Labor often feels fixed — but it’s not.

If you’re carrying extra crew members during slow weeks or underutilizing them during peak season, your labor cost per job spikes. You’re paying full freight for half efficiency.

The solution? Track labor utilization — not just hours worked, but hours billed to jobs. Make sure roles and responsibilities are clearly defined. Schedule jobs with crew capacity in mind. And consider whether it’s better to hire flex labor or keep full-time hands on the bench.

Labor is often your biggest controllable cost — or your biggest blind spot.

Real World Mistake & Lesson:

A contractor kept three extra laborers on payroll “just in case.” But during a slow quarter, they were only working 60% of the time. By shifting to a mix of core and flex workers, he cut labor costs by 22% while increasing job throughput.

 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