Your break-even point is the number of dollars you need to bring in each month just to keep the lights on. That includes covering fixed costs, paying your team, and paying yourself. If you don’t know that number — or haven’t updated it lately — you’re gambling.

Too many contractors assume they’re profitable because they’re busy. But busy doesn’t always mean profitable — especially if your overhead has crept up or your costs have changed.

Real World Mistake & Lesson: I worked with a remodeling contractor who was doing $80K/month in revenue and still losing money. Once we calculated his break-even, we discovered his overhead had grown, and he actually needed $92K/month to break even. We adjusted pricing, improved labor efficiency, and within 90 days, he was hitting $110K/month and keeping $12K in profit.

 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