Tony and Jayne barely slept that week, their minds spinning with the numbers Steve had shown them. The idea that a simple compounding factor could boost their revenue by 46% and skyrocket profits by 61% left them stunned.
But Tony couldn’t shake the doubt creeping in. A 10% increase in all five areas? It seemed impossible in some. Sure, a few might work, but not all. So, they waited with anticipation for Steve’s next visit, eager for more insight.
As usual, Steve arrived with a pack of chocolate biscuits in hand, ready to dive straight into the numbers. Tony had already prepared piping-hot coffee, just the way Steve and Jayne liked it.
“Let’s tailor the ‘Profit Chain’ specifically to your construction business, Tony,” Steve began with a confident smile.
“I’d like that,” Tony replied, leaning forward. “But I just don’t see how I can manage a 10% improvement in each of the five areas.”
“You’re absolutely right,” Steve nodded. “What I showed you was the big picture. Now comes the exciting part—breaking it down and customizing each link in the Profit Chain for your business.”
“You don’t need more prospect leads,” Steve continued. “Let’s keep that steady at 14. But with a simple sales process I’ll show you, we can increase your conversion rate to 60%. How does that sound?”
“Sounds great,” Tony said, though his mind raced, wondering how that would actually happen. Still, he trusted Steve.
Jayne, ever the sceptic, chimed in. “Show us,” she said, her voice tinged with doubt.
“So by simply increasing your conversion rate you have 8.4 people sold to, said Steve. I’m not sure if the .4 is the top or bottom half of the person,” joked Steve.
Steve smiled. “We’ll keep the number of purchases at one and the average spend at £26,000. But here’s where the magic happens—we’ll raise your profit margin to the industry average. You mention
ed aiming for 10-12%, so let’s go with 11%.”
“So now your Proceeds (Revenue) has jumped to £218,400 a month, and your Net Profit is now £24,045 per month.
Tony blinked, stunned. “Wait… you’re telling me that just by focusing on these two links in my Profit Chain, I could double my revenue and quadruple my profit?”
Jayne’s eyes darted between Tony and Steve, trying to process what she was hearing and seeing.
“Exactly,” Steve said, finishing his coffee and popping the last chocolate biscuit into his mouth. “They are your 2 weakest links that we need to work on. And next week, I’ll give you the simple sales process and a script to increase that conversion rate.”
He paused for effect. “But that’s next week’s task.”
“For now,” Steve added, “I want you and Jayne to sit down this week—just the two of you, no kids—and go through your P&L line by line. I call it the 10% bookkeeper’s challenge. See where you can trim the fat, reduce the expenses, and increase the profit.”
With that, Steve stood up, smiled knowingly, and saw himself out. Tony and Jayne remained at the table, staring at the numbers, their disbelief giving way to excitement.
As Steve walked to his car, he glanced back and grinned. He knew there were going to be some very animated discussions in Tony’s household that week.
(Now, it’s your turn! Like Tony, sit down and run your own numbers. Focus on the five areas you can control, and decide where you can make those gains. This is where the transformation begins!)
(Then, go through your Profit & Loss statements line by line and see what expenses you can reduce. I call it the ‘10% Book-keeper’s Challenge.’ See where you can cut costs and get a clear picture of your average client spend.)
Success in the construction industry isn’t just about hard work—it’s about working smart. The journey may be challenging, but with determination, creativity, and a clear strategy, it can also be profoundly rewarding.
If you see yourself in Tony’s story and are ready to revolutionize your construction business—streamline your operations, cut down on overheads, and enhance project timelines—then let’s talk. Book a call with me today, and let’s explore how I can help you build a more efficient and profitable business.
Contact me:
- Email: petersokeeffe@gmail.com
- Phone: +44 7468 339 450
Together, we can strengthen the weak links and build a thriving business that stands the test of time.
7 Step Roadmap for Construction business owners
P.S. If you have missed the previous 6 parts of Tony’s story then you can find them in the features section of my LinkedIn profile https://www.linkedin.com/feed/
