Learning Center · Profit Coaching
Work the levers in the order that pays.
There are only five levers on a trades P&L: price, volume, cost of delivery, overhead, and mix. They are not equally powerful, and the order you pull them in changes the answer. This track ranks them for your business specifically.
5
Tools in this track
The premise
“I know the number I want. I don't know which lever gets me there.”
The sequence
Do these in order. The order is most of the value.
- 01
Set the target
Decide the margin you are actually aiming at, and what it is worth. A target you can name is a target the team can be held to.
- 02
Rank the levers
The Profit Coaching Plan takes your P&L shape and sorts the five levers by dollars-per-point-of-effort, so you spend the quarter on the one that moves the number rather than the one that is easiest to talk about.
- 03
Resource it
Every lever needs either headcount, spend, or pricing courage. Size each one before you commit, so the plan survives contact with January.
The instruments
Everything in this track.
- Profitability
Where is my profit actually leaking?
Compare your gross margin, marketing and overhead against the benchmark band for your size, and price the gap in cash.
- Margin vs benchmark
- Profit left on the table
- What the gap is worth at exit
- Pricing
What do I have to charge per hour to survive?
Work backwards from overhead, headcount, and billable efficiency to the rate that covers it all.
- Break-even rate
- Target rate at your margin
- Billable efficiency
- Marketing
How much should I spend, and on what?
Set a defensible budget from revenue goals and cost per acquisition, then split it by channel.
- Annual and monthly budget
- Channel allocation
- Leads needed
- Profitability
Which lever earns the most, soonest?
Rank the five profit levers by what each is worth in your business, and see the plan that closes the gap to your target margin.
- Ranked levers
- Dollars per point
- Sequenced 12-month plan
- Valuation
What would better margins be worth when I sell?
See what closing the gap between your margin today and your target margin adds to enterprise value at 5×, 7× and 10×.
- EBITDA uplift
- Added enterprise value
- Value per margin point
- Strategy
How many techs do I need to hit my number?
Model headcount, ticket average, and calls per day against a revenue target.
In development - Valuation
What is a recurring plan member really worth?
Lifetime value of a plan member, and what recurring revenue does to your valuation multiple.
In development
Background reading
The guides behind these numbers.
- Financial Management Guide The five reports that actually run a trades business, how often to read them, and what to do when they disagree.
- P&L Analysis Guide How to read a trades P&L in ten minutes: the four ratios that matter, and the questions each one should trigger.
- KPI Dashboard Guide The twelve numbers worth tracking weekly in a trades business, what each one warns you about, and what to leave off.
- Margin Benchmarks Operating bands for trades and home services by revenue size — gross margin, marketing, overhead and net — and how to use them without misleading yourself.
Partnership
Run the numbers, then bring us the output.
Our operators have run trades businesses themselves. Show us what these tools told you and we'll tell you what we'd do about it.