https://www.foundationacs.com

Hello Profit Hackerz,

This episode is all about the most important number in your business: gross profit margin.

I explain what gross profit really is, how to calculate your margin, and why it tells you immediately whether your company is even viable.

If your margin isn’t strong, no amount of growth will save you.

We walk through simple examples, how gross profit affects your break-even point, and why increasing your margin makes everything easier — cash flow, hiring, and long-term growth.

If you only track one number, make it this one.

00:00 Why gross profit comes first
02:40 High school story and prioritizing numbers
06:10 What gross profit actually means
09:30 Using margin to beat your break-even
13:00 Simple travel analogy explained
16:40 How to calculate gross profit margin
19:30 Why higher margins equal faster growth
22:10 When to revisit estimating
24:30 Final thoughts on profitability
Do you currently know your gross profit margin?

https://www.foundationacs.com

Hello Profit Hackerz,

Today we start diving into business ratios and why they matter if you want to scale without going broke.

I explain how to think about your financials like a competition — some numbers are the champions you want growing (revenue, gross profit, net profit), and others are the bad guys you want shrinking (overhead, liabilities, truck costs).

We also introduce the three key ratios every contractor should understand:

Gross Profit Margin
Days in Accounts Receivable
Days in Accounts Payable

These numbers tell you exactly how healthy your business really is — and where things are slipping.

This episode sets the foundation for the next few where we’ll break each one down step by step.

00:00 Why most businesses fail while growing
02:20 Wrestling camp story
06:30 Champions vs bad guys on your financials
10:00 What a ratio really means
13:00 Picking which number should win
16:30 The 3 key contractor ratios
19:40 Why these ratios predict success
22:00 What’s coming next

Which of these numbers do you currently track in your business?

https://www.foundationacs.com

Hello Profit Hackerz,

In this episode, I break down one of the biggest mistakes contractors make when trying to grow: hiring too early without understanding their numbers.

I walk you through how to use your break-even point, gross profit margin, and “hill” (your overhead) to decide when it actually makes sense to add office staff, field techs, equipment, or software.

Growing isn’t just about selling more. It’s about growing strategically so you don’t bury yourself in overhead and cash flow problems.

If you’re thinking about hiring, expanding, or investing in new tools, this episode will help you slow down, run the numbers, and make smart moves instead of emotional ones.

00:00 Intro: Scaling without going broke
01:15 Childhood story and using your strengths
05:30 Why most contractors grow the wrong way
09:10 Understanding your “hill” and break-even
12:30 How to calculate if you can afford office staff
15:00 Hiring field techs vs admin staff
18:10 Equipment, trucks, and estimating impact
20:45 Matching production with sales
23:10 Knowing when it’s truly time to grow
25:40 Final advice on strategic hiring

What’s the next hire or upgrade you’re considering in your business right now?

https://www.foundationacs.com

Hey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.

In this episode, we continue the conversation on strategic scaling, and I walk through how to use a cost-benefit analysis to decide where to put your money — hires, equipment, subscriptions, systems, whatever it is.

A lot of businesses grow into cash flow problems because they start hiring and buying without knowing if the growth can actually support it. So I share a personal story and then tie it directly into a simple, practical approach: make a two-column analysis that shows how cash flow changes if you do the thing, and how cash flow changes if you don’t — including opportunity cost.

This is about scaling with clarity — not pressure, ego, or guesswork.

00:00 – Why companies grow into cash flow problems
01:46 – Cost-benefit analysis: how to decide where money goes
07:01 – The story payoff and why the investment was worth it
07:28 – The two-column method for business decisions
08:31 – Start with added income and opportunity cost
09:19 – Next: how costs change on both sides of the equation

💬 What’s the next purchase or hire you’re considering — and have you run a true cash-flow impact analysis on it yet?

Hey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.

In this episode, we talk about strategic scaling — and why so many contractors say, “I don’t want to grow, because when I grow, I make less money.” That’s not a growth problem — that’s a strategy problem.

We break down the concept that you personally are capped by time — and if you don’t have the right systems, you’re stuck trying to squeeze more money out of the same limited hours. Then I walk you through a practical way to identify where work is stacking up in your business (production, invoicing, sales, estimating, etc.) so you know exactly what to fix first.

If you want growth that actually increases profit, you have to find the bottleneck — and solve it on purpose.

00:00 – Why scaling feels scary for contractors
01:07 – The “2,080 hours” limitation (your personal cap)
01:50 – Why hiring unlocks production and revenue (when done right)
09:31 – Look at every process and find where work piles up
10:16 – Wrap-up: focus your strategy where the slowdown is

💬 If you had to pick ONE bottleneck in your business right now, what is it — production, estimating, sales, invoicing, or something else?

https://www.foundationacs.com

Hey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.

Today we’re talking about the other side of cash flow: how money comes IN — and why you need a written Accounts Receivable and Cash Receipts Policy so your team knows exactly how invoicing, deposits, collections, and deposits to the bank are supposed to work. I walk through the key pieces to include: having solid contracts and clear terms, nailing down where invoices are created (job costing software vs accounting software), recording deposits properly, using change orders to stay in scope, and building a collections process that’s consistent — not random. When you write it down, it becomes repeatable. And when it’s repeatable, your cash flow stops depending on memory and starts depending on process.

00:00 – Why an AR policy protects your cash coming in

01:32 – Why “make a list” matters (systems create momentum)

06:08 – Contracts & terms: the foundation of getting paid

09:18 – Progressive billing & where invoices should live

10:56 – Change orders: how contractors lose money fast

12:46 – Collections standards: reminders, schedule, and consistency

14:09 – Segregation of duties for receiving/depositing checks

15:21 – Audits & controls to keep reporting accurate

17:11 – Wrap-up: train your team and make it real

💬 Engagement Question: Do you have a written collections schedule, or are you mostly following up when things “feel overdue”?

https://www.foundationacs.com

Hey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.

In this episode, I’m walking through the Accounts Payable and Cash Disbursements Policy — the real-world rules that keep your payments organized, prevent costly mistakes, and protect your cash.

If you don’t have a written system for how bills get entered, approved, paid, and tracked, you’re leaving your business exposed. We talk through practical safeguards like segregation of duties (so one person isn’t controlling the whole money flow), keeping clean records across your accounting and job costing tools, and building strong vendor relationships so you can negotiate better terms and protect your cash position.

This one is about building structure so the cash going out of your company is controlled — not chaotic.

00:00 – Why an AP policy matters
00:59 – The key items your AP policy should cover
01:52 – The story that sets up why systems matter
15:18 – Using liens to protect payment timing
17:51 – Segregation of duties (how to prevent money walking away)
19:12 – Record-keeping: QuickBooks + job costing software alignment
20:25 – Vendor relations: terms, pricing, and setting clear expectations
26:27 – Wrap-up and next steps

💬What’s the weakest part of your bill-pay process right now — approvals, timing, record-keeping, or vendor communication?

https://www.foundationacs.comIn this episode of the Contractors Profit Hack Show, we dive deep into one of the most misunderstood topics in construction business: borrowing money.Special thanks to Dan Revisto for joining me on this episode and sharing his insights on borrowing, risk, and using capital as a strategic tool for growth.We talk about how to evaluate different types of loans, including revenue-based lending, why speed often matters more than interest rate, and how to think clearly about risk instead of reacting emotionally to debt. Not all capital is bad — when used correctly, it can be a powerful tool for growth.We also break down common misconceptions around HELOCs, personal guarantees, and separating business risk from personal assets. The goal isn’t to avoid borrowing at all costs — it’s to understand the full picture and make decisions that actually support your long-term goals.If you’ve ever felt stuck between needing capital and being afraid of the consequences, this conversation will help you reframe how you think about money, risk, and opportunity in your business.00:00 – Why borrowing money creates fear for contractors03:10 – Revenue-based loans explained simply07:45 – Why speed often matters more than interest rate12:30 – Understanding cash flow timing and payment cycles18:15 – Why borrowing too little can be more dangerous24:00 – The true cost of capital vs opportunity cost31:10 – HELOCs and the myth of “protecting” personal assets38:45 – Separating emotion from business decisions46:30 – Using debt as a strategic tool54:20 – Final thoughts on risk, growth, and mindsetHow do you currently evaluate whether a loan is worth taking in your business — by fear, by numbers, or somewhere in between?

🔗 https://www.foundationacs.com

Hey Profit Hackers! Today we’re continuing the AP conversation by talking about authorization, role clarity, and the “sandbox” concept.

I share a story from my grandpa that illustrates the importance of giving people clear boundaries — what they’re responsible for, what they can authorize, and what is outside their sandbox. This mentality helps prevent errors, misuse, and confusion inside your business.

We also explore how AP controls protect your cash, why every team member needs defined authority, and how to structure your processes so your business runs smoothly.

00:00 – Intro: The sandbox story
01:40 – Why authority must be clearly defined
03:20 – AP controls that protect your cash
05:55 – Assigning roles the smart way
08:30 – The danger of unclear permission
10:45 – How the sandbox method prevents mistakes
13:20 – Building policies that keep your business safe
15:40 – Final thoughts & next steps

💬 Question: Who in your business needs clearer boundaries or responsibilities?

🔗 https://www.foundationacs.com

Hello Profit Hackers! In today’s episode, we’re talking about accounts payable, documentation, and why writing things down protects your business.

I share a powerful story about Olympic wrestler Mark Schultz and how detailed journaling helped him improve faster than anyone around him. The same principle applies in contracting — when you write things down, you gain clarity, you make fewer mistakes, and you grow faster.

We cover how to document AP properly, what to track, and how consistent notes help you build a stronger, more reliable company.

00:00 – Intro: The Mark Schultz story
01:25 – Why writing everything down matters
03:00 – How documentation improves accuracy
05:10 – Tracking AP step-by-step
07:45 – Turning notes into better systems
09:30 – When documentation prevents disaster
11:45 – Wrap-up & action steps

💬 Question: What’s one thing in your business you need to start writing down consistently?