“Revenue Hides Mistakes. Gross Profit Exposes Them.”

Top line growth feels good. Revenue (R)

It also lies.

Revenue can grow while Gross Profit can erode.

If labour, materials and real install time are not allocated properly, you don’t know what you are earning.

A $20k job is meaningless if you cannot state the gross profit with confidence.

When businesses shift from revenue thinking to gross profit thinking, things get clear real quick.

Some “mean as” jobs are not mean as at all.

This week, calculate your average gross profit per job.

Not revenue.

Gross profit.

Strong businesses protect margin before they chase scale.
(Bonus tip:  If you’re service based, throw labour into COGS you’ll get a more valuable view of Gross Profit)