"Saving money is always a goal of smart business owners. It becomes a primary goal when the economy heads south." Judith Miller Remodelers Advantage Consultant and Facilitator

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Creative Cost Cutting

Responding to the challenging economic conditions plaguing remodelers across the country, Michael Spreckelmeier, president of Progressive Builders, Inc., in Fort Myers, Fla., devised a clever way to trim payroll costs—without laying anyone off—and contribute additional funds to his marketing budget.

In his monthly president’s letter sent to all employees, Spreckelmeier explained that, in 2009, each employee will be required to take off two non-paid days a month. Employees will have the option to use vacation days, personal days, or sick days to make up for the loss of income. If they prefer, they can take off a group of days in one time span to build up enough time off for a vacation or to attend to a family issue. All other benefits and compensation plans will remain in place.

The “Trifecta Program,” as Spreckelmeier has dubbed it, will yield three benefits for Progressive Builders:

1. A $28,000.00 annual reduction in payroll costs.
2. Half of the savings will be used to pay down debt.
3. The other $14,000 will be implemented in the company’s marketing plan to bring in more sales.

“More important than the savings is the fact that my team knows that my eyes are open and I am working to keep this company moving forward,” says the remodeler. “We will create our future rather than waiting for the economy to turn around, and we will do it as a team.”

Only by knowing your numbers will you be able to make wise decisions, improve your operation, and maximize the financial returns of your company. Here's how to improve cash flow, set goals for markup and gross profit, plan for profit and achieve it.

The Remodeler's Guide to Making and Managing Money

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