Straight Answers About Your Numbers
Real questions from real business owners, answered the way we’d answer them on a call with you.
The Labor Rate Calculator
Find out what an hour of labor actually costs your business. Combine that with your pricing and see the expected profit from each job.
5 Hidden Profit Leaks in Your Business
A guide for service business owners who are busy but want to increase their bottom line — five common leaks, and how to fix each one.
Articles for Business Owners
Practical reads on pricing, cash flow, bookkeeping and growth for service business owners. New articles are added regularly.
Frequently Asked Questions
Why does my P&L show a profit when there’s no money in the bank?
Profit and cash aren’t the same thing. Distributions, loan principal, and equipment purchases all take cash without showing up as expenses on the P&L. The cash flow statement connects the two, and we walk through it with CFO clients every month.
What financial numbers should I be watching every week?
Start with cash, including your bank balance, this week’s deposits, receivables, bills due soon, and your projected low point. Then track two or three production numbers for your trade, like revenue per crew per week. We build those targets with you from your own data.
What’s a good profit margin for a service business?
As a general range, we point owners toward 50% to 65% gross margin and 10% to 20% net income. Admin, including owner pay, should run 10% to 20% at most, fixed and variable overhead around 15%, and marketing 5% to 10%. Equipment-heavy trades like HVAC run lower on gross margin than pure service work like pressure washing.
How much cash should I keep in the bank?
We generally recommend three to six months of your monthly break-even expenses in savings, so the business can get through a stretch of slow sales without borrowing. For seasonal businesses, we also make sure that covers the lowest point in the year.
