What's Standard Gross Profit for Your Industry?
I once listened to Tom Reber preach about 50% gross profit and how if you aren't aiming for that, you are going to hurt yourself short/ longer term. He was basically saying, for every dollar you make, you need to make two. This has been super impactful for me and my business but I'm noticing on my really big projects, it's so hard to keep that. I have one $120k exterior BBQ that has definitely had some inefficiencies but we are probably looking at 35% end of day. But that's 35% of a large $$ so that is kind of ok. For those of you who do a good job tracking this (btw Jobber's gross profit calculator is objectively amazing for this btw)- what is your gross profit and what do you usually shoot for?
Financial setup to start a business
I know some free resources like for Michigan but how is everyone going about getting grants/loans to startup cause that’s what I need in Muskegon Mi. Started a go fund me gofund.me/67d96e4c5 that’s not working at the moment so I applied for here still have to sort thru the states economic grants and loans.When is it time to hire an accountant?
I am wondering at what point some of you guys have hired an accountant? Did you hire one to grow? To maintain what you have? Or are you simply using one to file taxes at the end of the year? I am thinking about hiring an accountant to manage my finances for me and see where things go, but wondering when is the right time.How can I create an invoice for the deposit?
When doing certain commercial work the client will ask us to send them an invoice for the deposit. This isn't typically how Jobber works as the invoice isn't created until the job is closed usually. What is the best way to send a customer an invoice before having the quote signed, deposit paid, or the job completed? Hope that makes sense. Thanks in advance!How Much Should You Really Be Charging?
The number one question I receive is tied directly to the fact, most contractors are still guessing when it comes to pricing. Overhead. Profit. Labor rate. Trip fees. They think just because they throw a number they hear their competitors use, thats all that they need. It may work, but how and what do you divide these funds is just as important for your business health. If you don’t know how to do the math, you’re not building a business. You’re surviving check to check and think you need more work, when you do not. So here’s the plan: This Tuesday & Thursday on IG, I’m walking you through our Contractor Price Builder Worksheet FREE on instagram live. We will cover: - How to calculate your real hourly rate - The difference between markup and margin - Why profit is a non-negotiable - And how to price with confidence Join the session. Bring your numbers.GCs - How are you using the pricebook?
Most of my projects are all different. Even something like a fence gate is different from one property to the next. One place the gate itself is going on the wall, the other it's going on a post and the current post is wobbling. All bathrooms are roughly the same, but maybe the tile is different, or this customer wants to buy their own supplies. etc. So for you businesses that are in this pickle, how are you using your price book? I basically use mine for line items that don't actually carry a price - policies and warranties for specific things (paint matching, bathroom remodel discoverable, etc) but I'm not using it for what I'd imagined are it's intended purpose. Looking for a little coaching here!
