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

Main Bottleneck At $800k-$1.2M in Revenue

12 Mar 2025 · 0 min

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Mike Andes explains a common profitability plateau for businesses with annual revenues around $800,000–$1.2M: adding a second salaried overhead role (e.g., estimator, office manager, operations manager) at roughly $70k–$90k can wipe out incremental profit, making months with high overhead risky for the business.

Questions this video answers

Approximately $800,000 to $1.2 million in annual revenue.

About $70,000 to $90,000 per year.

Why is there this wilderness of profitability where you don't make any more profit at 1.2, 1.3 million, compared to 800 or 900,000 in annual revenue? The reason is because usually you need a second overhead person, like an estimator or an office manager or an operations manager, and they're expensive. You're paying 70, 80, $90,000 a year for the second salaried position. That's completely overhead. And if you have any month of the year where you lose money because your overhead is too high, it can be very, very risky for the business.