A word of caution… if you think selling more work at a lower profit margin is the key to growing a more successful profitable contracting business, think again.
The truth is, that strategy can actually bankrupt your contracting business!
When my new client Sandy first called me, he was very frustrated by the fact that while his revenue had grown by over 30% in the past year, he went from making a solid profit to losing a lot of money.
When we began to dig deeper, it was apparent that he’d taken on larger projects that were priced with a margin that wouldn’t even cover his overhead. (A very common mistake that happens when you miscalculate your OBP).
At first, Sandy wanted to argue with me that “other contractors who do work of this nature only have those kinds of margins, and they are very successful.”
I could appreciate Sandy’s frustration. What I shared with him, and what I’m sharing with you in this video is why that strategy didn’t work, and what to do differently going forward.
There was a critical number that Sandy didn’t understand and that a lot of contractors actually don’t get right that was absolutely killing his profits.
Check out today’s important video to make sure you aren’t making the same profit-killing mistake in your contracting business!
The one number you want to make sure you GET RIGHT is your OBP (Overhead Breakeven Percentage) – It’s the one figure that will make or break your business. Use this powerful free tool to find the right calculation.