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The Problem With High-Profit Jobs In The Construction Industry

Posted by Sharie DeHart on Fri, Apr 21, 2023

Many problems can be traced back to the "Halo Effect," which happens when a contractor thinks, "We are so good at (fill in the blank) we should expand into (fill in the blank)."

The most common situation is when a residential remodel contractor with a reputation and a substantial company generating 15% or more profits decides to start building custom homes. Or the opposite, a home builder who decides to branch out into residential remodeling.

Residential Remodel Contractor Building A Home

The processes, tools, equipment, materials, skills, and invoicing procedures required to build a house from the ground up differ entirely from modifying a home with people living there.
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Topics: High Profit Construction Projects, High Return On Investment, Clients or Customers, Boost Construction Profitability

How To Weigh ROI Vs. Cost When Making a Business Purchase

Posted by Sharie DeHart on Fri, Mar 31, 2023

Deciding to purchase something to help your construction business is a big decision. It can be challenging to part with hard-earned money, especially in the early days. To understand the right time to invest by purchasing something for your business, you must calculate whether the Return on Investment (ROI) would be profitable.

The cost is the money you spend making the purchase plus any indirect costs (such as training costs) related to the purchase. The ROI is a calculation of financial gains or benefits that you obtain due to that cost.

To determine ROI profitability, there is a simple formula you can use. If the purchase yields a positive return, it can be considered profitable. However, if the purchase does not earn back the money it costs, it would be considered a negative return on investment. 
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Topics: High Return On Investment, Clients or Customers, Contractor Tips, ROI for Contractors

Smart Contractors Earn 36% Annualized Return On Their Bills!

Posted by Randal DeHart on Wed, Aug 01, 2012

Our Construction Accounting System Can Add Easy Dollars To Your Bottom Line

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Topics: 2/10 Net 30, 36% ROI, High Return On Investment

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