How long did it take Mike Andes to turn a profit when he started?

Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Growth SUCKS Cash! The Balance Between Growing and Take-Home Profit

17 Aug 2020 · 0 min

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0:06

This YouTube video (hosted by Mike Andes) discusses the tension between rapid revenue growth and actual take-home profit. In an early Q&A segment Mike reports it took about six months to reach profit; the questioner reports 40–60k monthly revenue but insufficient personal take-home and asks whether they are growing too fast. The conversation focuses on cash-flow and profitability trade-offs during growth.

Questions this video answers

Six months.

All right, Cameron Goldsmith asks how long did it take you to turn a profit when you started?
We are six.
Months in and the revenue is there 40, 60k a month, but still not seeing nearly enough take home. Are we growing too fast?
It's the balance between growth and profitability. Right? Growth sucks cash. If you're growing quickly, you're gonna probably be able to take less cash home because you're hiring people, that causes waste. Because you're training, you got to hire and hire. You got to find them. And when you're growing, you're usually marketing, you're buying more equipment. All of those costs money. So growth sucks cash. And there's that balance. If you need to take more money home, you might need to slow down your pace of growth a bit or raise your prices, which will naturally tend to reduce the demand for your services and slow you down a little bit there. So, yeah, that's a good one.