Build Value Into Your Business
A sad reality that I have often noted during my forty years of home improvement industry experience is that, despite years of commitment and hard work, many home improvement and roofing contractors, when they face retirement, haven’t built businesses of significant worth.
Rather than leaving behind a marketable business they can sell for profit, they often end up closing up shop, auctioning off, or even giving away their tools and other assets. All their hard work doesn’t result in the reward that it should.
Owning and running a business for your entire career is too hard and too much of a commitment to have it end that way!
So, how can you create a business of value and worth? How can you make something that you can sell and see your hard-won legacy continue in someone else’s capable hands? Here are a few keys to creating a business of value and worth.
- Maintain good financials that can build a case of profitability for future owners.
- Strive for a gross profit of 55% or greater.
- Maintain a list of previous customers and ongoing relationships with them through newsletters, etc.
- Be recognized in your community and the greater industry as a leader.
- Establish solid supplier relationships.
- Offer unique products that other contractors do not offer or can’t gain access to. (Of course, we believe that specialty residential metal roofing is an excellent option for this!)
- Treat your team members well, ensuring their ongoing loyalty.
- Maintain a consistent phone number and business address.
- Build systems into your business so that it can operate without you.
- Have a proven in-home sales system that sets you apart from the competition.
- Have a digital footprint that proves your solid reputation and commitment to customer satisfaction.
- Build customer testimonials and videos.
- Focus on training and safety throughout your company.
These are all ways to build a business of value that you can sell when you retire rather than just close up. Not only can you see your efforts continued, but you’ll be rewarded for your dedication. The steps I’ve listed above are all vital to developing a good exit strategy. Build your business to be the best it can be, and when your time is up, it’ll make your life easier.
Please contact me if you’d like to discuss these points more in-depth. Owning a business is never easy, but I’m happy to share any insights I’ve gathered from my experience.
Todd Miller has spent his entire career in the metal building products manufacturing industry. He is president of Isaiah Industries, an organization recognized as one of the world’s leading metal roofing manufacturers. Todd is currently Vice President of the MRA (Metal Roofing Association) and a Past Chair of MCA (Metal Construction Association). Through his website, he strives to raise the bar on standards and practices to provide property owners with the best possible products for successful roofing projects.
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