Flooring and contractor businesses are having a banner year in 2021 and are heading into the final month with strong profits. That may not seem like a problem, but for many business owners, December is the perfect opportunity to invest in the business to improve efficiency and manage tax implications. Here are a few scenarios that may be helpful if you’re concerned with reducing your profitability and still growing your business.
Replacing Equipment. If you have favorite or useful tools that are approaching the end of their lifecycle, December can be a great time to buy replacements. You can keep the older tool as a spare or backup, or give it to the apprentice or newer employee that is still refining their technique.
Spares.Although quality tools can be repaired, having a spare or backup is a job saver when you need to repair a critical tool. Just like it’s helpful to have critical supplies in your inventory, the same holds true for key tools that are required to get the job done. If you only have enough carpet-seaming irons for your current workload, if one stops working you’re out of luck until you get a replacement. Spares purchased today will pay big dividends when your crews are busy and downtime costs you money.
Upgrading Equipment. Quality tools deliver quality results. The right tools for the job also make the job go faster and easier, which means less time spent per project, higher profits and more projects completed. One of the most frequent reasons flooring contractors turn to ShagTools to upgrade their tools is to upgrade to a better selection and make the job easier. Whether it’s a Collomix water dosing device to get your material mixed accurately the first time (saving waste and time) or a dust-free iQ Power Tools tile saw, equipment upgrades today make you more money tomorrow.
Planning for Growth. If 2021 was a banner year, 2022 is expected to be even busier. We know most contractors are in hiring mode, and you’ll need tools and installation supplies to support aggressive growth. Spending a little more out of your 2021 budget puts you in a great position for future growth.
Retain and Attract Employees. It’s no secret contractors are pulling out all the stops to find and retain employees. One way you can show your employees you appreciate them is with quality tools and equipment, and top-notch supplies that let them save time and be more efficient with every job. The easier you can make their jobs, the more likely they are to stay, and tell others. A dustless saw isn’t a luxury, it’s a safety item that crews appreciate, and those little touches add up to big benefits with retention.
Don’t let 2021 end without deciding if it makes sense to spend some of your 2021 revenues to strengthen 2022. Of course, if you have any questions about your revenue and profits, you should consult your tax advisor or accountant.