Everyone who starts a business knows profitability is important, but too often contractors treat it as optional. This podcast goes along with a recent C&R article titled "The 4 Modes of Profitability for Contractors." It was the first in a series to attempt to help new entrepreneurs, in-progress contractors, and aspiring persons in a position of leadership to better grasp the essential nature of overhead and profit (O&P) within the skilled trades.
If a contractor charges for some level of overhead and profit (O&P) they will have a fighting chance every year and will be ahead of many of their competitors." - Jon Isaacson
In this episode of Restoration Today, Jon Isaacson, the author of the first article and orchestrator of the entire series, walks through how contractors can help themselves and their team members form better mindsets and habits as they think through the four modes of profitability for contractors.
The video and article discuss The 4 Modes of Profitabliy for Contractors:
This is the first in a series of articles; upcoming features in C&R Magazine will include input from Ben Justesen, Anthony Nelson, and Ed Cross. Ben will help contractors to understand their numbers and incorporate them into their true labor burden (Labor + O&P). Anthony will share his vast experience in tracking material, equipment, and other cost realities to more accurately incorporate these items into your estimating process (Materials + O&P). Ed Cross has some exciting news to share from the frontlines of overhead and profit collection. All of these concepts will help contractors to determine the appropriate markups (what you add) to achieve their margin (what you make) goals.
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