In our business, we work with restoration companies every day. We don’t just sell restoration companies. One of the ways we support the seller experience is to help sellers maximize the value of their business right before they sell, and many of the strategies we suggest are more than just selling tips—they’re simply good overall business suggestions that you should implement right away.
We talk about financials and bookkeeping; we talk marketing plans. We almost always discuss the importance of having a diverse revenue mix. We advise countless clients on this important bit, because the right revenue mix can mean the difference between prospective buyers coming to a yes or no, but more than that, a healthy revenue mix means never putting all of your eggs in one basket.
Here’s what that looks like in a typical operation. If you want to improve your business, then make sure the bulk of your revenue doesn’t come from just a few places. A single job should not account for more than 6-8% of your revenue. More than that, and one job can significantly impact your bottom line. Along the same lines, keeping a healthy mix of commercial and residential gives you plenty of space to grow and keep revenue streams diversified. Business success is about keeping options open and never depending on one or two revenue generators to keep your lights on. Understand your revenue and create strategies to mix it up. Success starts with open options and diverse income opportunities.
