Review of Financial Year 2019-2020
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Review of Financial Year 2019-2020
Some of you might know that our business year is not based on the calendar but a fiscal year. This means that our year starts on October first and ends on September 30 each year. This was a choice made by us to reflect the seasonality of our business in the northeast of the US. Each year after the end of September Bryan and the team spend months working with the accountants to pull all the information from the past year and give us a picture of what happened. While we know on a day-to-day basis what is happening, we must make adjustments that can affect our numbers either positively or negatively.
Now for the financial health check from the last year. We survived all the challenges that have been talked about at nauseum and made enough money to pay the vendors and equipment finance people. This means that we are on solid ground as a company to continue to move forward. The shutdown cost the company about 20% of our expected revenue and that loss is reflected on the bottom line. The question on everyone’s mind, bonuses are generated when we hit our financial benchmarks. Unfortunately, we did not make enough money to give out bonuses like we have in the past. While we are in a solid place, we will have to wait for this new year to finish, we’ll strive for the profits to rebound, so that we can share the success with all of you.
Each member of the team plays a key role in hitting our targets. Here are some ways that we can overcome those challenges and also hit our targets.
Slow is smooth; smooth is fast:
This saying was explained to me by an older operator one time, and it is something I keep in mind every day. We can rush through something and get it completed but if the work is not done correctly, we must go back and fix our mistakes. This time and effort to correct subpar work has multiple costs that affect our ability to create a bonus pool. One, we must pay to fix the issue and it keeps our team from being on another project that we could be winning on.
A five-to-ten-minute check of a machine and greasing of the moving parts can pay multiple dividends. The machine will last longer with more availability to help you complete a task. It also will not require the larger more expensive repairs that keep it in the shop and unavailable for weeks on end. When a machine is down for repairs it is not available to be run, but we still must pay the payment. To add insult to injury, sometimes we need to rent a machine to fill in which adds cost. This year with the supply chain issues, replacing parts will be more time consuming than ever.
When a crew needs a piece of equipment on a job, it is paramount that if one is not being used on another project, we can make sure to share that resource. It would be great for every job to have a full array of equipment that is dedicated to their job, but that is just not feasible or realistic. Sharing resources allows the whole team to win.
Teaching others how to complete a task can seem to be counterproductive during the training process. However, once they are able to do that task on their own, production would technically double. Now both the mentor and mentee can complete that task so twice as much work can be completed in the same amount of time.
Every day is another chance to prove ourselves, be creative, and create a great product and experience for the client and each other.
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