Always Busy. Still Broke. Here’s Why (and How to Fix It)
Most contractors don’t go broke because they lack sales. They go broke because they mismanage cash, pricing, and collections.
🔥Highlights
- Sales ≠ profit (revenue without margin is just noise)
- Cash flow kills more companies than losses
- Bad job costing = silent profit leaks
- Late payments + weak deposits = payroll panic
- Low margins (<10%) put you one mistake from disaster
- Top contractors protect profit first, not last
🛠️The Fix (Simple, Not Easy)
- Job costing accuracy → stay within 2–5% variance
- Profit-first mindset → set profit aside before expenses
- 60–30–10 payment rule → get paid before leverage shifts
- Overhead recovery → know your real % and price for it
- Weekly number reviews → discipline beats motivation
📝Quick Wins You Can Do This Week
- Pull your last 3 jobs → compare estimate vs actual
- Update your contract with clear payment milestones
- Build a 30-day cash flow forecast (stress drops fast)
- Stop work rights + clear collection terms in writing
You’re not broke because you’re bad at contracting. You’re broke because the system is broken.
Fix the system — and the money follows.
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Always Busy. Still Broke. Here’s Why (and How to Fix It)
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