The Contractor's Profit Hackz

https://www.foundationacs.comHello Profit Hackers,In this episode, we wrap up KPIs and talk about something even more important — tracking the right numbers for YOUR business.Not every KPI matters. In fact, most don’t.The key is identifying the right numbers that drive performance in each area of your business and focusing on those.We also introduce the concept of GIGO (Garbage In, Garbage Out) — because if your data is bad, your decisions will be too.If you want clarity, simplicity, and better results, this episode will help you dial in what actually matters.00:00 Intro to final KPI discussion02:00 Wrestling story (adjustments)05:30 Why one strategy isn’t enough08:00 Standard KPIs vs custom KPIs10:00 Throwing out unnecessary metrics12:00 One number per role concept14:00 Examples (sales, crews, equipment)16:30 Using KPIs as indicators18:30 What is GIGO20:30 Why bad data kills decisions22:00 How to choose your KPIs24:00 Final takeaway

https://www.foundationacs.comHello Profit Hackers,Today we’re breaking down profit per truck (or per crew / per employee) and how to actually use it the right way.This is a powerful KPI — but only if you use it correctly.Most contractors make the mistake of looking at one or two jobs and assuming that’s their average. That’s where things go wrong.Instead, we walk through how to build a true average using historical data and then use that number to evaluate performance, spot inefficiencies, and improve your operations over time.This is how you turn data into better decisions.00:00 Intro to profit per truck01:00 Daughter homework story04:00 The “index” lesson06:00 Common mistake contractors make07:30 Why 1–2 jobs isn’t enough08:30 How to calculate true averages10:00 Revenue vs profit clarification12:00 Using historical data properly14:00 Comparing jobs to your average16:00 Finding inefficiencies18:00 Improving performance over time20:00 Final takeaway

https://www.foundationacs.comHello Profit Hackers,Today we’re talking about one of the most important (and simplest) numbers you can track in your business — average job size.If you want to understand your marketing, predict your revenue, and build a system that actually scales, you need to know what each job is worth on average.Once you have this number, everything changes. You can finally connect your marketing spend to real dollars coming back into your business and start making decisions with confidence instead of guessing.This is one of those numbers that turns your business into a machine.00:00 Intro + snow in Utah01:00 Wrestling story (expectations)04:50 Coaching moment that changed the match07:00 Why expectations matter in business08:20 Marketing funnel breakdown09:20 Why average job size matters09:56 How to calculate it10:46 Example: $30K job average11:20 Connecting marketing to revenue12:00 $1 → $12 explained13:00 Final takeaway

https://www.foundationacs.comIn this episode, we break down the Current Ratio, a number banks use to determine whether or not they should lend you money.This ratio compares your short-term assets to your short-term liabilities and answers a simple question:If you’re planning to grow, borrow money, or just want peace of mind, this is a number you need to understand.00:00 What the current ratio is02:17 Daughter hospital story05:30 Why banks use this number08:00 What counts as current assets10:30 What counts as current liabilities12:40 How to calculate the ratio14:30 What a good ratio looks like16:00 Why 2:1 matters18:00 How banks evaluate you20:30 Final thoughtsDo you know your current ratio, and would a bank approve you today based on it?

https://www.foundationacs.comIn this episode, we talk about ROAS (Return on Ad Spend) and how to track your marketing in a way that actually makes sense for contractors.Not all marketing is billboards and ads. Sometimes it’s relationships, lunches, time, and effort. The key is tracking all of it so you know what’s actually producing results.00:00 What is ROAS02:49 Grandpa’s garden story06:25 Contractor-style marketing09:00 Tracking time and money spent12:00 Using QuickBooks for tracking15:00 Setting up customers and sub-customers18:40 Measuring relationship investment22:10 Calculating return26:30 Example: $1K → $15K30:00 Why this mattersDo you currently track your marketing spend and results, or are you mostly guessing?

https://www.foundationacs.comIn this episode, we tie everything together and talk about the four most important numbers you should be tracking in your business.We recap:• Gross Profit Margin• Days in Accounts Receivable• Days in Accounts Payable• Net Profit (in dollars)If you want a simple, clear way to understand the health of your business without getting overwhelmed, this episode lays it out for you.00:00 Recap of the 3 key ratios01:31 Why net profit matters most02:20 Trampoline story (learning curve)06:10 Understanding the “hill” concept09:30 Why net profit isn’t a percentage13:00 What happens when revenue doubles18:00 How profit actually scales22:00 What to track moving forward27:50 Final takeawayWhich of these four numbers do you track consistently right now?

https://www.foundationacs.comIn this episode, we break down Days in Accounts Payable, one of the most overlooked numbers when it comes to managing your cash flow.I walk through how to calculate it step by step, what it actually means, and how it impacts your business. The goal is simple: understand how long it takes you to pay your bills and how that timing affects your ability to operate.We also compare this number to Days in Accounts Receivable and show why the relationship between the two is critical. If you’re paying out faster than you’re getting paid, you’re creating unnecessary pressure on your cash.00:00 Intro to ratios and AP02:24 Kidney infection story (warning signs)05:36 Why contractors delay payments06:15 Step 1: Find beginning AP balance07:33 Step 2: Find ending AP balance08:12 Step 3: Calculate average AP09:12 Step 4: Add cost of goods sold10:15 Step 5: Calculate the ratio11:31 Convert to days (×365)13:43 Comparing AP vs AR16:05 Final takeaway on cash flowDo you currently know how many days it takes you to pay your bills?

https://www.foundationacs.comHello Profit Hackers,In this episode, I sit down with my good friend Michael Glassford of Legal Ink Estate Planning to talk about something most business owners avoid… until it’s too late.We cover estate planning, trusts, LLC structure, contracts, asset protection, and the real-world mistakes contractors make that can cost them everything.Michael has a unique way of explaining complex legal ideas using movies, stories, and real-life examples that make it easy to understand. More importantly, he leads with his heart. He focuses on helping families and business owners protect what they’ve built so they can live confidently now — not just plan for someday.We break down:• Why estate planning isn’t just about death — it’s about living well• The difference between a will and a trust (and why it matters)• The 3 biggest limiting beliefs that stop people from creating a trust• How LLCs actually protect you (and how they fail when done wrong)• Why commingling funds can destroy your liability protection• What makes a strong business contract• Why preventative law is cheaper than fixing mistakes later• How to think about shielding your life and assets like the Star Trek EnterpriseIf you’re a contractor, business owner, or entrepreneur who wants to protect your family and your company, this conversation is worth your time.You can learn more about Michael at:www.legallifeplan.comOr reach out to him directly through Facebook Messenger.00:00 – Intro and meet Michael Glassford02:34 – Why estate law and business law go hand-in-hand04:13 – The biggest mistake business owners make08:25 – “It’s your life, it’s your story” philosophy10:16 – Estate planning as your shield (Star Trek analogy)14:00 – The 3 limiting beliefs about trusts16:05 – Wills vs Trusts: What most people don’t understand20:58 – How a trust actually works32:38 – LLC mistakes that can cost you everything48:38 – What makes a contract strong (and clear)56:02 – Final action steps for business ownersIf something unexpected happened tomorrow, would your business and family actually be protected — or are you hoping it all works out?

https://www.foundationacs.comHello Profit Hackerz,In this episode, we break down Days in Accounts Receivable — one of the most powerful cash flow metrics you can track.I explain how to calculate it, what it tells you about your collections, and why faster payments mean stronger cash flow.Getting paid quicker gives you more flexibility, less stress, and more control over your business.If cash flow ever feels tight, this number will tell you exactly why.00:00 Why cash flow matters02:30 Tom Petty concert story06:00 Getting paid faster explained09:20 What is Days in Accounts Receivable12:40 How to calculate your average AR15:30 Picking the winning number18:00 Turning ratios into days21:30 What good collections look like24:00 Improving your payment speedHow many days does it usually take you to get paid after invoicing?

https://www.foundationacs.comHello Profit Hackerz,This episode is all about the most important number in your business: gross profit margin.I explain what gross profit really is, how to calculate your margin, and why it tells you immediately whether your company is even viable.If your margin isn’t strong, no amount of growth will save you.We walk through simple examples, how gross profit affects your break-even point, and why increasing your margin makes everything easier — cash flow, hiring, and long-term growth.If you only track one number, make it this one.00:00 Why gross profit comes first02:40 High school story and prioritizing numbers06:10 What gross profit actually means09:30 Using margin to beat your break-even13:00 Simple travel analogy explained16:40 How to calculate gross profit margin19:30 Why higher margins equal faster growth22:10 When to revisit estimating24:30 Final thoughts on profitabilityDo you currently know your gross profit margin?

https://www.foundationacs.comHello Profit Hackerz,Today we start diving into business ratios and why they matter if you want to scale without going broke.I explain how to think about your financials like a competition — some numbers are the champions you want growing (revenue, gross profit, net profit), and others are the bad guys you want shrinking (overhead, liabilities, truck costs).We also introduce the three key ratios every contractor should understand:Gross Profit MarginDays in Accounts ReceivableDays in Accounts PayableThese numbers tell you exactly how healthy your business really is — and where things are slipping.This episode sets the foundation for the next few where we’ll break each one down step by step.00:00 Why most businesses fail while growing02:20 Wrestling camp story06:30 Champions vs bad guys on your financials10:00 What a ratio really means13:00 Picking which number should win16:30 The 3 key contractor ratios19:40 Why these ratios predict success22:00 What’s coming nextWhich of these numbers do you currently track in your business?

https://www.foundationacs.comHello Profit Hackerz,In this episode, I break down one of the biggest mistakes contractors make when trying to grow: hiring too early without understanding their numbers.I walk you through how to use your break-even point, gross profit margin, and “hill” (your overhead) to decide when it actually makes sense to add office staff, field techs, equipment, or software.Growing isn’t just about selling more. It’s about growing strategically so you don’t bury yourself in overhead and cash flow problems.If you’re thinking about hiring, expanding, or investing in new tools, this episode will help you slow down, run the numbers, and make smart moves instead of emotional ones.00:00 Intro: Scaling without going broke01:15 Childhood story and using your strengths05:30 Why most contractors grow the wrong way09:10 Understanding your “hill” and break-even12:30 How to calculate if you can afford office staff15:00 Hiring field techs vs admin staff18:10 Equipment, trucks, and estimating impact20:45 Matching production with sales23:10 Knowing when it’s truly time to grow25:40 Final advice on strategic hiringWhat’s the next hire or upgrade you’re considering in your business right now?

https://www.foundationacs.comHey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.In this episode, we continue the conversation on strategic scaling, and I walk through how to use a cost-benefit analysis to decide where to put your money — hires, equipment, subscriptions, systems, whatever it is. A lot of businesses grow into cash flow problems because they start hiring and buying without knowing if the growth can actually support it. So I share a personal story and then tie it directly into a simple, practical approach: make a two-column analysis that shows how cash flow changes if you do the thing, and how cash flow changes if you don’t — including opportunity cost. This is about scaling with clarity — not pressure, ego, or guesswork.00:00 – Why companies grow into cash flow problems 01:46 – Cost-benefit analysis: how to decide where money goes 07:01 – The story payoff and why the investment was worth it 07:28 – The two-column method for business decisions 08:31 – Start with added income and opportunity cost 09:19 – Next: how costs change on both sides of the equation 💬 What’s the next purchase or hire you’re considering — and have you run a true cash-flow impact analysis on it yet?

Hey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.In this episode, we talk about strategic scaling — and why so many contractors say, “I don’t want to grow, because when I grow, I make less money.” That’s not a growth problem — that’s a strategy problem. We break down the concept that you personally are capped by time — and if you don’t have the right systems, you’re stuck trying to squeeze more money out of the same limited hours. Then I walk you through a practical way to identify where work is stacking up in your business (production, invoicing, sales, estimating, etc.) so you know exactly what to fix first. If you want growth that actually increases profit, you have to find the bottleneck — and solve it on purpose.00:00 – Why scaling feels scary for contractors 01:07 – The “2,080 hours” limitation (your personal cap) 01:50 – Why hiring unlocks production and revenue (when done right) 09:31 – Look at every process and find where work piles up 10:16 – Wrap-up: focus your strategy where the slowdown is💬 If you had to pick ONE bottleneck in your business right now, what is it — production, estimating, sales, invoicing, or something else?

https://www.foundationacs.comHey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.Today we’re talking about the other side of cash flow: how money comes IN — and why you need a written Accounts Receivable and Cash Receipts Policy so your team knows exactly how invoicing, deposits, collections, and deposits to the bank are supposed to work. I walk through the key pieces to include: having solid contracts and clear terms, nailing down where invoices are created (job costing software vs accounting software), recording deposits properly, using change orders to stay in scope, and building a collections process that’s consistent — not random. When you write it down, it becomes repeatable. And when it’s repeatable, your cash flow stops depending on memory and starts depending on process.00:00 – Why an AR policy protects your cash coming in 01:32 – Why “make a list” matters (systems create momentum) 06:08 – Contracts & terms: the foundation of getting paid 09:18 – Progressive billing & where invoices should live 10:56 – Change orders: how contractors lose money fast 12:46 – Collections standards: reminders, schedule, and consistency 14:09 – Segregation of duties for receiving/depositing checks 15:21 – Audits & controls to keep reporting accurate 17:11 – Wrap-up: train your team and make it real 💬 Engagement Question: Do you have a written collections schedule, or are you mostly following up when things “feel overdue”?

https://www.foundationacs.comHey, Profit Hackers — I’m Jeremy Lott with Foundation Accounting and Consulting.In this episode, I’m walking through the Accounts Payable and Cash Disbursements Policy — the real-world rules that keep your payments organized, prevent costly mistakes, and protect your cash.If you don’t have a written system for how bills get entered, approved, paid, and tracked, you’re leaving your business exposed. We talk through practical safeguards like segregation of duties (so one person isn’t controlling the whole money flow), keeping clean records across your accounting and job costing tools, and building strong vendor relationships so you can negotiate better terms and protect your cash position. This one is about building structure so the cash going out of your company is controlled — not chaotic.00:00 – Why an AP policy matters00:59 – The key items your AP policy should cover 01:52 – The story that sets up why systems matter15:18 – Using liens to protect payment timing 17:51 – Segregation of duties (how to prevent money walking away) 19:12 – Record-keeping: QuickBooks + job costing software alignment 20:25 – Vendor relations: terms, pricing, and setting clear expectations 26:27 – Wrap-up and next steps💬What’s the weakest part of your bill-pay process right now — approvals, timing, record-keeping, or vendor communication?

https://www.foundationacs.comIn this episode of the Contractors Profit Hack Show, we dive deep into one of the most misunderstood topics in construction business: borrowing money.Special thanks to Dan Revisto for joining me on this episode and sharing his insights on borrowing, risk, and using capital as a strategic tool for growth.We talk about how to evaluate different types of loans, including revenue-based lending, why speed often matters more than interest rate, and how to think clearly about risk instead of reacting emotionally to debt. Not all capital is bad — when used correctly, it can be a powerful tool for growth.We also break down common misconceptions around HELOCs, personal guarantees, and separating business risk from personal assets. The goal isn’t to avoid borrowing at all costs — it’s to understand the full picture and make decisions that actually support your long-term goals.If you’ve ever felt stuck between needing capital and being afraid of the consequences, this conversation will help you reframe how you think about money, risk, and opportunity in your business.00:00 – Why borrowing money creates fear for contractors03:10 – Revenue-based loans explained simply07:45 – Why speed often matters more than interest rate12:30 – Understanding cash flow timing and payment cycles18:15 – Why borrowing too little can be more dangerous24:00 – The true cost of capital vs opportunity cost31:10 – HELOCs and the myth of “protecting” personal assets38:45 – Separating emotion from business decisions46:30 – Using debt as a strategic tool54:20 – Final thoughts on risk, growth, and mindsetHow do you currently evaluate whether a loan is worth taking in your business — by fear, by numbers, or somewhere in between?

🔗 https://www.foundationacs.comHey Profit Hackers! Today we’re continuing the AP conversation by talking about authorization, role clarity, and the “sandbox” concept.I share a story from my grandpa that illustrates the importance of giving people clear boundaries — what they’re responsible for, what they can authorize, and what is outside their sandbox. This mentality helps prevent errors, misuse, and confusion inside your business.We also explore how AP controls protect your cash, why every team member needs defined authority, and how to structure your processes so your business runs smoothly.00:00 – Intro: The sandbox story01:40 – Why authority must be clearly defined03:20 – AP controls that protect your cash05:55 – Assigning roles the smart way08:30 – The danger of unclear permission10:45 – How the sandbox method prevents mistakes13:20 – Building policies that keep your business safe15:40 – Final thoughts & next steps💬 Question: Who in your business needs clearer boundaries or responsibilities?

🔗 https://www.foundationacs.comHello Profit Hackers! In today’s episode, we’re talking about accounts payable, documentation, and why writing things down protects your business.I share a powerful story about Olympic wrestler Mark Schultz and how detailed journaling helped him improve faster than anyone around him. The same principle applies in contracting — when you write things down, you gain clarity, you make fewer mistakes, and you grow faster.We cover how to document AP properly, what to track, and how consistent notes help you build a stronger, more reliable company.00:00 – Intro: The Mark Schultz story01:25 – Why writing everything down matters03:00 – How documentation improves accuracy05:10 – Tracking AP step-by-step07:45 – Turning notes into better systems09:30 – When documentation prevents disaster11:45 – Wrap-up & action steps💬 Question: What’s one thing in your business you need to start writing down consistently?

🔗 https://www.foundationacs.comWelcome back, Profit Hackers! Today I’m sharing a story from my childhood — involving a wooden spoon — and how it shaped the way I think about motivation and efficiency in business.We talk about the difference between punishment and positive reinforcement, why your crews perform better when they’re encouraged instead of criticized, and how small incentives can dramatically improve job performance. This episode will shift the way you lead your people and help you build a culture where efficiency thrives.00:00 – Intro: The wooden spoon story01:10 – How negative reinforcement affects performance02:45 – Why positive reinforcement works better05:00 – Incentives that increase efficiency07:25 – Building a culture of encouragement09:45 – Helping your team win12:10 – Final thoughts & application💬 Question: What’s one positive incentive you could introduce to your team?

🔗 https://www.foundationacs.comHello Profit Hackers! I’m Jeremy Lott with Foundation Accounting and Consulting. Today we’re diving deeper into job costing and understanding why tracking your numbers is the key to building a profitable contracting business.I break down how to record your labor, materials, and subcontractor costs in real time, why percentages matter more than dollar amounts, and how job costing gives you a clear picture of your business’s health. This episode helps you simplify the process and gives you the confidence to review your numbers without feeling overwhelmed.If you want to build a business that pays you consistently and predictably, job costing is step one.00:00 – Intro: Why job costing matters00:42 – What your numbers should tell you01:15 – The danger of guessing your profit02:05 – Tracking numbers without overwhelm03:00 – Using percentages to understand job costs04:00 – Why reviewing numbers weekly creates clarity04:35 – Wrap-up & takeaways💬 Question: What number in your business do you want more clarity on?

🔗 https://www.foundationacs.comHey, Profit Hackers, it’s Jeremy Lott with Foundation Accounting and Consulting.In this episode, we’re talking about something that every contractor needs to master: how to plan for profit, not just hope for it.Jeremy breaks down the process of creating a Profit Plan that pays you what you’re worth while keeping your business strong and stable. He explains how to assign every dollar a purpose, how to build your salary into your overhead, and how to make sure you never feel like you’re working for free again.You’ll learn how to set targets, track your numbers, and plan your spending so you’re not just busy, you’re profitable. This is the mindset shift that transforms businesses from paycheck-to-paycheck to long-term success.00:00 – Intro: Profit isn’t what’s left over01:35 – Why most contractors never pay themselves properly04:20 – How to create a Profit Plan that actually works07:00 – The difference between paying yourself and taking draws09:25 – Building your salary into overhead12:10 – How to track profit consistently14:40 – The mindset shift that creates long-term success17:20 – Common money mistakes to avoid19:15 – Final thoughts: profit by design, not by accident💬 Question for you: What would change in your business if you guaranteed your own paycheck first every month?

🔗 https://www.foundationacs.comHey, Profit Hackers, Jeremy Lott here with Foundation Accounting and Consulting.In this episode, we’re breaking down overhead, what it really is, how to calculate it, and why most contractors underestimate it. Overhead isn’t just your rent or insurance. It’s every hidden cost that keeps your business running, and if you don’t track it properly, it can quietly eat away your profits.I’ll explain how to identify your true overhead percentage, how to separate direct and indirect costs, and how to adjust your bids so you’re covering everything without overcharging clients.By the end of this episode, you’ll know exactly how to make overhead work for you, not against you, and why understanding it is one of the most important steps toward running a truly profitable company.00:00 – Intro: What overhead really means for contractors01:25 – The hidden costs most owners miss04:00 – Breaking down direct vs. indirect costs06:40 – How to calculate your real overhead percentage09:15 – Why tracking overhead monthly matters11:40 – Using overhead data to improve bids14:10 – How to reduce unnecessary overhead expenses17:05 – The link between overhead and cash flow19:20 – Final thoughts: control your costs, control your profit💬 Question for you: What’s one overhead cost in your business that always surprises you?

🔗 https://www.foundationacs.comHello, Profit Hackers! I’m Jeremy Lott, Chief Visionary at Foundation Accounting and Consulting.In this episode, we’re digging into something that separates the good contractors from the great ones, knowing your numbers. It’s not just about your bank balance. It’s about understanding your true costs, your gross profit margin, and how much you really take home after the dust settles.I’ll walk you through how to track your financials like a pro, how to use your numbers to make smarter decisions, and how to stop letting your accountant be the only one who knows what’s going on.Whether you’re just getting started or already running multiple crews, this episode will give you the clarity and confidence you need to run your business by the numbers — not by gut feeling.00:00 – Intro: Why knowing your numbers matters more than you think01:45 – The difference between guessing and managing your money04:10 – What every contractor should know about gross profit margin07:05 – How to understand overhead without overcomplicating it09:30 – The power of tracking cost percentages12:15 – Turning financial data into better decisions14:45 – Common mistakes contractors make when reviewing numbers17:10 – How to simplify your numbers for your team19:25 – Wrap-up: clarity equals control💬 Question for you: What’s one number in your business you wish you understood better?

🔗 https://www.foundationacs.comWelcome back to The Contractors Profit Hack Show! In this episode, Jeremy Lott sits down with Blair from Inventa Wealth Advisors to unpack what real financial growth looks like from building a foundation to scaling into true wealth.Blair shares his journey from banking to financial advising, the lessons he learned along the way, and how intentional effort (even just 12 hours a year!) can completely transform your financial life.They cover how to invest smartly, how to prepare for life’s curveballs, and how to balance logic and emotion when managing money. If you’re ready to build wealth that supports your goals instead of running your life, this one’s packed with practical wisdom you’ll love.00:00 – Welcome to The Contractors Profit Hack Show03:40 – Blair’s background and transition from banking to finance10:45 – The emotional side of money and financial decision-making18:25 – Helping clients through divorce, death, and major life changes27:50 – The power of knowing your “HENRY” demographic35:00 – Why intentional effort beats reactionary investing45:15 – How to handle inheritance, uncertainty, and control what you can56:00 – From low-interest rates to smarter saving strategies1:10:30 – Building a financial roadmap that actually works1:18:30 – Alternative investments and growing past $1M1:27:45 – How to connect with Blair and next stepsWhat’s one small financial habit you could commit to this year to move closer to your goals? Drop it in the comments, we’d love to hear your thoughts!

Website: https://foundationaccounting.comHello, Profit Hackers! I’m Jeremy Lott, Chief Visionary for Foundation Accounting and Consulting. In this episode of the Contractor Profit Hackz Show, we wrap up our four-step budgeting process.We cover the final step: figuring out your selling general and admin expenses, handling recurring vs. non-recurring costs, and tying everything back to your net profit goal. By the end of this episode, you’ll know how to create a complete contractor budget that supports your why and helps you reach your financial goals.If you found this episode helpful, please like and subscribe for weekly episodes to help you fuel your profit, level up your cash flow, and finance your growth.Timestamps (copy-paste ready):00:00 – Introduction: Hello, Profit Hackers!01:10 – Purpose of the episode: Final portion of budgeting02:05 – Story from college wrestling and lessons in consistency04:30 – How consistency applies to selling general & admin expenses06:15 – Listing categories for recurring payments08:00 – Handling non-recurring costs in your budget10:00 – Reconciling historical numbers with monthly budget12:15 – Calculating gross profit and net profit13:40 – Example: $200,000 net profit goal15:00 – Wrapping up: How to use these steps for your own budget16:00 – Outro & final tips

https://www.foundationacs.com/Hey Profit Hackers, Jeremy Lott here — Chief Visionary of Foundation Accounting and Consulting. In this episode of *The Contractors Profit Hack Show*, we continue our deep dive into budgeting. I share a story about a family prank war and tie it to Stephen Covey’s lesson about picking up the stick — every action has consequences. From there, I break down **direct vs. indirect costs**, how to allocate materials, labor, and overhead, and how to reverse engineer your revenue to reach your profit goals. If you want to take control of your budget and focus on **profit over revenue**, this episode will give you a clear framework to follow. ⏱️ Timestamps: 00:00 – Intro to The Contractors Profit Hack Show 00:40 – Continuing the budget conversation 01:15 – Story: Daughter’s prank war & Covey’s stick lesson 03:10 – How consequences in business mirror costs 04:20 – Direct costs explained (materials, labor, subcontractors, permits, dump fees) 07:10 – Indirect costs/overhead explained (gas, recurring expenses, insurance) 09:00 – Allocating percentages of revenue to costs (30% labor, 30% materials, 10% overhead) 11:30 – Breaking down overhead: specific vs non-specific recurring costs 13:50 – Putting it all together in a monthly budget 16:20 – Example revenue allocation and final budget calculation 18:40 – Key takeaway: focus on net profit, track costs carefully

https://www.foundationacs.comIn this special episode of the Contractor's Profit Hack Show, Jeremy Lott, Chief Visionary for Foundation Accounting and Consulting, interviews Rob Hutton. They discuss strategies for simplifying accounting for construction company owners, enhancing profits, and improving cash flow management. Rob shares his diverse career journey and how his background in diplomacy and nonprofit work eventually led him to financial advising. They address the importance of financial planning, the emotional aspects tied to money, and the significance of managing cash flow effectively. The conversation covers the impact of inflation, investment diversification, and the necessity of proper tax planning and retirement preparation. Rob emphasizes the need to align one's financial strategies with personal risk profiles and market conditions, offering insights into various investment options that provide consistent cash flow. The episode concludes with practical advice on engaging with financial advisors and developing sound financial practices.00:00 Introduction and Background00:32 Special Episode: First Interview02:02 Meet Rob Hutton: From Diplomacy to Financial Advising05:46 The Importance of Financial Mindset09:14 Generational Financial Lessons17:36 Managing Cash Flow in Business41:24 Introduction to Investing Categories42:30 Diversification and Retirement43:42 Physical Toll on Tradespeople45:01 Importance of Diversification47:54 Inflation and Cash Flow50:04 Cash Holdings and Inflation58:45 Investment Options for Cash Flow01:06:42 Wealth Distribution and Business Investments01:16:12 Final Thoughts and Advice

https://www.foundationacs.com/Hey Profit Hackers, Jeremy Lott here — Chief Visionary of Foundation Accounting and Consulting. In this episode of The Contractors Profit Hack Show, I share a story about coaching my younger brother Eric in wrestling — and how focus (or the lack of it) can change everything. From there, I connect it to your business and budgeting: why revenue isn’t the number to obsess over, and why net profit is the true key to hitting your goals. I’ll walk you through how to reverse engineer your revenue using your WHY, fixed expenses, and gross profit margin — so you know exactly how much your business needs to bring in to hit your financial targets. 👉 If this episode helps clarify your numbers, don’t forget to like, subscribe, and share it with a contractor who needs a better plan for their profits. ⏱️ Timestamps: 00:00 – Intro to The Contractors Profit Hack Show 00:30 – Picking up from last episode (finding your WHY) 01:20 – Story: Coaching my brother Eric in wrestling 04:10 – The problem with focusing on the wrong things 05:00 – Why revenue doesn’t matter as much as profit 06:15 – How to assign a value to your WHY 07:40 – Reverse engineering revenue from profit goals 09:15 – Understanding gross profit margin in budgeting 11:00 – The “hill” analogy for fixed costs + profit 13:00 – Using simple math to calculate revenue needs 15:20 – Break-even revenue explained 17:10 – Dividing revenue targets across active months 18:30 – Key takeaway: focus on net profit, not just revenue

https://www.foundationacs.com/https://www.bluecollarconnect.com/In this episode of the Contractor's Profit Hacks Show, I am thrilled to welcome Joe Mikitish and Mark Hansen from Blue Collar Connect. We dive deep into Joe's entrepreneurial journey and how Blue Collar Connect is pioneering a unique masterminding and networking platform exclusively for blue-collar businesses. Joe shares his extensive experience from running multiple businesses to forming Blue Collar Connect, and Mark discusses his rich family history in the electrical contracting industry. We explore their innovative strategies for business growth, customer acquisition, team building, and wealth creation. Our guests reveal successful tactics that have significantly impacted their members in a very short period. We discuss the challenges blue-collar businesses face and how their model flips the narrative, bringing value and respect back to these industries. If you're a blue-collar business owner looking for transformative ways to grow your business and achieve financial freedom, this episode is a must-listen.00:00 Introduction to the Contractor's Profit Hacks Show00:30 Meet the Guests: Joe Mikitish and Mark Hansen01:26 Joe's Journey: From Tech to Landscaping and Beyond04:05 The Birth of Blue Collar Connect06:41 Mark's Background: From Electrical Contracting to Real Estate11:45 Challenges and Successes in Blue Collar Connect14:59 Transforming Blue Collar Businesses30:25 The Importance of Hiring the Right Team37:46 Teaching Cash Flow Strategies38:03 Implementing Payment Plans38:37 Phases of Wealth Building38:45 Acquiring Other Businesses39:23 Private Equity Insights45:18 Teaching Financial Freedom48:31 Success Stories and Testimonials01:03:34 The Value of Quality Service01:09:02 Joining Blue Collar Connect01:10:19 Conclusion and Next Steps

https://www.foundationacs.com/In this episode of The Contractor Profit Hackz Show, I share a funny story from my eighth grade days with a hypnotist — and how it taught me the power of focus. From there, I connect it to your business: what you choose to focus on (your WHY) is the key to building a budget that actually works. You’ll learn about the “Five Whys” method I use with clients, and how it helps you drill down to what really matters in your business — whether that’s freedom, family, or financial security. 👉 If this episode resonates with you, don’t forget to like, subscribe, and share it with a fellow contractor who needs a little profit hacking in their life. 00:00 – Intro to The Contractors Profit Hack Show 00:30 – Why I left construction for accounting 01:10 – Story: the hypnotist and the power of focus 04:20 – How focus applies to your business 05:10 – Budgeting differently at Foundation Accounting 06:05 – Discovering your WHY 07:20 – The “Five Whys” method explained 09:40 – How your WHY drives motivation and results 11:00 – Wrap-up: Go find your WHY 11:45 – Closing thoughts & next steps

https://www.foundationacs.comIn this episode I discuss effective bill pay strategies specifically designed for construction company owners. Drawing from my own experiences, including a memorable high school wrestling match, I emphasize the importance of changing old habits and adopting a strategy that aligns bill payments with incoming cash flow, prioritizing critical expenses and profit allocation. By communicating with vendors and using profits to manage old debts, we can ensure ongoing cash flow stability and business sustainability. Tune in to learn more about protecting your cash flow and making financially responsible decisions.00:00 Introduction to Jeremy Lott and His Mission00:24 Welcome Back to Contractor's Profit Hacks Show00:31 Bill Pay Strategy: Common Concerns01:21 A Wrestling Story with a Lesson08:22 Implementing the New Bill Pay Strategy11:42 Final Thoughts and Encouragement12:02 Closing Remarks and Call to Action

https://www.foundationacs.comJeremy Lott, Chief Visionary of Foundation Accounting and Consulting, shares strategies for improving cash flow and implementing an effective bill pay strategy specifically for construction company owners. Drawing from his personal experience, Jeremy discusses analyzing bills, prioritizing payments, and focusing on cash flow over debt. He explains how using accounts, lines of credit, and credit cards can extend cash flow. Jeremy emphasizes the importance of maintaining mechanic's lien rights to ensure payment and protect cash flow, offering insights on best practices and the benefits of these financial tools. This episode includes practical tips and personal anecdotes to help construction businesses grow responsibly and profitably.00:00 Introduction and Personal Background00:35 Developing a Bill Pay Strategy02:01 The Importance of Using Tools07:01 Accounts and Cash Flow Management12:07 Mechanic's Lien Rights18:49 Conclusion and Final Thoughts

https://www.foundationacs.comIn this episode of the Contractor's Profit Hack Show, Jeremy Lott discusses the importance of shifting the mindset surrounding debt, especially for construction company owners. He shares personal stories from his landscaping days, illustrating the crucial lesson of prioritizing customer needs. Jeremy emphasizes the outdated pension mentality on debt and argues for viewing debt as a tool to enhance cash flow. He critiques traditional financial advice, specifically from figures like Dave Ramsey, and explains why focusing on cash flow rather than the amount of interest paid is essential for modern business growth. The episode culminates in practical bill pay strategies and a teaser for the next episode on protecting your financial strategies.00:00 Introduction and Background01:06 The Big Landscaping Project03:22 Lessons Learned in Business04:21 Understanding Debt and Financial Mindsets08:13 Reevaluating Debt in Modern Business11:08 Practical Debt Management Strategies14:16 Conclusion and Next Steps

https://www.foundationacs.comIn this episode of the Contractor's Profit Hack Show, Jeremy Lott shares insights on creating an effective bill pay strategy by emphasizing the importance of prioritizing expenses to ensure business survival. He shares a personal story about his wrestling career and sacrifice for his faith to underscore the importance of prioritizing what truly matters. Jeremy advises business owners to always prioritize paying themselves and critical operational costs first, rather than focusing on the loudest or oldest bills. He emphasizes the significance of keeping the business alive by paying labor, materials, and overhead costs related to specific jobs before attending to secondary expenses like office rent and utilities. Listeners are encouraged to combine these strategies with previous episodes' advice to develop a robust bill pay strategy and protect their financial health. Jeremy concludes by hinting at next week's topic on managing debt.00:00 Introduction to the Contractor's Profit Hack Show00:24 Bill Pay Strategy and Prioritization00:43 Personal Story: Wrestling and Priorities06:50 Applying Priorities to Business08:48 Practical Bill Pay Tips12:52 Conclusion and Next Steps

https://www.foundationacs.com/In this episode of the Contractor's Profit Hack Show, Jeremy Lott discusses the importance of having a strategic approach to paying bills for construction companies. Drawing from a personal anecdote about a rockhounding expedition that led to a lesson in priorities, Jeremy emphasizes understanding the repercussions of not paying specific bills. He explains how to prioritize payments to ensure business survival, focusing on the criticality of paying labor and suppliers over banks. This is the first step in a comprehensive bill pay strategy, with more details to follow in the next episode.00:00 Introduction and Background00:24 Welcome Back to the Contractor's Profit Hack Show00:54 The Importance of a Bill Payment Strategy01:40 Rockhounding Adventure: A Lesson in Prioritization08:28 Applying the Lesson to Bill Payments12:16 Conclusion and Next Steps

https://www.foundationacs.comWelcome back to the Contractor's Profit Hacks Show with Jeremy Lott. In this episode I share an important personal story about my wrestling journey to highlight the excitement and satisfaction of reaching milestones. I then dive into the final step of the Profit First methodology: celebration. You've adjusted your mindset, set up multiple bank accounts, allocated your percentages, and disciplined yourself to follow the plan. Now it's time to celebrate! By setting aside money for celebration once a quarter, you can make the process rewarding and fun, keeping you motivated and making saving worthwhile. Whether it’s a small treat like dinner or a larger goal like a vacation, celebrating your profits is essential. I recommend reading 'Profit First' by Mike Michalowicz for more insights. Thank you for tuning in, and we'll see you next time!00:00 Introduction and Welcome00:43 A Personal Story of Triumph03:58 Steps to Implement Profit First04:50 The Importance of Celebration07:01 Recap and Final Thoughts

https://www.foundationacs.comWelcome back to the Contractor's Profit Hacks! I'm Jeremy Lott, and today we're diving deeper into the Profit First system. Building on previous discussions about mindset, Parkinson's law, and setting up various bank accounts with designated percentages, today's focus is on the essential discipline required to manage these accounts effectively. Using a personal story of rafting mishaps to illustrate the importance of adherence to rules, I emphasize the need for disciplined financial management. Follow Profit First by regularly transferring funds from your income account to specific accounts for profit, taxes, payroll, and operating expenses. Resist the temptation to dip into your profit account for other expenses. For added security, consider setting up a separate savings account at another bank for your profit funds. Stay disciplined and come back next episode for the final and best step in the Profit First series.00:00 Introduction to Contractor's Profit Hacks00:58 The Importance of Discipline in Profit First04:53 Implementing Profit First: Practical Steps08:05 Final Thoughts and Next Steps

https://www.foundationacs.comIn this episode of the Contractors Profit Hacks Show I discuss actionable techniques to implement the Profit First method. I share a personal story about my childhood that illustrates the importance of fair division of tasks. I outline the first step of implementing Profit First, which involves setting up separate bank accounts for different expenses, such as income, profit, direct costs, overhead, and taxes. I emphasize the importance of assigning a purpose to each dollar by calculating the percentage of revenue each account will hold. By following these steps, contractors can organize their finances and prepare for further steps in the Profit First journey.00:00 Introduction to Profit First00:58 Childhood Story and Lessons on Responsibility03:25 Dividing Finances: The Envelope Method04:44 Setting Up Your Profit First Bank Accounts07:24 Allocating Percentages to Each Account09:34 Conclusion and Next Steps

https://www.foundationacs.comIn this episode of the Contractor's Profit Hacks Show we dive into the Profit First system, developed by Mike Michalowicz, aimed at helping contractors and entrepreneurs pay themselves appropriately by reshaping financial mindsets. We explore Parkinson's Law and how it affects resource allocation, particularly with time and money. By shifting the traditional profit equation to prioritize setting aside profit first, contractors can ensure they are paid fairly. A mindset change, akin to introducing magic into one's life, is essential for this financial restructuring. Tune in as we set the stage for implementing Profit First in future episodes.00:00 Introduction to Profit First01:54 Understanding the Profit First Mindset04:38 The Concept of Parkinson's Law06:31 Revising the Profit Equation09:12 Implementing Profit First09:39 Overcoming Common Concerns12:23 Conclusion and Next Steps

https://www.foundationacs.comIn this episode of the Contractors Profit Hacks Show I dive into the importance of cash flow projections for improving business cash flow. I share a personal story from my soccer coaching days to illustrate the importance of making strategic adjustments. I then provide a step-by-step guide on creating a cash flow projection spreadsheet, detailing how to list direct costs, overhead, and other expenses against projected cash inflows. By following this approach, contractors can foresee potential cash flow issues and plan accordingly to ensure consistent cash in the bank. The episode emphasizes the strategy of cash flow projections as a crucial tool for real-time business planning and adjustment.00:00 Introduction and Welcome00:38 Understanding Cash Flow Projections01:06 A Soccer Story: Learning from Losses03:36 Steps to Create a Cash Flow Projection03:55 Detailed Breakdown of Cash Flow Projection09:18 Final Thoughts and Conclusion

https://www.foundationacs.comIn this episode, Jeremy from Foundation Accounting and Consulting wraps up the series on job bidding and estimating. We've previously covered the bidding process, cost determination, and markup. Today, we discuss the importance of market comparison, emphasizing the need to know how you fit into your industry. Jeremy shares a nostalgic story about childhood antics to highlight the concept of fitting in. He explains how to determine your price per unit and why it's crucial for assessing your market position and competition. Finally, Jeremy advises not to shy away from adding a 'pet tax' for particularly demanding clients to ensure the job remains worthwhile.00:00 Welcome to Contractors Profit Hacks Show00:44 Recap of Previous Steps in Bidding Process01:07 The Importance of Market Comparison05:22 Understanding Per Unit Pricing10:10 Final Steps and Key Takeaways10:42 The Pain in the A Tax11:19 Conclusion and Farewell

https://www.foundationacs.comIn this episode of the Contractor's Profit Hack Show, Jeremy from Foundation Accounting and Consulting delves into the topic of markup. He explains the four steps in the bidding and estimating process: bidding a process, calculating costs, adding markup, and comparing to market. Through simple analogies, Jeremy clarifies the often-confused concepts of markup and margin. He provides practical tips on how percentages translate into actual profit margins and how to use benchmarks for ensuring profitable bids. Lastly, Jeremy emphasizes the importance of not pricing below cost and offers a flexible approach to applying markup, either as a percentage or a fixed dollar amount.00:00 Introduction and Overview00:53 Understanding the Bidding Process02:22 The Concept of Markup vs. Margin03:01 Visualizing Markup with Blocks05:21 Calculating Profit Margins08:07 Quick Cheats for Markup and Margin12:09 Final Tips on Markup13:23 Conclusion and Next Steps

https://www.foundationacs.com⁠In this episode of the Contractors Profit Hack Show, Jeremy Lott from Foundation Accounting and Consulting elaborates on the process of bidding a job. He covers how to allocate overhead costs such as insurance, cell phones, and vehicle expenses across multiple jobs to ensure accurate pricing. Using a personal anecdote, Jeremy explains the importance of spreading out costs evenly. He provides a detailed method to connect indirect costs to direct costs like labor, materials, and subcontractors. This ensures each job covers a fair portion of the overhead, resulting in more accurate bids and better profit margins.00:00 Introduction to Bidding01:02 Understanding Direct and Indirect Costs04:54 Allocating Overhead Costs06:33 Calculating Allocation Rates12:15 Applying Allocation Rates to Bids14:35 Conclusion and Next Steps

https://www.foundationacs.comIn this episode of the Contractors Profit Hack Show, Jeremy Lott from Foundation Accounting and Consulting continues discussing the four essential steps of the bidding process, focusing on determining costs. He shares a story from his scouting days to illustrate the importance of knowing costs ahead of time. Jeremy explains how to identify direct and indirect costs associated with each step of a project, such as materials, labor, and overheads. This insight helps ensure all costs are accounted for when preparing bids. Join us next time as we delve deeper into incorporating overheads in our pricing.00:00 Introduction to the Contractors Profit Hack Show00:39 Overview of the Bidding Process00:51 Determining the Costs: Step Two01:13 Scouting Story: Understanding Costs06:20 Applying Cost Analysis to Bidding09:26 Conclusion and Next Steps

https://www.foundationacs.comIn this episode of the Contractors Profit Hack Show, host Jeremy Lott from Foundation Accounting and Consulting delves into the first crucial step of the bidding process: creating a detailed process. Jeremy shares personal experiences, including his discovery of being autistic, and how he developed coping mechanisms to succeed in business. He emphasizes the importance of breaking down tasks into minute steps and documenting each part of the process to ensure nothing is overlooked. By meticulously outlining the steps from winning a job to completing it, contractors can better estimate their costs and improve their bidding accuracy.00:00 Introduction and Overview01:06 Personal Story and Challenges03:24 Importance of Processes06:15 Detailed Process Example08:58 Conclusion and Next Steps

https://www.foundationacs.comIn this episode, we discuss the importance of questioning established processes by sharing a story about a woman who followed a cooking method without understanding its original context. We then apply this lesson to business, specifically focusing on the bidding and estimating process in contracting. We highlight the common practice of bidding per unit (e.g., per square foot), and explain why this might not be the most effective approach. Instead, we propose a four-step method: 1) bid a process, 2) know all your costs, 3) add a markup, and 4) compare it to the market. This new approach ensures all costs are covered, profit is known, and adjustments can be made as needed. Future episodes will delve into each step in more detail.00:00 Introduction to Processes00:32 The Ham Story: Questioning Traditions02:45 Bidding and Estimating in Business03:35 Challenges with Per Unit Bidding06:11 A Better Bidding Process07:25 Four Steps to Effective Bidding09:34 Conclusion and Future Episodes

https://www.foundationacs.com/Welcome back to the Contractor Profit Hacks podcast! In this episode, we synthesize everything discussed so far to achieve our ultimate goal: putting money in your pocket. Drawing from my 15 years as a contractor and my wrestling experiences, I emphasize the importance of adopting a lifestyle and mentality to succeed. We dive into how to set and achieve profit goals by understanding gross profit margins and calculating revenue targets. I also explain how to make informed business decisions about hiring, purchasing equipment, and growing your company. Tune in to learn how to apply these strategies and ensure your business thrives. Stay tuned for our next episode where we'll discuss optimizing our bidding process to take control of our gross profit margins.00:00 Introduction and Exciting Announcement00:49 The Contractor Lifestyle02:22 Lessons from Wrestling08:29 Applying Wrestling Strategies to Business09:50 Understanding Gross Profit Margin12:54 Using Gross Profit Margin for Business Decisions14:27 Conclusion and Next Steps

https://www.foundationacs.com/Welcome back, Profit Hackers! In today's episode, I explain why I refer to your business costs as a 'hill'. We delve into how on-the-truck costs and other expenses behave as your revenue doubles and the significance of maintaining an abundance mindset. We'll touch on Generally Accepted Accounting Principles (GAAP) and how they define the structure of your financial statements. Additionally, I discuss the concept of out-of-the-box thinking to better understand your true financial obligations, including loans, credit card debt, and overdue accounts payable. Our goal is to give you a clearer picture of what needs to be covered before reaching the 'valley of profit'. Next time, we'll use this understanding to determine your break-even point and plan for future growth. Stay tuned!00:00 Introduction to the Hill Concept01:54 Understanding the Hill and Its Components03:17 Out of the Box Thinking: Abundance Mentality05:32 Applying Out of the Box Thinking to GAP Principles07:46 Incorporating Balance Sheet Items into the Hill13:10 Defining the Total Hill13:25 Conclusion and Next Steps

https://www.foundationacs.com/In this episode, I talk about the crucial role of selling, general, and admin expenses in accounting, using a high school football story as an analogy. I describe how making quick reads in football and accounting are key to success. We explore various categories of these expenses, such as sales, marketing, and office costs, and how they create the foundation for running a successful company. Stay tuned for more insights on how these elements contribute to profitability in future episodes.00:00 Introduction and Today's Topic00:44 A High School Football Story05:15 Connecting Football to Accounting07:40 Understanding Selling, General, and Admin Expenses10:18 Conclusion and Next Steps