Why Profitability Is Key During Slower Times
About this episode
When calls slow down, whether it’s the economy, an election, the season or the weather, it’s tempting to put profit on the back burner and just try to keep the lights on. But your overheads and debt payments don’t slow down, and profit is what pays them.
In this episode, Kerry explains why profitability has to be your focus 52 weeks of the year, why every job must make money, and how knowing your numbers helps you spot which jobs, services and crews are making or losing you money.
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Key takeaways from this episode
- Profitability should be your focus every week of the year, not just when times are good.
- Every single job must be profitable: no “this one makes up for that one.”
- Profit is what pays your overheads, loan payments and credit cards.
- If you have debt, focusing on profit matters more, not less.
- Know your profit target for each job and dig into why you hit or miss it.
- Look for patterns across crews, services and job types, then act on them.
Show notes
Don’t let a slowdown mindset take over
Following on from the previous episode, Kerry recaps why owners shouldn’t get pulled into negative thinking about a slowing economy, and how that worry spreads to your team.
Growth in good times, profit all the time
When the economy is booming, growth is the natural focus. When things appear to slow down, profitability has to come first. Staying profitable keeps the bills paid and the business moving, even if growth slows.
Every job has to make money
There’s no room for jobs that lose money. If it happens regularly, find out why. It could be training, equipment, your sales process or communication with the homeowner.
What profit actually pays for
Kerry walks through how gross profit covers overheads like rent, utilities and salaries, and how net profit pays your loan payments, credit cards, owner draws and savings for growth. If you have debt, profit becomes even more important.
Know your numbers and look for patterns
Know your monthly overheads, debt payments and profit target for every job. Then compare jobs, crews and services to see what’s making or losing money, whether that means retraining, repricing, dropping a service or marketing more of what works.