Claim OwnershipContractor Cuts
Subscribed: 10Played: 122
Subscribe
© 2025 Contractor Cuts
Description
Join the ProStruct360 team on the Contractor Cuts podcast as we delve into the ins and outs of building and sustaining a thriving contracting business. Gain valuable insights and actionable tips from our experts who have successfully grown their own contracting company from the ground up.
Our show is dedicated to helping contractors like you unlock the secrets to increased profitability, efficient organization, and seamless processes within your company. Whether you're a seasoned professional or just starting out, our episodes cover key topics essential for your business growth and long-term success.
Make the most of your time between job sites by tuning in to our podcast and learn firsthand how to navigate the challenges of the contracting industry. Get ready to transform your business with valuable information that can potentially change the trajectory of your success.
Don't miss out on this opportunity to gain the knowledge and strategies you need to take your contracting business to new heights. Subscribe to Contractor Cuts today and empower yourself with the tools and insights to thrive in the industry.
161 Episodes
Reverse
We lay out a simple, construction-specific system for paying yourself with discipline using a three-account waterfall, then dive into owner pay, distributions, and the rules that keep taxes protected and jobs funding themselves. We share red flags to watch and a weekly cadence to build healthy reserves and reduce stress. • profit first adapted for construction cash flow • three core accounts with weekly sweep rhythm • strict rules for taxes, COGS, and personal pay • owner wages versus owner ...
We break down how contractors can stop mixing wages with profit, set a real project manager salary, and build cash reserves that make growth possible. A simple example shows how to allocate profit to taxes, owner distributions, and retained earnings without starving the business. • separating labor pay from company profit for solo operators • setting a fair PM salary while keeping profit in the business • targeting gross margin ranges by job size and risk • understanding revenue, gross profi...
Starting a contracting company doesn't require a huge nest egg—smart cash flow management and the right systems are more important than having six figures in the bank. • Commercial contracting requires significant cash reserves due to 30-60 day payment terms • Residential contracting has more flexible cash requirements, especially with weekly invoicing • Basic startup costs include licensing ($200-500), insurance ($1,500-3,000/year), and minimal marketing • Weekly invoicing strategy: bill fo...
Clark and Esther dive into the challenges of running a contracting business while trying to keep faith, family, and work in balance—and why protecting your marriage is just as important as growing your company. • How ignoring your spouse’s perspective can slowly erode connection • The hidden dangers of letting business stress spill over into your home life • Why transparency about financial struggles builds more trust than hiding them • The importance of scheduling recovery ...
Clark and James explore how building a contracting business affects your family relationships and what you can do to protect the people who matter most. • The dangerous moving goalposts of promising "once I reach this milestone, then I'll have time for family" • How the transition from employee to owner creates new stress patterns in personal relationships • Why staying silent about work stress actually harms your marriage • The importance of working proactively on next week's jobs instead o...
Clark Turner explores the delicate process of separating from subcontractors, completing a three-part series on subcontractor management with practical advice on how to handle difficult termination scenarios. • Creating exit strategies for subcontractors who aren't the right fit but produce decent work • Using thorough documentation to build a case when quality issues force termination • Taking specific legal steps when firing a subcontractor to protect your business • Preparing detailed ema...
We continue our series on vendor management by focusing on how to effectively manage crews from their first job through establishing a long-term relationship. • Horror stories about bad crews illustrate what can go wrong without proper management • Red flags during interviews include claiming to "do everything" while green flags include transparency about specialized skills • Requesting photos of previous work helps assess quality and attention to detail • Building a "bullpen" of vetted crew...
Successful contracting businesses need strong partnerships with subcontractors and vendors, which starts with a proper onboarding process designed to create long-term, profitable relationships for everyone involved. • Two main categories: day-to-day crews (smaller operations handling labor) and larger vendors (established companies with their own processes) • Large vendors require basic information collection, W-9s, and Certificates of Insurance with your company listed as a holder • Smaller...
Clark Turner reveals the top 10 critical items contractors forget to include in their estimates, resulting in lost profits and awkward change order conversations. He shares practical strategies for building comprehensive estimates that protect your margins and enhance client relationships. • Due diligence line item covers pre-construction work like Gantt charts, selection workbooks, and MEP walks • Design fees for renderings, layouts, or interior designer consultation should always be includ...
Clark and James tackle the challenges of estimating for profit in the contracting business, exploring strategies to price jobs appropriately while competing with lowballers and maintaining healthy margins. • Detailed estimates showcase expertise and help filter out price-focused clients • The "cream rises" philosophy: focus on attracting clients who value quality over price • Communicate transparently about potential issues competitors might not mention • Three-phase estimation: desk e...
Proper projection planning is the key difference between struggling contractors and those who build consistently profitable businesses. We share how planning out your work calendar for the coming months transforms both client satisfaction and profitability. • Most contractors operate job-to-job, causing poor client experiences and lost business • Laying out detailed project timelines with realistic durations prevents schedule problems • Scheduling critical path items (like shower glass and c...
Strategic pricing based on lead sources and client types can dramatically improve your contracting business's profitability and success rate. We explore how to tailor your approach and pricing for homeowners, investors, and agent referrals to win more jobs and maximize your margins. • Three main types of residential clients: homeowners (focused on quality and experience), investors (driven by price and ROI), and agent referrals (reputation-focused) • Homeowner clients need guidance on the "c...
Contractors often accept every job that comes their way, leading to poor customer experiences and damaged reputations. We explore strategies for wisely selecting projects and communicating effectively with clients to protect your business. • Understand the "Fruit Bowl Metaphor" – taking on too many jobs without capacity to service them leads to spoilage • Frame declinations around customer benefit rather than your convenience • Two types of "no" in contracting: jobs outside your expertise an...
We deliver essential insights on implementing a work order system that creates financial accountability and sets clear expectations between contractors and subcontractors. This system eliminates the costly "expectation gap" that occurs when client promises don't precisely match subcontractor instructions. • Work orders transform verbal agreements into documented commitments • Creating work orders directly from approved client estimates ensures perfect alignment • The system locks in labor co...
Clark and James tackle the pervasive feelings of isolation and imposter syndrome that plague many contracting business owners, offering practical advice for breaking free from these destructive patterns. • Text messages and emails from struggling contractors reveal the emotional toll of the business • Constant criticism from customers, vendors, and sometimes family members creates a uniquely isolating environment • Most contractors "fall backwards" into the industry rather than choosing it a...
Time slippage is a hidden money drain that costs contracting companies thousands of dollars in lost profit. We reveal how making simple adjustments to project timelines can dramatically increase your bottom line without requiring more work. • Timeline management is critical for three main reasons: customer satisfaction, crew retention, and company profitability • Poor timeline control can reduce a contractor's take-home pay from $100,000 to just $40,000 annually on $1 million in revenue • Ef...
We explore the controversial world of managing subcontractors effectively, revealing how the right payment structure and relationship management can dramatically improve your contracting business's profitability and operations. • Avoiding the pitfalls of the traditional daily/hourly labor model for subcontractors • Why a work order system that ties payment to completed work rather than time spent creates fairer partnerships • The difference between general crews (kept busy 5 days/week) and s...
We tackle the delicate balance of working with friends and family in the contracting business, focusing on proper pricing strategies to maintain both relationships and profitability. • Never give upfront discounts to friends and family • Always build in extra padding (35% profit minimum) for unexpected issues • Story about refinishing hardwoods for a relative and the importance of having cushion • If everything goes well, you can discount the final invoice down to 25% profit • Minimum 25% pr...
We dive deep into the critical distinction between managing job site finances and company finances, revealing how separating these two areas creates the foundation for sustainable growth and profitability. Our systematic approach to money management transforms leaky financial buckets into predictable profit centers while eliminating the hidden costs that drain most contracting businesses. • Identifying the biggest job site financial leaks: poorly written estimates and unclear client agreemen...
Successful contracting businesses are built on six fundamental pillars that form the KROFF framework: Knowledge, effective sales and marketing, Relationship management, Operating systems, Financial management, and Finding the right people. • Knowledge is the foundation – you must understand construction basics before managing others • Effective sales requires consistent lead generation from referrals, online presence, and local marketing • Systematic estimating and follow-up processes ...
Comments
Download from Google Play
Download from App Store
United States