As we enter the final weeks of 2019, many remodeling businesses are taking stock of what they've done in the past year. Jobs completed, jobs scheduled, and gross and net profits are among the indicators that may receive a significant amount of attention. For some business owners looking at their own bottom line, it may be of interest to know how that paycheck measures up against other remodeling company owners across the country. Remodelers Advantage surveys its membership twice a year and reports on take-home pay of owners, providing business owners the opportunity to see how their performance stacks up nationally.
When we look at owners compensation, we consider all of the money available to the owner. This could be salary or distributions, and for this metric, we include net profit in the calculation.
We combine these elements because it’s the best apples-to-apples comparison we can make when considering the many ways owners can take money out of their companies.
Our members’ stretch goal for this metric is 20% of revenue. So if you produce $1,500,000 per year, your owner compensation goal would be $300,000.
Our top 25% of the membership averages 18% in owners’ compensation. With their average revenues of $3,100,000, this makes $558,000 available to them. Many will use some of this to add to their savings, or to distribute bonuses to their team.
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