470: How To Balance Profit Centers And Cost Centers In Your Construction Company

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 470, And It's About How To Balance Profit Centers And Cost Centers In Your Construction Company</strong></span></h1> <div>Success in operating a profitable construction business is all about maintaining the proper balance of control over both The Profit Centers and The Cost Centers. If either one gets too powerful and is allowed to run your construction company, it can cause more damage than good.</div> <div> </div> <div>The definition of a Non-Profit Construction Company is one that tries to fix its weaknesses and continues making the same mistakes repeatedly, expecting a different result and continues to struggle until the owner lays down and dies from over-work and exhaustion.</div> <div> </div> <div>A Highly Profitable Construction Company builds on its strengths and core competencies and continues innovating, growing, and responding to changes in its environment. </div> <div> </div> <div> <p style="font-weight: bold;">It's Not Rocket Science; It's A Lot Harder Than That!</p> <p style="font-weight: bold; text-align: center;"><span style= "color: #0600ff;">Profit Centers</span></p> <p><span data-preserver-spaces="true">Most construction companies earn most of their profits from less than four different project types or Profit Centers.</span></p> <p><strong><span data-preserver-spaces="true">Residential Remodel Contractors Have Four Main Profit Centers:</span></strong></p> <ol> <li> <p><span data-preserver-spaces="true">Kitchen Remodels</span></p> </li> <li> <p><span data-preserver-spaces="true">Bath Remodels</span></p> </li> <li> <p><span data-preserver-spaces="true">Additions</span></p> </li> <li> <p><span data-preserver-spaces="true">Whole House Remodels</span></p> </li> </ol> <p><strong><span data-preserver-spaces="true">Commercial Tenant Improvement Contractors Have Three Main Profit Centers</span></strong><span data-preserver-spaces= "true">:</span></p> <ol> <li> <p><span data-preserver-spaces="true">Comm