Making Smart Decisions with Your Numbers

Knowing your numbers is just the first step. Many service business owners glance at revenue and assume they’re doing well — but without context, you could be missing hidden costs or profit leaks. This post breaks down practical ways to leverage your numbers to make confident, profitable decisions.

Revenue alone doesn’t tell the full story. Labor, materials, overhead, and recurring costs all impact your bottom line. Ignoring these details can lead to underpricing, poor hiring choices, and missed opportunities for growth.

Key Lessons from Lesson 45:

• Understand your margins: Gross margin shows what’s left after direct costs, and net margin accounts for overhead. Knowing both ensures your pricing is profitable.

• Track recurring costs: Don’t just focus on immediate job revenue. Recurring costs and overhead reveal where money is being lost.

• Make data-driven decisions: When pricing, hiring, or planning for growth, let the numbers guide you instead of guesswork.

Practical Action Step:Pick three recent jobs or projects. List revenue, labor, and overhead for each. Calculate gross and net margins, then identify one small change — a price adjustment or efficiency improvement — that could increase profitability immediately.

Businesses that actively monitor and apply their numbers can prevent costly mistakes, make smarter growth decisions, and scale sustainably without burnout.