A CI business can be incredibly profitable when properly optimized. But learning how and when to optimize your business model to take your business to new heights can leave many integrators stuck.
In our 15 years of teaching integrators to maximize success, we’ve concluded there are five phases that businesses fall into:
We examine each phase in detail in our CI Business Mastery Class session on optimizing the CI business model (watch the replay here).
Safe to say, there are challenges and factors to focus on in each phase, but no matter where you are, here’s 8 quick actions to optimize your business to a model that we know works:
- Add more hours or charge more per hour to take your labor mix up.
- Improve your billable time on the job. (50% or better is a great target.)
- Consider a 5–10% holdback to improve cash flow.
- Organize and be diligent about what inventory you order and when.
- Create and stick to strict payment schedules.
- Know how many leads turn into prospects, how many prospects turn into sales, and the average value.
- Know what activities need to be executed each week to generate sales needed to grow.
- Change your mindset to believe you can achieve 20% profit.
We do not recommend implementing all these changes at once. Instead, focus on small, incremental changes over time to sustain your culture, your revenue, and your profit.
If you want to learn how to fully optimize your CI business model for your growth phase, click here to watch the replay of our CI Business Mastery Class.
Matt & the team