Here’s the fastest way to know if you’re making money or just staying busy: know your three numbers. 50% gross profit. 35% overhead. 15% profit. If you can’t say where you stand on each right now, that’s the first problem to fix.
@officialchadpetermanTranscript
Here's the fastest way to know that you're making money and not just staying busy. First off, this comes down to knowing your numbers. Gross profit, revenue, minus labor, materials, everything associated with that job should be in a home services business around 50% or even higher. If you don't have those numbers, you need to dig into the operational KPIs of the business and understand is my labor off? Am I not charging enough? Is my material cost growing? All of those things are gonna contribute to you being able to have a healthy gross profit. The next item is overhand. All of the things that you have to spend money on to make your business operate. That should run around 35%. Leaving you with 15% profit. Again, take a look at these numbers. These are the things that you should be reviewing on a monthly basis, if not more frequently. Once you know your numbers, then all of a sudden, you can start to pull the right levers within the business to get those numbers to where you want them.
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