Know Your Numbers or Stay Stuck

Start by analyzing your annual tax returns as a 'report card' for your business; understand every term and how it contributes to your overall profitability.

Utilize a labor burden calculator (like the Modern Craftsman one mentioned) to accurately determine the true cost of putting one hour of work in place, including payroll, insurance, and overhead.

Break down your annual revenue by job type (e.g., kitchens, bathrooms, additions) to identify which services are most profitable and which might be costing you money.

Don't just chase more sales; aim to increase profit margins by reducing expenses, improving systems, and making better hiring decisions while maintaining your current sales volume.

Continuously monitor your financials—at least quarterly, or even per job—to stay abreast of your business's health and make informed adjustments to pricing, services, and operations.

Be critical about your overhead: eliminate unnecessary software, tools, or staff that aren't contributing to productivity or profitability. Better hires, even if more expensive, can lead to greater efficiency.

Understand the 'why' behind job profitability: analyze if certain job types consistently lead to reworks, scheduling issues, or inefficiencies, and adjust your estimates or service offerings accordingly.