Why ‘Busy’ Doesn’t Mean ‘Profitable-Why working harder isn’t the answer
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 breathe. You’re BUSY.
But… are you profitable?
Because here’s the truth that slaps a lot of contractors in the face: busy doesn’t mean you’re making money. In fact, sometimes busy means you’re just working harder to lose money faster.
It’s easy to fall into the trap of thinking more jobs = more cash. But if your pricing is too low, your job costing is off, or you’re not billing change orders properly, all you’re doing is piling on more work — without getting paid properly for it.
That’s like hauling concrete uphill in a wheelbarrow with a hole in it. You’re sweating, but nothing’s building up.
I worked with a residential remodeler who had jobs booked out six months in advance. Everyone around him thought he was killing it. But when we ran the numbers, we discovered he was losing money on over a third of his jobs. He hadn’t raised prices in years. He wasn’t tracking scope creep. And his labor estimates were way off. We restructured his pricing, added a mandatory margin, and created a change order policy. He raised his prices 15%. Not a single client flinched. Within one quarter, his net profit nearly tripled — without adding more work.
Busy without profit is just glorified stress.
Wondering if you’re working yourself into the ground without building wealth?
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