How many of you establish a systematic budget of expenditures, income and profit? I bet less than one out of 10. This is another reason why, along with failure to understand simple mark-up procedures our industry reports an average pre-tax net profit of 2.7 cents for every $1 taken in, and why the average PHC contractor “enjoys” an annual salary of less than $44,000 — topped by many journeymen who work far fewer hours with far fewer headaches.
It is virtually impossible to achieve big financial rewards without paying attention to the business of contracting. Too many of you never see the forest because you are too busy examining the trees. That is, you concentrate on the day-to-day production phase of your business and don’t have enough time left over to plan the future or engage in the numbers crunching that is the essence of being a businessman.