Profit Isn’t an Accident | Contractor Profitability, Cash Flow Management, Job Costing , Business Growth, Small Business Fi

Shannon Howard CEO/Profit Strategist, Denali Edge Consulting
  • 5.0 (1)
  • Entrepreneurship
  • Updated Semiweekly

Most trades businesses aren’t struggling because of a lack of work. They’re struggling because they can’t see where their money is going. Profit Isn’t an Accident is for HVAC, electricians, plumbers, and contractors who are busy, booked out, and still not seeing the money reflect the effort. Shannon Howard helps trades business owners find hidden profit, fix money leaks, and make better financial decisions without working more or chasing more jobs. If your business feels busy but not profitable, this show will help you understand why; and what to do about it.

  1. 3d ago

    058. Can You Actually Afford to Hire?

    You’re overwhelmed. Your team is stretched thin. Work is piling up.   So the obvious answer seems to be: hire someone.   But needing help and being able to financially support another employee are two very different things.   In this episode of Profit Isn’t an Accident, Shannon Howard breaks down how business owners should actually evaluate a hiring decision before adding another person to payroll.   You’ll learn why salary is only part of the true cost of an employee, how to think about revenue-producing versus overhead hires, why cash sitting in your bank account doesn’t necessarily mean you can afford another employee, and how to calculate the additional gross profit a new hire needs to create or protect.   Shannon also explains the 90-day test she uses when evaluating hiring decisions, how owner bottlenecks can make a new hire ineffective, and why you should build the seat before you fill the seat.   Because the goal isn’t to build the biggest team.   It’s to build a profitable business that can support the team you actually need.   If you’re considering your next hire and want help determining whether the numbers actually support it, book a Profit Acceleration Session at denaliedgeconsulting.com/pas.   Profit isn’t an accident.   Topics covered: Hiring employees True cost of labor Payroll and overhead Gross profit Cash flow Contractor profitability Owner bottlenecks Delegation Business growth Hiring decisions

  2. 5d ago

    057. Where Did All the Cash Go?

    You had a profitable month. Sales were strong. Jobs got done. So why does your bank account still feel empty?   In this episode of Profit Isn’t an Accident, Shannon breaks down one of the biggest misconceptions in business: profit is not cash.   You’ll learn where your money may actually be going, including: Slow accounts receivable Paying for jobs before customers pay you Debt payments Owner draws and distributions Taxes Equipment and asset purchases Rapid growth that requires more working capital Shannon also explains the five numbers every business owner should be watching and why a simple 13-week cash flow forecast can help you spot trouble before it becomes an emergency.   If your business looks profitable on paper but you constantly find yourself wondering, “Where did all the cash go?” this episode is for you.   Want help getting clear on your numbers and building a more profitable business? Visit denaliedgeconsulting.com/pas to book a Profit Acceleration Session.   Profit isn’t an accident.

  3. Oct 15

    056. More Revenue Won’t Fix a Bad Business

    More revenue sounds like the answer when business feels tight.   But if your pricing is wrong, your margins are weak, your systems are broken, or your cash flow is a mess, more sales can actually make the problem worse.   In this episode, Shannon breaks down why growing revenue without fixing the business underneath it can create more chaos, more stress, and less profit.   You’ll learn why revenue is not the same as cash, how bad pricing and poor operations quietly eat your profit, why fast growth can create a cash-flow crisis, and the four questions every business owner should ask before chasing the next revenue milestone.   Because the goal is not just to build a bigger business.   It is to build a better one.   Own your business. Live your life.

  4. Oct 13

    055. Your Employees Are Busy. But Are They Profitable?

    Your crews can be slammed all day and still be costing your business money.   A full schedule, overtime, and employees running from job to job may look like success, but none of those things tell you whether your labor is actually profitable.   In this episode of Profit Isn’t an Accident, Shannon breaks down how contractors should think about labor costs, productive hours, job costing, overtime, gross margin, and the difference between a hard-working team and a profitable team.   You’ll learn:   • Why hourly wage is not your true labor cost • How paid hours and productive hours affect profitability • Why overtime can signal deeper operational problems • How poor estimating can destroy job margins • Why job costing is essential for understanding labor profitability • What labor percentage can tell you about your business • Why employees are not always the problem • How growing payroll can quietly eat your profit • What numbers to review before hiring another employee   Your team may be working hard inside a business model that simply does not work.   The answer is not always pushing harder.   Sometimes it is better pricing, stronger estimating, cleaner job costing, improved scheduling, or fixing the systems your employees are working inside.   If your business is busy but the cash and profit are not showing up, Denali Edge Consulting can help you figure out where the money is going and what needs to change.   Book a free call with Denali Edge Consulting at   www.denaliedgeconsulting.com/pas    Own your business. Live your life.   Profit isn’t an accident.

  5. Oct 8

    054. Are You Charging Too Little? The Pricing Mistake Costing Contractors Profit

    Your schedule is full. Your team is busy. Revenue is coming in.   So why does cash still feel tight?   You may not have a sales problem. You may have a pricing problem.   In this episode of Profit Isn’t an Accident, Shannon breaks down how contractors can tell when their pricing is no longer supporting the business they are trying to build.   You’ll learn:   • Why being booked out does not automatically mean you are profitable • How rising labor, materials, insurance, and overhead quietly eat away at margin • Why competitor pricing should never determine what you charge • The warning signs that your prices may be too low • Why more revenue can actually make a badly priced business worse • How to review recent jobs and determine whether you would intentionally sell them again at the same price • Why job costing matters before you automatically raise your rates   Your pricing has to create room for more than just getting the job done. It needs to support payroll, overhead, equipment, growth, owner compensation, cash reserves, and profit.   Because more work at bad pricing does not create a better business.   It creates a bigger mess.   Your Homework   Pull three recent jobs and ask: Would I sell this job again at this price? If I doubled the number of these jobs, would my business get healthier or more stressed? What would this job need to be priced at for me to feel good about selling it again? If you do not know whether your pricing, margins, labor, or cash flow are actually working, book a free Profit Acceleration Session with Denali Edge Consulting:   denaliedgeconsulting.com/pas   Revenue feeds the ego. Profit feeds the family.

  6. Oct 6

    053. How Much Profit Should a Contractor Business Actually Make? Gross Margin vs. Net Profit Explained

    How much profit should a contractor business actually make?   It sounds like a simple question, but too many contractors are looking at the wrong number.   Revenue tells you how much you sold.   Gross profit tells you whether the work itself is profitable.   Net profit tells you whether the business is actually making money after everything else gets paid.   In this episode of Profit Isn’t an Accident, Shannon breaks down gross margin vs. net profit in plain English, explains why markup and margin are not the same thing, and shows you how to figure out where profit is actually leaking out of your business.   You’ll learn:   • The difference between revenue, gross profit, and net profit • Why a profitable job does not automatically mean you have a profitable company • How overhead impacts your bottom line • Why markup and margin get confused so often • Why there is no single “perfect” contractor profit margin • How to diagnose whether your problem is pricing, production, overhead, or volume • Why more revenue is not always the answer   Your homework is simple: pull your trailing 12-month P&L and identify your revenue, direct costs, gross profit, gross margin, operating expenses, net profit, and net margin.   Then ask yourself one question:   Where is the money actually going?   Because clarity comes before correction.   If you want help identifying the profit leaks in your business and building a company that gives you more freedom instead of consuming your life, book a free Profit Acceleration Session:   www.denaliedgeconsulting.com/pas   Profit Isn’t an Accident Own your business. Live your life.

  7. Oct 1

    052. Should a Business Owner Pay Themselves First? How to Pay Yourself Without Starving the Business

    “Pay yourself first” sounds like good advice.   But if you take too much cash out of the business too early, you can end up starving the company you are trying to build.   In this episode of Profit Isn’t an Accident, we break down how business owners should think about paying themselves without creating constant cash flow problems.   We cover the difference between owner compensation and owner distributions, why cash in the bank is not always available cash, how much should stay inside the business, and why your personal finances and business finances need to work together instead of constantly fighting each other.   You will also learn why random owner transfers create chaos, how to think about working capital and reserves, and why a healthy business should eventually be able to compensate the owner consistently without relying on credit cards or lines of credit to survive.   Your homework is simple: look at your last three months of revenue, expenses, payroll, debt payments, accounts receivable, cash, and owner compensation. Then compare that against what your household actually needs from the business.   If you are tired of guessing how much you can safely take out of your company, book a free Profit Acceleration Session with Denali Edge Consulting:   www.denaliedgeconsulting.com/pas   Own your business. Live your life.

  8. Sep 29

    051. $1 Million in Revenue and Still Broke? Where the Money Actually Goes in a Contractor Business

    You hit $1 million in revenue.   The crews are busy. The trucks are moving. Jobs are getting completed.   So why does the bank account still feel empty?   In this episode of Profit Isn’t an Accident, we break down where the money actually goes inside a contractor business and why strong revenue does not automatically mean strong cash flow.   We walk through a real-world $1 million contractor example and follow the money through direct job costs, gross profit, overhead, debt payments, taxes, accounts receivable, retainage, and owner compensation.   You’ll also learn why a business can show a profit on paper and still feel cash-starved, how growth can actually make the problem worse, and why job costing and collections matter just as much as sales.   This episode is for the contractor who is doing real revenue, staying busy, and still wondering where the money went.   Your homework: Pull your year-to-date numbers and look at your revenue, gross profit, gross margin, overhead, accounts receivable, cash balance, monthly debt payments, and tax reserves. Then review your last five completed jobs and compare what you expected to make against what you actually made.   If you’re tired of doing strong revenue and still feeling like cash is always tight, book a free Profit Acceleration Session with Denali Edge Consulting:   www.denaliedgeconsulting.com/pas   Own your business. Live your life.

See All (58)

Ratings & Reviews

About

Most trades businesses aren’t struggling because of a lack of work. They’re struggling because they can’t see where their money is going. Profit Isn’t an Accident is for HVAC, electricians, plumbers, and contractors who are busy, booked out, and still not seeing the money reflect the effort. Shannon Howard helps trades business owners find hidden profit, fix money leaks, and make better financial decisions without working more or chasing more jobs. If your business feels busy but not profitable, this show will help you understand why; and what to do about it.

Information

You Might Also Like