■ HVAC
It might be time for the HVAC industry to start looking at increasing their fees as the economy begins to settle.
“Busy going broke” may sound a bit like a cliché, but it can be true if you are not careful. So many times, we get to the end of the air conditioning season and our cash flow hasn’t changed. This might leave you scratching your head and wondering why this is happening. You might even be busier than you have in years with a new install every day for every crew, and yet, your finances don’t feel strong enough. Brian Costello, a well-known financial guru from the 1980s and radio personality, would always tell companies to spend 90 cents out of every dollar. The remaining 10 cents should be net profit or EDITDA (earnings before interest, taxes, and depreciation). This means cash in your pocket when everything has been paid for.
By Glenn Mellors
Simple enough, right? Take the time to train employees now rather than when a lull in work is expected—it often never comes.
Nowadays, it’s not uncommon to find companies that don’t have the full attention of the working owner. They might be too busy with the day-to-day stuff to realize what is happening to costs. They have no idea that they are buying a dollar and selling it for 99 cents. The busier you are, the faster you are going broke. The adage “when it slows Continued on page “21”
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September 2021 – Plumbing & HVAC
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