My friend Kevin owns a home service franchise.
He grew it from $0 to $3M in revenue in less than 3 years
He called me last week to share a huge win: $750,000 in profit last year.
His net margins of 25% were almost DOUBLE vs. other owners in the same franchise who run 12-15%.
Here’s what he did differently:
1/ Prices everything at 55% gross margin, about 8% higher than others. He knows he closes fewer jobs because of it but the math proves it works.
2/ He built systems then handed them off to a remote employee. Scheduling, estimates, customer coordination, and job costing all done remotely at a fraction of the cost.
3/ For anyone who wants to pay with a credit card, he adds a 3% surcharge. Most people switch to ACH or check, which eliminates that cost entirely.
4/ He aggressively negotiates everything. Vendor pricing, terms, commission structure, and even franchise fees.
Kevin knows his P&L like the back of his hand. He can estimate how much profit he made each week before even looking at it.
Can you?
Too many owners treat their P&L like a rearview mirror. Glance at it, wince or celebrate, then move on.
“It’ll be better next month after I increase sales and do XYZ…”
Then next month comes and you breeze through it again with the same routine.
Meanwhile, cash is slipping through the cracks.
Pricing a little too low here. Labor creeping up there. A vendor rate you haven’t renegotiated in two years.
Kevin caught all of that because he stopped treating his P&L like a report card and started treating it like a map.
It gave him direction on what to focus on next.
I just created a program called Where Is All My Profit? that walks you through the same process. How to review your P&L, spot the leaks, and fix them one by one.
It’s the same framework I’ve used to grow my business
Cheers!
Brian
P.S. Sorry I can’t say which brand 🙂
