Inner Circle
Join Inner CircleJoin
← Back to Listen
Content

230. Are Builders Actually Profitable With Russ Stephens & Sarah Biben

⏱️ 55:19 🎤 Will Blunt, Russ Stephens, Sarah Biben
AUDIO EPISODE
230. Are Builders Actually Profitable With Russ Stephens & Sarah Biben
0:00
0:00

Chapters

Click to jump to section

  • 0:00
    Introduction & Webinar Context
    Will introduces the podcast episode, explaining it's from a webinar launching the 2026 State of Residential Construction Industry Report and features insights on profitable builders.
  • 1:54
    Profit Perception vs. Reality
    Russ and Sarah discuss the significant gap between builders' perceived financial performance and their actual profitability, often masked by busy workloads and high revenue.
  • 3:05
    Construction Accounting Nuances
    The discussion highlights why standard accounting practices are insufficient for construction, emphasizing the need for job-level financial tracking and the Work-In-Progress (WIP) adjustment.
  • 4:29
    Handling Non-Billables & Pricing
    The hosts address how to account for administrative time and overheads, recommending charging for preliminary work and considering fixed-price contracts for profitability.
  • 6:12
    Key Profitability Metrics
    Russ and Sarah explain critical numbers builders should monitor, including WIP calculations, timely fixed expense tracking, and how project timelines destroy profit.
  • 9:30
    Software Investment & Adoption
    The panel discusses the increasing investment in construction software and the challenges builders face in fully implementing and utilizing these tools for greater visibility.
  • 10:22
    Traits of Successful Builders
    Russ identifies key traits of profitable builders, including discipline in financial management, lean structures, prioritizing net profit, and niche specialization.
  • 11:27
    Markup Benchmarks & Growth
    The conversation covers industry benchmarks for markup and gross margin in new construction and remodeling, and how to approach raising margins.
  • 12:14
    Practical Habits for Profit
    Sarah shares actionable habits for builders to maintain profitability, such as regular budget reviews, using purchase orders, and incentivizing teams for better margins.
  • 12:56
    CFOs vs. Coaching & Q&A
    The episode concludes with a discussion on the role of fractional CFOs versus business coaches and a final question on job cost margins versus overhead.

Speakers

W
Will Blunt
Host — Head of Marketing at the Association of Professional Builders
R
Russ Stephens
Host — Co-founder of APB
S
Sarah Biben
Director of Product Design at Buildertrend

Key Takeaways

✦

Implement Work-In-Progress (WIP) accounting adjustments monthly to accurately reflect financial performance.

✦

Track fixed expenses diligently and lock down monthly accounts by day 10 to ensure accuracy and prevent backdating issues.

✦

Charge for all preliminary work, including consultations and design, to cover costs and establish value from the outset.

✦

Monitor revised gross margin on every job monthly to identify and address declining profitability early.

✦

Understand your true break-even point for each job to avoid unprofitable contracts.

✦

Leverage construction-specific software for detailed job costing and real-time financial visibility.

✦

Prioritize net profit over volume and focus on specialized niches to optimize operations and profitability.

Want the full experience?

Join the Inner Circle for full access to every episode, AI-powered insights, personalized coaching, and a network of industry leaders.

Join Inner Circle →
POWER100

Inner Circle Membership Portal © 2026 Power100. All rights reserved.

power100.io