Let’s get real for a minute — it’s not always your pricing or your job costs that are killing your profits. Sometimes the real profit killer is hiding in plain sight: your operating expenses.
When I talk to contractors who are barely scraping by, one number usually tells the whole story — their gross profit margin. Gross profit is what’s left after you pay your direct job costs
One of the most dangerous myths in contracting is this: “If I can just land more jobs, I’ll be fine.” But here’s the truth: If your pricing is wrong — if your margins are
Too many small contractors dismiss job costing as something “only big companies do.” But here’s the truth: If you don’t know how much each job is really costing you, you don’t know if you’re
Most contractors glance at their Profit & Loss statement and feel a sense of relief when they see the bottom line is positive. But one line in particular causes more confusion — and more
You probably already know that late-paying clients are a pain in the neck. But what you might not realize is how much they’re actually costing you — not just in cash, but in momentum,
Contractors are no strangers to long days, back-to-back jobs, and pulling double shifts to meet deadlines. But here’s a hard truth I’ve seen time and again: You can’t outwork bad numbers. If your pricing
Let’s talk about one of the most dangerous lies contractors tell themselves: “Things will work themselves out once I land the next big job.” Sound familiar? Maybe you’ve told yourself that once the cash
You started this business for a reason. Maybe it was freedom. Maybe it was legacy. Maybe it was just wanting to build something of your own. But somewhere along the way, it started feeling
Every contractor has slow months. The difference between success and struggle is how you prepare for them. Slow season is not the time to panic — it’s the time to plan, market, and fix
Too many contractors pay everyone else first — then hope there’s something left over for themselves. That’s not a strategy. That’s survival mode. And it’s no way to build a stable, profitable business that
Emails. Texts. Calls. Notifications.You wake up, open your inbox — and boom, you’re already behind. Sound familiar? Most contractors live in reactive mode. They start the day answering emails, texting crew leads, responding to
Let me ask you something straight: How are you tracking performance in your business? Most contractors tell me, “Well, I know when something’s off.” Or, “I look at the bank account.”But gut instinct isn’t
You’ve poured your sweat into this business. You’ve sacrificed weekends, skipped vacations, and taken risks. But here’s the question: Is your business actually building wealth for YOU — or just keeping you busy? The
If you’re waking up tired, working 12-hour days, and still falling behind… you’re not lazy. You’re not inefficient. You’re likely suffering from entrepreneurial burnout. And for contractors, it hits hard. Why? Because most of
Overhead can feel invisible… until it starts eating your profit alive. You’ve got rent, insurance, trucks, tools, admin salaries, phones, marketing, software, and subscriptions — and each one seems small until you add it
Most contractors start out as a one-man show — you estimate the job, run the crew, order materials, and even chase payments. That’s fine when you’re small. But if you want to grow? You
If your calendar’s packed and your team is running from job to job, it’s easy to assume things are going well. But here’s the truth: being busy doesn’t mean you’re profitable. In fact, I’ve
Most contractors get financial reports that are technically accurate… but practically useless. You get a Profit & Loss statement that lists income and expenses, a Balance Sheet you don’t understand, and maybe a few
You’ve probably lived it: one month, you’re buried in work. The next? Crickets.This is what I call “feast or famine” mode — and it’s one of the biggest threats to your cash flow and
There’s a common trap in construction: thinking you need every job to stay afloat.So you chase low-margin work, tolerate bad clients, and squeeze your schedule to take whatever comes next. But here’s what I’ve
When cash gets tight, most contractors react the same way: sell more jobs. But sales are just one part of the equation. There are three levers you can pull to improve cash flow —
Every two weeks, like clockwork, it hits: payroll.And yet, for many contractors, it always feels like a surprise. Suddenly you’re scrambling to transfer money, delaying payments to vendors, or dipping into credit lines just
Most contractors cross their fingers at the end of the year and hope there’s something left over. But real business owners don’t “hope” for profit. They plan for it.They build it into their prices.
There’s one delay in your business that’s 100% in your control — and it’s probably costing you more than you think: delayed invoicing. You do the work. You deliver the result. But then something
You know the truth: in this business, things can change fast. One slow-paying client, one piece of equipment breaking down, one job delay — and suddenly your bank account is bleeding. That’s why every
We all love loyal vendor relationships. You’ve worked with the same supplier for years, they’ve come through in a pinch, and there’s a mutual trust. That’s important. But here’s the question most contractors don’t
Every contractor hears the same advice: “Just sell more.”But that advice is dangerous if your business has a margin problem. If your pricing is too low, your labor costs are too high, or your
You’ve probably had this happen before: you land a big job, everything goes smoothly, the client’s thrilled… but when the dust settles, the profit is disappointingly thin. What gives? The issue isn’t the job.
If your business can’t run without you… you don’t have a business. You have a job — with overhead, stress, and no backup plan. Now don’t get me wrong — every small business starts
You don’t need a CPA license to run a profitable business — but there are three numbers every contractor must know if they want to stay out of trouble and ahead of the curve:
It’s one of the most frustrating things in business. Your P&L says you made money — sometimes a lot. But your bank account says otherwise. You’re not alone. Profit does not mean cash. In
Here’s a truth bomb: if the first time you seriously look at your financials is when your CPA asks for them in March… you’re already in trouble. Waiting until tax season to review your
If grit and hustle were enough to make a contractor rich, you’d already be there. But the truth is, hard work alone doesn’t fix a broken system. If your jobs are underpriced, your labor
Here’s a dirty little secret: most contractors’ books are a mess — not because they’re doing something wrong, but because their chart of accounts was never built for decision-making. Your chart of accounts is
Your vendors can be partners — or they can be a source of major cash pressure. When you pay your suppliers faster than you get paid by your customers, you become the bank. And
Cash flow stress comes from one thing: uncertainty.You’re not sure what’s coming in next week… or what’s going out the week after. You’re making payroll, dodging vendor calls, and hoping that check clears on
You work hard all year. You run jobs, manage crews, handle emergencies, and do your best to stay ahead. But when tax season rolls around, you get hit with a number that feels like
A lot of contractors think they’re in good shape because they’ve “got a bookkeeper.” But bookkeeping isn’t the same as financial strategy. Bookkeepers track the past. They record what already happened — income, expenses,
You’re the owner. The risk-taker. The rainmaker. Without you, the business doesn’t run. So why is your paycheck the smallest — or the most inconsistent? Too many contractors treat their personal income like an
Scope creep. You’ve seen it. You’ve lived it. It starts small — a few extra outlets, a different tile, a “quick” add-on. You want to keep the client happy, so you say yes and
Pricing is one of the most stressful parts of being a contractor. If you charge too much, you might lose the job. If you charge too little, you work your tail off for nothing.
Let’s talk about one of the most ignored, most misunderstood, and most expensive problems I see in construction: not tracking job costs. Here’s the truth: if you don’t know what it costs you to
Cash flow problems don’t happen overnight. They build gradually, quietly — and then strike hard. Like a slow leak in a tire, everything seems fine… until you’re on the side of the road wondering
Big jobs can look like big wins. Large contracts. Impressive dollar signs. A spot on a marquee project that makes you feel like you’ve “made it.” But let me give it to you straight:
If you do commercial work or subcontract under a GC, you’re probably dealing with retainage — that painful 5–10% of your invoice that gets withheld until project completion. And if you’re like most contractors,
“Business is booming!” That’s usually something to celebrate — but when contractors grow too fast without the right foundation, that boom can quickly turn into a bust. Most contractors think the biggest threat to
Let’s talk about something that’s so common in construction it rarely gets questioned: Net 30 payment terms. For most contractors, “Net 30” means you get paid 30 days after you invoice. But let’s be
When profit is tight, the first instinct for many contractors is to start cutting. Cancel software. Trim payroll. Delay equipment purchases. Slash everything in sight. Now, don’t get me wrong — wasteful spending should
“Just sell more.” That’s the advice most contractors hear when cash is tight. And yes, sales matter — a lot. But what if I told you more sales can actually make things worse? It’s
When contractors talk about cash, they tend to lump it all together. But in reality, there are three types of cash every construction business needs to survive — and thrive: If you don’t intentionally
Every business has a breakeven point — the dollar amount you must earn just to cover your costs and stay afloat. But you’d be shocked how many contractors have no idea what that number
There’s one financial metric every contractor should know cold — and it’s not your net profit. It’s your gross profit margin. Gross profit is what’s left after you subtract direct job costs (materials, subs,
Let’s get something straight: your bank balance is not your budget.It’s not your available cash. It’s not a green light to spend. It’s not even an accurate picture of how your business is doing.
If you’re like most contractors, the idea of sitting down with your financial statements sounds about as fun as getting a root canal. Profit & Loss? Balance Sheet? Statement of Cash Flows? You didn’t
Let me guess — you’re running all day. Your crews are booked. The phone’s ringing off the hook. Your truck’s got 12 empty coffee cups on the dash because you don’t have time to
Every contractor I know has done this at some point. You open up your banking app. You see a decent balance — maybe $30K or $50K. You breathe a little easier. “Okay,” you think,
Let’s bust one of the most common — and dangerous — myths contractors believe: “If I made a profit, I must have cash in the bank.” Unfortunately, that’s not how it works. Profit and
