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You lasted longer than most. Most guys in your state of affairs solely last three or four years. By then they're up to now in debt they fold. They bone their suppliers for tens of thousands of greenbacks. they're going bankrupt, leave town, or both. Nice guys perhaps. arduous staff perhaps. they are sensible at painting and waterproofing, however they're terrible businessmen. several of them truly went belly up throughout the boom times, with a large backlog of labor. to the present day they need no plan why. several unfolded once more beneath a replacement name and went bankrupt once more. Still not knowing why. we've got ne'er cared what our competitors charge and ne'er can. we've got costs! Our overhead isn't identical as theirs and consequently our costs will ne'er be identical as theirs - period! Get out a bright yellow highlighter, as a result of you are close to highlight this. From this moment on chuck what others ar charging, and never, ever, use square {measure} or unit evaluation again! Let me repeat that. From this moment on chuck what others ar charging, and never, ever, use sq ft or unit evaluation again! Chapter three - Accounting Terms We cannot travel while not you having a transparent understanding of variety of accounting definitions. Study these. Trust me, these items is very important. ANNUAL SALES - the complete quantity of revenue generated by your company throughout the course of your yr. we are able to solely project future sales. soon we are going to take your three year average sales to estimate this year's annual sales total. this can be solely AN estimate. Note that if your sales projections amendment either up or down you'll regulate the forthcoming formula PRN. DIRECT prices - These ar all prices directly incurred in completion of the work. MATERIALS - in the main paint, caulk, fuel for lifts, rental fees, sandpaper, visqueen, backer rod, permits, etc. You get the concept, something attending to the work. LABOR - All labor just for the work being completed; as well as staff comp insurance, state taxes, federal taxes, and native taxes. don't embrace any labor prices for staff, estimators, etc. that's enclosed in your overhead. EXPENSES - usually referred to as INDIRECT prices or OVERHEAD. From this time on i'm attending to visit these as overhead. These ar merely the prices it takes to be in business. NOT the price to complete employment. The list is long. Here ar some examples: Fuel Building payments Equipment payments Insurance Phones Professional fees (lawyer, accountant) Rent Taxes Office salaries Office instrumentation Office provides Postage Vehicle repair and maintenance Equipment repair and maintenance Building maintenance Utilities Bank fees Advertising Re-work Vacation pay/holiday pay Employee advantages Customer diversion Season tickets used for client diversion Training (sales seminars, time management seminars, management seminars, continued education) Trade organization dues Subscriptions Employee gifts
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