When I was asked what the biggest cost of business over the last twelve months is, I had to really stop and think because it is an interesting question. How do you approach that topic? Do you look at it from the perspective of the Income Statement? Cost of Sales collectively is most likely the biggest cost of doing business for all of us, considering materials, labor, equipment, and more.
Or do you look at it from a cost of energy? My energy. How do I keep customers happy and coming back? How do I get a little higher price without losing the bid? How do I keep my employees (team members) happy and engaged? How do I make my company stand out from all the rest of the companies that do what I do, of course, just not as well?
How do I keep my Workers Comp rates low? How do I lower my cost of General Liability insurance? How do I get my suppliers to put me at the top of the schedule when I need to be? How do I get the job done for a little less without delivering less than a 100% perfect job? How do I increase cash flow?
How do I get to the top of the Google Search? Organically? What does that really mean? How do I get clicks? How do I get people to my website? How do I find time to fix the iPhone that dropped off the roof? How do I get everyone singing from the same sheet of music? How do I leave this great company to the next generation, be that my kids or my great team?
Cost of doing business is a multi-faceted question. Cost of Money, Time, Energy, Focus. It all comes at a cost and it is all expensive.
I think the biggest cost of doing business last year was ME.
Martin Stout is president of Go Roof Tune Up, Inc. See his full bio here.