In this episode of the HVAC Know It All Business Edition Podcast, co-hosts Gary McCreadie and Furman Haynes from WorkHero sit down with financial expert Ruth King, Founder and CEO of Financially Fit Business and CEO of Business Ventures Corporation to discuss how contractors can build sustainable profitability by focusing on the right financial metrics. Rather than obsessing over traditional profit margins, Ruth explains why net profit per billable hour is the metric that truly matters and how contractors can calculate it to price their services correctly. The conversation explores pricing strategies, managing overhead while scaling, and the financial habits that help businesses grow without losing profitability.

Ruth King is a well-known financial expert and business coach specializing in helping contractors understand and improve their financial performance. With nearly four decades of experience analyzing small business financial statements, Ruth has helped thousands of contractors learn how to interpret their numbers and build profitable companies. Ruth is also the author of The Courage to Be Profitable.

Expect to Learn

- Why net profit per billable hour matters more than traditional profit margins

- How contractors can calculate overhead cost per hour using their financial statements

- The financial challenges contractors face when scaling from one truck to multiple crews

- Key balance sheet ratios that indicate healthy business growth

- The three financial habits every new contractor should adopt immediately

Episode Breakdown with Timestamps

[00:00:00] – Introduction

[00:01:34] – Why Profit Margins Can Be Misleading

[00:03:45] – Calculating Overhead Cost Per Hour

[00:06:14] – Managing Overhead While Scaling

[00:09:26] – Financial Health Metrics for Growing Companies

[00:11:21] – Financial Tools and Technology in Contracting

[00:15:11] – Three Financial Habits for New Contractors.

[00:18:37] – Closing Thoughts

This Episode is Kindly Sponsored by:

PartsTown: https://www.partstown.com/hvac-parts

Follow our Guest Ruth King:

LinkedIn: https://www.linkedin.com/in/ruthking1/

Ruth's Website: https://ruthkinghvac.com/

Company Website: https://financiallyfit.business/

Company LinkedIn: https://www.linkedin.com/company/financially-fit-business/

Company Facebook: https://www.facebook.com/people/Financially-Fit-Business/100090849001161/

Follow Gary McCreadie:

LinkedIn: https://www.linkedin.com/in/gary-mccreadie-38217a77/

Website: https://www.hvacknowitall.com

Facebook: https://www.facebook.com/people/HVAC-Know-It-All-2/61569643061429/

Follow Furman Haynes:

LinkedIn: https://www.linkedin.com/in/furmanhaynes/

WorkHero: https://www.linkedin.com/company/workherohvac/

Instagram: https://www.instagram.com/workhero__/