12h • General discussion
Stop Running Your Construction Business on Gut Feeling (Know These 5 Numbers)
Be honest. Right now, no looking it up. Do you know exactly what you have to bring in each month just to keep the lights on?
During this week's live stream, we broke down a wild stat: 89% of contractors doing over $1M can't state their real gross margin. That’s why the average net profit for a million-dollar contracting business is just $47k.
You're taking on massive risk just to run a stressful, low-paying job.
If you want to transition from a stressed-out operator to a true business owner, you need to track the 5 construction KPIs that actually matter:
- True Gross Margin: What’s left net net after direct job costs (materials, labor, subs).
- Break-Even Floor: Your monthly fixed overhead divided by your margin percentage.
- Owner’s Hourly Cost: Stop doing $20/hr admin tasks when you should be doing $200/hr CEO tasks.
- Cash Runway: Liquid cash divided by weekly burn rate. Under 4 weeks equals a cash flow crisis.
- EBITDA & Multiplier: The true indicator of what your business would actually sell for today.
Your traditional CPA won't give you these. QuickBooks looks backward—you need construction management accounting to look 90 days into the future.
🔧 Quick one for the room:
How many of these 5 numbers do you actually track cold today? Drop a number from 0 to 5 below. 👇 Bet most of you say none.
👉 Free game plan call: thecontractor.ai/book-call
Want the exact Template that was shared? Comment "NUMBERS" below, and I’ll slide it into your DMs.
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Stop Running Your Construction Business on Gut Feeling (Know These 5 Numbers)
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