Unlocking Your Workshop’s Hidden Profits: 8 Key Strategies

Dominic Rubino

Whether you’re crafting cabinets, joinery, or millwork, or even if you’re innovating in the casket-making industry, you’re in the right place to uncover the secrets to boosting your profits. In this article, we dive into eight crucial areas where your business’s potential earnings might just be hiding. So, let’s roll up our sleeves and get into the details. And hey, don’t forget to swing by CabinetMakerProfitSystem.com afterward for more insights!

 

  1. Low Sales: The Ground Zero of Profitability

Starting with the basics, low sales might seem like an obvious profit-drainer, but have you really considered whether your sales truly align with your shop’s unique setup? Remember, every piece of equipment, every inch of your workspace, tells the story of your business’s growth. It’s not just about the volume of sales but the type of sales you’re making. Align your sales strategy with this setup, and watch as untapped profitability emerges from the shadows.

 

  1. High Costs: Keeping the Leaks Plugged

My friend Brian Tracy once shared a gem: “Keep your sales high and your costs low.” Sounds straightforward, right? But diving deep into your costs, questioning every dollar spent, and sniffing out inefficiencies can transform your financials. Keep those costs in check, and the path to profit becomes much clearer.

 

  1. Wasted Efforts: The Silent Killer of Profit

Wasted efforts are like termites; you don’t see them, but they’re eating away at your profits. Is your shop running as efficiently as it could be? Sometimes, a simple reorganization or an open chat with your team can spark significant improvements. Remember, efficiency isn’t just about working harder; it’s about working smarter. Engaging with your team to identify areas for improvement can transform wasted efforts into productive, profit-enhancing activities.

 

  1. Bad Estimating: Where Good Jobs Go Bad

Ever regret winning a particular job? It happens when estimates go awry. This isn’t about being a poor estimator but about fine-tuning your approach. Comparing estimated costs to actual expenses can reveal a lot about where things might be going off track. Keep a tight ship here, and your profits will thank you.

 

  1. Collections: Time to Be the Squeaky Wheel

You’re not running a bank, right? If customers are slow to pay, it’s time to remind them who’s keeping the lights on. A proactive approach to collections can significantly improve your cash flow and, by extension, your profitability. Don’t shy away; your business deserves timely compensation.

 

  1. No Budgets: Navigating Without a Map

Flying blind without budgets is a risky affair. Understanding the relationship between your output (e.g., casework) and the resources it consumes (e.g., labor hours for installation) allows for more precise planning and scaling of operations. Get those budgets down on paper, review them regularly, and steer your business towards efficiency and growth.

 

  1. Bad Accounting and Forecasting: The Missed Opportunity

Accounting and forecasting are your crystal ball into the business’s future. If you’re not getting the insights you need, maybe it’s time for a fresh pair of eyes. A new perspective on your finances can illuminate paths to profitability that you hadn’t considered before. Sometimes, change is not just good; it’s profitable.

 

  1. The Wrong Customer: Know When to Say No

Lastly, not all customers are created equal. Some can be more of a drain on your resources and sanity than they’re worth. Identifying and focusing on your ideal customer segment can free up time and resources for more profitable and satisfying projects. Remember, it’s okay to say no to the wrong fit.

 

There you have it, eight places where your money’s been playing hide and seek. But the game’s over, and it’s time to claim what’s yours. Dive deep into each of these areas, apply the insights, and watch as your business begins to transform.

Don’t forget, this is just the tip of the iceberg. For more nuggets of wisdom, more strategies, and more stories from the trenches of the trade, make sure to tune into the Cabinet Maker Profit System Podcast. We’re all about sharing the knowledge, lifting each other up, and making sure that in this industry, everyone has a shot at success. Catch you on the podcast, and here’s to your ever-growing profits!

See the first episode of the Cabinet Maker Profit System Podcast Here.

Dominic Rubino, a seasoned Contractor Business Coach, has spent over two decades guiding contractors towards success. He’s launched, grown, and sold several companies, and currently hosts two leading construction industry podcasts. Through his Cabinet Maker Profit System podcast, Dominic and his team empower contractors to achieve higher profits and attract better clients.

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