Blue Collar Prosperity 059: The Average Home Service Company is on Financial Life Support with Paul Maskill
Jul 7, 2025
Home service companies often struggle with cash flow and profitability. A fractional CFO can help navigate financial decision-making and enhance pricing strategies. Debunking myths about profitability, the discussion highlights key metrics crucial for business sustainability. Adopting small, manageable habits can lead to significant financial improvements. With the right tools and assessments, owners can achieve better operational efficiency and, ultimately, financial freedom.
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Financial Fragility of Home Services
- The average home service company is financially fragile and close to failure.
- Many are just a few small financial changes away from significant success.
Purpose and Excuses in Business
- The number one purpose of business is to make money, enough to meet the owner's goals.
- Excuses like "more revenue later" or "not wanting to pay taxes" block profitability progress.
Profit and Cash Profiles by Company Size
- Different sized home service companies show distinct profit and cash health profiles.
- Companies under $1M excel in profit and cash reserves; those $1M-$4M struggle; $4M+ firms are more profitable but have the worst cash liquidity.
