A surprising number of contractors don’t know the single most important number in their business: their breakeven point. That’s the revenue you need just to stay in business — not grow, not profit, just survive.

Why is this number so important?

Because without it, you have no idea how far you are from being profitable… or how close you are to bleeding out.

Let’s break it down. Your breakeven point includes your fixed costs (like rent, office salaries, insurance) and your variable costs (materials, labor, subs). You calculate how much gross profit you make per dollar of sales, then figure out how many dollars you need to cover your fixed costs.

It’s your first financial checkpoint.

Real World Mistake & Lesson:

A plumbing company I worked with had steady jobs, but couldn’t figure out why their bank account was always drained. We ran the numbers: their breakeven was $85,000/month, but they were averaging $78,000. They weren’t failing — they were falling just short. By raising prices on service calls and adjusting job mix, they cleared the breakeven line, and suddenly the pressure lifted.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com