How to get better at business??

How do I get this business under better control?

• I am trying to help a friend of mine get his business straight. The company designs, manufactures, installs and services electrical and non-electrical signs of all sizes- from small to giant 14'x60' billboards. In being in the organizational mess that it is in, he manages to average a gross revenue of $500,000 per year with just himself and 3 employees and has averaged this gross revenue for the last 5 years, as though his business is in a rut. He pays all his employees and himself, but is upset that he does not make much more than that. While I have pointed out several things that need to be done differently, I have not yet figured out how to broach the topic of his productivity and timelines because I do not feel sure I can explain the situation correctly. He takes on jobs and gives out quotes with little consideration to how much time the job will take. He often undersetimates the time it will take from beginning of the project to the time it takes to receive payment. For example, a $20,000 job is a nice job for him, but it is not good for him if he diverts all employees to this one project and it takes 4 weeks to complete. No other work is taking place at the same time, therefore, it is always a game of catch-up. Overhead alone is close to $7000 a month. It is all a matter of estimating, salemanship, goal setting, and production. How can I effective explain what is happening in his situation to promote effective change? Is there a practical/ visual example I can use to get him to step outside of himself and comprehend what is happening to his business? Any advice will be greatly appreciated!

• Answer:

  Im glad I'm not you