[ON SITE] Epi 01: Why Carrying A Full-Time Crew Will DESTROY Your Cash Flow | Michael Day

Michael Day of Elite Contracting Services explains how he runs a highly profitable custom home building company with a lean team of five. By acting as a paper contractor and subcontracting all labor and estimating, he drastically reduces his financial risk and overhead. Michael breaks down his exact cost-plus pricing strategy, showing how line-itemizing project management labor before adding a 13.5 percent markup protects his margins. He also shares how a surprise three-week jury duty stint forced him to systemize his daily tasks , how he uses a one percent referral program to win custom builds , and his ultimate exit plan to transition the company into an Employee Stock Ownership Plan. Links & Promotions: 1 percent referral program: https://info.theprofessionalbuilder.com Quality control checklists: https://info.theprofessionalbuilder.com The Profit Builder's Playbook: https://profitablebuilderbook.com 🕒 Timestamped Key Points00:00 Taking over a failed luxury estate build02:00 Managing high risk architectural features and site utilities05:00 Why operating as a paper contractor reduces overhead08:00 Structuring cost plus contracts to hit twenty five percent margins10:00 Outsourcing estimating to remote workers14:00 Using drones for high level site quality control inspections29:00 How three weeks of jury duty exposed operational bottlenecks29:56 Transitioning your building company to an employee owned model34:21 Using a one percent referral program to win custom jobs*** The Professional Builder has helped over 3,100+ building companies around the world get more Profit, more Time and Succeed in Selling their Business. https://tinyurl.com/tpb-yt Subscribe to our channel for weekly, actionable insights. Tailored to help you grow a profitable construction business. Want to Join our coaching program? Or just speak to one of our team to see if it's the right fit for you? Hit the link below. Everything you need is there! https://tinyurl.com/tpb-ythttps://www.facebook.com/groups/TPBmember: https://www.facebook.com/TheProfessionalBuilderSee omnystudio.com/listener for privacy information.