#322 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 8) with Greg Crowe

Making money is easy when you know how. The trouble is, sometimes we get busy and conveniently forget the ways to make money.The truth is that it’s not that complicated, it’s actually a very simple concept. In this podcast series we go through the 5 simple ways to make more money in your electrical business which are as follows: -weekly revenue exceeds weekly expenditure (ie profit / loss) -the jobs that are starting and finishing every week (ie “closed jobs”) are at a solid net profit -the jobs that are running over weeks + months(ie “open jobs”) are on their way to making a solid net profit -all paid hours are allocated to a job (ie “labour efficiency”)-all hours completed are effective + efficient (ie “quality of hours”) Sometimes it’s in the moments when we peel ourselves away from the mundane day to day grind where we can see how simple running a business really is. The goal? That revenue would consistently hit significantly above expenditure. Be kind. Repeat. May these words inspire you as you proceed on your journey of making money, building wealth + being kind. Much love, CroweSummaryIn this episode, Greg Crowe dives into the crucial aspects of labor efficiency in electrical businesses, emphasizing the importance of measuring paid vs. allocated hours, utilization, and quality of work. He shares practical insights and stories to help business owners optimize their operations and boost profitability.Keywordslabor efficiency, electrical business, productivity, utilization, profitability, business growth, labor management, efficiency metricsKey TopicsLabor efficiency metrics: paid vs. allocated hours, utilization, qualityImportance of measuring and controlling overheads and break-even ratesThe impact of quality hours on profitability and business growthStories illustrating low-quality work despite good utilizationStrategies for effective labor management and scheduling TakeawaysEvery hour must have a clear purpose and a 'home' in your business.Utilization and allocation are separate metrics; both must be optimized.Quality of hours is subjective but crucial; it impacts profitability.Controlling break-even rates is essential for sustainable profit.Regularly review and adjust labor metrics to prevent low-quality work and inefficiencies.TitlesMastering Labor Efficiency in Your Electrical BusinessThe 3 Key Metrics to Boost Your Electrical Business Profitability Sound bites"Make sure weekly revenue exceeds expenditure""Your numbers show you everything about your business""Labor hours must have a clear 'home' in your business"Chapters00:00 Introduction to labor efficiency and its importance09:28 Measuring paid vs. allocated hours09:57 Understanding utilization and break-even rates10:24 The significance of hours having a 'home' in your business11:22 Defining roles and expectations for staff12:48 Controlling break-even rates and overheads15:13 Assessing overheads and overhead drop16:11 The difference between allocation and utilization17:34 The importance of quality hours and subjective measurement19:29 Stories illustrating low-quality work despite good metrics26:04 Final tips on daily and weekly labor management