Optimize for 2026

Prioritize consistent marketing: Companies that invested in marketing performed better in 2025 compared to those relying solely on word-of-mouth referrals.

Understand your gross margin: Aim for a 45-50% gross margin on residential projects; a lower margin could indicate efficiency issues or bidding problems.

Practice proactive tax planning: Don't be surprised by your tax bill; utilize year-end tax planning to understand your liability and implement strategies like pre-purchasing supplies.

Gauge growth by cash cushion: Aggressive growth can deplete cash reserves; assess your cash cushion before setting ambitious 2026 targets and aim for slow, steady growth if reserves are low.

Separate data from gut feelings: Use hard data for financial decisions (e.g., marketing spend ROI) but trust your intuition for qualitative aspects like identifying problematic clients.

Break down goals monthly/weekly: Annual goals can be overwhelming; establish monthly financial plans and weekly production targets to stay on track and make timely adjustments.

Track segment profitability: Implement job costing to track profitability by project type (interior, exterior, cabinets, etc.) to understand which services are most lucrative and which need adjustment.