TCF834: Contractor Business Math: How to Calculate Your Breakeven Point

Many contractors think their breakeven point is simply their monthly overhead amount, but that is incorrect. Continuing the basics of the contractor business math series, Tom discusses how to correctly calculate your breakeven point as a contractor to avoid financial struggles.    In this episode, Tom discusses: How to calculate the breakeven point Difference between breakeven point and overhead costs Examples to show the difference in breakeven revenue at 30%, 40%, and 50% gross profits How gross profit impacts the number of jobs and leads needed each month to reach breakeven The importance of knowing your numbers  Resources: 💰 You didn’t become a contractor to struggle financially. Download our worksheet and start calculating a 50% gross profit on every job. It’s time to get your shit together! https://thecontractorfight.com/50/  💸 Grab your copy of our FREE Contractors Guide to Spotting Cheap Prospects here: https://thecontractorfight.com/cheap  == Join us in BATTLEGROUND == Everything your contracting business needs in one comprehensive program with three main focus areas: Leadership, Communication, and Numbers. For more info, check out: https://TheContractorFight.com/Battleground  == Get your questions answered and connect with other contractors building stronger businesses in The Contractor Fight: https://thecontractorfight.com/facebook  == Grab the Gear == https://gear.thecontractorfight.com/  == Find Us on Social Media == YouTube: https://www.youtube.com/c/TomReber  Instagram: https://thecontractorfight.com/ig  == Rate the Podcast == Help your fellow contractors find the podcast! Please leave a rating/review!  Apple Podcasts   Spotify