Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • EDUCATION
    • KnowHow.
    • Podcasts
    • Trade Shows & Expos
    • Training & Certification
    • Webinars
    • Whitepapers
  • TOPICS
    • Water Damage
    • Fire & Smoke Damage
    • Mold
    • Contamination
    • Odor
    • Contents
    • Architecture
    • Catastrophe
    • Cleaning
  • BUSINESS
    • Managing Your Business
    • Insurance/Legal Matters
  • BUYER'S GUIDE
  • VIDEOS
    • Ask Annissa
    • Ask the Expert
    • Ironclad Marketing Minute
    • TradeTalks
    • Video Channel
  • INFOCENTER
    • Mold and Mycotoxins
  • THE EXPERIENCE
    • Conference & Exhibition
    • Convention & Trade Show
    • R&R Special Issue
  • EMAG
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
Managing Your Restoration Business

Staying Aware of Trends

By Les Cunningham
Cunningham_FT
Cunningham_sl2
Cunningham_FT
Cunningham_sl2
May 1, 2015

Running a business is a very complicated and ongoing effort that is best directed by the owner. Whether owners do the right thing or not, it is generally a process that they are more interested in than any employee.

In Michael Gerber’s original book, The E Myth, his premise was that most entrepreneurs need to be able to do three things in order to be successful in their business:

  1. Have a high personal desire to run a business.
  2. Have the technical ability, or think they have the technical ability, to complete the work of the desired business.
  3. Have the ability to operate as a business and in a business manner.

Most new business owners usually have the ability to do 1 and 2, but not 3. This has resulted in about two-thirds of all businesses going out of business within their first five years. Starting and running a successful business is a very time- and money-consuming effort. It is also difficult to maintain a business and make it work as an ongoing effort. The major reason is that the only constant in business is change. The owner needs to be ever vigilant as to what is going on in their business arena and must also be exerting a constant effort to keep the business going in the right direction in order to keep the business moving forward, upward and profitable.

In order to be aware of what is going on in the business world, the owner needs to constantly be reading, asking and looking at everything around them as to how it may or may not affect their business. As an example of this owner requirement, I was recently reading the annual Xactware 2014 Property Report.  It was packed full of statistical data that owners in the industry should be VERY aware of.

One of the industry items that are changing is the deductible amounts for policies. A major trend is that deductibles are increasing and as a result it has directly affected how policy holders respond when they have a loss. In the October 2008 economic meltdown, the construction world changed and went in directions that no one had thought possible. Deductible amounts have increased by policy holders in order to save money in the short term. An example of this is that policy holders are having deductible amounts of $1,000 and above. 

In personal property, fire claims were the most expensive type of losses. In 2013 the average fire loss was $45,268, but decreased to $41,256 in 2014. (The second most expensive type of loss was theft). The third most expensive type of losses was water losses. In 2013 the water loss was $6,089 and stayed approximately the same amount in 2014. At the same time, both materials and labor have been increasing. For an owner of a company, this is a double whammy and one that has a drastic effect on a business. There are a lot more significant numbers in the Xactware Report, but I will leave it up to you to take a look at it and decide what is and is not important to you as an owner.

What this says to me is that costs are increasing, gross sales are decreasing and there is a good chance that net profit is decreasing in a lot of companies. So the question is: what can you do about the future of your business and the future of the industry? Let me suggest a few ideas to you:

  1. Report all your of your completed jobs through the Xactware process. Usually the first response to that idea from a contractor is that it is a waste of time. It’s easy to say, but it could not be further from the truth. Insurance companies upload every completed job and as a result their data is affecting the database much more than the contractor’s database. When a job is uploaded, Xactware checks the difference of prices between what their estimate database says to charge and what was actually charged. As a result, the database changes are driven by the prices that are submitted to Xactware. If you do not submit your completed jobs, then you are allowing others to drive the prices in an industry that you work within.
  2. Job cost all jobs on a weekly basis and take appropriate action to ensure that you are continuing to run a profitable business.
  3. Mutually negotiate job budgets prior to a job start and hold all that are involved accountable to achieve the job on time and on budget.

 The future of a business is determined by a lot of things, some of them you have a say in and some you don’t. My suggestion is to figure out a way that will benefit the direction that you want your business to go. Wishing you reasonable policy holders, good business and a fair profit!

KEYWORDS: restoration restoration business management

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Les Cunningham, CGC,CR,CCR,CGRa, is president and CEO of Business Networks, Inc. He is a restoration industry expert and can be reached at 1-800-525-1009, ext. 14 or e-mail him at Les@BusinessNetworks.com

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Mold Remediation
    By: Josh Woolen
  • certifications and licenses for restoration professionals

    Certifications and Licenses Every Restoration Company Needs

    Restoration companies need to make sure they have the...
    Restoration Training/Education
    By: Sharon Elzarat
  • a wall covered in moss and fungus

    Zero Tolerance for Toxic Molds: Essential Steps for Successful Remediation

    Understanding the importance of zero tolerance for toxic...
    Mold Remediation
    By: Michael A. Pinto CSP, SMS, CMP, RTPE, FLS, ERS and Kendra Seymour
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Popular Stories

Pop Art Female Superhero Punches a Masked Villain

TPAs vs. Independence: The Restoration Industry’s Own Version of the Cola Wars

RIA Carrier Advocate Mark Springer

Turning the Page: A New Era of Trust and Collaboration in Restoration

particle count hands-on demonstration of a HEPA filter

The Truth About HEPA Filters

Submit Your New Product/Technology to R&R!

Would you like to promote a new restoration, remediation or cleaning product/technology with Restoration & Remediation? Fill out the question below to start your submission:

Events

September 3, 2025

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoJoin us in Las Vegas for The Experience Convention & Trade Show, the leading event for cleaning, restoration, and remediation pros, packed with hands-on demos, expert speakers, and high-impact networking. Happening September 3–5, 2025 at Caesars Forum—this is where the industry comes to learn, connect, and grow!

View All Submit An Event

Poll

Doffing PPE

When you are doffing your PPE, do you sanitize between every step?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products
Prepare for CATASTROPHE with R&R!

Related Articles

  • industry changes eye technology 1 0

    Are You Staying On Top of All the Industry Changes?

    See More
  • 3 Restoration Industry Trends to Watch in 2017

    3 Restoration Industry Trends to Watch in 2017

    See More
  • Industry News

    US Department of Labor Urges Workers, Employers To Be Aware of Hazards After Hurricane Ida

    See More

Related Products

See More Products
  • secrets-of-insurance-game.jpg

    Secrets of the Insurance Game

  • COVER pdf.jpg

    How to Get More Restoration Jobs in 14 Days... (ebook)

See More Products

Events

View AllSubmit An Event
  • June 25, 2024

    R&R 360 Industry Outlook: Your Complete Guide to Restoration, Remediation, and Cleaning Trends

    On Demand This webinar unveils the Restoration & Remediation report, R&R 360! Discover industry trends and gain valuable insights to drive your business forward. We've included insights from homeowners, providing a comprehensive view of the market landscape. 
View AllSubmit An Event
×

Stay ahead of the curve with our eNewsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing