Electrical Tips

1.	Always know what your profit margins are for any specific type of work. I.e. - If margins are at 8% for housing and 21% for commercial jobs why not focus on increasing sales in the commercial sector and decrease sales in the residential sector.

2.	Finding ways to cut costs is as good or better than generating new sales. I.e. - Your company operates at 10% profit margins. $10,000.00 in new sales returns to you $1,000.00 in profit. If you can cut costs by $1,200.00 you in effect have generated the equivalent of $12,000.00 in sales.

3.	If you can cut your taxes by $1,200.00 you will get the same results as in tip number 2, assuming you operate at 10% profit margins. Always focus on saving taxes first and then go after other expenses. Even though most of you have your own accountants you still should learn about the tax code to help your accountant save even more then he is already saving.

Next month's tips will pertain to setting up your business to limit your liability.