Here Are Five Mistakes To Avoid This Fall
Updated: 08.01.22 by Ruth King
Stupid Things Contractors Do in the Summer – Part 2
Updated: 07.01.22 by Ruth King
Stupid Truck Mistakes Contractors Make
Updated: 06.01.22 by Ruth King
The second installment in the series, this is the stupid truck mistakes contractors make and how to avoid making them
Stupid Things HVACR Contractors Do in the Summer
Updated: 05.01.22 by Ruth King
Protect your profitability and cash – don’t do stupid things.
Weekly Cash Report PDF Download
Updated: 05.01.22 by Ruth King
Protect your profitability and cash – don’t do stupid things.
Calculating HVAC Maintenance Price Plans for Two or More Systems
Updated: 04.01.22 by Ruth King
When pricing maintenance plans for additional home heating and cooling systems, you should know as a business owner, it is not merely about cutting your maintenance price for the first system in half…you must charge for the full-service work you plan to provide.
View Calculating HVAC Maintenance Price Plans for Two or More Systems
Pricing Maintenance Agreements – Know Your Profit Bottomline
Updated: 03.01.22 by Ruth King
The goal on performing maintenance should be to net a profit, but at the very least you should never lose money. Contractors often have the misconception that you can lose money on maintenance because you “make it up” in either service or replacement. Everything you provide to a customer should at least break even, whether it is maintenance, service, or replacement.
View Pricing Maintenance Agreements – Know Your Profit Bottomline
Formulas For Success: Commercial Contractors
Updated: 02.01.22 by Skip Snyder
Based on his business experience, business model (commercial; no residential), and outlooks and opinions, Skip Snyder discusses highlights of what he's learned over the years as a teacher and commercial contractor.
Pricing Using Net Profit Per Hour Gives You Ultimate Flexibility
Updated: 02.01.22 by Ruth King
Pricing Using Net Profit Per Hour Gives You Ultimate Flexibility
View Pricing Using Net Profit Per Hour Gives You Ultimate Flexibility
Financial Basics For Contractors
Updated: 01.01.22 by Skip Snyder
Why it's important to be able to analyze your own financials and five crucial measures of a financially sound company.
Two Things You Absolutely Must Have in 2022
Updated: 01.01.22 by Ruth King
Two Things You Absolutely Must Have in 2022
Identifying The Gap
Updated: 11.01.21 by Keven Prather
Many business owners think they have an accurate idea about the value of their business. Owners may be surprised to find that “the gap” between the current value of their company and where the company value should be when when they are ready to move on is much different from what they predict.
One of the Greatest Arguments Among Managers
Updated: 11.01.21 by Ruth King
Unless you have a year-end that is not Dec. 31st, it is time to budget for 2022.
What is Your Moonlighting Policy?
Updated: 10.01.21 by Ruth King
One Easy Way Your Technicians Can Steal from You
Updated: 09.01.21 by Ruth King
Get a weekly cash flow report and the aged receivables and aged payables reports to back up the report. Look at the aging reports and see if things don’t look right.
Rethink Cash Flow
Updated: 07.01.21 by Keven Prather
Keep Your Employees from Stealing this Summer
Updated: 07.01.21 by Ruth King
7 Places to Look if Your Gross Margins are not Consistent
Updated: 06.01.21 by Ruth King
View 7 Places to Look if Your Gross Margins are not Consistent
How Much Cash is Enough Cash?
Updated: 05.01.21 by Ruth King
Cash, Profits or Profitability — Which is Most Important?
Updated: 04.01.21 by Ruth King
View Cash, Profits or Profitability — Which is Most Important?
Wealth Rule No. 10: Have an Increasing Current Ratio
Updated: 03.01.21 by Ruth King
Your company’s current ratio should be monitored monthly. It should always be greater than one. It should be constant or trending upward.
Wealth Rule No. 9: Have a Sound Debt Policy
Updated: 02.01.21 by Ruth King
A good debt policy looks at your receivable days and your debt percentages.
Wealth Rule No. 8: Have a Sound Inventory Policy
Updated: 01.01.21 by Ruth King
Inventory tracking is key to a sound cash policy. You don’t want to spend cash you don’t need to spend.
Wealth Rule No. 7: Have a Sound Collection Policy
Updated: 12.01.20 by Ruth King
Sales count. Profits count. But they’re worthless if you don’t collect the money those sales and profits generated.
When You Love Your Business, But Hate Numbers
Updated: 11.01.20 by Shane Rau
Wealth Rule No. 6: Save Cash
Updated: 11.01.20 by Ruth King
Wealth Rule No. 5: Monitor Your Cash
Updated: 10.01.20 by Ruth King
Cash is the lifeblood of your company. You should watch it every day.
Wealth Rule No. 4: Build a Great Culture
Updated: 09.01.20 by Ruth King
If your company has a great reputation, then people will want to work there and want to stay there.
Beware the PPP Loan!
Updated: 08.01.20 by Ruth King
Monitor Profitability and Cash
Updated: 07.01.20 by Ruth King
The Wealth-Building Potential of a Powerful Personal Brand
Updated: 06.01.20 by Keven Prather
Self-made billionaires almost universally have well-established and powerful personal brands that they use opportunistically to generate even greater success.
View The Wealth-Building Potential of a Powerful Personal Brand
To Safeguard Your Wealth, Avoid the Exploiters
Updated: 05.01.20 by Keven Prather
Exploiters are professionals who recommend aggressive variations of financial solutions and strategies.
Save 2020 Profitability
Updated: 05.01.20 by Ruth King
Do You Want to Make Friends or Make Money?
Updated: 04.01.20 by Keven Prather
With success come enemies, so get comfortable with others resenting you or viewing you negatively.
Build Your Maintenance Program
Updated: 04.01.20 by Ruth King
A maintenance program can help your company in the long haul. Learn more in this valuable article from HVACR Business Magazine.
View Profit Law No. 3 - Build your maintenance program here.
Wills and Trusts: The Foundations of Your Rock-Solid Estate Plan
Updated: 03.01.20 by Keven Prather
View Wills and Trusts: The Foundations of Your Rock-Solid Estate Plan-HVACR
Wealth Rule 2: Separate Business Expenses from Personal Expenses
Updated: 03.01.20 by Ruth King
View Ruth King -Separate Business Expenses from Personal Expenses
Educate Inheritors About Wealth Planning & Managing Financial Assets
Updated: 02.01.20 by Keven Prather
The heads of many of the wealthiest families are concerned about their heirs’ ability to smartly deal with the money and business assets they will one day inherit. This is especially true among the first-generation wealthy.
View Educate Inheritors About Wealth Planning & Managing Financial Assets
Wealth Rule 1: Pay Attention to Your Balance Sheet
Updated: 02.01.20 by Ruth King
View Tips from Ruth King - Wealth Rule 1: Pay Attention to Your Balance Sheet
To Eliminate Estate and Gift Taxes, Feel the Freeze!
Updated: 01.01.20 by Keven Prather
Using a trust to freeze the value of your company can help you pass on sizable sums to your heirs — free of estate taxes.
Two Steps to Help You Grow and Build Wealth
Updated: 01.01.20 by Ruth King
Accurate books mean better decisions about your business future.
Blow Away Your Breakeven
Updated: 01.01.20 by Kerry Webb
Three keys to leverage your financials to grow your business faster and healthier.
Profit or Wealth?
Updated: 12.01.19 by Ruth King
Looking at a balance sheet is more important than looking at a profit and loss statement. You build longevity (i.e. wealth), by building a strong balance sheet. From a business perspective, you cannot build wealth without profits.
Recurring Revenue is Your Rocket Fuel
Updated: 11.01.19 by Ruth King
Whether residential or commercially focused, all companies need a thriving maintenance program.
Avoid the Pitfalls of Short Term Working Capital
Updated: 11.01.19 by Brandon G. Jacob
It’s vital to know your options and plan for the future to obtain financing that will not constrict the cash flow of your business.
You Can’t Take a Percentage to the Bank
Updated: 10.01.19 by Ruth King
What matters is the bottom line dollars or that the gross margins are consistent.
Inventory is a Bet
Updated: 09.01.19 by Ruth King
Profitable contractors do two things extremely well: Manage labor and manage inventory.
Know Your Financing Options
Updated: 09.01.19 by Brandon Bolen
Financing the acquisition of another company is actually quite easy, if you do your homework and know what’s available to you.
Review Timely, Accurate Financial Statements Each Month
Updated: 08.01.19 by Ruth King
View Review Timely, Accurate Financial Statements Each Month
How to Tell if Your Financial Statements are Wrong
Updated: 07.01.19 by Ruth King
Accurate financial statements are critical to ensure that the business is profitable or to give owners the information they need to take steps to make it profitable.
Profits and Cash are Not the Same
Updated: 06.01.19 by Ruth King
Balance Sheets are More Important than Your P&L
Updated: 05.01.19 by Ruth King
You’re Headed Toward Your Goal — Continuous Profits are Critical
Updated: 04.01.19 by Ruth King
View You’re Headed Toward Your Goal — Continuous Profits are Critical
You’re Headed Toward Your Goal — Know Your True Costs
Updated: 03.01.19 by Ruth King
7 Essential Accounting Practices for Your Business
Updated: 03.01.19 by James Leichter
Prepare for Lift Off — Live, Eat and Breathe Net Profit Per Hour
Updated: 02.01.19 by Ruth King
View Prepare for Lift Off — Live, Eat and Breathe Net Profit Per Hour
Rocket Profits — Where Do You Want to Go?
Updated: 01.01.19 by Ruth King
Market Turbulence Dominates Session
Updated: 12.16.18 by Margot Crabtree
The HVACR Business Stock Index lost 90.83 points, or 6.38 percent, and ended at 1332.91, its lowest close in over two years. Declining issues dominated advancing issues by a 9-to-1 margin.
Stock Index Recovers from Last Month’s Swoon
Updated: 11.16.18 by Margot Crabtree
The HVACR Business Stock Index inched down 3.01 points, or 0.21 percent, closing at 1423.73; the largest four companies in the index ended in negative terrain. However, advancing squeezed by declining issues by a 15-to-14 count.
Three Essential Functions, Part 2 — Service Profitability
Updated: 11.01.18 by Ruth King
Your service rate would be $140/hr, assuming you could bill 100 percent of a service technician’s time.
View Three Essential Functions, Part 2 — Service Profitability
Markets Tumble as Trade Wars Bite
Updated: 10.16.18 by Margot Crabtree
The HVACR Business Stock Index tumbled, shedding 136.55 points, or 8.73 percent and closing at 1426.74, the lowest close since April 2017. Declining issues shut out advancing issues, with all thirty companies posting in negative terrain.
Three Essential Business Functions, Part 1 — Maintenance Profitability
Updated: 10.01.18 by Ruth King
The foundation of every HVACR company is a thriving maintenance program.
View Three Essential Business Functions, Part 1 — Maintenance Profitability
Stocks Push Higher Despite Trade Concerns
Updated: 09.17.18 by Margot Crabtree
The HVACR Business Stock Index rose 52.22 points, or 3.46 percent, and ended at 1563.29. Advancing issues dominated declining issues by a 5-to-1 margin.
What To Do When You Can’t Make Payroll
Updated: 09.01.18 by Ruth King
Almost every business runs into cash flow problems at some point. It rarely happens but it does happen.
Stocks End Mixed on Earnings and Tariff Talk
Updated: 08.16.18 by Margot Crabtree
The HVACR Business Stock Index slid 27.90 points, or 1.81 percent, and closed at 1511.08. However, advancing issues outpaced declining issues at a 17-to-14 count.
Determine if Your Fall Advertising Activities are Profitable
Updated: 08.01.18 by Ruth King
Before you make any advertising purchase, determine whether you can at least break even on that purchase or earn your desired net profit on that purchase.
View Determine if Your Fall Advertising Activities are Profitable
Tariff Wars Create Market Jitters as Wall Street Begins Earnings Season
Updated: 07.16.18 by Margot Crabtree
The HVACR Business Stock Index fell 45.11 points, or 2.85 percent, and closed at 1538.98. Declining issues outpaced advancing issues by a 20-to-11 count.
View Tariff Wars Create Market Jitters as Wall Street Begins Earnings Season
The $99 Maintenance Agreement Too Good to be True
Updated: 07.01.18 by Ruth King
You can’t do a good job and stay in business at that price if you don’t sell something during the maintenance visits.
Geopolitical, Trade Tensions Continue; Wall Street Remains Positive
Updated: 06.18.18 by Margot Crabtree
The HVACR Business Stock Index rose 28.81 points, or 1.85 percent. Advancing issues topped declining issues by a 17-to-14 count.
View Geopolitical, Trade Tensions Continue; Wall Street Remains Positive
Seven Ways to Have a Profitably Busy Summer
Updated: 06.01.18 by Ruth King
These seven procedures help you have a profitably busy summer so that you have cash to survive the slower times of the year.
Inflation Fears Vie with Earnings; Earnings Win
Updated: 05.16.18 by Margot Crabtree
The HVACR Business Stock Index rose 20.97 points, or 1.37 percent, and closed at 1555.28. Advancing issues topped declining issues at a 19-to-12 count.
Protect Yourself from Scams
Updated: 05.01.18 by Ruth King
Markets Falter with Political Turmoil and Trade War Concerns
Updated: 04.17.18 by Margot Crabtree
The HVACR Business Stock index shed 48.27 points, or 3.05 percent, and closed at 1534.31. Declining issues outweighed advancing issues by a 25-to-6 count.
View Markets Falter with Political Turmoil and Trade War Concerns
‘I Made a Profit — Where’s the Cash?’
Updated: 04.01.18 by Ruth King
There are times your company shows a profit, yet you have problems scraping enough cash together for payroll.
Tariffs Collide with Bull Market; Stocks End Mixed
Updated: 03.19.18 by Margot Crabtree
The HVACR Business Stock Index slid 32.80 points, or 2.03 percent, and closed at 1582.58. Declining issues passed advancing issues at a 19-to-12 count.
Try a New Pricing Level, Improve Your Bottom Line
Updated: 03.01.18 by Ruth King
Add your overhead cost per hour and your direct cost per hour. This is the absolute minimum price you must charge your customers.
Stocks Plummet into Negative Terrain
Updated: 02.17.18 by Margot Crabtree
The HVACR Business Stock Index plunged 101.46 points, or 5.91 percent and closed at 1615.38. Declining issues dominated advancing issues by a 29-to-2 count.
Build Your Pricing Around Net Profit Per Hour
Updated: 02.01.18 by Ruth King
The key to pricing using net profit per hour is that you must estimate labor hours correctly.
Wall Street Charges Ahead to Begin 2018
Updated: 01.17.18 by Margot Crabtree
The HVACR Business Stock Index left the major markets in the dust, jumping 126.23 points, or 7.94 percent, and ending at 1716.84, a second consecutive index record. Advancing issues nearly shut out declining issues at a 30-to-1 count.
Vanity Metrics vs. Clarity Metrics
Updated: 01.01.18 by Ruth King
There are many metrics to track, however, none are as important to profitability than current ratio, acid test, productivity ratio and net profit per hour.
November Turns Positive for Stock Index
Updated: 12.16.17 by Margot Crabtree
The HVACR Business Stock Index posted a solid 58.33-point gain, up 3.81 percent, and closing at 1590.61, an index record. Advancing issues dominated declining issues by a 29-to-2 count.
Five Activities that will Make a Difference in 2018
Updated: 12.01.17 by Ruth King
Profitability is the key to survival. Here’s five things you can do to ensure profitability in the New Year.
Major Markets Positive, HVACR Business Index Slips
Updated: 11.18.17 by Margot Crabtree
The HVACR Business Index fell 46.48 points, or 2.94 percent, closing at 1532.28. Declining issues battered advancing issues by a better than 2-to-1 margin.
Keep the Honest People Honest
Updated: 11.01.17 by Ruth King
Should you prosecute? It depends on how much hassle you’re willing to put up with during the investigation and court cases.
Wall Street Shrugs Off Hurricanes, Geopolitical Tensions
Updated: 10.17.17 by Margot Crabtree
The HVACR Business Stock Index jumped 61.79 points, or 4.07 percent, and ended at 1578.76, another record high close. Advancing issues dominated declining issues by a 27-to-4 count.
View Wall Street Shrugs Off Hurricanes, Geopolitical Tensions
Do You Have a Loyal Bookkeeper? Watch out!
Updated: 10.01.17 by Ruth King
You have the perfect employee: hard working, dedicated and accurate. But do you? Here’s how to spot a red flag.
HVACR Business Index Turns Positive
Updated: 09.18.17 by Margot Crabtree
The HVACR Business Stock Index rose 56.53 points, or 3.87 percent, and closed at 1516.98. Advancing issues dominated declining issues at a 25-to-6 count.
Beware of Sub-Contracted Commercial Work
Updated: 09.01.17 by Ruth King
Bankruptcy court has the right to request return of payments made to vendors.
Choppy Session with Highs, Tumbles and Boredom
Updated: 08.17.17 by Margot Crabtree
The HVACR Business Stock Index fell 64.62 points, or 4.24 percent, and closed at 1460.45. Declining issues overpowered advancing issues at a 26-to-5 count.
If it Seems Too Good to be True, Then it Probably is
Updated: 08.01.17 by Ruth King
Your interview process must include a background check, especially for the bookkeeper.
Oil Pressures Markets; Wall Street Ends in Records
Updated: 07.17.17 by Margot Crabtree
The HVACR Business Stock Index posted a solid upswing, adding 30.55 points, or 2.04 percent, to end at 1525.06, a record in six out of seven months this year.
Nice is Nice, Until it Costs You Big
Updated: 07.01.17 by Ruth King
Be forewarned: the Department of Labor says you have to pay for meeting time and “gab time.”
Despite Wrinkles, Markets Continue Bullish Dominance
Updated: 06.16.17 by Margot Crabtree
The HVACR Business Stock Index inched ahead 13.58 points, or 0.92 percent, and closed at 1494.51. Advancing issues topped declining issues by a 23-to-8 count.
Two Great Ways to Protect Your Money
Updated: 06.01.17 by Ruth King
You shouldn’t be giving your money away, nor should you make it easy for anyone to simply take it.
HVACR Index Roars Ahead
Updated: 05.16.17 by Margot Crabtree
The HVACR Business Stock Index jumped 77.22 points, or 5.50 percent, to 1480.93, another record. Advancing issues dominated declining issues by a 29-to-2 count.
The Sneakiest, Most Ingenious Way to Steal From Your Company
Updated: 05.01.17 by Ruth King
No one thinks to put the numbers you see on your profit and loss statement into an Excel spread sheet to ensure the numbers match. Until now.
View The Sneakiest, Most Ingenious Way to Steal From Your Company
Stocks Hit Rough Patch as Earnings Begin
Updated: 04.17.17 by Margot Crabtree
The HVACR Business Stock Index fell 63.56 points, or 4.33 percent, and closed at 1403.71. Declining issues handily dominated advancing issues by a 27-to-4 count.
Why Employees Steal from Your Company
Updated: 04.01.17 by Ruth King
Theft is heart wrenching. You work hard and you never expect people to steal from you. When they do, your first reaction is disbelief, then sadness.
Stocks Remain Positive, but Momentum Slips
Updated: 03.16.17 by Margot Crabtree
The HVACR Business Stock Index rose 30.08 points, or 2.09 percent, and closed at 1467.27. Advancing issues overpowered declining issues by a 19-to-12 count.
What You Should Know About Savings & Investments
Updated: 03.01.17 by Stoyan Panayotov
Starting to build your wealth early will prepare you for large purchases or business expansion.
Focus on Your Bottom Line!
Updated: 03.01.17 by Ruth King
It’s what you do with that sale once it comes in the door that is more important.
Market Rally Slows, but Stocks Keep Notching Records
Updated: 02.16.17 by Margot Crabtree
The HVACR Business Stock Index added 31.23 points, or 2.22 percent, and closed at 1437.19, its second record close this year. Advancing issues dominated declining issues by a 4-to-1 margin.
Turn Your First Quarter Losses into First Quarter Profits
Updated: 02.01.17 by Ruth King
What if first quarter was profitable — or at least break even? Imagine the year you could have! You can do it.
View Turn Your First Quarter Losses into First Quarter Profits
Most Markets Back Away from Post-Election Rally
Updated: 01.17.17 by Margot Crabtree
The HVACR Business Stock Index closed in positive terrain, up 26.92 points, or 1.95 percent, and closed at 1405.96. Advancing issues topped declining issues at a 20-to-11 count.
Contests Can Help Increase Your Bottom Line
Updated: 01.01.17 by Ruth King
Contest are a great way to build your bottom line as well as give employees something to reach for — and they can build positive morale.
Markets Keep Post-Election Rally Heated
Updated: 12.16.16 by Margot Crabtree
The HVACR Business Stock Index rocketed ahead 120.34 points, or 9.56 percent, and closed at 1379.05. Advancing issues tromped declining issues by a 26-to-4 count.
Increase Your Office Productivity
Updated: 12.01.16 by Ruth King
Are you staffing for the busy times or the slower times? If you hire office personnel to cover all of the busy times, they will not be productive in the slower times of the year.
Markets Flip to Positive after Unexpected Election Results
Updated: 11.18.16 by Margot Crabtree
Positive earnings boosted the HVACR Business Stock Index, which rose 34.46 points, or 2.81 percent, and closed at 1258.71. Advancing issues bypassed declining issues by a 24-to-7 count.
View Markets Flip to Positive after Unexpected Election Results
How Much Are You Paying for Advice?
Updated: 11.01.16 by Frank Pedace
When it comes to investments, most people seem content to just “let it be” and not think about it. The problem with this approach is that the fees you pay for investment advice can add up to a pretty large number as the years go by.
Increase Warehouse and Inventory Profitability
Updated: 11.01.16 by Ruth King
Inventory is a bet. You’re betting your hard earned dollars that you will be able to sell parts and equipment that you buy and store in a warehouse or on trucks.
Volatility Sends Markets into the Red
Updated: 10.17.16 by Margot Crabtree
The HVACR Business Stock Index slid 16.31 points, or 1.31 percent, and closed at 1224.25. However, advancing issues topped declining issues by a 17-to-14 count.
Six Easy Ways to Increase Marketing Profitability
Updated: 10.01.16 by Ruth King
If you want to waste marketing dollars, then just burn the leads that marketing generates. You invest thousands of marketing dollars to produce those leads. Keep them productive. Keep them profitable.
Rally Fades as Wall Street Envisions Rate Hikes
Updated: 09.16.16 by Margot Crabtree
The HVACR Business Stock Index slid in tandem with the national markets, down 29.24 points, or 2.30 percent, and closing at 1240.56. Declining issues definitively overpowered advancing issues by a 27-to-5 count.
Three Ways to Increase Sales Profitability
Updated: 09.01.16 by Ruth King
Selling profitably, riding with your salespeople and tracking results will improve your company’s sales profitability.
Month Littered with Record High Closes
Updated: 08.17.16 by Margot Crabtree
The HVACR Business Stock Index rose 46.39 points, or 3.80 percent, and ended at 12269.80. Advancing issues easily outpaced declining issues by a 21-to-11 count.
Increase Installation Profitability
Updated: 08.01.16 by Ruth King
At the end of the day or the job, these are the wasted materials that get left on job sites or damaged, rolling around in trucks. Returning materials at the end of a job is one of the quickest ways to increase your bottom line.
Investors Shrug off Brexit, Markets Rise
Updated: 07.18.16 by Margot Crabtree
The HVACR Business Stock Index rose 40.69 points, or 3.44 percent, and closed at 1223.32, the highest close in over a year. Advancing issues dominated declining issues by a 28-to-4 count.
Increase Maintenance Profitability
Updated: 07.01.16 by Ruth King
If you want to sell your business, or have a strong company, you must have a growing, thriving maintenance base.
Wall Street Completes a Mostly Upbeat Session in Positive Terrain
Updated: 06.16.16 by Margot Crabtree
The HVACR Business Stock Index rose 12.76 points, or 1.09 percent, and closed at 1182.63. Advancing issues climbed past declining issues at a 21-to-11 count.
View Wall Street Completes a Mostly Upbeat Session in Positive Terrain
Increase Replacement Profitability
Updated: 06.01.16 by Ruth King
Know your overhead cost per hour and net profit per hour for every job. When you include overhead in job costing, then you really know what net profit each job brought in the door.
Rough-and-Tumble Earnings and Economics Push Markets into Negative Terrain
Updated: 05.16.16 by Margot Crabtree
The HVACR Business Stock Index edged slightly lower, off just 5.16 points, or 0.44 percent. Declining issues outpaced advancing issues by a 20-to-13 count.
View Rough-and-Tumble Earnings and Economics Push Markets into Negative Terrain
Increase Your Dispatch Profitability
Updated: 05.01.16 by Ruth King
Your dispatcher can make or break the profitability of your service department and potentially your company. Here are five ways to increase dispatcher productivity and, therefore, profitability.
Markets Start Earnings Season on a Positive Upturn
Updated: 04.18.16 by Margot Crabtree
The HVACR Business Stock Index rose 54.28 points, or 4.84 percent, and closed at 1175.02. Advancing issues dominated declining issues by a 28-to-5 count.
Pricing for Profit
Updated: 04.01.16 by Ruth King
If you don’t price to earn a profit, the more revenue you generate the deeper in the hole you will get. Takes these steps to profitable pricing.
Markets Pop as Oil Regains Traction
Updated: 03.17.16 by Margot Crabtree
The HVACR Business Stock Index enjoyed a healthy uptick, besting the national markets and rising 99.84 points, or 9.78 percent, closing at 1,120.74. Advancing issues nearly shut out declining issues at a 32-to-1 count.
Increase Service Technician Profitability
Updated: 03.01.16 by Ruth King
By reviewing each technician’s service tickets, you’ll see a pattern and notice whether there are areas of technical weakness.
HVACR Stock Index Bucks Trend, Turns Positive
Updated: 02.17.16 by Margot Crabtree
The HVACR Business Stock Index rose 10.06 points, or 1 point even, and closed at 1020.90. Advancing issues topped declining issues at a 23-to-10 count.
Build Your Company’s Profitability
Updated: 02.01.16 by Ruth King
Implementing new procedures and ideas is change. Most employees hate change. As the leader, you must give them reasons for the changes, ask for their input and remind them of why the company is doing new things.
Why Net Profit per Hour is a Better Way to Price
Updated: 01.01.16 by Ruth King
Calculating pricing using net profit per hour ensures your overhead costs are covered in each job.
Wall Street Rises, But Oil Prices Pressure
Updated: 12.17.15 by Margot Crabtree
The HVACR Business Stock Index headed south, shedding 21.17 points, or 1.83 percent, closing at 1137.55. Declining issues overpowered advancing issues by a 25-to-8 count.
Entering the Second Stage of No Man’s Land
Updated: 12.01.15 by Ruth King
At the end of this stage the owner is likely to have a sales manager, an office manager, a service manager and several field supervisors each with a responsibility for properly managing a segment of the business.
Wall Street Mixed after Late Stumbles
Updated: 11.17.15 by Margot Crabtree
The HVACR Business Stock Index gained 13.21 points, or 1.15 percent, and closed at 1158.73. Advancing issues topped declining issues at a 21-to-12 count.
Are You in No Man’s Land?
Updated: 11.01.15 by Ruth King
No Man’s Land is a vulnerable stage in your business growth. Many contractors don’t make it out of this stage because they can’t make the transition from doing to managing and they don’t keep an eye on cash flow.
Choppy Session Ends in Upswing as Earnings Season Begins
Updated: 10.16.15 by Margot Crabtree
The HVACR Business Stock Index rose 32.35 points, or 2.91 percent, and ended at 1145.52. Advancing issues inched past declining issues at a 17-to-16 count.
View Choppy Session Ends in Upswing as Earnings Season Begins
Where You Should Put Labor Burden
Updated: 10.01.15 by Ruth King
True profit is determined by net profit per hour, calculations which take both direct and overhead costs into consideration. Labor burden is included, whether you put it in direct or overhead cost.
Market Rout Sinks Stocks
Updated: 09.17.15 by Margot Crabtree
The HVACR Business Stock Index swooned with the national markets, and lost 68 points, or 5.76 percent, and closed at 1113.17. Declining issues dominated advancing issues by a 29-to-4 count.
Profitable Sales Turned into Positive Cash Flow is Critical
Updated: 09.01.15 by Ruth King
Although cash is king and is used to pay all of your bills, cash flow is important, but profitable sales turned into positive cash flow is critical.
View Profitable Sales Turned into Positive Cash Flow is Critical
Markets Chew into Earnings; Weak Outlooks and Revenues Weigh
Updated: 08.17.15 by Margot Crabtree
The HVACR Business Stock Index slid 32.84 points, or 2.71 percent, in tandem with the national markets, with the components of the index making huge swings in both directions.
View Markets Chew into Earnings; Weak Outlooks and Revenues Weigh
Know When You’re Growing Too Fast or Too Slow
Updated: 08.01.15 by Ruth King
Business profitability doesn’t mean business survival. By running out of cash and not having the ability to borrow or get it in an equity investment, you can be profitable and go out of business by growing too fast.
Markets End Mixed Despite Broad Rally
Updated: 07.17.15 by Margot Crabtree
The HVACR Business Stock Index tumbled 65.53 points, or 5.12 percent, and closed at 1214.01. Declining issues easily outpaced advancing issues by a 28-to-5 count.
Understand Your P&L: Overhead
Updated: 07.01.15 by Ruth King
First Quarter Contraction, Interest Rate Worries and Greek Debt Hamper Markets
Updated: 06.16.15 by Margot Crabtree
The HVACR Business Stock Index slid 29.56 points, or 2.26 percent, and closed at 1279.54. Declining issues bypassed advancing issues by a 19-to-13 count.
View First Quarter Contraction, Interest Rate Worries and Greek Debt Hamper Markets
Understand Your P&L Statement: Gross Margin, pt. 2
Updated: 06.01.15 by Ruth King
Gross margin should not vary more than a few points each month. If it does, then you must find out why the margin is varying.
Markets Inch Ahead in Lackluster Session
Updated: 05.18.15 by Margot Crabtree
Market listlessness was reflected in the HVACR Business Stock Index, with the index falling 27.10 points, or 2.03 percent, and closing at 1309.10. Advancing issues bested declining issues by an 18-to-14 count.
Stocks Waffle, Earnings Season Begins
Updated: 05.01.15 by Margot Crabtree
The HVACR Business Stock Index rose 6.96 points, or 0.52 percent, and closed at 1336.20. Advancing issues easily outpaced declining issues by a 24-to-9 count.
Understand Your P&L Statement: Gross Margin
Updated: 05.01.15 by Ruth King
What is the Company Really Worth?
Updated: 05.01.15 by Brandon G. Jacob
Specter of Higher Interest Rates Sends Markets South
Updated: 04.01.15 by Margot Crabtree
The HVACR Business Stock Index inched down just 2.66 points, or 0.20 percent. Declining issues topped advancing issues by a 19-to-14 count.
Understand Your P&L Statement: Cost of Goods Sold
Updated: 04.01.15 by Ruth King
However you decide to categorize expenses in your P&L, it's important to be consistent.
Understand Your P&L Statement: Sales vs. Revenue
Updated: 03.01.15 by Ruth King
Sales are critical to survival — when revenue is actually generated is even more critical.
HVACR Stock Index Ends at Record; So Does S&P 500
Updated: 02.17.15 by Margot Crabtree
The HVACR Business Stock Index enjoyed a robust month, and stormed ahead 93.17 points, or 7.52 percent, to notch a record at its closing of 1331.90.
Sharp Drop in Oil Sets Markets Adrift
Updated: 02.01.15 by Margot Crabtree
The HVACR Business Stock Index pulled ahead of the national markets, adding 17.60 points, or 1.44 percent, and closing at 1238.73. Advancing issues outpaced declining issues by a 20-to-12 count.
The 20 Percent Profit Myth
Updated: 02.01.15 by Ruth King
For a realistic goal, include owners’ compensation in the net profit equation.
Wall Street Roughed up to Begin 2016
Updated: 01.21.15 by Margot Crabtree
The HVACR Business Stock Index also faltered, shedding 126.72 points, or 11.14 percent, and ending at 1010.83. Declining issues nearly shut out advancing issues at a 32-to-1 count.
Rethink Your Bonus Strategy
Updated: 01.01.15 by Ruth King
Enact a profit sharing program, rather than a bonus entitlement.
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Markets Fall in Oil’s Rout
Updated: 12.17.14 by Margot Crabtree
The HVACR Business Stock Index slipped 31.98 points, or 2.55 percent, in tandem with the national markets, and closed at 1221.14. Declining issues overwhelmed advancing issues by a 3-to-1 margin.
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Prevent Employee Embezzlement, Part 4
Updated: 12.01.14 by Ruth King
Most contractors don’t think about how much time is stolen by employees doing personal activities on company time.
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Wild Volatility Mellows into Upswing
Updated: 12.01.14 by Margot Crabtree
The HVACR Business Stock Index leapt 115.38 points, or 10.14 percent, to end at 1253.12. Advancing issues almost shut out declining issues by a 31-to-1 count.
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Wall Street Tumbles from Record Highs
Updated: 11.01.14 by Margot Crabtree
The HVACR Business Stock Index tumbled 134.77 points, or 10.59 percent, and closed at 1137.74. Declining issues crushed advancing issues 29-to-3.
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Prevent Employee Embezzlement, Part 3
Updated: 11.01.14 by Ruth King
If you ignore locking your warehouse and limiting access to it, don’t use material sheets and don’t make your technicians responsible for the inventory on their trucks, you’re inviting theft.
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Markets Robust But Fade at End Due to Interest Rate Worries
Updated: 10.01.14 by Margot Crabtree
The HVACR Business Stock Index rose 6.16 points, or 0.49 percent, and closed at 1272.51. Advancing issues handily beat declining issues at a 20-to-11 count.
View Markets Robust But Fade at End Due to Interest Rate Worries
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Keep Your Money Safe
Updated: 10.01.14 by Ruth King
Keeping your hard earned money safe is your responsibility. Put the procedures in place to keep the honest people honest and protect yourself from employee embezzlement.
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Protect Yourself Against Employee Embezzlement
Updated: 09.01.14 by Ruth King
If you don’t have systems in place, it’s easy for a stressed out bookkeeper or stressed employee to get tempted. They make stupid choices they never would when thinking rationally.
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Techs End Strong, Other Markets Falter
Updated: 09.01.14 by Margot Crabtree
The HVACR Business Stock Index slid 53.88 points, or 4.08 percent, and closed at 1266.34. Declining issues flattened advancing issues by a 26-to-5 count.
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Global Issues Roll Wall Street
Updated: 08.01.14 by Margot Crabtree
The HVACR Business Stock Index slipped into the red, off 5.62 points, or 0.42 percent, and closed at 1320.23. Declining issues topped advancing is- sues at a 19-to-12 count.
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Your Inventory Days Ratio: Do You Have Too Much Inventory?
Updated: 08.01.14 by Ruth King
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Markets End Positive as Mergers Overpower Iraq Fears
Updated: 07.01.14 by Margot Crabtree
The HVACR Business Stock Index rose 41.06 points, or 3.20 percent, and closed at 1325.85. Advancing issues overpowered declining issues at a 28-to- 3 count.
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Your Receivable Days Ratio: Do you have a Collection Problem?
Updated: 07.01.14 by Ruth King
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Your Compensation Percentage: Are Your Employees Productive?
Updated: 06.01.14 by Ruth King
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Economics Improve but HVACR Index Slips into Red
Updated: 06.01.14 by Margot Crabtree
The HVACR Business Stock Index slipped 7.83 points, or 0.61 percent, and closed at 1284.79. Declining issues inched past advancing issues at a 16-to- 15 count.
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Your Debt Ratios - Do You Have Too Much Debt?
Updated: 05.01.14 by Ruth King
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Volatile Markets End Mixed
Updated: 05.01.14 by Margot Crabtree
The HVACR Business Stock Index marched solidly into positive terrain, up 31.93 points, or 2.53 percent, closing at 1292.62. Advancing issues squeaked past declining issues at a 16-to-15 count.
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Your Accounts Receivable to Accounts Payable Ratio: Do You Have a Collection Problem?
Updated: 04.01.14 by Ruth King
Use the accounts receivable to accounts payable ratio to determine if you have enough money to pay your bills.
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Markets Start Strong, then Fade
Updated: 04.01.14 by Margot Crabtree
The HVACR Business Stock Index slid 31.18 points, or 2.41 percent, to close at 1260.69. Declining issues outpaced advancing issues by a 20-to-11 count.
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Maximize Your Mark-Up
Updated: 04.01.14 by George Hedley
Learn to mark-up your mark-ups for lasting profits. Using variable mark-up charts to strategically boost your gross profit margin
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10 Steps to Setting Up a Payroll System
Updated: 04.01.14 by HVACR Business Staff
The Small Business Administration’s guide to payroll, tax and benefit withholding, and reporting.
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Your Acid Test - Do You Have Too Much Inventory?
Updated: 03.01.14 by Ruth King
Your Acid Test - Do You Have Too Much Inventory? Track This Indicator to Get a Clearer Financial Picture
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Stocks Struggle as Markets Correct
Updated: 03.01.14 by Margot Crabtree
The HVACR Business Stock Index fell 33.69 points, or 2.54 percent, and closed at 1291.87. Declining issues overpowered advancing issues by a 23-to-7 count.
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Do You Have Enough Cash to Pay Your Bills on a Long-Term Basis?
Updated: 02.01.14 by Ruth King
Check Your Liquidity Ratios
View Do You Have Enough Cash to Pay Your Bills on a Long-Term Basis?
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Turn Recovering Refrigerant into Revenue
Updated: 02.01.14 by Corey Hundley
Safeguarding the Environment, Your Customers, and Your Bottom Line through Smart Refrigerant Recovery.
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Markets Close on a Positive Turn
Updated: 02.01.14 by Margot Crabtree
The HVACR Business Stock Index began 2014 rising in tandem with national markets, ahead 48.28 points, or 3.78 percent, to end at 1325.57. Advancing issues dominated declining issues at a 27-to-4 count.
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Why I Hate KPIs
Updated: 01.01.14 by Ruth King
Comparing KPI ratios to industry standards alone can be a risky move.
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Stocks Fade as Economic News Points to Taper
Updated: 01.01.14 by Margot Crabtree
The HVACR Business Stock Index slipped slightly off 14.35 points, or 1.11 percent, closing at 1277.28. Declining issues bypassed advancing issues at a 20-to-11 count.
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The Annual Tax Extenders Dance in Washington
Updated: 11.01.13 by Charlie McCrudden
Tax credits on the chopping block that impact your business
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Involve Your Employees in Your Business Plan
Updated: 10.01.13 by Ruth King
In the first of a three-part series, Ruth King explains why setting goals is the first phase of business planning and why it's important to involved your employees.
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Double Your Commercial Maintenance Agreements
Updated: 09.01.13 by Ruth King
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How to Handle Embezzlement in the Family Business
Updated: 09.01.13 by Lois Lang
This article explains what actions you should take when you think a family member may be embezzling from the business.
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6 Considerations When Hiring a Bookkeeper
Updated: 07.01.13 by Ruth King
Owners are usually experts at operating their companies, but not about the details of bookkeeping. So a good bookkeeper can be a tremendous asset. Learn how to identify and hire one.
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5 Ways to Avoid Credit Card Fraud
Updated: 05.20.13 by Rob Bertke
5 ways to help businesses large and small successfully avoid credit card fraud.
6 Strategies for Reducing Debt
Updated: 05.01.13 by Ruth King
Calculate your debt ratio, then act if it is too high.
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Drive Sales with Daily Tracking of Maintenance-Agreement Success
Updated: 04.01.13 by Ruth King
Tracking maintenance-agreement enrollments and renewals is critical to growing a strong maintenance customer base. Tracking forces you to focus. Focus gives you the best chance for success.
View Drive Sales with Daily Tracking of Maintenance-Agreement Success
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Finding, Implementing Construction-Specific Financial Software
Updated: 03.01.13 by Wayne Newitts
Purchasing business software is unlike buying off-the-shelf software in a number of ways, but perhaps the most important difference is that you are purchasing a relationship
View Finding, Implementing Construction-Specific Financial Software
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Tracking and Accounting for Commercial Maintenance Agreements
Updated: 03.01.13 by Ruth King
Accounting for commercial maintenance agreements is performed differently depending on the type of agreement sold and how that agreement is billed. I’ll cover full maintenance agreement accounting and planned maintenance agreement accounting separately.
View Tracking and Accounting for Commercial Maintenance Agreements
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Have You Outgrown Your Financial Software?
Updated: 02.01.13 by Wayne Newitts
When does construction-specific accounting and operations software start to make sense for HVACR contractors? It varies. Some businesses approaching $50 million in annual revenue are able to get by with off-the-shelf bookkeeping applications. But they are the exception. In general, construction-specific software systems start to make sense financially for contractors with more than $5 million per year in revenue and at least 10 employees.
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Accounting for Residential Maintenance Agreements
Updated: 02.01.13 by Ruth King
A good maintenance agreement program will help even out cash flow, increase your company’s bottom line, and keep your field employees productive throughout the year.
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Do You Have the Courage to be Profitable?
Updated: 01.01.13 by Ruth King
Once you understand your financials and start consistent monthly reviews, you must boldly implement changes based on what you see.
2013 Economic Outlook: Housing and Exports Strong; Confidence So-So
Updated: 12.01.12 by John Augustine
John Augustine, Chief Investment Strategist for Fifth Third Private Bank, talks about the impact of the presidential elections, Europe’s rocky economy, and persistent domestic unemployment.
View 2013 Economic Outlook: Housing and Exports Strong; Confidence So-So
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Can you Afford to Hire a New Office Employee?
Updated: 12.01.12 by Ruth King
Last month I wrote about how to determine whether you can afford to hire a field employee. This month I’ll give you the calculations to determine whether you can afford to hire a new office employee.
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Can You Afford to Hire a New Field Employee?
Updated: 11.01.12 by Ruth King
Your company is growing. You feel the need to hire another field employee. Can you afford to hire this person? Find out by using this mathematical calculation.
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Play it Smart After the Busy Summer
Updated: 10.01.12 by Ruth King
Here are the stupid things that I know you, the smart contractor, won’t do now that the unusually hot, humid and demanding summer is over.
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Improve the Financial Health of Your Business
Updated: 09.01.12 by Ron Edinger
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How to Keep Inventory and Receivables Balanced
Updated: 08.01.12 by Ruth King
Editor’s Note: This is the fourth and final in a series of how to use graphical depictions of financial ratio trends to help contractors spot potential problems early and make proactive decisions about financial management. The first article, which covered liquidity ratios, appeared in the May 2012 issue. The second article, which covered debt ratios, appeared in the June 2012 issue.
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Percentage Compensation Measures Productivity of Labor Force
Updated: 07.01.12 by Ruth King
Editor’s Note: This is the third in a series of how to use graphical depictions of financial ratio trends to help contractors spot potential problems early and make proactive decisions about financial management. The first article, which covered liquidity ratios, appeared in the May 2012 issue. The second article, which covered debt ratios, appeared in the June 2012 issue.
View Percentage Compensation Measures Productivity of Labor Force
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Keep Corporate Debt Separate from Personal Debt
Updated: 06.01.12 by Mike Coyne
If you are operating your business in corporate form, it is important to follow formalities. You should sign contracts in your capacity as an officer, and contracts should always be between your corporation and the other party. You should never be named as a party to the contract.
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Debt Ratios: Look For Short- and Long-Term Warnings
Updated: 06.01.12 by Ruth King
This is the second in a series of how to use graphical depictions of financial ratio trends to help contractors spot potential problems early and make proactive decisions about financial management. The first article, which covered liquidity ratios, appeared in the May 2012 issue.
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Liquidity Ratios: Trends Key to Profitability Outlook
Updated: 05.01.12 by Ruth King
Every month you should receive accurate and timely financial statements. Looking at one month’s financial statements (balance sheet and P&L statement) does not tell much. To see where your business is headed, you must look at your business trends. Then you can choose to continue on the current path or make the necessary changes to alter the direction of the business.
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Cash Needs Should Drive Revenue Goals
Updated: 04.01.12 by Ruth King
Without profits, cash runs out. Yet, your business could have an unprofitable month or quarter and still survive. Many contractors that operate with Dec. 31s as their year-end, state that the first quarter always is unprofitable. They spend the next nine months catching up — just so they can have another unprofitable quarter the next year.
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Why You Need Both Profits and Cash To Survive
Updated: 03.01.12 by Ruth King
Each month your P&L tells you whether you earned a profit or had a loss. It does not tell you how much cash you have! You must turn your profits into cash by collecting your receivables and paying the expenses incurred to produce those revenues.
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Stop Cutting and Start Growing
Updated: 01.01.12 by Ruth King
In lean times you can decrease cash spending by using inventory in your shop and on your trucks. Ruth offers a break-even formula to calculate what your company needs to sustain its overhead.
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3 Ways to Eliminate Low-Productivity Habits
Updated: 12.01.11 by Ruth King
Ruth King offers three suggestions to help you get the most profitability and productivity from every dollar that comes in the door.
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Is Debt Good? Only You Can Decide
Updated: 11.09.11 by Ruth King
The reality is that debt usage is an emotional decision. Some company owners are comfortable with a lot of debt. Others can't sleep at night if they owe anybody anything. They pay cash for their trucks and other assets as well as their suppliers. Each of us has to determine our debt tolerance. Only you can decide whether debt is right for your company.
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As The Year Ends, Review Your Pricing Strategy
Updated: 11.01.11 by Ruth King
Determine your position in the market; then define desired profitability.
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Take Advantage of Barcoding Benefits
Updated: 10.01.11 by Ruth King
Once implemented and used correctly, you’ll be making much better inventory bets, saving time and — as a result — increasing profitability with barcoding.
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Pulling It All Together: A Good Financial System
Updated: 09.01.11 by Ruth King
A good financial system is based on both the monthly financial data and weekly information you gather. These five activities will help you discover whether your company is moving in a positive, profitable direction.
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Is an ESOP Your Best Exit Strategy?
Updated: 07.01.11 by Ruth King
ESOP may be for profitable companies with high cash flow and skilled, engaged employees.
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Use Overhead-Cost-Per-Hour to Measure Profitability
Updated: 05.01.11 by Ruth King
Calculating prices based on gross margin may do you a disservice. The key to successful pricing is to know your company’s overhead-cost-per-hour.
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Understanding Profit and Loss Statements
Updated: 04.01.11 by Ruth King
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More Balance-Sheet Basics: Liabilities and Net Worth
Updated: 03.01.11 by Ruth King
Liabilities are debts that your business owes. Like assets, liabilities are divided into two segments: current liabilities and long-term liabilities.
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Saving on Fleet Costs Requires a Plan
Updated: 02.01.11 by Kenneth W. Janosick
By using three key tools, contractors can protect themselves against wasted time and money, costly repairs that could have been prevented, and one of the biggest wildcards in operating company vehicles — fuel cost.
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Understanding Your Balance Sheet: Assets
Updated: 02.01.11 by Ruth King
Convertibility to cash determines "current" or "fixed."
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Befriend Your Financial Statements
Updated: 01.01.11 by Ruth King
Properly formatted financial statements — along with accurate information in those statements — is critical to making good financial decisions for your business.
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Attitude and Focus Beat the Economic Blues
Updated: 12.01.10 by Ruth King
Many contractors I know did very well in 2010 despite the economy and despite all of the bad news in the media. What made the difference for those who did well and those who didn't? Attitude.
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Set Maintenance Agreement Goals to Cover Overhead
Updated: 11.01.10 by Ruth King
You need enough maintenance agreement customers to cover the entire overhead of your company so that you won’t have to worry about a flailing economy causing your company to go out of business. Here are six activities to do this fall to start seriously building your maintenance agreement base.
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Boost Technician Confidence to Sell More Service Agreements
Updated: 10.01.10 by Ruth King
Customer-service training must be continuous and thorough. If you just tell your technicians what you want, they will only think about what they are going to say and never say it.
View Boost Technician Confidence to Sell More Service Agreements
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A Chance For Bonus Profits
Updated: 09.01.10 by Ruth King
Invest additional time and resources to inform customers and prospects about the expiring replacement tax credit.
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Take Action to Correct Bad Financial Statements, part 2
Updated: 08.01.10 by Ruth King
7 ways to fix financial statements that are wrong.
View Take Action to Correct Bad Financial Statements, part 2
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7 Dead Giveaways That Your Financial Statements are Wrong
Updated: 07.01.10 by Ruth King
Your financial statements are your scorecards. If they are not accurate, you might make the wrong business decision based on incorrect information. Here are seven things that clearly tell you that your financial statements are wrong.
View 7 Dead Giveaways That Your Financial Statements are Wrong
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Personal Finance: Understanding and Improving Your Credit Score
Updated: 07.01.10 by Bruce Cornelius
Your credit score can be the key to home ownership, an auto loan, consumer credit, and even employment. How much do you know about this three-digit number that holds so much power over you?
View Personal Finance: Understanding and Improving Your Credit Score
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6 Ways to Proactively Raise Cash
Updated: 06.01.10 by Ruth King
Making calls to past-due customers, former customers, and happy customers helps to keep the cash flowing.
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3 Easy Ways to Improve Your Bottom Line
Updated: 05.01.10 by Ruth King
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5 Ways to Boost Work Year-Round
Updated: 04.01.10 by Ruth King
Take a tip from farmers. Plant seeds in the spring t decrease your dependence on the weather and increase customer loyalty.
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Increase Profits Without Price Increases
Updated: 03.01.10 by Ruth King
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Downturn Made Contractors Stronger
Updated: 02.01.10 by Ruth King
I observed five trends in 2009 that helped contractors not only survive in a bad economy-but thrive in a bad economy.
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How to Get Paid Fast
Updated: 02.01.10 by George Hedley
Why commercial contractors need to get 'tough' on payments.
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5 Ways to Generate Business
Updated: 01.01.10 by Ruth King
Everyone knows that 2009 was not a great year economically. Some contractors did well. Perhaps they were not as profitable as they were in 2008, but they still were profitable. What did they do differently?
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5 Must-Dos for Increasing Sales Through a Credit Programs
Updated: 01.01.10 by Bruce Christensen
Your ability to use financing to close sales can be a key differentiator from your competitors because offering payment options makes it less likely your customers will take their business elsewhere.
View 5 Must-Dos for Increasing Sales Through a Credit Programs
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Make Big Plans for The New Year
Updated: 12.01.09 by Ruth King
If you want to improve your business, skip resolutions and change what you are doing.
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Consumer Financing Can Improve Cash Flow, Help to Close Sales
Updated: 11.01.09 by Bruce Christensen
In many cases, a new heating and/or AC unit amy be an unplanned expense. A consumer credit program is a powerful sales tool that also helps customers.
View Consumer Financing Can Improve Cash Flow, Help to Close Sales
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Keep Employees Informed of Business Costs
Updated: 10.01.09 by Ruth King
Sharing this information will open their eyes to waste and the true value of benefits.
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5 Ways to Boost Fall and Winter Sales
Updated: 09.01.09 by Ruth King
Fall is the time to be proactive and make sure your customers understand that heating and air conditioning are necessities, not luxuries. Make sure they call you for the repairs and replacements by working on customer-loyatly programs now.
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Consider Taxes When Acquiring New Equipment
Updated: 09.01.09 by Mike Coyne
This article will summarize the business, tax, and other financial considerations associated with the lease-versus-purchase decision. Ultimately, only you can decide which approach is best for your business.
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Preventing Employee Theft, Part 2
Updated: 08.01.09 by Ruth King
Most employees are honest. However, when faced with stressful situations, even honest people can do things that are wrong, most notably stealing
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Preventing Employee Theft, Part 1
Updated: 07.01.09 by Ruth King
If you don't have a system in place to prevent theft by employees, you won't be able to control it once it starts.
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Spot Trouble Quickly with Trend Data
Updated: 06.01.09 by Ruth King
Financial benchmarking, both short and long term, is critical to making good business decisions that will keep your company financially healthy. When you see the numbers trending in the wrong direction, take action immediately. It could save your company!
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Financial Benchmarking, Part 1
Updated: 04.01.09 by Ruth King
Financial benchmarking provides you the assurance that your business is going well, or the clues to when it isn’t so that you can take action.
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Finding Financing in an Economic Decline
Updated: 04.01.09 by Chris Talis
To keep your small business flush with cash while the government attempts to create programs designed to ease lending and improve our economy’s conditions, entrepreneurs should be creative and resourceful in finding financing during economic hardship.
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6 Tips to Kick Start Your Revenue Growth
Updated: 04.01.09 by Kim Marcille
Kim Marcille offers advice on how to temper the impact of the current economic crisis on your financial performance. This is your opportunity to reinvent yourself and your business.
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When the economy struggles, you don't have to
Updated: 03.01.09 by Ruth King
When the economy struggles, you don't have to. Keep making telephone calls, talking with clients and prospective customers, and keep a positive attitude. If you do this, the tough times won't be so tough
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Partnering with a debt recovery team can help your business grow and stay competitive
Updated: 03.01.09 by HVACR Business Staff
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Rules for Retaining Tax Records
Updated: 03.01.09 by Mike Coyne
An explanation and some clarity on the IRS guidelines
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Cash vs. Accrual Accounting
Updated: 02.01.09 by Ruth King
If you account on a cash basis, you record a sale when you get the money in the door. You record an expense when you write the check for that expense. There are no accounts receivable and accounts payable. There is no inventory.
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Tax Planning
Updated: 02.01.09 by Mike Coyne
Forecasting your annual tax benefits for 2009 may help you increase your business.
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To Discount or Not to Discount
Updated: 01.01.09 by Ruth King
Whether you should take a discount is totally dependent on the terms of the discount, your cost of borrowing, and plugging the numbers into the formula.
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Reporting Monthly Financial Results
Updated: 12.01.08 by Ron Smith
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Avoid Down Cycles
Updated: 12.01.08 by Ruth King
Smart money management protects your business in slower times.
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Thinking About Selling?
Updated: 11.01.08 by Ruth King
To get your business ready for sale, good due diligence asks questions in all areas of your business.
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Overtime Pay?
Updated: 11.01.08 by Mike Coyne
Whether an employee is labeled "salaried" or "hourly" does not answer whether the employee is entitled to overtime pay. The Fair Labor Standards Act has very specific rules regarding overtime pay, and every employer needs to be familiar with these rules.
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Check Fraud Checkup
Updated: 10.01.08 by Frank W. Abagnale
Annual check fraud losses now exceed $20 billion. Businesses with checking accounts face a substantial shared risk. Frank Abagnale reviews your liability and offers procedures to follow to reduce your risk.
Flattening Out Seasonality
Updated: 09.01.08 by Ruth King
Service agreements, marketing and diversity will decrease dependence on the weather and flatten out the seasonality.
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Lease vs. Buy Conundrum
Updated: 08.01.08 by Ruth King
There is no one correct answer to lease versus buy. Since cash is the life blood of all businesses, look at leasing versus financing versus buying outright from a cash position.
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Up For Bid
Updated: 08.01.08 by Ruth King
Look to your financial statements to see what's going on in your company. This will tell you whether you should raise prices or make adjustments in areas like productivity, marketing, or sales closing rates
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Stop Running A Warehouse Supermarket
Updated: 08.01.08 by Ruth King
Limit access to the warehouse. You may need to hire a parts runner or a warehouse person. It’s the best way to save your hard-earned cash. Make the time to do the paper work necessary to get warranty credits
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Prevent Embezzlement
Updated: 08.01.08 by Frank W. Abagnale
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Survive & Thrive the Market Flux
Updated: 08.01.08 by Theo Etzel
Being proactive in the anticipation of change, being diversified in the marketplace, having courage to implement plans and leading your organization to quickly react and adapt are key elements in being proactive in changing market conditions.
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Get Ready For Summer
Updated: 05.01.08 by Ruth King
Now is the time to put the plan in place to decrease your dependence on the weather and increase customer loyalty. Here are four action items for your plan.
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Preparing For An Audit
Updated: 04.01.08 by Mike Coyne
If you happen to be among the 60,000 businesses that will be audited in 2008, don’t panic. Make certain your paperwork is in order and consult with your tax professional.
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Spring Cash Mistakes
Updated: 03.01.08 by Ruth King
Start preparing for the busier months ahead while you still are experiencing the slow, late winter months. This slower period gives you enough time to think and plan so that all you have to do when you get busy is execute your plan.
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Tax Man Cometh
Updated: 03.01.08 by Brandon G. Jacob
Small business tax tips to consider after year end.
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What To Expect From Your CPA
Updated: 02.01.08 by Ruth King
Good CPAs are an integral part of your advisory team. They help you see the “forest through the trees” and keep you informed so that you can make good business decisions. Likewise, you have to provide timely, accurate data so that they can help you make those decisions.
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Three Things That Kill Your Business
Updated: 01.01.08 by Ruth King
Being proactive, eliminating non-productive employees, and watching cash flow are three critical resolutions to keep in 2008.
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How Do You Want To Operate Your Business?
Updated: 12.01.07 by Ruth King
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Passing The Torch
Updated: 12.01.07 by Skip Snyder
You need five to 10 years to develop and implement a sound succession plan. Not developing a succession plan can put your business, your family and your employees at risk.
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Involving Employees In Goal Setting
Updated: 11.01.07 by Ruth King
Companies that focus their entire team on goals and communicate how they are progressing to reach those goals usually have better sales and profits, and lower employee turnover rates.
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Open Up To Open Book
Updated: 11.01.07 by Theo Etzel
Opening your books for review means opening a piece of yourself, too. If you truly want a team approach to your business where people are fully invested in the numbers, then you have to let them in on the numbers.
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Rules for Business Entertainment Expenses
Updated: 11.01.07 by Mike Coyne
Understanding deduction and documentation regulations will keep you in line with the IRS.
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Minimizing Bad Debts
Updated: 11.01.07 by Mike Coyne
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Is Your Company Ready For A CFO?
Updated: 09.01.07 by Theo Etzel
Business is a game that is scored by profit and loss statements and balance sheets. A CFO ensures that the score is being kept properly and can give critical advice for directional decisions based on the score.
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A good savings strategy will help prevent you from experiencing a financial hardship in years to come.
Updated: 09.01.07 by Ruth King
Make sure that you are earning enough on your jobs and service work to generate reasonable profits, and that you save some of the money you generate.
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Keeping Productivity High As Summer Ends
Updated: 08.01.07 by Ruth King
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Is An ESOP Right For Your Company?
Updated: 08.01.07 by Mike Coyne
Mike Coyne describes what an employee stock option program is and how it can benefit your company.
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It's Summer ... Time to Think About Winter
Updated: 07.01.07 by Ruth King
Extra effort during the busy summer season stockpiles work for slow times
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Cash Management Especially Important In Busy Season
Updated: 06.01.07 by Ruth King
Paying strict attention to cash in busy and slow times keeps honest people honest. When you get lax, honest people get tempted and can start a pattern of theft.
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Reduce Service Callbacks With Tracking, Training
Updated: 06.01.07 by Ron Smith
Callbacks are a serious problem that needs to be corrected. Ron Smith defines callback situations and offers solutions.
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Analyzing Financial Statements, Part 2
Updated: 05.01.07 by Ruth King
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Where Outsourcing Works
Updated: 04.01.07 by Pat Panchak
It’s important that companies of all sizes understand and implement outsourcing, so they can achieve the benefits of the practice. Another company may have the set of skills that you need to grow your business.
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Analyzing Financial Statements, Part 1
Updated: 04.01.07 by Ruth King
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Know Your Liabilities Before Borrowing
Updated: 03.01.07 by Mike Coyne
Commercial lenders have a great deal more latitude in designing their loan agreements. Likewise, borrowers have the opportunity to negotiate for terms that will fit their business needs.
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How To Boost Revenues With Price Increases
Updated: 03.01.07 by Ruth King
It is possible to increase revenues per service ticket without increasing your hourly rate. Ruth King describes how.
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How to Plan Your Marketing Budget
Updated: 02.01.07 by Ruth King
Marketing drives sales. So plan now to boost sales with a spring marketing plan. Be advised, however: As you ramp up for the busy spring and summer months, you’ll spend money marketing before you see a return on those dollars. A budget is your roadmap to prudent spending.
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How to Achieve Your 2007 Goals
Updated: 01.01.07 by Ruth King
To make the changes easier, break down your major goals into monthly, weekly, and daily activities.
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Business Planning, Part 2
Updated: 12.01.06 by Ruth King
When you track your results, you’ll have a better chance of making corrections as events unfold.
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Business Planning, Part 1
Updated: 11.01.06 by Ruth King
The most successful companies in our industry — and no doubt in most industries — plan, execute, and measure. That means they create, execute and track a business plan.
Set Your Profitable Price
Updated: 10.01.06 by Ruth King
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Maintenance Programs Protect Profitability
Updated: 09.01.06 by Ruth King
Creating a profitable program requires planning and persistence. You must get your staff on board, develop and deliver direct mail and advertising pieces, and train the office and field personnel how to sell and fulfill the agreements.
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Inventory is a Bet
Updated: 08.01.06 by Ruth King
Ruth King reveals what happens when you don't manage your inventory and how to do it so you don't get hit with a surprise loss.
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Calculate Your Sales Price, part 2
Updated: 07.01.06 by Ruth King
Clear cut examples illustrate the best ways to calculate sales price.
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Calculate Your Sales Price, part 1
Updated: 06.01.06 by Ruth King
Dual overhead recognizes that there are different costs associated with materials and labor, and it is more accurate than gross margin.
What Has to Happen for You to Pay Attention?
Updated: 1/1/10 by Ruth King
Accounting theft, the tale of two contractors who had employees embezzle thousands of dollars.