Why Busy Contractors Still Feel Broke

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If you’re doing $1M–$5M a year and still feel tight on cash, your income statement is trying to tell you something.

Revenue means nothing without margin clarity.

Your income statement breaks into three critical layers:

1️⃣ Revenue2️⃣ Direct job costs (materials, subs, labor, rentals)3️⃣ Overhead

Revenue – Direct Costs = Gross Profit.

For most trades, healthy gross margins land between 25–40%.

If yours is 15–18%, you don’t have a sales problem.You have a pricing or job-costing problem.

Then comes overhead.

Office salaries, admin, software, vehicles, insurance.

I see contractors grow revenue… and grow overhead faster.

Healthy construction companies typically net 8–15%.

If you’re netting 2–4%, one bad job can erase your year.

Most contractors look only at the bottom line.

The smart ones watch gross margin and overhead trends monthly.

Clarity beats hustle.

Every time.