Kelson Carterpresident at carter's my plumber

Double Your Profit Day #26 You Won't Believe How EASY it is to Multiply Your Winners

26 Aug 2025 · 2 min

Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast

26 Aug 2025 · 2 min

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In this episode of Double Your Profit, the host outlines a two‑step framework for boosting profitability: first, cut out under‑performing parts of the business, then multiply the success of the remaining high‑performing units. Using a real‑world example, a new‑construction plumbing division that was losing money is eliminated, and resources are redirected to a thriving plumbing‑service department. The host emphasizes the Pareto principle (the 20% of activities that generate 80% of results) as the guide for identifying “winners.” Once identified, the winners can be cloned through tactics such as opening new locations, acquiring similar businesses, or shifting culture. Central to the process is data‑driven decision‑making—reliable bookkeeping, reporting, and CRM systems are essential to pinpoint which departments truly drive profit, not just top‑line revenue. The episode warns against the common mistake of preserving large, loss‑making divisions simply because they appear sizable on paper, and advocates reallocating those resources to amplify the profitable core.

Chapters

Welcome back to Double Your Profit. Today we're talking about multiplying your winners. So the last video we did was cut complexity. Right in line with that is multiply your winners. So it's sort of like a 1-2 step, right? So, hey, we're going to go in and we're going to cut out the things that aren't productive. We want to do less, but do way more of the less. Once we cut that out, we want to multiply the winners. We had a new construction plumbing department, and this department was a dog. This thing was not making any money, and we cut it. What we ended up doing was we looked at another department inside the business, which was plumbing service, and we said, "Hey, this this department's doing really well, and this new construction thing, this is not doing well at all." Well, how do we just cut the loser, get rid of the soft and hard costs associated with dealing with a less than productive department, and take all of those resources? You find the Pareto principle, you find the 20% that's driving 80% of your results, and you multiply it. So if that's your plumbing, if that's your HVAC, if that's your electric, you want to clone the success of what's working, whether that's in people, in departments, in businesses, and whatever it is. If you have a department that's doing excellent, then how do we clone that department? And maybe that means we launch a new location in a new market. Maybe that means we acquire other companies that have those same characteristics, or maybe we just change the culture. Yeah, I think that's a great point. Really invest inside the existing department that is driving our success. When you're looking at multiplying your winners, what really matters is like you want to let the data lead you. And this is why good record keeping, good reporting, good bookkeeping is so important because you don't really know what your winners are without the data. You need your accounting system or your CRM to tell you what's working. I see this mistake a lot, like it's almost kind of comical. I'll look at these businesses that are for sale and it has like A $2 million service arm and a $5 million new construction arm, and the service arm is doing 100% of the profits and the new construction arm is bleeding the service arm dry. Like they would actually drive more take-home dollars if they killed the $5 million department, just reallocated those resources. So when you have a winner as determined by data and not just top line, but what's bottom, then you want to multiply it and you want to let data lead you down that road. Thanks for watching.