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.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.