There was a point in my business where the field was maxed out. Everyone was busy. The jobs were coming in. From the outside it looked like we were growing. But the numbers were not where they should have been. We were working hard but not keeping enough of what we earned.
So I went back and looked at the business we were doing. That is when I found the real problem. We had several customers who took a lot of time and attention but did not make any money. Some were break even at best. A few were probably costing us money once we factored in the hours, the support, and the returns.
When their contracts came up for renewal, I went back to those customers and said we needed to adjust the agreement. Some walked away. Others agreed to new terms and stayed with us. The result was simple. Once we stopped spending time on unprofitable work, we had room to take on business that actually paid.
And here is the bigger issue I see everywhere. Too much of today’s business world is focused on top line revenue. Everyone talks about how to scale from three million to thirty million. No one talks about how to turn a one hundred thousand dollar profit into a five hundred thousand dollar profit. In my mind the top line does not matter. What matters is the bottom line. What you keep. What feeds your family. What keeps the company strong.
You have to be profitable before you scale. If you scale something that does not make money, you only end up with a larger version of the same problem.
Break down your jobs by margin, not just revenue. When you know which work pays and which work drains your time, you can make better choices about what to keep, what to fix, and what to stop doing.
Pushing harder is not always progress. Plan growth that matches your crew, your capacity, and your profit goals. Steady growth protects your people and your margins.
