Beyond the Bid | Practical AI for Builders

Are You Busy But Broke? Escaping the Remodeler's 5% Net Profit Trap


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Why hitting $1M-$5M in revenue doesn't always mean success, and how to build a truly profitable remodeling business.

TL;DR (The 5-Bullet Lowdown)

  • The Trap: Many remodelers in the $1M-$5M range get stuck earning only ~5% net profit, feeling overworked ("busy") and financially strained ("broke") despite high revenue.  
  • Why It Happens: It's often a mix of weak financial controls, underpricing, messy operations, hidden cost creep, and the owner being stuck in the business, not on it.  
  • It's Critical: This stage is a make-or-break point. Escaping it means building systems for real scalability and increasing your business's value.  
  • The Escape Plan: Focus on financial discipline (like Profit First), strategic pricing (value over cost-plus), systemizing your operations (think E-Myth), controlling costs, and stepping into a true leadership role.  
  • Take Control: You can break this cycle by implementing these strategies, leading to better profits, less stress, and a business that doesn’t solely depend on you.  


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Beyond the Bid | Practical AI for BuildersBy GO First