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:

Big jobs with thin margins can bury your business.

A $500,000 contract might sound like the best opportunity of the year — but if you’re only making a 10% margin and the job drags out for 9 months, you’re not winning. You’re working for next to nothing… with maximum risk.

Here’s why big jobs get dangerous:

• They tie up a lot of labor and cash for a long period of time
• They often involve slow-paying clients, retainage, and rigid contracts
• Scope creep can kill your profit if you’re not tracking change orders
• One big mistake can erase months of effort

Contractors get lured in by the size of the contract — but size isn’t the goal. Profit is.

A homebuilder I worked with landed a $900K custom build. Biggest job of his life. He poured his whole team into it — pulled his best project manager off two other jobs, hired extra help, and extended credit with suppliers. The problem? His margin was too tight — just 12%. And when delays hit, subs came in over budget, and materials spiked mid-project, that margin disappeared. By the end, he had made less than $20K. And because he was so tied up, he lost out on two easier jobs that would have paid more with half the risk.

We analyzed every job going forward and made a rule: no big job below a 30% gross margin unless there was strategic value. He now says “no” more often — but he’s earning more and sleeping better.

Big doesn’t always mean better. Sometimes it just means slower, riskier, and more complicated.

Got a big job on the table? Let’s pressure test it.

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