No other profit center in an electrical contractor’s organization can top the favorable characteristics of a well-run service department:
- Recurring Revenues
- Predictable Profitability
- Cash Flow
- Risk Profile
- Follow-on Opportunities.
In addition, service work does not routinely bring with it the aggravation that contractors regularly endure in having to provide surety bonds, collect retention, and file claims, all of which are everyday requirements in large project construction.
By investing in the professional development of their service managers, business-savvy electrical contractors will be poised for far better results in their field service organization—that one singularly outstanding portion of their operations that has the greatest potential to increase the intrinsic value of their companies.
Privately-held construction companies, plagued by rollercoaster revenues and on-again, off-again profitability, are seldom perceived as having more market value than the bare-bones net worth amount stated on their balance sheets.
By contrast, service-centric companies—with an ever-growing customer base, non-stop recurring revenues, and all other attractive features typically associated with service work—will likely be appraised at a multiple of EBITDA.
Like no other outside resource available today, Great Service Forums℠ is dedicated to helping electrical contracting companies build and increase their intrinsic value.