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Painting Contractors: How Much Should You Be Making?

Name: Painting Contractors: How Much Should You Be Making?
Uploaded: 2023-05-06T11:34:11+00:00
Duration: 58 s
Channel: Daniel Honan
Description: In this instructional video, the speaker explains how painting business owners can determine an appropriate personal take‑home cash flow based on the…

6 May 2023 · 1 min

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In this instructional video, the speaker explains how painting business owners can determine an appropriate personal take‑home cash flow based on the multiple roles—or "hats"—they perform. For painting companies with less than $1.5 million in annual revenue, four primary hats are identified: business owner, salesperson, production manager, and admin. The speaker assigns target cash‑flow percentages to each hat (owner = 15% of revenue, salesperson = 7.5%, production manager = 7.5%, admin = 5%). By adding the percentages for the hats the owner actually fills, the owner can calculate a target personal cash‑flow percentage. For example, if the owner also acts as the salesperson and production manager, the combined target is 30% of revenue. The video emphasizes that the industry average is about 15% but encourages owners to aim higher by accounting for all roles they perform.

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How much should you be making as a painting business owner? The average painting business owner takes home about 15% of their revenue, but you're probably not shooting for average. Now, to calculate what you should be taking home, you need to first identify what do you do in your business. Basically, business owners often wear multiple hats. The 4 main hats for a painting business under $1.5 million in revenue is: 1, business owner; 2, salesperson; 3, production manager; 4, admin person. And this assumes that you are no longer working as a painter on the job site. So in order to determine what you should be taking home, you need to first identify the different hats that you're wearing. For the business owner hat, you should shoot for 15% of revenue as cash flow to you. For the salesperson and the production manager, you should be shooting for 7.5% for each hat. And then for the admin person, you should shoot for 5% of revenue. You add up each of those percentages to get what you should be shooting for as your total cash flow to you as a percentage of revenue. So for example, If you are the business owner, the salesperson, and the production manager, you should be taking home 30% of revenue.