『053. How Much Profit Should a Contractor Business Actually Make? Gross Margin vs. Net Profit Explained』のカバーアート

053. How Much Profit Should a Contractor Business Actually Make? Gross Margin vs. Net Profit Explained

053. How Much Profit Should a Contractor Business Actually Make? Gross Margin vs. Net Profit Explained

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How much profit should a contractor business actually make? It sounds like a simple question, but too many contractors are looking at the wrong number. Revenue tells you how much you sold. Gross profit tells you whether the work itself is profitable. Net profit tells you whether the business is actually making money after everything else gets paid. In this episode of Profit Isn’t an Accident, Shannon breaks down gross margin vs. net profit in plain English, explains why markup and margin are not the same thing, and shows you how to figure out where profit is actually leaking out of your business. You’ll learn: • The difference between revenue, gross profit, and net profit • Why a profitable job does not automatically mean you have a profitable company • How overhead impacts your bottom line • Why markup and margin get confused so often • Why there is no single “perfect” contractor profit margin • How to diagnose whether your problem is pricing, production, overhead, or volume • Why more revenue is not always the answer Your homework is simple: pull your trailing 12-month P&L and identify your revenue, direct costs, gross profit, gross margin, operating expenses, net profit, and net margin. Then ask yourself one question: Where is the money actually going? Because clarity comes before correction. If you want help identifying the profit leaks in your business and building a company that gives you more freedom instead of consuming your life, book a free Profit Acceleration Session: www.denaliedgeconsulting.com/pas Profit Isn’t an Accident Own your business. Live your life.
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