Jenny Depoine from Contractor Coach Pro walks through break-even analysis for contractors. With solid bookkeeping and job costing, you can find the exact revenue you need to cover overhead and start making profit. Then use that number to align your marketing, sales, and production.
Hey contractors, I am Jenny depoine and I am the finance coach with Contractor Coach Pro. I am here to share one of the many items that we get to help our clients achieve when they choose to invest in a meaningful finance strategy for their company. The concept of a break even model is something that has really been an aha moment for a lot of clients. When we roll out a strategy for their bookkeeping and accounting that truly knows and understands their overhead spending and then have some accurate and accountable job costing, we can take those profit margins that you are actually hitting, not just guessing you're hitting or hoping to hit, but with that actual data we can back into a break even amount of revenue that is your baseline in order to be profitable. I think I see this being that aha moment because we can get into our overhead spending that for the most part is locked in place. Whether you end up doing 2 million or 12 million or maybe you're a company that maybe will do 10 million or 20 million. For example, your marketing spend is set with hopes of producing great results, but if it does not, that money is already spent. Or your admin and production staff, they have a majority of their pay set whether that revenue happens or not. So when owners are able to see where their overhead spending is at and what that equates to in revenue, they can make sure their marketing is producing those results, their sales teams are hitting those numbers and what I would argue most importantly their production team is able to complete and build that much in jobs. If not, they can then consider what needs to change in their spending habits to be able to end the year with a profit. I know these concepts can take some time to wrap your head around. If this is something that excites you and you would love to have a finance strategy that both gets insightful information but also the necessary checks and balances to make sure you are protecting your money. I would love to connect with you. You can take the first step by taking our assessment and I would be happy to answer any questions you have. Thank you. Sam.
