The Contractor Fight with Tom Reber

See what needs your attention in your contracting business:

https://bit.ly/BuildABusinessWorthHaving_cto

Do you know what it actually costs to operate your contracting business for one hour?

Most contractors know what they charge customers. They know what they pay their employees. But they don't know what one billable hour actually costs their business.

And that difference could be costing them thousands of dollars in profit.

In this episode, Tom Reber breaks down how to calculate your true hourly operating cost so you can stop guessing and start understanding what your contracting business needs to produce.

Using an example with four field employees, Tom walks through how to calculate realistic billable hours, allocate company overhead, and account for the true cost of field labor.

The result? A business paying an employee $30 an hour could actually be spending $92 per billable hour before making a single dollar in profit.

Understanding this number doesn't tell you what to charge. It tells you what your business actually costs to operate so you can make better decisions about your jobs, your crews, and your profitability.

In this episode:

• Why paid hours and billable hours aren't the same thing
• How to calculate your team's realistic annual billable capacity
• How overhead and labor burden determine your true hourly operating cost
• Why a $30-per-hour employee could cost your business $92 per billable hour
• The difference between operating cost and what you should charge customers
• How wasted time and inaccurate estimates affect your profitability

Chapters:

00:00 — What does one billable hour actually cost your business?

00:31 — The difference between paid hours and billable hours

01:32 — Calculating your team's realistic billable capacity

02:44 — Calculating overhead cost per billable hour

03:59 — Calculating your true field labor cost

04:45 — The $92-per-hour operating cost example

05:58 — The difference between operating cost and selling price

06:42 — Your fight this week: Calculate your number

Your challenge:

Pull your numbers from the last 12 months and figure out three things:

1. What does it actually cost to keep your contracting business running?
2. How many billable hours can your team realistically produce?
3. What does your field labor actually cost after accounting for labor burden?

Take your annual operating costs and divide them by your realistic annual billable hours. Then add your burdened field labor cost.

That's your estimated cost per billable hour before profit.

If you've been setting prices based on what competitors charge or what you pay your employees, it's time to understand what your own business actually costs.

And if this exercise revealed that you're guessing at important numbers, there may be other areas of your business that need attention.

Take the free Build a Business Worth Having Scorecard to uncover what's holding your contracting business back and identify where to focus first.

It takes about three minutes.

https://bit.ly/BuildABusinessWorthHaving_cto

Knowing what an hour costs your business isn't the same as knowing what to charge for it. But you can't make smart pricing decisions until you understand your costs.

#ContractorPricing #ContractorProfit #ContractorBusiness

See what needs your attention in your contracting business:

https://bit.ly/BuildABusinessWorthHaving_cf1

Contractor finances are about more than revenue.

You can run a $2 million, $5 million, or even $10 million contracting business and still not know if you’re actually making money.

Revenue tells you how big your business is. It doesn’t tell you how healthy it is.

In this episode, Tom Reber breaks down the 6 numbers every contractor needs to know to understand the financial health of their business: revenue, gross profit, overhead, net profit, cash flow, and owner’s compensation.

These numbers show you what your work is actually producing, what it costs to run the company, how much profit is left, whether you have enough cash to cover what’s due, and what the business is ultimately producing for you.

If you want to get control of your contractor finances, you don’t need to become an accountant. You need to understand your numbers well enough to make better decisions.

In this episode:

• The 6 financial numbers every contractor should know
• Why revenue alone doesn’t tell you whether your contracting business is healthy
• How gross profit shows what your jobs are actually producing
• Why Tom pushes contractors to bid at a minimum 50% gross profit
• How overhead affects what your business needs to produce every day
• Why more revenue doesn’t automatically mean more profit
• The difference between net profit and cash flow
• How accounts receivable can leave a profitable contracting business short on cash
• Why owner’s compensation matters when measuring what the business actually produces for you

Chapters:

00:00 — Contractor finances: Is your business healthy?

00:43 — #1: Revenue

01:36 — #2: Gross profit

02:44 — Build a Business Worth Having Scorecard

03:09 — #3: Overhead

04:00 — #4: Net profit

05:18 — #5: Cash flow

06:04 — #6: Owner’s compensation

06:56 — How the 6 financial numbers work together

07:44 — Find the number you don’t know

Your challenge:

Pull your P&L and your receivables and find all six numbers:

Revenue. Gross profit. Overhead. Net profit. Cash flow. Owner’s compensation.

If there’s one you can’t answer, start there.

You can’t make good decisions with numbers you don’t know. Getting control of your contractor finances doesn’t mean becoming an accountant. It means understanding your company well enough to know what the business is actually producing for you.

Take the free Build a Business Worth Having Scorecard to see where your business needs your attention right now:

https://bit.ly/BuildABusinessWorthHaving_cf1

The goal isn’t just to build a bigger contracting business. It’s to build one that’s actually worth having.

#ContractorFinances #ContractorFinance #ContractorProfit

See if you've built a business worth having: https://bit.ly/BuildABusinessWorthHaving_itf1

Jarrod was working sunup to sundown at least six days a week.

He had moved to Colorado with his wife to build a new life, but instead of having the freedom to enjoy it, most of his time was consumed by work.

Today, that's starting to look very different.

In this episode of Inside The Fight, Tim and Derek sit down with Jarrod, owner of Alpine Design and Remodeling, to talk about how he went from grinding six days a week, not knowing his numbers, and struggling to step away from work to building a contracting business he can actually be proud to own.

They break down:

• Why working sunup to sundown six days a week was costing Jarrod more than just his time

• How learning his numbers changed the way he thought about growing and scaling his business

• Why moving from Minnesota to Colorado forced him to get uncomfortable and make major changes in his life

• How coaching helped Jarrod build confidence, communicate better, and change the way he saw himself

• Why head trash can limit what contractors believe they can accomplish and what they're willing to charge

• How Jarrod went from feeling like he couldn't afford to take a day off to stepping away from the field without worrying about it

Chapters

00:00 Jarrod's Move to Colorado and Starting Over

02:58 Building a Business Worth Owning

05:56 What Wasn't Working Before The Fight

08:32 How the Grind Was Affecting His Home Life

10:35 Realizing There Was a Better Way

14:32 The Coaching Moment That Changed His Identity

19:23 The Change Jarrod Resisted the Most

23:21 Learning to Track the Numbers That Matter

25:21 What His Business Allows Him to Do Now

33:42 The Head Trash Holding Contractors Back

Jarrod didn't just need a better business strategy.

He needed to change the way he thought about his business, his time, and what was actually possible for his life.

Because building a successful contracting business isn't just about working harder or generating more revenue.

It's about building something worth owning.

Tom Reber is the founder of The Contractor Fight. He is the host of Contractor Fight TV, an entrepreneur, a speaker, a podcaster, and a former HGTV host.

For over 20 years, Tom has helped hundreds of thousands of contractors build businesses worth having.

He does this by helping them become the kind of people capable of building them.

On this channel you will find straight-talk training for your business.

We cover sales, pricing, profit, leadership, and mindset.

Our goal is to build a Strong You, a Strong Home, and a Strong Business.

The first fight is always with yourself.

Join The Fight. 👊

https://bit.ly/BuildABusinessWorthHaving_tob

Successful, Miserable, Trapped

You got the trucks, the crew, and the revenue number you used to dream about.

From the outside, it looks like you’ve made it. But you can’t take a week off. Every important decision comes back to you. And somewhere along the way, you stopped thinking about what the business could become and started focusing on getting through the day.

In this episode, Tom Reber explains how a contractor can build a successful business and still feel miserable and trapped inside it.

The usual scoreboard measures revenue, trucks, and head count. It doesn’t tell you whether the business pays you well for the roles you’re filling, gives you a life outside of work, or can function when you step away.

In this episode:

• Three signs you may be trapped in the business you built
• Why a business that can’t run for a week without you has a serious problem
• How you can be the highest paid employee and the lowest paid owner
• Why being great at your trade can lead to years of reacting instead of building
• How to define what you need the business to pay you and how much time you’re willing to give it
• Which roles to start moving off your plate
• Why healthy margins give you room to make those changes

Chapters:

00:00 — You hit the goal, so why do you feel trapped?

01:56 — Sign #1: The business can’t run a week without you

02:47 — Sign #2: You’re the highest paid employee and lowest paid owner

03:40 — Sign #3: You stopped imagining what’s next

04:14 — How you became the person who solves everything

05:35 — Successful, miserable, trapped

06:03 — Decide what the business is for

06:24 — Decide which roles you’ll leave

06:47 — Fix the margins that make change possible

08:40 — Your business doesn’t have to be a life sentence

Your challenge:

Write down two things: what you need this business to put in your pocket and how many hours you’re willing to work.

Then look at the roles you’re filling right now. Which one makes the best use of your time? Which ones need someone else in the seat, and when will you make that happen?

A bigger business won’t automatically give you a better life. You have to decide what worth having means to you and build toward it.

Take the free Build a Business Worth Having Scorecard to see which problems are costing you the most:

https://bit.ly/BuildABusinessWorthHaving_tob

The business you have today doesn’t have to be the business you’re stuck with forever.

https://bit.ly/BuildABusinessWorthHaving_rbo

Why More Revenue Won't Fix Your Burnout

You’re doing $1 million, maybe $2 million a year.

You’ve got a crew. Your trucks are wrapped. People in town know your name.

And somehow, you’re more exhausted than when you were running the business solo.

In this episode, Tom breaks down why contractor burnout isn’t always the result of working too hard.

It’s what happens when you keep working hard without making real progress.

More revenue. More employees. More leads. More responsibility.

But you’re still selling the jobs, solving customer problems, making every important decision and putting out fires every week.

On paper, the business has grown.

In reality, it still depends on you.

Taking a vacation doesn’t fix that. Hustling harder doesn’t fix it either.

The solution is building a business that can operate without everything running through you.

In this episode:

• Why hard work alone isn’t what burns contractors out

• How more revenue can still leave you running in place

• Why your business should depend less on you as it grows

• How constantly saving the day keeps the business from progressing

• Why taking time off doesn’t fix the underlying problem

• The importance of building a sales process that doesn’t live in your head

• Why your crew needs standards they can execute without you

• How training people to make decisions gives you back your time

• Why better visibility into your numbers matters

• Why a growing business should eventually become easier to run

Your challenge:

Look at your business and identify where it still depends on you like it did in year one.

Sales.

Production.

Customer problems.

Money.

Day-to-day decisions.

If everything still has to go through you, more revenue isn’t going to solve the problem.

You have to build a business that needs less of you in the right places.

Take the free Build a Business Worth Having Scorecard to see what needs your attention and identify the bottlenecks keeping you from getting ahead:

https://bit.ly/BuildABusinessWorthHaving_rbo

You’ve already proven you can hustle.

The next level isn’t more of you.

It’s building a business that can grow without everything depending on you.