The Construction Leading Edge Podcast

How We Found $400,000 of Hidden Profits in A Custom Builder's Business | EP 426

Jan 12, 2026
Discover how a $5 million custom builder found $400,000 in hidden profits without taking on new projects. The chaos stemmed from poor planning and outdated systems. By diagnosing issues like missed opportunities and inefficiencies, the hosts outlined a three-step solution that emphasizes documentation and effective pre-construction processes. They explore the importance of focusing on mission over wish lists and the impact of strategic management in transforming a construction business into a smoother, more profitable operation.
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ANECDOTE

Busy But Stagnant Builder Story

  • Mike and Dan ran a $5M custom home business where details fell through the cracks and owners were trapped in firefighting.
  • They had tribal knowledge, profit bleeds, and felt the business was structured for stagnation not growth.
INSIGHT

Just-Enough-To-Start Trap

  • The "just enough to start" trap creates invisible chaos that multiplies across jobs into significant profit bleed.
  • Small decision delays (like late window approvals) cause schedule, re-mobilization, and carrying-cost losses.
ADVICE

Get Owners Out Of Firefighting

  • Stop spending owner time on firefighting and low-value tasks so leaders can focus on business development and team building.
  • Reclaiming that time allows owners to hire better trades and design a superior customer experience.
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