Every healthy home services company runs at the same revenue split. If yours is off, your profit is too. 50% to COGS (labor, materials, permits, subs). 30 to 35% to overhead (trucks, insurance, office, gas). 15% left as net profit. Those three numbers are the health check. If you’re not hitting them, you’re not pulling the right levers yet.

Every home services company should run at this exact revenue split. When you look at how your model is constructed, what you should be looking at is 50% should be allocated to COGS. What do I mean by COGS? Hosses of goods sold. So anything directly attributed to the work that you do, that's labor, materials, permitting, subcontractors, whatever all those things are, that should be 50% of all of your revenue. Next is overhead. Overhead should run about 30 to 35% of total revenue. What's overhead? Overhead is all the things that you need to support the work that you do. That's trucks. That's insurance. That's gas. That's people in the office. That's all of those things that allow your field professionals to do the work that they do. What's left is your net profit. That should be 15%. 15% net profit. Sometimes a little bit higher depending on your trade mix and what you're running. And obviously, we're all shooting for a little bit higher. But those are the numbers you should be looking for. Direct costs, 50% overhead, 35, net profit, 15. If you've got those numbers and are constantly pulling levers to get there, you're going to be running a healthy home services company.