Navigating Business Evolution and Multi-Venture Challenges

This chapter explores the journey of a business that started with restaurant renovations and diversified into construction, catering, and rentals. The speaker shares reflections on changing motivations, challenges of managing multiple interests, and the importance of strategic growth amidst financial pressures.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

In this episode of the Contractor Intervention, Tom sits down with Austin, a GC from Pennsylvania who has struggled with negative net profit for four years. Juggling multiple businesses, his construction company isn't making money. In this conversation, they break down the root cause of his financial struggles and uncover the number one thing that will immediately move the needle toward profitability. If you’re stuck on a financial hamster wheel, this episode is for you.

In this episode, we discuss:

[00:00] Introduction to Austin and his contracting business
[01:55] The various businesses Austin has been involved in over the years
[03:22] Breaking down his construction revenue and financial struggles
[04:51] The reality of bringing in revenue vs. actually making a profit
[06:19] Job costing, inefficiencies, and how small improvements can boost margins
[07:43] The importance of pre-job costing and estimating at a 50% gross profit
[09:37] The key problem behind four years of unprofitable business
[11:03] The dangers of chasing too many business ventures at once
[12:32] Why Austin needs to go all-in on his highest-earning opportunity: Construction
[13:59] The limiting belief around raising prices—and why contractors CAN charge more
[15:56] How sales training can make the difference between profit and loss
[17:54] Austin’s struggle with pricing and how small adjustments can add up
[19:15] The right way to approach pricing and bracketing in sales conversations
[22:33] The role of pre-selling and setting expectations with homeowners
[24:52] Austin's current bottlenecks: too much fieldwork, not enough sales focus
[26:44] The impact of hiring a project manager or admin assistant
[28:39] Building a strong subcontractor network to scale up
[30:33] The common mistake of trying to serve too many low-dollar clients
[33:02] Two key lessons: commit to 50% gross profit and invest in sales training
[36:43] Why being emotionally unattached to sales outcomes is a game-changer
[40:59] How a contractor can completely transform their financials within a year
[44:53] The long-term benefits of sales mastery and strategic pricing
[50:09] Wrapping up: Key takeaways and next steps for Austin
[51:37] Where to find Austin and connect with his business

Resources:

⚔️ WAR ROOM

Ready to scale your business to $5,000,000 or more? No theory. No fluff. Pure action. Join nine other battle-tested contracting companies from across the country to tackle your biggest challenges head-on.

https://thecontractorfight.com/war-room

🧰 CONTRACTOR BUSINESS SCHOOL

If you’re serious about building a profitable, structured contracting business without the chaos, this is your shot. Get the tools, insights, and mentorship you need to level up—on YOUR time, at YOUR pace.

https://contractorbusinessschool.com/

⭐️⭐️⭐️⭐️⭐️ Grab our NEW course to grow your business

5 Steps to 5 Stars: How to Charge Premium Prices and Never Run Out of Leads

https://thecontractorfight.com/5-stars/

🛡️ Join us in BATTLEGROUND

Everything your contracting business needs in one comprehensive program. Three main focus areas: Leadership, Communication, and Numbers.

https://thecontractorfight.com/battleground

💰 Calculate 50% Gross Profit on Every Job

Download our worksheet and start pricing your jobs profitably.

https://thecontractorfight.com/50/

🎧 Get on the podcast!

https://thecontractorfight.com/intervention