Decision-Making During Volatile Conditions, Part 2

Thu, Jul 06, 2023 at 8:25AM

John Kenney, CPRC, CEO, Cotney Consulting Group

Last month, we discussed the items a roofing company might experience in a growth or decline volume stage and the general and administrative stair steps taken to address those changes. In this month’s article, we will focus on using cycles positively, fighting the tendencies in consecutive cycles and the steps to take to be successful in your roofing business. 

Using Cycles Positively
It is possible to make positive use of a market or business cycle using the stair step concept. If the volume declines, it is an excellent time to focus on the best customers, work by type and people. A decline phase is often a relief to a company because it allows them to cut out the customers they don’t want to work for, the work that doesn’t make money and the people they can do without. Volume declines can also heal the balance sheet and cash position if the decline phase doesn’t last too long.

Growth is the stage to stretch out the overhead and tests the limits of the effectiveness of systems and people. The early growth phases are usually the most profitable of all conditions if the company can manage the cash demands well. Read more.

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