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

THIS is the most expensive part of running a business

28 Mar 2024 · 0 min

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Mike Andes argues that the single biggest expense for many businesses—especially home service companies—is employee wages rather than trucks, equipment, or fuel. He states that wages commonly consume 40–60% of revenue and can exceed 70% in inefficient, unprofitable businesses. The clip frames this as a central profitability challenge for frontline and office labor costs.

Questions this video answers

March 28, 2024.

Usually 40 to 60% of revenue.

Over 70% of revenue.

What do you think is the most expensive part of running a business? It's not trucks, equipment or fuel for home service businesses. It's usually employee wages. Usually 40 to 60% of all the revenue that a business makes goes to paying for the labor of frontline team members as well as the office that handles sales and admin for struggling businesses that are super inefficient and not profitable. I've seen the number the percent of their revenue going out the door to wages being over 70%.