Reverse Engineer Your Electrical Business Challenges
There are no certainties in life but that everything is uncertain. No matter where you live, what you do, and who you are with -- every day that you get to live the life you like, it’s a gift and nothing short of that. So when you face challenges -- unexpected and unplanned, mostly -- in your electrical business, how can you overcome them? Let's dive deeper into this topic in our electrical business course.
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Everything that you do is affected by a lot many external factors which might not be under your control. For example, the global economy. No matter if you work eighty to hundred hours a week, but if the global economy is in poor health then that recession is most likely to affect your electrical contracting business.
While talking to Troy Smith, who came up with an awesome electrical business financial strategy called “Reverse Engineer Your P&L,” we discussed how it helped his business in the times of a crisis. When their electrical business was hit, they almost had twenty full-time people on the team, working across three departments such as energy, service, and project. It means that every department had a manager and a few (actually a lot of) overheads just to stay functional.
The managers were usually in charge of delivering and meeting the pre-decided targets and charged with delivering the target. In a good time it was great, but when the economy went to boil they had to make a few tough decisions to stay in business. They took resort in the “Reverse Engineer P&L” method so that their electrical contracting business made enough profit. To meet the target, they came up with a figure and a number and have been pretty much hitting (and achieving) it constantly for a while now.
So, do you think it will help you to reverse engineer your balance sheet? Let us know your thoughts!
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