The One About Finding the Profit Leaks in Your Business with Ben Hansen | Ep. 26
In this episode of The Blue Collar Trades Show, Troy Latuff, Chad and Jim sit down with Ben Hansen, known as the Profit Doctor, to talk about what really drives profitability in a blue collar business.
Ben shares practical insights on identifying and patching profit leaks, understanding the numbers behind your business, tracking project profitability, and making smarter decisions about the customers, projects, and markets you pursue.
Troy, Chad, Jim and Ben also dig into common misconceptions about profit margins in the trades, the impact of owner compensation on the numbers, and why generating more revenue doesn’t always mean making more money.
Chapters
00:00 Introduction to the Profit Doctor and his background 04:07 The importance of understanding profitability in blue-collar trades 06:07 The three buckets of profitability: top, middle, and bottom thirds 08:03 Debunking profit margin myths in construction and the trades 09:59 Average net profitability in trades businesses and industry benchmarks 11:55 The importance of accurate financial data and accounting methods 14:56 Common profit leaks and how to patch them 17:59 The impact of owner compensation on perceived profitability 21:12 Customer selection and its effect on business profitability 23:51 Strategies for improving profit through leak detection and patching 27:00 Project and customer selection as key profit drivers 29:53 The importance of choosing the right projects and markets 34:06 How to evaluate project profitability and avoid costly mistakes 37:00 The significance of project selection and its impact on the bottom line 37:56 Final thoughts on improving profitability in trades businesses
Connect with Ben Hansen Website: https://profitdoctor.com/ LinkedIn: https://www.linkedin.com/in/benhansen/
Follow The Blue Collar Trades Show Website: https://thebluecollarrecruiter.com/ LinkedIn: https://www.linkedin.com/company/the-blue-collar-recruiter-virtual-trade-school/