS POSSIBLE! Is this a target? MORE! More than what? These are not clear targets or goals. A young entrepreneur came to me for advice and told me his five year goal was to work real hard, be totally stressed out, hopelessly in debt and make no money; and he made it! I am not impressed with people who are busy, overworked, underpaid or boast about their latest sales figures. What I admire are organized companies that hit their goals and make the expected return and profit for the risk they take.
The goal in business is NOT to stay in business or keep everyone busy. The goal of business is to ALWAYS MAKE A PROFIT. Unfortunately, 92% of all business owners reach age 65 with $0 net worth! It’s not how much you MAKE that matters, it’s how much you KEEP (after overhead, job costs, personnel and a fair salary for the owner).
Profitable driven business owners have a vision of what they want. They have goals in many areas including: business, customers, operations, financial, personal and profit. They have precise goals including:
1. Return On Equity
2. Revenue
3. Overhead Costs
4. Average Markup
If asked to invest $100,000 in a friend’s new startup business, what return would you want? 10%, 15%, 25%, 50% or More? After considering all the risks, I would never invest in a new business that didn’t offer at least a guaranteed 15% to 25% return on equity. Likewise, the minimum pretax net profit goal for your company should be 15% to 25% return on equity (or higher).
To Always Make A Profit, follow this 7 Step Formula:
Example
1. Equity In Company $ 300,000
2. Return On Equity Goal x 20%
3. Net Profit Goal (Pre-Tax) = $ 60,000
4. Annual Overhead Cost + $ 250,000
5. Projected Gross Profit = $ 310,000
6. Average OH & P Markup Goal 15%
7. Annual Revenue Goal (5 / 6) $ 2,066,666

Looking at the example above, the company’s Overhead is projected at $250,000, Equity is $300,000 and its’ Return on Equity Goal is 20%. Based on a Revenue Goal of $2,066,666 and using an average markup of 15%, the company’s annual NET PROFIT GOAL is $60,000. A FIXED NUMBER. Not More! Not as much as possible!
WHAT IS YOUR REVENUE GOAL?
WHAT IS YOUR OVERHEAD GOAL?
WHAT IS YOUR AVERAGE MARKUP GOAL?
WHAT IS YOUR PROFIT GOAL?
Companies without precise profit goals never make enough and often don’t make anything. It’s hard to hit a fuzzy target that doesn’t exist and moves around. Companies that track costs, target profit, control overhead, and watch what they keep, are in-control, organized and onestep ahead of their competition. Fix your profit target and revenue goals.
Keep it in front of you all the time. Share it with your people. Track your progress. Make it happen. George Hedley, owner of $100 million construction
and development company and recipient of the nationally recognized “Entrepreneur of the Year” award. He also owns HARDHAT Presentations and speaks to companies on building profitable businesses, leaders and loyal customers. For information or his free management e-newsletter, visit www.hardhatpresentations.com.


Some word about George Hedley:

George Hedley, business owner and successful entrepreneur, is the recognized authority on how to build
a growing business into a company that consistently produces bottom line results. George Hedley founded and built his major commercial construction company, Hedley Construction, from $0 to $50 million dollars in only 7 years!
For his accomplishments, George received the nationally recognized award:“Entrepreneur of the Year” by
Ernst & Young and “INC”magazine. Today, he is the CEO and owner of Hedley Construction, a $100 million operation and owns HARDHAT Presentations presenting keynote speeches and workshops to companies and associations.
 
Tải bộ cài phần mềm Dự toán GXD, Đấu thầu GXD, Thanh Quyết toán GXD, Quản lý chất lượng GXD. Dành cho người mua bản quyền
Kích để xem khóa học Dự toán công trình
Kích để xem khóa học Dự toán công trình
Phần mềm quản lý chất lượng công trình QLCL GXD
Tìm hiểu khóa học Thanh Quyết toán GXD

Các bài viết mới

Top