What Happens When You Stop “Gutting it Out” and Start Using Your Numbers to Make Decisions

Implement daily or weekly review of your Profit & Loss (P&L) statement to track financial health proactively, rather than relying on annual reports.

Share key financial data, especially direct labor percentages and gross profit, with your production and operations managers to foster ownership and improve efficiency.

Utilize peer group benchmarking to identify blind spots and understand how your financial metrics compare to high-performing companies in the industry.

Develop detailed budgets and forecasts, considering future investments like vehicles and hires, to set realistic growth targets and plan for associated expenses.

Focus on improving cash flow by analyzing revenue incoming and outgoing, and strategically planning for prepays or other financial maneuvers.

Understand that rapid growth without financial clarity can lead to cash flow issues; use data to set achievable growth rates.

Assign ownership of specific financial line items (e.g., equipment rental, gross profit per job) to relevant team members to empower them and drive accountability.