Running blind is dangerous. Yet many contractors operate without tracking key performance metrics — not because they don’t care, but because they don’t know what to measure or how often.

Without clear data, you can’t identify what’s working, what’s not, or where your money is leaking.

Start with these:

• Gross profit margin per job
• Labor utilization rate
• Accounts receivable aging
• Overhead as a percentage of revenue
• Net profit margin

Tracking these consistently — even monthly — gives you visibility and control. It empowers better decisions and allows you to course-correct quickly, instead of waiting for your CPA to deliver bad news three months too late.

Real World Mistake & Lesson:

A residential builder didn’t track labor productivity. They had a gut sense things were “taking too long.” Once we implemented a basic dashboard, it revealed one crew was averaging 28% lower productivity than the others. With coaching and better scheduling, they closed the gap — adding $54,000 in profit over 6 months.

 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